18th May 2015 07:00
LONDON (Alliance News) - SolGold PLC Monday said Chief Executive Alan Martin resigned on Sunday and will leave immediately, with Executive Director Nicholas Mather taking the role on an interim basis until a suitable replacement is found.
Mather was the company's CEO between about 2005 and 2011, holds a stake of about 11% in the company, and recently reviewed its operations at its key Cascabel copper-gold-porphyry project in Ecuador.
"SolGold's management team will continue the implementation of the project management aspects of the Company, including exploration evaluation, tenure management, management of ENSA, and finance & administration without interruption," the company said.
"Mr Mather will continue his role of executive responsibility for strategic planning, capital management and investor liaison," it added.
Last week, the company had written to shareholders saying it was looking to increase the number of rigs on site and undertake directional drilling off existing holes in a bid to deliver a certified high-grade copper and gold resource at the Cascabel prospect at a lower cost.
Shore Capital wrote a note saying that Solgold's new exploration plan was aimed at reduce its "horrendous" drilling costs, but analysts at Shore Capital believe the company will still require more funds despite its cost-cutting efforts.
"(SolGold) hopes its new strategy will cut its horrendous USD720 per metre drilling cost to merely painful USD480 per metre, if affirmed, to drill 20 holes, or 18,000 metres and delineate maiden resource in 12 months; more funds are still needed, we believe," says Yuen Low, analyst at Shore said.
By Steve McGrath; [email protected]; @stevemcgrath1
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