Yellow Cake (LSE:YCA) was up nearly 3% on Wednesday morning after releasing a quarterly operating update indicating its Net Asset Value (NAV) had increased to £2.53 per share. The company purchases physical uranium with a view to holding long-term and today highlighted a steady improvement in market fundamentals. The spot price for uranium has increased by 25% to $28.50 /lb since Yellow Cake listed on the London Stock Exchange in July 2018.

2018 was a very strong year for uranium with its rally from the US$18 / lb lows of 2017 picking up the pace. During the final quarter of 2018, India officially announced plans to expand its nuclear power use which would bring an additional 21 reactors into operation by 2031. The Department of Atomic Energy advised the National Parliament of its plans to implement a Strategic Uranium Reserve of 15,000 tonnes of uranium to underpin the security of the country's commercial nuclear power program. A number of other countries have made recent announcements that are supportive of the spot price including France which has delayed its target to decrease nuclear dependency from 75% to 50% from 2025 to 2035.

Uranium Spot Price

The value of the underlying physical uranium held by Yellow Cake has increased by 35% to $240.6m, and the organisation believes the long-term outlook for uranium remains positive. An option to purchase further uranium became available to Yellow Cake at the beginning of this year under its agreement with Kazatomprom. It’s not yet clear whether the company will take up the option with the board simply stating it will ‘continue to consider all options available to it and act in the best interests of its shareholders, with a view to narrowing the continued discount to Net Asset Value.’ 

Andre Liebenberg, CEO of Yellow Cake, said:

"It has been encouraging to see the uranium spot price continue to rise since our IPO, with the spot price hitting a three-year high in late November. Yellow Cake's performance has been solid, with NAV up 5.9% over the quarter. We look to the future with optimism as countries around the world implement new uranium programmes and extend the lifecycle of existing projects. Our investment thesis remains sound and we are confident in the long-term outlook for the uranium price."

Author: Stuart Langelaan

Disclosure: The author does not own shares in the company mentioned in this article

 

Jangada Mines (LSE:JAN) released an operational update on Monday detailing its plans for the first quarter of the year. The company is focussed on developing South America's largest and most advanced platinum group metals (PGM) and nickel project, Pedra Branca. Having already reported compelling economics for Pedra Branca, there were some concerns in the market that perhaps Jangada didn’t have enough funds to see it through to its Bankable Feasibility Study (BFS). This morning’s announcement dispels any such concerns.

Pedra Branca around 48,000 hectares and includes 3 mining licenses covering 52% of the current resource, with 42 exploration licenses.  Fundamentally, the project looks very attractive with the company stating a Net Present Value (NPV) of US$192 million and an estimated average annual production of 64,000 ounces of PGM+Au.

A Bankable Feasibility Study (BFS) for the project is currently underway, and Jangada is aiming to complete the verification stage for all aspects of the BFS during Q1. This process should prove the economic and technical viability of the Project and results are expected in Q2 by which time it is anticipated the mine design phase will be complete 

Jangada agreed a fundraise of £2.1m in September 2018 to advance the Pedra Branca project. This included a £1.05m placing at 3p per share, together with a 12-month unsecured loan facility from Celtic Capital Pty Limited. Today’s share price of 1.8p offers a considerable discount to the raise, in which directors Brain McMaster and Luis Azevedo subscribed for a total 3.33m shares, equating to an investment of £100,000.

Much of the resource sector suffered strong price declines during the wider market pullback in Q4 last year, however it does appear that concerns over funding have also been weighing down on Jangada’s share price.  In today’s update, the company reassures investors its current work programme is fully funded.

Speaking exclusively to MiningMaven, McMaster told us, “Today we’ve addressed any speculation about Jangada’s funding. One of the key aspects of Pedra Branca is that it has such a low cap-ex requirement, with an NPV of US$192 million, an IRR of 67% and a 1.6 year payback. There just aren’t many projects of this size, with such favourable economics, anywhere in the world.

