SolGold PLC - Clarification to Technical Disclosure
Clarification to Technical Disclosure and Intention to Amend Technical Report
The Board of
Regarding the documents:
· Technical Report titled "Cascabel Property NI 43-101 Technical Report, Alpala Mineral Resource Estimation,
· Technical Report titled "
OSC staff have concluded that MRE#3 does not comply with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) and the requirements of Form 43-101F1 Technical Report (Form 43-101F1). The basis for the default relates to the Technical Report not containing information for each of the content items required by Form 43-101F1 in order to support the Company's continued disclosure of the results of the 2019 PEA and the stage of development of the
OSC staff highlighted to
"As a result of the completion of MRE#3 and the impending release of the NI 43-101 technical report, the PEA will be effectively superseded by the MRE#3 technical report as the current technical report on the
The following points (listed in MRE#3) highlight differences in the underlying assumptions between MRE#3 and the Resource Estimate used in the PEA (MRE#2):
· 83,650 m of drilling have been added between the two estimates, bringing the drill meters informing the estimate from 133,576 m in MRE#2 to 217,226 m for MRE#3. This has materially increased the amount of information supporting the MRE#3 by 63%.
· The lithology and grade wireframes have been updated using new drill hole information and revised structural trend surfaces. During this revision in the current MRE, more attention has been paid to ensuring that the grade wireframes are well-supported by geological information, including b-vein percentages and local structural trends. This has resulted in significant changes in the geological interpretation in terms of geometry and volume of the wireframes compared to the previous estimate.
· The estimation domain definitions, variographic, search and estimation parameters have all been updated based on a more detailed understanding of the deposit, the revised geological interpretation, and the new drill hole information. All these changes to the estimation process may have produced materially different estimated grades and tonnages.
· The CuEq formula has changed based on up to date third party metal price research. It is currently Cu% + (Au g/t * 0.613), whereas previously it was Cu% + (Au g/t * 0.63). This has effectively reduced the MRE#3 CuEq grade relative to MRE#2 by approximately 3%,
· The "Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines" (CIM, 2019), referenced in NI 43-101, have been updated between the two estimates in
o The current Mineral Resource classification has been based on a quantitative drill hole spacing method that is referenced in CIM (2019), whereas previously, a subjective classification method has been used
o The current Mineral Resource statement has been constrained by an optimized shape to ensure the criteria for reasonable prospects for eventual economic extraction have been met in accordance with NI 43-101 and CIM (2019).
The combined effect of these underlying assumptions result in a material difference between MRE#2 and MRE#3. As MRE#2 forms the basis of the PEA results, the sections of the PEA report pertaining to
By order of the Board
Information in this report relating to technical disclosure is based on data reviewed by Mr
Information in this report relating to the Mineral Resource Estimate was reviewed by Mrs Cecilia Artica MSc and Dr
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About Cascabel and Alpala
The Alpala deposit is the main target in the Cascabel concession, located on the northern section of the heavily endowed Andean Copper Belt, the entirety of which is renowned as the base for nearly half of the world's copper production. The project area hosts mineralisation of Eocene age, the same age as numerous Tier 1 deposits along the Andean Copper Belt in
Having fulfilled its earn-in requirements,
Advancing Alpala towards development
The resource at the Alpala deposit contains a high-grade core which will be targeted to facilitate early cashflows and an accelerated payback of initial capital.
The Company wholly owns four other subsidiaries active throughout the country that are now focussed on thirteen high priority gold and copper resource targets, several of which the Company believes have the potential, subject to resource definition and feasibility, to be developed in close succession or even on a more accelerated basis compared to Alpala.
Quality Assurance / Quality Control on Sample Collection, Security and Assaying
Primary sample collection involves secure transport from
Samples are prepared and analysed using 100g 4-Acid digest ICP with MS finish for 48 elements on a 0.25g aliquot (ME-MS61). Laboratory performance is routinely monitored using umpire assays, check batches and inter-laboratory comparisons between ALS certified laboratory in
In order to monitor the ongoing quality of its analytical database,
Reviews of the sample preparation, chain of custody, data security procedures and assaying methods used by
See www.solgold.com.au for more information. Follow us on twitter @SolGold plc
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Accordingly, the reader should not rely on any interpretations or forward-looking statements; and save as required by the exchange rules of the TSX and LSE or by applicable laws, the Company does not accept any obligation to disseminate any updates or revisions to such interpretations or forward-looking statements. The Company may reinterpret results to date as the status of its assets and projects changes with time expenditure, metals prices and other affecting circumstances.
This release may contain "forward‑looking information" within the meaning of applicable Canadian securities legislation. Forward‑looking information includes, but is not limited to, statements regarding the Company's plans for developing its properties. Generally, forward‑looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward‑looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward‑looking information, including but not limited to: transaction risks; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward‑looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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