LONDON (Alliance News) - SolGold PLC Tuesday said preliminary assay results have been received for the upper portion of its drill hole CSD-13-002 at the Cascabel project in Ecuador.
The copper- and gold-focused mining company with operations in Ecuador, Australia and the Solomon Islands, said the upper portion of drilling found copper-gold intersections including 18 metres at 0.33% copper and 0.4 grams per tonne gold, and 42 metres at 0.5% copper and 0.68 grams per tonne of gold.
SolGold said the mineralised zone increased by 21% and the gold grade by 13% between the shallower intersection in the first hole tested and the slightly deeper extension of the same mineralised zone at the second drill test.
The company said it expects that the uncovered mineralisation is an extension of the upper mineralised zone at its CSD-13-001 drill test and that assays from further CSD-13-002 studies are expected in the next two weeks.
SolGold said that it also found multiple intervals of bornite mineralisation at the site, which supports the potential of a large copper-gold porphyry system, it is now proposing that the current five hole programme is expanded to eleven holes for 6600 metres.
The company is currently conducting its third drill test at the site targeting a large magnetic target, and SolGold's Chief Executive Alan Martin told Alliance News in October that its fourth drill test at the site will likely drill below holes one and two to further define the resource in that area.
SolGold shares were down 13.9% to 11.31 pence Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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SolGold (SOLG)