There have been suggestions that last September’s fundraise left us with a shortfall. Originally the plan was to raise £1.5m, but it was agreed that if the demand existed we would go higher, maybe as high as £4m. The idea was that any extra funds would help expand an exploration programme.  As things developed we decided the extra exploration wasn’t needed at this stage and the original £1.5m estimate was accurate.  We then closed a total package of £2.1m.  So clearly the speculation is wrong.  We are progressing without impediment. In addition to the money we raised in September, we also agreed with Consulmet, the firm producing our BFS, that it would receive its fee in stock. This is a highly positive endorsement of the clear potential at Pedra Branca.

We are delivering the work programme we’ve outlined today, including delivery of the verification stage of the BFS and additional exploration we are planning to test the high-grade vanadium deposit we have identified.”

A look at the timetable show’s there is plenty of newsflow to follow over the coming months with a review of the PGM resource and a hydrology study due by the end of January. The PGM resource review could be particularly exciting, especially if there is any upgrade there. It’s expected legal, environmental and social factors will be wrapped up by the end of next month and Metallurgy Test Work Verification is due in March.

Further exploration is also underway at the high-grade vanadium deposit identified at Pedra Branca.  Drilling is due to commence this week, with the results due to follow in March. According to the company, there is potential for this to be a significant vanadium discovery, offering yet further upside to an already exciting project.

All eyes will now be on what Jangada delivers by the end of this month, with particular attention focused on the PGM Resource Review.

Author: Stuart Langelaan

Disclosure: The author of this piece owns shares in the company mentioned above

 

Horizonte Minerals (LSE:HZM) was awarded a critical construction licence for its flagship ferronickel project in Brazil yesterday. The news helped shares in the nickel development company advance by as much as 8.9pc to 2.3p.

The construction licence, known locally as the Licença de Instalação (LI), applies to Horizonte’s 100pc-owned Araguaia ferronickel project. It was granted by SEMAS, the Brazilian Para State Environmental Agency. It gives Horizonte the permits required to construct a rotary kiln electric furnace processing plant at Araguaia. This means it is now fully permitted for construction to begin.

Horizonte called the news a ‘major de-risking step’ for Araguaia, with chief executive Jeremy Martin adding that it represents a ‘major milestone’ for the business.

‘Subject to funding, the company is now in a position to commence construction with the necessary environmental permits approved, including water abstraction permits issued in 2018 together with the newly issued LI,’ said Martin.

‘The LI allows development to commence on the RKEF process plant and associated infrastructure. The award of the LI has been delivered on time and on budget with the Horizonte team working closely with SEMAS, other State agencies and the local communities. Consistent with our objective to provide long-term sustainable value for our shareholders, employees and communities, we developed integrated solutions focused on environmental protection, water efficiency and socio-economic development.

Today’s approval follows the release of a feasibility study results for the asset in October. These were filed with the Para state government two months later.

The study confirmed Araguaia as a low-cost source of ferronickel for the stainless-steel industry. It gave the project an initial 28-year mine life, during which it will generate cash flows after taxation of $1.6bn.

Meanwhile, it has an estimated post-tax net present value (NPV) of $401m and an internal rate of return (IRR) of 20.1pc using a base case nickel price forecast of $14,000/t.  This NPV increases to $740m when using the consensus mid-term nickel price of $16,800/t.

Horizonte expects Araguaia to produce an average of 14,500 tonnes of nickel a year, housed within 52,000 tonnes of ferronickel. Against this, the development has a capital cost estimate of $443m. This includes $65.3m of contingencies.

Crucially, Horizonte has also designed the study to accommodate a second process line. This 'stage two expansion' could double Araguaia’s production capacity to 29,000 tonnes a year. Its introduction assumes a stage one production rate of 900kts a year for three years. After this period, Horizonte would reinvest free cash flows to extend the plant's capacity to 1.8Mts per year.

If this expansion takes place, then Araguaia will have a 26-year mine life and generate cash flows after tax of $2.6bn. Meanwhile, the asset’s NPV and IRR would hit $741m and 23.8pc respectively, using base case nickel prices.

