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SolGold plc

05/07/2019 | Press release | Distributed by Public on 05/07/2019 00:13

Porvenir Project Update

7 May 2019

SolGold plc

('SolGold' or the 'Company')

Large Porphyry Copper Gold Target Identified At The Porvenir Project

The Board of SolGold (LSE & TSX code: SOLG) is pleased to provide an update from the Company's regional exploration activities on its 100% owned Porvenir Project in southern Ecuador, held by SolGold's wholly owned subsidiary Green Rock Resources SA.

Highlights:

Ø

Continued first pass mapping and sampling by Green Rock field teams at Target 15 in the Porvenir Project has extended theporphyry Cu-Au mineralisation at the Cacharposa Creek, located on the Porvenir 2 concession.

Ø

Results from additional rock saw sampling along the Cacharposa Creek has extended the mineralised intercept to:

o

147.83m @ 0.64% CuEq (0.43 g/t Au, 0.37% Cu). This intercept is open-ended.

o

Including 82.63m @ 0.96% CuEq (0.71 g/t Au, 0.55% Cu).

Ø

The additional mineralisation in the Cacharposa Creek continues to display similar characteristics to Alpala, Cascabel with Au:Cu = 1:1.

Ø

Mapping and sampling of the Mula Muerta Creek on the northwest side of the ridge from the Cacharposa Creek has discovered similar mineralisation. Both areas are believed to be part of the same mineralised system.

Ø

Both these areas form part of an 800m-wide, northeast trending mineralised corridor more than 1200m long. Porvenir contains mineralisation styles, size and geometry consistent with exposure of a vertically extensive, well-preserved porphyry copper-gold system.

Ø

3D geochemical modelling carried out by Fathom Geophysics has confirmed the potential for shallow porphyry style mineralisation extending at depth. Modelling also confirmed the potential for mineralisation at the Bartolo prospect along with two new target areas.

Ø

Drill testing and ground magnetics planned at Porvenir Target 15 in Q2 2019.

Ø

Targeted ground magnetic survey commencing this month.

Ø

Airborne-magnetic survey planned for entire Porvenir concession package in Q2 2019.

References to figures and tables relate to the version visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/1181Y_1-2019-5-6.pdf

Commenting on the result, SolGold CEO Mr Nick Mather said 'The latest progress at Porvenir is indicative of the effort SolGold puts into its first mover advantage secured in 2014 across Ecuador. SolGold's team of geoscientists led by Dr. Steve Garwin, porphyry expert, recognised several targets with the right geochemical, geological and geophysical signature and we have so far secured eleven of them. SolGold is committed to leading the development of a sustainable copper-gold mining industry in Ecuador. The high grades and strong gold endowment at Alpala and Porvenir provide us with a unique opportunity to develop this Company without joint ventures.

The size and grade of the outcropping mineralisation at Porvenir indicates a significant copper gold porphyry system. The 150m long channel sample is significantly longer and richer than the 50m long discovery outcrop at Alpala in the Cascabel tenement, which has so far yielded a contained resource of 23 million ounces of gold and nearly 11 million tonnes of copper.

The Porvenir system has the hallmarks of a significant discovery so far.

SolGold has identified and secured the best of an entire copper-gold province, the size and metallurgy of northern Chile. That's a unique approach that can't be replicated. We are confident that Alpala and now Porvenir are the first projects in a long, large and rich string of them.

The next generation of growth in SolGold is going to come from more spectacular discoveries on a 100% basis like Porvenir. All SolGold shareholders will enjoy that growth, including hopefully the Cornerstone Capital Corporation shareholders who are soon to be availed of our bid for Cornerstone.

We have the cash, the expertise and the focus to deliver.'

Further Information

Ecuador is located on the rich and under-explored northern section of the Andean Copper Belt. The well explored southern portion is renowned as the production base for nearly half of the world's copper (Figure 1). Follow up exploration has focussed on 12 priority projects identified across SolGold's 72 regional concessions.

SolGold is applying the successful, rapid, socially and environmentally responsible and efficient copper gold exploration blueprint it developed at Cascabel to these targets.

SolGold's strategy is to become a tier 1 copper and gold producer and build the base for a strong copper gold production house based on diverse projects. SolGold's first mover advantage, strong operational capability and systematic exploration programs continues to yield exciting results.

With 11 priority projects now recognised, ongoing exploration by SolGold technical teams is focussed on advancing these priority projects with a view to progress to drill testing as soon as possible. SolGold's high success rate has been achieved by operating multiple field teams comprising 42 Ecuadorean geologists in regional exploration, led by highly experienced national geologists and applying the blueprint developed over the last 4 years.

Drilling is scheduled to commence on regional projects in Q2 2019, subject to finalisation of relevant permits.

Target 15: Initial Results

Target 15 is located within Porvenir 2 concession, north of the town of La Canel in southern Ecuador (Figures 1 and 2).

Additional rock saw sampling along the Cacharposa Creek has continued to return encouraging results, with the current intercept along the Cacharposa Creek now:

Ø

147.83m @ 0.64% CuEq (0.43 g/t Au, 0.37% Cu) - open ended.

