Solgold Share Discussion Threads

[bogotatrader] 11/10/2020 21:20

MK - when SOLG price goes through the roof and multi bags many times several on this BB might have the funds to buy a golf course or two.....Cornerstone shareholders may only have small change to buy a couple of golf irons....

[mknight] 11/10/2020 20:21

😃👍

Porvenir news tomorrow am imo

NM knows he needs to get the info out asap he will also know what Cornerstone are up to .The mining world is quite small .i said earlier that there is something more behind the fury of buying as time gets closer i think the buying will take us up to nearer the offer price . All imho blah blah

Kids playing Golf tomorrow so no Level 2 in the morning ☹👎 My daughter now plus 0.9 fingers crossed she will be playing in the British open at 16.

We can but dream hits her driver 240/250 yards needs practice with the short game ..just had her filted for new irons ( same as Dechambeu all the same height cobra ) she wont be putting on 30kilo just yet .Also highered a swedish olympic Decathlon teacher to help her with biomechanics . Its very interesting.

[mknight] 11/10/2020 20:21

BHP could not make a hostile bid before the 15th of October .

Cornestone are not going to take up our offer . Why ?

Could it be BHP will buy Cornerstone first and then make a hostile bid for Solgold .


Now that would make sense as BHP would have around 20% of Solgold shares .Their first purchase of Solgold was not directly with Solgold .

[dozyduck] 11/10/2020 20:08

'Gold in the ground' values have to stem from such a wide variety of deals over a long period of time when markets varied widely, that they are unreliable as a predictor for a particular case - each deal depending on many other factors like infrastructure; outlook for gold at the time; how much and at what grade; and what style of deposit and how to be mined. Not to mention whether the buyer needs to fill a gap in his existing production; whether he's a listed major with shareholders who;ll stump up the cash ; etc etc etc.. I (and Edison separately) some years ago surveyed a large number of such deals which showed such a wide variation as to be completely useless.

[mknight] 11/10/2020 19:45

Jlondon

So what you are saying is Gold at Alpala in the ground is worth .

23moz x 85 dollers divided by exchange rate of 1.30.

1.5 billion just for Alpalas Gold .

So around .75p a share just for Alpalas Gold.

Which mean todays share price is valued at 48 cents per oz Just for the Gold copper valued at zero
As are all the regionals .

[husbod] 11/10/2020 19:11

Thanks rouge - the great thing about life is that you never stop learning.Interesting week ahead here.

[jlondon] 11/10/2020 18:02

"The Real Value of gold in the Ground."-Kitco, 3 June 2015


"24 year history based on US$1,200 per ounce of gold in June 2015 : Chart-56% of takeovers occured at values less than $45/oz au gold and 80% were BELOW $90/oz au gold.

Median price: All deals $39. Latin America $41."

This Kitco article of 2015 has NOT been updated. This article mentioned Cipher Research peer - this was the one I read some time ago but dont have the link at the moment. It is better to show links for everyone to check.

J.London, Sun 11 Oct 2020 [Ref to my earlier post as above]

That*s all from me folks, now I can go on auto since I have done quite a lot of research over this weekend re: my Solgold stock. Good weekend to all.
---
Re-Calibrate:
Currently, Solgold at 42.25p, the market cap of Solgold is £868m /US$1.12bn [1.3 FX today]. So, 85 MOZ gold equivalent per Mather*s Interview with Mining Journal @2018 = US$13.27 per ounce.

If we lowered it to Kitco*s 2015 Gold Price of US$1,200 & 24 year history of takeovers, then at even US$39 per ounce paid for value-in-the-ground = US$3.3 Billion or £2.55 Billion [85moz x US$39 per ounce paid average=US$3.315 Billion] which is 3 x THE MARKET CAP TODAY [£868m x 3= £2.6 bn]. Any wonder why Hannan*s target price [latest is £1.28 for Solgold? Hannan*s target price is ALSO 3 TIMES [42.25p x 3 =£1.26] Solgold*s last share price of 42.25p. Kindly check.

[jlondon] 11/10/2020 17:41

B H P -
BHP paid 45 pence for Solgold shares on 15 Oct 2018 [Solgold 15 Oct 2018 RNS: "Solgold raises £45m from BHP at 45pence."

NICK MATHER:
Interview with Mining Journal on 22.11.18: Mather stated: "23 MOZ of gold we*ve found equates to

85 MOZ [million of ounces] of gold equivalent OR
34 Billion lbs of copper." [See my last post #25284 above]

--
BARRICK GOLD
World*s LARGEST gold miner: Reserves

"Total attributable measured and indicated INCLUSIVE of reserves stand at 3,400MT at 1.55g/t for

170 MOZ of gold with a further
39 MOZ of gold in the Inferred Category AT US$1,500/oz of gold, highlighting POTENTIAL FOR GROWTH IN A HIGHER GOLD PRICE environment."

hxxps://www.barrick.com/English/investors/annual-report/reserves-and-resources/default.aspx [Barrick*s reserves for 2019 latest from annual report]

[Note: At the top of Barrick*s page, it shows gold at US$1,930.67 +1.96% SPOT GOLD.]

