SolGold PLC Announces Regional Exploration Update - Rio Amarillo

BISHOPSGATE, LONDON / ACCESSWIRE / February 13, 2020 / The Board of SolGold (LSE:SOLG)(TSX:SOLG) is pleased to provide an update from the Company's regional exploration activities from its 100% owned Rio Amarillo Project in northern Ecuador, held by wholly owned subsidiary Carnegie Ridge Resources.

Highlights

• A cluster of preserved porphyry lithocap zones has been discovered at the Rio Amarillo Project, approximately 35km Southeast of the Company's flagship Alpala Porphyry Copper-Gold-Silver Deposit in Northern Ecuador.
• Rio Amarillo location holds similar infrastructure advantages to Cascabel Project and is geologically consistent with Regional distribution of porphyry deposits along significant parts of the Andean Copper Belt.
• Extensive porphyry Lithocap and associated Copper and Gold mineralisation at Rio Amarillo prospects are typical of the surface expression of large and fertile porphyry related systems at depth.
• Recent airborne magnetics survey identified large target areas spatially coincident with four porphyry targets discovered through geological groundwork.
• Four high priority targets have been identified within the three lithocap areas at Chalanes, Varela and Palomar

• Chalanes Lithocap area contains the Chalanes Target outcropping porphyry mineralisation including B type quartz veins with rock chip grades consistent with Cu-Au-Mo systems of up to 0.93g/t Au and 0.18%Cu. Rock-saw channel sampling is in progress.
• Varela Lithocap area contains the Varela and Target 1 target areas within an extensive 2km x 1km lithocap with geochemical distribution typical of many preserved porphyry systems globally. At Target 1 outcropping B-type quartz veins occur in volcano-sedimentary host rocks where rock-saw channel sampling in in progress. At Varela outcropping porphyry style A, M and B type quartz vein stockworks occur in dioritic host rocks which returned encouraging rock-saw channel sample results of 99m @ 0.12% Cu, 0.29 g/t Au, and 38.7ppm Mo including 25.1m @ 0.61 g/t Au, 0.12% Cu, and 85ppm Mo.
• Palomar Lithocap area is characterised by extensive 2km x 2km lithocap with outcropping porphyry mineralisation containing B and D type quartz veins which returned rock saw channel results of 140m @ 0.24% Cu, including 13m @ 0.65% Cu.

Technical Services Manager Benn Whistler, commented on the Rio Amarillo Project, saying: "Early work is revealing what we believe could be a "Sleeping Giant" with a big cluster of large and fertile porphyry systems similar to those discovered at the Company's Cascabel Project some 35km to the northeast. The main target areas at Chalanes, Target1, Varela and Palomar hold characteristics typical of other similar systems and clusters of systems along the Andean Copper Belt that have generated some very large globally significant porphyry deposits. With surface mineralisation covering a vertical extent of up to 1500m, we can envisage that exploratory drilling will test an enormous vertical column of 3 to 3.5km."

Introduction

SolGold continues to explore its extensive tenement portfolio in Ecuador with the goal of becoming a Tier 1 copper and gold producing company. SolGold operates multiple regional field teams rapidly exploring and assessing 75 regional concessions across 14 provinces in Ecuador. Thus far, a group of 13 high value targets have been assessed to have world class potential.

Ongoing exploration by SolGold's technical teams is focussed on advancing these priority projects to drill testing as soon as possible. SolGold's high success rate has been achieved by operating multiple field teams comprising 42 Ecuadorean geologists in regional exploration, led by highly experienced national geologists and applying the blueprint developed over the last 4 years.

References to figures and tables relate to the version visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/8282C_1-2020-2-12.pdf

Further Information

The Rio Amarillo project comprises 3 concessions; Rio Amarillo 1, 2 & 3 (Figure 1). Currently, a total of 4 main prospects have been identified on concessions 1 & 2 within the Chalanes, Varela and Palomar lithocap areas. The conspicuous geological feature of the Rio Amarillo Porphyry Copper-Gold-Molybdenum (Cu-Au-Mo) Project is a cluster of preserved lithocap zones with associated porphyry style vein copper-gold mineralisation discovered through geological mapping, and further delineated by recent airborne magnetic surveys (Figures 2 and 3).

