TIDMSOLG
RNS Number : 3307I
SolGold PLC
24 July 2012
24 July 2012
SolGold Plc
("SolGold" or the "Company")
Definitive option agreement signed with Cornerstone with $2.8
million first year exploration program agreed for the Cascabel
gold-copper-silver property, Ecuador.
SolGold Plc ("SolGold") (AIM code: SOLG) and Cornerstone Capital
Resources Inc. ("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN)
(OTC-CTNXF) announce that they have signed a definitive option
agreement finalizing the terms of an option/joint venture
arrangement for Cornerstone's 100% owned 5,000 hectare Cascabel
gold-copper-silver property in northern Ecuador and replacing their
letter of intent announced on April 10, 2012.
The Cascabel property is located in the same belt, and
approximately 70km to the north, of the Junin porphyry copper
deposit (982Mt @ 0.89% copper), and in the same belt and 550km
south of the giant La Colosa gold porphyry system (24Mozs gold in
resources).
Solomon Gold may acquire up to 85% of the Cascabel project
through an earn-in for an initial 65% interest in the Cascabel
property by making a series of private placements in Cornerstone
totaling CAD$850,000, and spending US$7.8 million on exploration
over 4 years (including US$800,000 in the first year if drilling
commences), and an additional 20%, (taking its interest to 85%) by
funding further work towards completion of a bankable feasibility
study, capped at an expenditure by SolGold of US$20 million.
Exploration Program
SolGold and Cornerstone have agreed to an aggressive first year
exploration program totalling US$2.8M (covering the period May 2012
through April 2013). This staged program includes 1:25,000 scale
reconnaissance geological mapping, prospecting, stream sediment and
rock sampling, and an airborne magnetic and radiometric survey
which will cover the entire property. Detailed exploration will
follow over the most prospective areas. Identified targets will be
prioritized for drill testing in late 2012, pending receipt of
requisite permits. An Environmental Impact Study required for
advanced stage exploration (drilling) will be carried out later
this year and a community relations program is currently being
implemented.
Exploration activities commenced in May 2012. SolGold will
update shareholders on the progress of the exploration programme as
results are delivered and compiled.
Commenting, Malcolm Norris, Chief Executive Officer of SolGold
said: "Our move into Ecuador, with an outstanding copper-gold
project, and a very reputable partner such as Cornerstone, is
exciting and we are confident will deliver success. We will move
towards drilling as quickly as possible."
About Cascabel
The Cascabel property is located approximately 120km north of
Quito and 20km south of the Colombian border. Access is very good
via a paved road from the provincial capital city of Ibarra to San
Lorenzo city, on the Pacific coast, and secondary gravel roads to
the central part of the property. An environmental license for the
initial exploration phase was granted by the Ministry of
Environment on July 12, 2011. Exploration work including geology,
geochemistry, geophysics and hand-dug trenching and pitting, is
allowed for a 4-year period under this environmental license.
Terms of the agreement, a description of the property and
preliminary exploration results were described in SolGold's AIM
announcement dated April 10, 2012. Maps showing the geology and
exploration results to that date may be viewed at
www.cornerstoneresources.com
The Cascabel gold-copper porphyry project is located within the
Andean western cordillera, host to numerous Tier 1 world class
copper-gold deposits through Chile, Peru, Ecuador and Colombia.
Qualified Persons
Information in this report relating to the exploration results,
gold:silver ratios and cut-off grades is based on data reviewed by
Mr Malcolm Norris (B.Sc. Hons, MSc), the Chief Executive Officer of
the Company. Mr Norris is a Fellow of the Australasian Institute of
Mining and Metallurgy who has in excess of 25 years' experience in
mineral exploration and is a Qualified Person under the AIM Rules.
Mr Norris consents to the inclusion of the information in the form
and context in which it appears.
