5th Feb 2021 09:18
(Alliance News) -Â SolGold PLC on Friday said its pre-feasibility study for the Alpala project on the Cascabel concession in northern Ecuador is not expected to be published until "late 2021".
Shares in the gold and copper mining company were down 14% at 23.25 pence in London on Friday.
The company's project committee, chaired by Non-Executive Director Keith Marshall, has determined that additional work is needed to address "a number of mine development and metallurgical alternatives and potential upsides, including the resource potential on other targets within the Cascabel concession.
"The committee has identified the key work required and noted that it would be advisable to consider adjusting the current draft mine development plan and the draft mine production plan to de-risk the project with a view to facilitating the expeditious development and optimised capital requirements," SolGold said.
The board has requested SolGold management to review both the current draft mine development plan and draft mine production plan, specifically to examine an alternative mine access to accelerate the development of the cave and examine the draft mine production plan with a view to "ascertaining the optimum production rate", and undertake a "thorough re-assessment" of all potential near-surface mining options at the Alpala deposit.
"The objective of a revised study encompassing all of the Cascabel targets is to reduce the risk of a very large initial capex on a large underground development and deliver a study which demonstrates a lower technical risk through better defined upsides in resources, operating costs and recoveries and augments production with early stage open cuttable resources," said Chief Executive Nick Mather.
"Continued strength in global copper and gold markets will further endorse the strategy of making the Cascabel project lower risk, quicker to build and bring to production if a development decision is made and with reduced upfront capital exposure."
With the extra work required, the publication of a pre-feasibility study is not expected until "late 2021", though the company said it is confident the additional time and work to complete this is in the firm's best interest.
On Wednesday, SolGold had provided an update on its regional exploration programme in Ecuador.
Final assays from holes 1, 2, 3 and 4 at the Cacharposa porphyry copper-gold target returned "encouraging results", the firm said, with visible copper-sulphide mineralisation encountered in holes 5 to 8 "highly encouraging".
Meanwhile, partial preliminary assays from Cerro Quiroz Target indicated that hydrothermal breccias may host significant gold mineralisation, with final assays for holes 1 and 2 expected in the coming month.
Initial 3,000 metre drilling programmes are planned for mid-2021, at both the Santa Martha and Celen porphyry copper-gold targets, following completion of 3D geophysical and geochemical modelling and completion of the permitting processes for scout drilling.
By Lucy Heming;Â [email protected]
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