Ø

including 82.63m @ 0.96% CuEq (0.71 g/t Au, 0.55% Cu).

The mineralised rock saw intersection at Target 15 is significantly longer than the initial rock saw sampling of the Alpala discovery outcrop which returned 56.93m at 1.16g/t Gold and 0.30% Copper. Field teams are clearing and preparing extensions of the Cacharposa Creek for additional sampling, following the mineralisation upstream.

The assay results from this work show highly consistent copper and gold grades throughout the intersection, and exhibit a consistent copper ̶ gold ratio of approximately 1% Cu : 1g/t Au (Figure 3).

The Target 15 mineralised corridor is characterised by surface exposure of porphyry-style sheeted and stockwork B-type quartz-chalcopyrite-magnetite veining. Veining occurs as three steeply-dipping vein sets orientated northwest, east-northeast, and west-northwest (Figure 5). Field studies of the porphyry-related vein types and paragenesis at Target 15 are ongoing, and initial work indicates a sequential vein development typical of many significant porphyry copper-gold systems, such as SolGold's Alpala porphyry copper-gold deposit in Northern Ecuador (10.9Mt Cu, 23.2Moz Au).

The exposed outcrops along La Cacharposa Creek in Target 15 lie within soil copper, gold, molybdenum, Cu/Zn and Mo/Mn geochemical anomalies that cover an area approximately 1200m long and 800m wide (Figure 4). The presence of potassic alteration (K-feldspar - magnetite) overprinted by intermediate argillic alteration (chlorite - sericite - clay) is associated with higher gold grades and surrounded by phyllic (quartz - sericite - pyrite) and extensive epidote-propylitic alteration (Figure 7 & 8).The size and strength of the geochemical anomalies and the zoning of the hydrothermal alteration assemblages are consistent with the presence of a porphyry copper-gold system.

As rock-saw sampling and mapping work continues in the field, SolGold geologists are developing the target towards drill ready status in the coming quarter.

A program of detailed ground magnetics will commence early next year covering the entire Target 15 area. Followed by an airborne-magnetic survey covering the entire Porvenir Project.

Figure 1: Location plan showing the Porvenir project in southern Ecuador.

Figure 2: Prospect locations showing soil copper geochemical results.

Figure 3: Rock saw channel sampling copper and gold results from La Cacharposa Creek in Target 15 at Porvenir.

Figure 4: Geology with anomalous soil gold, copper and molybdenum contours for Target 15 at Porvenir.

Figure 5: Examples of veining and alteration styles at Target 15, Porvenir.

Figure 6:Mineralised rock samples taken from the Mula Muerta Creek

Figure 7: Hydrothermal alteration assemblages at Target 15, Porvenir.

Figure 8: Target 15 - Hydrothermal alteration map shown draped over the results of 3D geochemical modelling by Fathom Geophysics. The 3D geochemical shapes (red volumes)suggest that the soil geochemical results are consistent with the occurrence of porphyry copper-(gold) mineralisation both near surface and at depth.

Sample ID

Easting

Northing

Interval (m)