Horizonte is also the owner of the Vermelho project in Brazil, which it describes as one of the largest, highest-grade undeveloped laterite nickel-cobalt resources globally. The site contains a measured and indicated resource of 167.8MMts, estimated to house 1.68MMts of nickel and 94,000ts of cobalt.

In yesterday’s update, Martin said the progress at Araguaia combined, the potential on offer at Vermelho, and the attractive nickel market backdrop combine to set Horizonte up well for the rest of the year:

‘The LI and FS results combined with the positive fundamentals around the nickel market positions Horizonte well for 2019, with the construction-ready Araguaia project to supply the ferronickel market and our second project, the Vermelho nickel-cobalt project, being advanced to supply the Electric Vehicle battery market. We look forward to updating the market over the coming months, at what is an exciting time for the Company.’

Author: Daniel Flynn

Disclosure: The author owns shares in the company mentioned in this article

Armadale Capital (LSE:ACP) advanced 3.9pc to 1p on Friday after finalising the sale of its non-core project in the Democratic Republic of Congo (DRC). The Africa-focused natural resources business has entered a final formal sale agreement for the Mpokoto Project with African Royalty, a subsidiary of Arrow Mining.

The deal will see Arrow take over operations at Mpokoto and pay Armadale a 1.5pc royalty on gold sales once production begins. A feasibility study calculates that Mpokoto can house a 720,000tpa operation producing an average of 24,900oz of gold for four-and-a-half years.

Armadale said the transaction, first announced in October, crystallises Mpokoto’s value with a company capable of taking the mine into production. It also allows it to retain exposure to the project’s development upside.

The company said it can now focus entirely on advancing its flagship asset, the high-grade Mahenge Liandu Graphite project in Tanzania. Mahenge Liandu contains a JORC compliant inferred mineral resource estimate of 51.1Mt at 9.3pc total graphite content. This includes 38.8Mt classified as indicated. A scoping study gave the project an NPV of $349m with an internal rate of return of 122pc, a 1.2 year payback period, and low development costs.

Funds generated from the Mpokoto royalty will support Mahenge Liandu’s development. As of September last year, Armadale said it had been working on beginning a feasibility study at the graphite asset. It hopes this work can confirm the project’s commercial viability.

Company director Nick Johansen said: ‘The board of Armadale is confident that African Royalty and its related parties, who have significant experience of operating in the DRC, represents the best opportunity for Armadale to crystallise the value of the Mpokoto Project and begin receiving returns through the agreed royalty payments on gold sales. We look forward to reporting further news in due course relating to the development of Mpokoto and of our primary value driver, the Mahenge Liandu Project.’

Author: Daniel Flynn

Disclosure: The author does not own shares in the company mentioned in this article

Chesterfield Resources (LSE:CHF) bounced 6.3pc to 4.3p this morning after hiring a senior geologist as its chief operating officer. Michael Parker will take on the role at Chesterfield’s 100pc-owned copper exploration project in Cyprus.

Parker is a geologist with more than three decades of experience in both exploration and project development. He began his career in gold exploration across South Africa and Gabon. He then then joined First Quantum Minerals (FQM) in 1997 as an exploration geologist in Zambia and Zimbabwe.

He remained at FQM for 20 years, holding numerous senior country manager positions while playing a key part in major copper discoveries. These included the Frontier Mine, which contains 2.1Mt of copper, and the high-grade Lonshi, which boast 250,000ts of contained copper at an ore grade of 5pc. Parker modelled the resources and oversaw mine planning and operations at both mines.

In his country manager roles, Parker took on administrative management responsibility for up to 3,000 staff, including a large expat contingent. He also oversaw government and community relations, environmental management, and exploration permitting.