By order of the Board
Karl Schlobohm
Company Secretary
Contacts:
Mr Karl Schlobohm Tel: +61 (0)7 3303 0660
SolGold Plc (Company Secretary)
kschlobohm@solgold.com.au
Mr Ewan Leggat Tel: +44 (0)207 598 5368
Fairfax I.S. PLC (Broker)
eleggat@fairfaxis.com
Mr Stephen Weir Tel: +61 (0)2 9250 0048
RFC Ambrian Limited (Nominated Advisor)
stephen.weir@rfcambrian.com
Mr Dominic Barretto Tel: +44 (0)7768 537 739
Yellow Jersey PR (PR & IR)
dominic@yellowjerseypr.com
NOTES TO EDITORS
SolGold's exploration projects are located in northern Ecuador,
Australia, and the Solomon Islands. In Australia, they comprise the
Rannes, Mt Perry, Cracow West and Normanby Projects, all in
south-east Queensland. In the Solomon Islands they comprise the
Fauro Project (located on Fauro Island), and the Guadalcanal Joint
Venture with Newmont Mining Corporation, and in Ecuador a JV with
Cornerstone Capital Resources on the Cascabel gold-copper
project.
In April 2012, SolGold and Cornerstone Capital Resources Inc.
announced that they had signed a binding Letter of Intent whereby
SolGold may acquire up to 85% of Cornerstone's 100% owned 5,000
hectare Cascabel gold-copper-silver property in northern
Ecuador.
The Cascabel project is located approximately 120 km north of
Ecuador's capital, Quito, 20 km south of the Colombian border, and
75 km inland from the coastal city of San Lorenzo. The gold-copper
porphyry project is located within the Andean western cordillera,
host to numerous Tier 1 world class copper-gold deposits through
Chile, Peru, Ecuador and Colombia.
At the Rannes project SolGold has announced Inferred resources
of 18.7 million tonnes at 0.9 g/t gold equivalent (gold + silver)
for 550,146 ounces of gold equivalent (296,657 ounces of gold and
10,137,736 ounces of silver; see announcement dated 23 May 2012 for
details of the resource statement and gold equivalent ratios). The
2012 exploration program, including drilling to define new ore
positions and grow the resource, is underway.
Exploration continues at Mt. Perry, Normanby and Cracow
West.
In the Solomon Islands, the 2012 exploration program on the
Fauro project has been delayed while a JV partner is sought to
pursue drilling of gold-copper targets defined in the 2011
exploration program. The 2012 Guadalcanal Joint Venture exploration
program with NVL Solomon Islands Limited (a subsidiary of
NYSE-listed Newmont Mining Corporation) is in progress.
SolGold's strategy is to be an integrated gold and copper
discoverer, developer and miner.
SolGold's Board includes accomplished professionals with strong
track records in the areas of exploration, mine development in
Australasia and Melanesia, investment, finance and law. Board and
Management have significantly vested interests in the Company,
holding approximately 17.8% of its issued share capital.
SolGold is based in Brisbane, Queensland, Australia. The Company
listed on London's Alternative Investment Market in 2006, under the
AIM Code 'SOLG' and currently has 346,715,267 fully-paid ordinary
shares, 1,070 Convertible Redeemable Preference Shares, 9,472,000
options exercisable at 50p, 1,250,000 options exercisable at 28p
and 1,250,000 options exercisable at 14p on issue. Further details
concerning the Company's key projects and personnel can be found at
www.solgold.com.au.
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral exploration
company based in Mount Pearl, Newfoundland and Labrador, Canada,
with a diversified portfolio of projects in Canada, Ecuador and
Chile, and a strong technical team that has proven its ability to
identify, acquire and advance properties of merit. The company's
business model is based on generating exploration projects whose
subsequent development is funded primarily through joint venture
partnerships. Commitments from JV partners constitute significant
validation of the strength of Cornerstone's projects.
Further information is available on Cornerstone's website:
www.cornerstoneresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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