Cu %

Au g/t

CuEq %

R03002563

726437

9501435

1.95

0.92

0.68

1.34

R03002564

726435

9501435

2

0.04

0.4

0.29

R03002565

726433

9501434

2

0.55

0.45

0.83

R03002566

726430

9501432

1.9

0.07

0.3

0.26

R03002567

726429

9501432

2.2

0.05

0.28

0.23

R03002568

726428

9501433

2.05

0.28

0.33

0.48

R03002569

726427

9501435

2

1.17

0.47

1.47

R03002571

726426

9501437

2

0.99

0.78

1.48

R03002572

726429

9501443

1.9

0.14

0.59

0.51

R03002573

726428

9501444

2

1.31

1.13

2.02

R03002574

726427

9501445

1.75

1.42

1.4

2.3

R03002575

726426

9501446

1.75

0.85

0.75

1.32

R03002576

726425

9501447

2.2

0.75

0.58

1.11

R03002577

726424

9501448

1.9

0.62

0.71

1.06

R03002578

726423

9501449

1.6

1.07

1

1.7

R03002579

726420

9501447

2.3

1

1

1.63

R03002580

726420

9501449

2.1

0.98

1.33

1.82

R03002581

726419

9501451

1.95

0.9

0.73

1.37

R03002582

726418

9501452

2.05

1.55

1.02

2.19

R03002583

726417

9501454

2

1.32

1.16

2.05

R03002584

726417

9501456

2

1.02

0.71

1.46

R03002585

726418

9501457

2

0.8

0.8

1.3

R03002586

726420

9501459

2.05

0.8

0.49

1.1

R03002587

726422

9501460

2

1.03

0.65

1.44

R03002588

726423

9501462

2.05

0.47

0.56

0.82

R03002589

726425

9501463

2.15

0.47

0.51

0.79

R03002590

726426

9501464

1.75

0.77

0.77

1.26

R03002592

726430

9501465

2

0.35

1.13

1.06

R03002593

726431

9501468

2.25

0.26

0.55

0.61

R03002594

726431

9501469

1.2

0.19

0.38

0.43

R03002595

726431

9501470

1.2

0.18

0.72

0.63

R03002596

726431

9501471

2.18

0.23

0.53

0.56

R03002645

726429

9501476

2

0.07

0.73

0.53

R03002646

726429

9501478

2

0.09

0.46

0.38

R03002647

726429

9501480

2

0.18

0.68

0.61

R03002648

726430

9501482

2

0.09

0.34

0.3

R03002649

726430

9501484

2.2

0.11

0.23

0.26

R03002651

726434

9501485

2

0.03

0.16

0.13

R03002652

726434

9501487

2

0.04

0.36

0.26

R03002653

726434

9501489

2

0.04

0.52

0.37

R03002654

726434

9501491

2

0.05

0.55

0.4

R03002655

726433

9501492

2

0.05

0.44

0.32

R03002656

726426

9501496

2

0.08

0.16

0.18

R03002657

726426

9501498

2

0.04

0.1

0.1

R03002658

726425

9501499

2

0.06

0.14

0.15

R03002659

726425

9501501

2

0.1

0.11

0.17

R03002660

726424

9501503

2

0.12

0.16

0.21

R03002662

726424

9501505

2

0.13

0.13

0.22

R03002663

726424

9501507

2

0.17

0.14

0.25

R03002664

726424

9501509

2

0.09

0.11

0.16

R03002665

726424

9501511

2

0.07

0.12

0.14

R03002666

726426

9501512

2

0.07

0.22

0.2

R03002667

726426

9501518

2

0.07

0.08

0.12

R03002668

726426

9501520

2

0.05

0.04

0.07

R03002669

726426

9501521

2

0.06

0.1

0.12

R03002671

726428

9501525

2

0.07

0.18

0.18

R03002672

726427

9501527

2

0.08

0.15

0.18

R03002673

726426

9501529

2

0.07

0.06

0.11

R03002674

726425

9501530

2

0.09

0.13

0.17

R03002675

726424

9501532

2

0.16

0.06

0.2

R03002676

726424

9501534

2

0.08

0.1

0.14

R03002677

726420

9501533

2

0.06

0.14

0.15

R03002678

726420

9501535

2

0.08

0.08

0.12

R03002679

726419

9501537

2

0.22

0.16

0.32

R03002680

726418

9501539

2

0.14

0.53

0.47

R03002681

726418

9501541

2

0.48

0.23

0.62

R03002682

726418

9501542

2

0.38

0.21

0.51

R03002683

726419

9501543

2

0.24

0.12

0.32

R03002684

726421

9501544

2

0.3

0.15

0.39

R03002685

726425

9501545

1.2

0.41

0.19

0.52

R03002686

726457

9501420

2

0.04

0.08

0.09

R03002687

726455

9501421

2

0.13

0.19

0.25

R03002688

726453

9501422

2

0.08

0.21

0.21

R03002689

726452

9501423

2

0.17

0.13

0.25

R03002690

726450

9501423

2

0.24

0.17

0.34

Table 1: Rock saw channel results for copper, gold and copper-equivalent at Target 15, Porvenir.

Note: Copper-equivalent values calculated using the formula, % CuEq = % Cu + (0.63 * g/t Au).

*All samples were analysed by ALS in Lima Peru using Au 30g FA-AA Finish and 48 element four acid digest ICP-MS.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 until the release of this announcement.

Qualified Person:

Information in this report relating to the exploration results is based on data reviewed by Mr Jason Ward ((CP) B.Sc. Geol.), the Chief Geologist of the Company. Mr Ward is a Fellow of the Australasian Institute of Mining and Metallurgy, holds the designation FAusIMM (CP), and has in excess of 20 years' experience in mineral exploration and is a Qualified Person for the purposes of the relevant LSE and TSX Rules. Mr Ward 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

Nicholas Mather

SolGold Plc (Chief Executive Officer) [email protected]olgold.com.au

Tel: +61 (0) 7 3303 0665

+61 (0) 417 880 448

Karl Schlobohm

SolGold Plc (Company Secretary) [email protected]

Tel: +61 (0) 7 3303 0661

Anna Legge

SolGold Plc (Corporate Communications) [email protected]

Tel: +44 (0) 20 3823 2131

Gordon Poole / Nick Hennis Camarco (Financial PR / IR) [email protected]

Tel: +44 (0) 20 3757 4997

Andrew Chubb / Ingo Hofmaier

Hannam & Partners (Joint Broker and Financial Advisor)

[email protected]

Tel: +44 (0) 20 7907 8500

Ross Allister / David McKeown

Peel Hunt (Joint Broker and Financial Advisor)

[email protected]

Tel: +44 (0)20 7418 8900

James Kofman / Darren Wallace

Cormark Securities Inc. (Financial Advisor)

[email protected]

Tel: +1 416 943 6411

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