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SolGold Plc
Summary
| Project: | Cascabel | |
|---|---|---|
| Deposit: | Alpala | |
| Location: | Ecuador | |
| Commodities: | Copper-Gold | |
| Date: | 5/20/2019 | |
| Report Code: | NI43-101 | |
| Report Type: | PEA | |
| Project Stage: | Pursuing Resource Increase/Upgrade | |
| Report details: | 20-5-2019: SolGold Plc announces a PEA report for its Alpala deposit at the Cascabel project. PEA results incl. post-tax NPV of US $4.2B (8%). IRR of 26.5%. SolGold Plc (LSE & TSX: SOLG) is pleased to announce the release of its Preliminary Economic Asses | |
| Resources: | (Resource): 2050Mt @ 0.41% Cu, 0.29g/t Au (Ind.) and 900Mt @ 0.27% Cu, 0.13g/t Au (Inf.) At Alpala | |
| CP/QP: | [Overall Report]: Jason Ward (Internal) | |
| ABSTRACT: | SolGold Plc (LSE & TSX: SOLG) is pleased to announce the release of its Preliminary Economic Assessment (“PEA”) for the Alpala Copper-Gold-Silver Deposit, Cascabel Project Northern Ecuador. SolGold holds an 85% registered and beneficial interest in ENSA (Exploraciones Novomining S.A.) which holds 100% of the Cascabel Project (see “ownership” below). Key aspects and findings from this study are summarised below. Commenting on the findings of the PEA, SolGold CEO Mr Nick Mather said: “The SolGold Board is excited by the opportunity demonstrated for the Alpala Project, and that it continues to grow. The unusually low operating costs modelled are due to the relatively soft, fractured nature of the ore, resulting in enhanced caveability, a high degree of fragmentation in the cave and ease of crushing and millability, combined with low hydroelectric (consumption and unit) costs. The overall scale efficiencies also assist in the delivery of modelled low operating costs. The low start-up capex of $2.4-$2.8Bn, high net present value (NPV) range, of $4.1 - $4.5Bn at an 8% discount (well in excess of the global cost of capital for a project of this nature) signifies outstanding financial metrics for a project of this nature and outstanding modelled internal rates of return of 24.8- 26.5% presents an outstanding value proposition for SolGold shareholders. SolGold looks forward to delivery of the same blueprint across its 12 other wholly owned projects throughout Ecuador. The study team has been careful to separately identify start-up capital costs ($2.4Bn – $2.8Bn) and ongoing sustaining capital costs ($7.5Bn – $7.8Bn over the life of mine) and has differentiated this from operating costs. The vertically extensive nature of the cave configurations, the high modelled resource tonnages and production rates also contribute to the high capital efficiency and returns, low mining costs, and low overall costs of the project. | |
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