Chesterfield controls three project areas in Cyprus. These comprise seven granted prospecting permits and six applications for prospecting permits. According to the firm, these project areas cover abandoned mines, known prospects with exposed mineralisation, and other indicators of nearby massive sulphide systems. The company’s initial focus will be on advancing the Troodos West Project, where it has already identified numerous high-priority prospects.

Chesterfield’s executive chairman Martin French said: ‘Mike brings a tremendous amount of experience in exploration and management from his long career at First Quantum Minerals. Most importantly, he has experience in making large discoveries. Mike has already been working with Chesterfield over the past three months on a Project Management basis helping to expand our copper exploration programme in Cyprus.

‘During this time Mike has become very confident in our prospects, which has attracted him to take a permanent role. The Company has been encouraged by its early drilling results and so has made the decision to significantly enlarge its exploration programme in Cyprus. We will provide more details of this in the coming weeks.’ 

Author: Daniel Flynn

Disclosure: The author does not own shares in the company mentioned in this article

Cora Gold (LSE:CORA) is primarily focussed is on two prolific gold regions in Mali and Senegal in West Africa. Today the company announces the appointment of Wardell Armstrong International (WAI) as independent consultants to undertake a preliminary metallurgical test work programme at the company's Sanankoro Gold Discovery in southern Mali. The test work programme will assess the amenability for cyanide leach extraction of gold from oxide mineralization at the discovery. Both cyanide-in-leach (CIL) and heap leach gold extraction technologies will be tested at WAI's laboratory facilities with results expected in Q2 2019.

In October, Cora announced that SRK Consulting had determined an initial Exploration Target of between 30 and 50 million tonnes of gold ore at a grade of between 1.0 and 1.3 g/t Au at Sanankoro. The company believe there is the potential to delineate 1-2 million ounces of gold to a depth of 100m.

The first round of drilling has indicated the possibility of significant further upside at depth and Cora is now looking to define the strike extent and depth potential of the higher grade zones that may exist.

It is also worth noting that Sanankoro is adjacent to the African Gold Group ‘Kobada Gold Project. The Kobada Project has a 1.2 Moz measured and indicated resource and occurs on a NE-SW orientated structure that runs parallel to the Sanankoro mineralisation.

Cross-Sections: Broad zones of mineralization along strike

Jonathan Forster, Cora Gold's CEO, commented, "We are pleased to appoint WAI as our independent consultants for this preliminary metallurgical test work programme which is intended to provide initial guidance on methodology for future potential gold extraction at Sanankoro.  This programme is running in parallel with a drill programme, already underway, that is aimed at outlining areas of higher grade that may present potential starter pits for any future mining project.  Indications from SRK's Exploration Target Report that there is significant potential for oxide mineralisation at Sanankoro has guided our exploration programme which is currently focused on the exciting oxide potential at Sanankoro.  We are delighted to kick off the year with an active work programme and I look forward to reporting the results of the metallurgical test work targeted for Q2 2019, as well as drill results as and when they become available."

 

Author: Stuart Langelaan

Disclosure: The Author does not own shares in the company mentioned above

Toronto-listed cobalt developer Global Energy Metals (TSXC:GEMC) has revealed further success in the final stage of a drilling program at its part-owned Werner Lake project in Canada.

Yesterday saw the business report that Marquee Resources, its joint venture partner, has received assay results for four final drill holes at the cobalt asset in Ontario. The holes intersected high-grade mineralisation within and beyond the constraints of the project’s current mineral resource model.

One hole called WL18-14 was drilled to test the extension of Werner Lake’s West Mine Zone. It encountered thin intervals of 2-5pc sulphides as well as narrower sections with up to 10pc combined sulphides across two sections.

Another hole called WL18-17 was drilled to test the down plunge mineralisation associated with the project’s West Cobalt Zone. It successfully cut several zones of the targeted mixed unit, which contained narrow zones with up to 10-15pc combined sulphides. This is the deepest hole drilled to date at Werner Lake and indicates that the target horizon continues to depth.

Werner Lake operated as a high-grade source of cobalt in the 1940s and was taken back to mine decision in the late 1990s. It represents a legacy asset for Global Energy, which teamed up with Marquee to advance the project so it could increase its focus on its projects in Australia and the US.

Global Energy said yesterday’s results confirm the potential for significant exploration upside beyond the site’s existing resource. The four holes represent the final stage of 2018 drilling program at Werner Lake, where Global Energy currently owns a 70pc position.

The program is being led by Marquee as part of its $2.5m commitment to advance the project and earn-in to a 70pc stake. It is designed to confirm high-grade cobalt mineralisation intersected in previous diamond drilling programs. It is also expected to provide additional structural and geotechnical data for ongoing project development studies.

Speaking to MiningMaven, Global Energy’s chief executive Mitchell Smith said the program has successfully delivered a better understanding of the project:

‘The results confirm or exceed model expectations and, to date, drilling has not yet established a bottom to the system that remains open along strike, laterally, and at depth. This openness represents exciting growth potential, and these new opportunities will be a focus for future programmes.’

The company’s VP projects Paul Sarjeant added: ‘We are confident that these objectives have been achieved and in addition, we have been able to identify new areas of mineralisation that open the deposit along strike and at depth. We look forward to additional drilling on the property continuing to grow the Werner Lake resource.’

In yesterday’s update, Global Energy said it expects the results of the programme to have a project on the next mineral resource estimate update at Werner Lake. This is due to complete in early H1 2019.

Global Energy Metals focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of cobalt assets, including project stakes, projects and other supply sources, to achieve this.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November.

Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length, as defined by previous drilling, prospecting and geophysics. It is located near established mining, transport, and processing infrastructure and has easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation where a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. However, Global Energy is looking at ways to increase the size of its deposit, with results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeding grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

As well as taking Millennium over from previous owner Hammer Metals, the Canadian battery metals player has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge, collectively known as the ‘Mt. Isa projects’. The areas, which expand Global Energy’s Australian land position by nearly twenty times, have yet to be exploited. However, exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Global Energy has also signed a letter of intent to acquire an 80pc stake in two Nevada-based cobalt sites called the Lovelock Cobalt Mine and the Treasure Box Project for $200,000. The sites are located just 150km east of Tesla’s Gigafactory.

Author: Daniel Flynn

Disclosure: The Author does not own shares in the company mentioned above

 

The gold price has enjoyed a strong rise since its lows of $1161 in August, hitting $1299 on Friday. Having subsequently dipped to $1276, the precious metal, currently $1292, may again be climbing to test resistance.

 

The Relative Strength Index (RSI) signalled gold was overbought, with the price peaking out as the RSI met a trend line formed from the previous two RSI peaks. A trend line of RSI support also held strong as gold retraced to $1276 before bouncing. The resistance zone between $1296-$1308 should prove to be strong - the area has been subject to considerable consolidation during the summer of 2018, as well as it being a previous area of repeated support during the six months prior to that.

 

With the RSI again warming up, and significant resistance ahead, it seems likely a deeper retracement is on the cards. However, a distinctive Cup and Handle pattern has been forming since June. This notorious pattern often results in a break to the upside. If the pattern follows protocol, a ‘handle’ shape should appear to form with lower price action before a bigger move upwards should it break out of the pattern. It’s also worth noting that the 50 Day Moving Average (DMA) moved higher than the 200 DMA a week ago. This event, called a ‘Golden Cross’ is regarded as a bullish signal.

 

At this moment in time it’s possible that the Cup section of the Cup and Handle pattern is still forming but the top of the pattern isn’t required to be completely horizontal – we will know soon enough if it fails to close higher.  A potential outcome that would fit all observations might be a retracement to the $1260 area which appears to be a logical level of support and still allows a typical Cup and Handle formation to complete – generally speaking the handle should not drop into the lower half of the cup and should ideally stay in the upper third. In the event price action moves positively into the resistance zone it will be worth keeping an eye on the RSI for further indications of exhaustion from buyers.

