20th May 2014 13:55
LONDON (Alliance News) - SolGold PLC Tuesday said that extensive halo mineralisation has been found in Hole 6 at Alpala, at its Cascabel copper-gold porphyry project in Ecuador.
Alpala is the primary porphyry copper gold target in the company's portfolio.
"The assay results from Hole 6, at Alpala, are highly encouraging. With copper mineralisation averaging 0.14% over 821.5 metres, Hole 6 reveals that copper mineralising fluids have interacted with a vertically extensive column of rock in the area north of Hole 5," said General Manager of Exploration Bruce Rohrlach in a statement.
SolGold said the extensive but low grades are consistent with the hole having been drilled on the northeast margin of the Central Zone within the Alpala prospect.
It said the results suggest that a high grade copper gold porphyry deposit is present to the west and northwest of Hole 5 at similar depths, and drilling is now focussing on the Central Zone.
The Australia-based exploration company said it is also currently planning additional soil sampling and 3D induced polarization (IP) surveying across the Aguinaga target to define future drill sites. It said the Aguinaga target represents another potentially significant porphyry copper-gold deposit for the company at Cascabel.
"While progress is slower than we had anticipated, it is also very pleasing to see that preparations are nearing completion to enable the IP survey to commence at Alpala over the coming weeks," said Managing Director Alan Martin.
Earlier this month, SolGold said its had terminated Hole 6 at a depth of 1,401.5 metres.
SolGold shares were trading 4% lower at 7.80 pence Tuesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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