SolGold PLC (LON:SOLG) chief executive Nick Mather said a new mineral resource estimate (MRE) for its Alpala copper-gold asset in northern Ecuador could have a material impact on the scale of the project.
“Initial results of internal modelling updates at the Alpala Deposit suggest that an MRE update planned for release in December could deliver significant resource growth, and the conversion of a large amount of tonnage into the Indicated category,” investors were told.
“We expect the MRE update to validate a far more robust high-grade core, and an additional, (much shallower) second high-grade western lobe extension to the high-grade core.”
His comments accompanied a drilling update. One of the holes returned visible gold, while another contained bornite mineralisation. Also known as peacock ore, bornite is a copper-rich material.
SoldGold updated on three holes that respectively delivered 869 metres of mineralisation at 0.72% copper, 938 metres averaging 1.08% and 634 metres at 1.25%. Each had higher-grade hotspots up to 2.46% of the red metal.
The maiden resource for Alpala, compiled earlier this year, came in at 5.2mln tonnes of copper in the indicated and inferred categories along with 12mln ounces of gold (also indicated and inferred).
“The company continues to press its first-mover advantage in Ecuador,” said CEO Mather.
“Its wider exploration efforts beyond Cascabel, that have only just scratched the surface, have yielded several very encouraging porphyry and epithermal targets, which we believe places Ecuador at the forefront of prospectivity."