 

A lower dollar is generally positive for most commodity prices. The Dollar’s climb through 2018 will have contributed to the drop in the gold price, and its recent pullback has boosted golds reversal. In the last few days of 2018, the US Dollar Index indicated it had peaked – at least for now – falling out of a barish Rising Wedge pattern (shown in red). Although not always the case, this pattern often results in a strong move down, sometimes as much as the height of the pattern. Immediate levels of support can be found around 94.50 and 93.50.

 

 

The recent pullbacks across global markets, increased volatility, and a decreasing dollar will have contributed to gold’s recent bullish run, but if markets start to settle and confidence returns, the gold price rally may start to falter. A successful breach of the resistance zone at $1308 will likely require the winds of fear to continue blowing or the Dollar to give back more of the ground it made up last year.

Author: Stuart Langelaan

KEFI Minerals (LSE:KEFI) dipped 3.9pc to 1.44p after announcing a one-month delay at its flagship Tulu Kapi gold mine in Ethiopia.

The business had expected to receive government regulatory consents for the project by the end of December. This is a condition for local partner ANS Mining Share Company to release its first $9m tranche of investment into TKGM, the business in control of Tulu Kapi. As confirmed last October, this will be followed by another payment of between $21-29m later in 2019.

In today’s update, KEFI said the government has now provided numerous formal consents. However, it said there remain several that are still subject to ‘processing formalities’. As a result, the project partners have extended the deadline for receiving all permissions to the end of January.

KEFI said it believes this extension will have a ‘minimal impact’ on Tulu Kapi’s progression. Meanwhile, the company said its partners have reiterated their support for the project's development and financial plan. As well as KEFI and ANS, these associates include the Ethiopian Federal Government.

The business added that the partners have backed a focus on maintaining progress at Tulu Kapi while scheduling regular reviews. They believe this will ensure the project advances safely and securely.

KEFI has been progressing Tulu Kapi towards development since being granted a mining licence in April 2015. Estimates for output at the project include open-pit gold production of c.140,000oz per annum for seven years with an all-in sustaining cost of $800/oz. The project’s ore reserve estimate totals 15.4Mt at 2.1g/t gold, containing 1.1Moz.

In today’s update, the business said it has made further progress at the site over recent weeks. This has included drilling for infrastructure design and land clearing. Meanwhile, the first steps towards a community resettlement program are due to start later this month. An independent reviewer will assess these plans to ensure they meet Equator Principles and the needs of residents.

Finally, KEFI’s managing director Harry Anagnostaras-Adams said the business starts 2019 ‘heartened’ by the current gold price outlook. He is also enthusiastic about the continuing positive transformation of the Ethiopian political situation and level of support from major industry players.

‘We are confident that with this cautious and disciplined strategy, our well-qualified consortium provides an excellent platform to launch our Tulu Kapi Gold Project,’ he added.

When ValueTheMarkets.com spoke to Anagnostaras Adams in October last year, he said Tulu Kapi would enjoy a first-mover advantage in Ethiopia.

He said: ‘The gold sector in Ethiopia is conspicuous by its absence, given that its geology suggests it should be a prolific producer. With that in mind, once we reach production at Tulu Kapi, we will have a first-mover advantage. When we first got the project, it was nearly ready, and we have been working ever since to get it to the starting line. The first step was re-designing the mining and processing plans, which reduced the AISC to $800 from $1000. Then, we secured financing to get the equity requirement down to $50-60m. Last week’s funding gets us to the point where we have these funds and puts us on very steady footing moving forward.’

Author: Daniel Flynn

Disclosure: The author does not own shares in the company mentioned in this article

On Wednesday SolGold (LSE:SOLG) updated the market with details of exploration activities from its 100% owned Porvenir Project in southern Ecuador. Over the past five years, Ecuador has been recognised globally as a frontrunner in emerging mining nations. SolGold is the largest and most active concession holder in the country and is aggressively exploring the length and breadth of a highly prospective and gold-rich section of the Andean Copper Belt. The Australian company has formed four 100% owned subsidiary companies in Ecuador; Carnegie Ridge Resources S.A., Green Rock Resources S.A., Cruz del Sol S.A. and Valle Rico Resources S.A. The subsidiaries currently hold 73 mineral concessions over approximately 3,200km2 in Ecuador.

