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UPDATE: SolGold shares soar as Cascabel drilling gets environmental approval

Published: 00:41 23 Aug 2013 AEST

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SolGold (LON:SOLG) shares almost doubled in value as its eagerly anticipated drill programme at the Cascabel project in Ecuador moved a big step closer.

Drilling is now anticipated to get underway in September after environmental approval was given for the proposed programme. An environment licence will now be received in the next few weeks, the company said.

The drill rig, which was 5 kilometres away, is now being mobilised to Cascabel's Alpala prospect ready for the start of the programme.

"This is a very exciting time for SolGold," said chief executive Alan Martin.

"The Alpala Prospect at Cascabel has the potential to be a company maker, delivering substantial value to SolGold shareholders.

"With most of the major regulatory conditions now satisfied and all equipment mobilised to the Alpala field camp, we are now very close to drilling our first hole through the mineralised stock-work zone at Alpala."

SolGold owns 30% of the subsidiary company ENSA that holds the Cascabel tenement, with an option to take that up to 85% through completion of a drilling programme and subscriptions in partner Cornerstone Capital.

The company has already stated that Alpala, the first target at Cascabel, has potential to host one billion tonnes of copper-gold ore and maybe more.

SolGold has identified four other prospects at Cascabel, though Alpala will be the initial focus.

On AIM SolGold shares rose 3.45p to 7.55p and hit 8.25p earlier in the session.

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