-- adds broker comments--
SolGold's (LON:SOLG) Cascabel project in Ecuador may have one billion tonnes of copper and gold just at the Alpala target with more elsewhere, the company said.
Alpala is SolGold’s main focus at Cascabel and has already revealed high grade copper and gold at surface and a highly mineralised copper-gold stock-work system in trenches.
3D modelling also showed a deep system with an extensive source. Alpala covers an area of over two square kilometres.
SolGold added it has at least four other prospective targets at Cascabel in addition to Alpala.
Alan Martin, SolGold’s new chief executive, said the company had the potential for a world class copper-gold deposit at Cascabel, which "can launch SolGoldfrom a junior explorer into the ranks of a US$1bn plus junior mining company".
House broker SP Angel added that Cascabel appears to offer good potential for significant copper and gold mineralisation.
While it said it pays not to get too excited before the drilling results, the channel sampling now shows the mineralised stockwork to be more extensive and open on all sides.
“This is the sort of thing geologists dream about. Around 25-40 veins have been counted per meter of rock highlighting the extensive veining of the prospect.”
Respectable copper / gold grades were seen in the trenching over significant distances from 22m to 57m with some very high grade results seen over short intersections.
The new mining bill currently being presented to Ecuador’s parliament also puts SolGold in pole position to develop Cascabel, a country that up until recently was seen as out of bounds for miners.
SolGold has yet to confirm its discovery but the channel samples highlighted in today’s report suggest better news is to come, the broker added.