To date exploration activity has identified 15 potential porphyry centres at SolGold’s flagship copper-gold deposit, the Cascabel Project. SolGold published its maiden Mineral Reserve Estimate for Alpala, the main target in the Cascabel concession in January 2018. Alpala has produced some of the greatest drill hole intercepts in porphyry copper-gold exploration history.  Over 145,000m of diamond drilling has been completed on the project and SolGold currently produces around 10,000m of core every month.

The plan is to apply the exploration blueprint developed at Cascabel to the Porvenir Project in southern Ecuador and elsewhere.

Location plan showing the Porvenir project in southern Ecuador

The company reports the discovery of ‘exciting’ new porphyry copper-gold mineralisation at Target 15, located on the Porvenir 2 concession. A broad zone of north east trending porphyry mineralisation approximately 1km wide and hosting numerous porphyry centres currently defined over 6 km long and open ended has been defined. This includes a 800m-wide mineralised corridor more than 1200m long recognised at Target 15 consistent with exposure of a vertically extensive, well-preserved porphyry copper-gold system.

Rock saw channel sampling copper and gold results from La Cacharposa creek in Target 15 at Porvenir

SolGold CEO, Nick Mather commented, "The result at Porvenir especially at Target 15, indicates 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 SolGold has so far secured 11 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 provides SolGold with a unique opportunity to develop this Company without resorting to dilutive and erosive joint ventures. 

SolGold has identified and secured the best of an entire copper-gold province, the size and metallogenic signature of northern Chile. That's a unique approach that can't be replicated. We are confident that Alpala and now Porvenir Target 15 are the first projects in a long, large and rich string of them. We have the cash, the expertise and the focus to deliver"

 

Author: Stuart Langelaan

Disclosure: The author does not own shares in the companies mentioned above 

 

 

 

  1. Goldstone secures $1.224m funding to continue advancement of Akrokeri-Homase project (GRL)
  2. Goldstone Resources updates on progress at Akrokeri-Homase Gold Project (GRL)
  3. Rockfire Resources identifies new potential targets at Native Bee prospect (ROCK)
  4. Economics for Jangada’s Pedra Branca project become even more compelling with additional nickel JORC resource (JAN)
  5. Rainbow Rare Earths jumps following strong maiden JORC resource for Gakara project (RBW)
  6. A beginner’s guide to understanding assay results
  7. Horizonte Minerals files Araguaia feasibility study with Brazilian government (HMI)
  8. Kavango announces identification of multiple drill targets for ‘world-class mineral deposits’ in Botswana (KAV)
  9. Martin Eales discusses his plans to drive profitability at Rainbow Rare Earths as EV explosion looms (RBW)
  10. Kefi Minerals expects final government approvals for Tulu Kapi in coming weeks (KEFI)
  11. Mkango Resources hits highest grade rare earth mineralisation to date at Songwe Project (MKA)
  12. Harvest Minerals looks to expand storage facilities at its Arapua Fertiliser Project in Brazil
  13. Global Energy Metals reveals further cobalt/copper mineralisation in latest Werner Lake drilling round (GEMC)
  14. Oriole Resources reveals ‘bonanza gold grades’ in Cameroon
  15. MOD Resources adds London listing with Botswana copper project
  16. Atalaya Mining announces increase in production guidance with quarterly results
  17. Serabi Gold: airborne survey reveals significant new exploration targets
  18. Oriole Resources starts exploration of Cameroon projects
  19. ‘We only need to find one deposit to confirm our theory is correct’: Kavango Resources on hunting for sulphide orebodies in Botswana
  20. Jangada Mines reports significant reduction in initial capital requirements at Pedra Branca

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