Rio Amarillo Project lies approximately 35km Southeast of the Company's flagship Alpala Porphyry Copper-Gold-Silver Deposit in Northern Ecuador and has similar infrastructure advantages. The location is also geologically consistent with Regional distribution of porphyry deposits along comparable parts of the Andean Porphyry Belt.

Chalanes Lithocap Area

At the Chalanes Lithocap area, the Challanes prospect is characterised by porphyry B-type quartz vein stockwork within dioritic host rocks. Rock chip results from this outcropping porphyry mineralisation include up to 0.93g/t Au and 0.18%Cu. Follow up rock-saw channel sampling of this outcropping porphyry system is in progress.

Varela Lithocap Area

The Varela Lithocap area contains the Varela and Target 1 target areas within an extensive 2km x 1km lithocap with geochemical distribution typical of many preserved porphyry systems globally. Lithocap rocks are characterised by advanced argillic alteration with crackle and hydrothermal breccias and contain veins rich in realgar in parts. Deep seated arc-parallel northeast and arc-normal northwest structures have been mapped and interpreted from the magnetic data with the mineralised quartz veinlets predominantly striking in a northwest direction.

At Target 1 outcropping B-type quartz veins occur in volcano-sedimentary host rocks where rock-saw channel sampling in in progress.

At Varela outcropping porphyry style A, M and B type quartz vein stockworks occur in dioritic host rocks which returned encouraging rock-saw channel sample results of 99m @ 0.12% Cu, 0.29 g/t Au, and 38.7ppm Mo including 25.1m @ 0.61 g/t Au, 0.12% Cu, and 85ppm Mo (Figure 4).

Palomar Lithocap Area

The Palomar Lithocap area is characterised by extensive 2km x 2km lithocap with outcropping porphyry mineralisation at Palomar (or Pugaran) Target containing B and D type quartz veins which returned rock saw channel results of 140m @ 0.24% Cu, including 13m @ 0.65% Cu. Alteration in this creek is interpreted as potassic overprinted by later phyllic alteration.

Further work at the Rio Amarillo project includes further follow up rock-saw channel sampling and soil grid sampling and terra-spec analysis of soil samples to map hydrothermal alteration in detail, over the main lithocap areas at Chalanes, Varela and Palomar.

Figure 1: Location plan showing the Rio Amarillo project in northern Ecuador.

Figure 2: Location plan showing mapped lithocap areas comprising the Rio Amarillo cluster of porphyry systems and the four target areas of outcropping porphyry mineralisation.

Figure 3: Rio Amarillo airborne magnetics and interpretation target rank numbers and showing rock examples from each of the four identified prospect locations at Chalanes, Target 1, Varela and Palomar.

Figure 4: Varela rock saw channel samples.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 until the release of this announcement.

Qualified Person:

Information in this report relating to the exploration results is based on data reviewed by Mr Jason Ward ((CP) B.Sc. Geol.), the Chief Geologist of the Company. Mr Ward is a Fellow of the Australasian Institute of Mining and Metallurgy, holds the designation FAusIMM (CP), and has in excess of 20 years' experience in mineral exploration and is a Qualified Person for the purposes of the relevant LSE and TSX Rules. Mr Ward consents to the inclusion of the information in the form and context in which it appears.

By order of the Board

Karl Schlobohm
Company Secretary

CONTACTS

Follow us on twitter @SolGold_plc

ABOUT SOLGOLD

SolGold is a leading exploration company focussed on the discovery, definition and development of world-class copper and gold deposits. In 2018 SolGold's management team was recognised by the "Mines and Money" Forum as an example of excellence in the industry, and continues to strive to deliver objectives efficiently and in the interests of shareholders. SolGold is the largest and most active concession holder in Ecuador and is aggressively exploring the length and breadth of this highly prospective and gold-rich section of the Andean Copper Belt.

The Company operates with transparency and in accordance with international best practices. SolGold is committed to delivering value to its shareholders, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact.