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SolGold says latest drill results from Cascabel are 'highly encouraging'

Published: 16:40 20 May 2014 AEST

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SolGold (LON:SOLG) described the assay results from its sixth hole from the Cascabel copper-gold project in Ecuador as “highly encouraging”.

Indeed, the company, in an update on Tuesday, said the results are supportive of the company’s assertion its Alpala target is host to a “significant” copper porphyry system.

This sixth hole in the series was drilled 450 metres north-east of the previous hole and to a depth of just over 1,400 metres.

While the assays didn’t return spectacularly high grades – SolGold describes it as extensive halo mineralisation – the results are supportive of SolGold’s refined magnetic model of Alpala.

Specifically, the latest data “strongly supports and re-enforces” the thesis that a higher-grade target occurs at depth to the west of holes five and six in an area called the central zone.

SolGold’s seventh hole in the series will now focus on this area of potentially higher mineralisation.

Exploration manager Dr Bruce Rohrlach explained: “Hole six reveals that copper mineralising fluids have interacted with a vertically extensive column of rock in the area north of hole five.

“The extensive but low grades are consistent with the hole having been drilled on the northeast margin of the central zone within the Alpala prospect.

“These results re-enforce our recently refined magnetic model suggesting that a high grade copper gold porphyry deposit is present to the west and northwest of hole five at similar depths. Drilling is now focussing on the central zone".  

Encountered over 821 metres, the grade averaged 0.14% copper and 0.10 grams per tonne of gold from 580 metres.

Higher grade intervals included 198 metres grading 0.20% copper and 0.15 grams gold were seen from a depth of 808 metres.

Separately, SolGold told investors it would carry out further magnetic modelling on the Aguinaga target, which is also part of Cascabel, in preparation for drilling.

Managing director Alan Martin said: "While Alpala is the primary porphyry copper gold target in the company's portfolio, it is pleasing to see additional targets being incorporated into the exploration program within the Cascabel tenement.

“The Aguinaga target represents another potentially significant porphyry copper-gold deposit for the company at Cascabel.”

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