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