----
My Comment:
When BHP paid £45m to buy Solgold shares at 45p, that would be normally be backed by a valuation report of "fair value" at THE time on 15 Oct 2018. In the report, there is no doubt that the price of gold per oz would be in it. Going on Barrick*s official reserves as extracted from their annual report, there is NO doubt that since 15 Oct 2018, the price of gold has CLIMBED STEEPLY. A/c to the UK Bullion by Post 3 year chart, on Fri, 19 Oct 2020, gold was priced at £942.44 [today*s exchange rate is £1=US$1.3] or US $1,225 [dont have the exchange rate on hand for Oct 2018]. So, IF today, the BHP deal is done the M & A dept would have to re-calibrate this again?

At Fri*s close, 9 Oct 2020, the Solgold share price was 42.25p [mid]. So, we have NOT yet touched fair value per the BHP deal of 18 Oct 2018 at 45p. Solgold Market Cap is £868million @42p.25p. The market cap of Solgold currently vs 85 MOZ gold equivalent per Mather is = £10.12 per ounce or US $13.156 per ounce [£868m divide by 85]. HISTORICAL ACTUAL Takeovers [Pre-production] for IN-THE-GROUND gold has been around US$50 average {range US$40-60/oz from recall.} I dont have the 25 year stats with me at the moment although Eric Sprott said recently it should be nearer US$100/oz given profitability has gone up with the higher gold price/oz.

So, say 85 MOZ of gold equivalent x US$50 paid per oz of gold Mergers & Acquisitions = US$4.25 Billion /£3.26bn.[just sayin].

SOLGOLD*S ALPALA represents 85MOZ GOLD equivalent vs Barrick*s 209 MOZ gold [total attributable measure & indicated inclusive of reserves]. Barrick share price US$28.05 [NYSE] = Mkt Cap US$49.87 Billion vs Solgold at £868m or US$1.12 Billion.

J.london, Sun 11 Oct 2020

[mknight] 11/10/2020 16:32

Lowtrawler

I think you will find if Porvenir goes past the 750m we might get to 63p next week .

Just to add for the first time that there might just be something more going on behind the scenes . The shareprice should be more than 42p but the fever of buying suggests something more .

[lowtrawler] 11/10/2020 15:31

Everything we can see is pointing towards a highly lucrative few months. I'm not sure we'll get the 50% gains of the last week for another month but slow and steady wins the race. Rio Amarillo and Porvenir were always destined to be the stars of the show and their opening act won't complete for a few months.

[sirmoori] 11/10/2020 13:01

Thank you so much to jlondon, mirabeau and his source, coldcut, for those relevant and fascinating posts. Very much appreciated!

[mirabeau] 11/10/2020 12:53

good stuff JLondon

[jlondon] 11/10/2020 12:41

Nick Mather*s Interview with Mining Journal

Nick Mather: "We*ve got 11 more where that came from." -Mining Journal, 22.11.18
hxxps://www.mining-journal.com/leadership/news/1351654/nick-mather-weve-got-11-more-where-that-came-from

"The 23.2 million ounces of gold we*ve found equates to
8 5 M O Z of gold equivalent Or
3 4 Billion pounds equivalent of copper

100% of [our 11 targets] have s p e c t a c u l a r looking outcrops- 600g/t maximum surface grade at B L A N A , 8 km from Alpala-that*s got potential for $1-2 billion worth of surplus to improve the front end of the Alpala development.

Relocating some of them to La Hueca- driller has 38 million shares.

Most geologists only get an opportunity to work on 1 project like this in their careers. There*s no geo reasons why the other 11 cant be as good as the 1st one. I think you*ll find privately that*s one of the things that interest BHP. That*s a speculative view, but if I was them, that*s what I would do.

Dealing with BHP was a pleasure. It took 3 weeks from the 1st phone call.

We*ve got 70 drill holes ALL have 500-1500m OF INTERSECTION and it covers a big footprint.

We*re never going to be JV*ed."
---
"World*s major gold miners target porphyries."-Mining.com, 8.11.19


S & P Global 2018 report found 20 major gold producers had to cut remaining gold production from 20 yrs to 15 years, based on FALLING RESERVES.

A/c to McKinsey, 70*s,80*s and 90*s the gold industry found at least O N E 50 MOZ gold deposit & at least T E N 30MOZ gold deposits. However, since 2000, no deposits of this size has been found and very few 15 MOZ deposits. [read the other details]

Because large pure gold deposits are hard to find, gold miners are turning to deposits that contain other metals like copper.

The world*s MAJOR gold miners are starting to get desperate in their search for gold."

J.London Sun, 11 Oct 2020
Listened again to Nick Mather*s interview with Mining Journal of July 2020 [gave link in my last post] re-building a major copper gold co. Near the end, he said "make it expensive" and majors keep things close to their chest. He added that everyone has a PRICE-we are not banking on that- we carry on. You can read the 2018 interview as above about financing. Didnt know what Mather meant when he said make it expensive then - Provenir etc is now showing the potential of the other exploration plays etc. Yup, all clear to me - from the horse*s mouth as to strategy. Kindly check.

[mirabeau] 11/10/2020 12:11

Many, many thanks to colduct on LSE. I hope he doesn't mind me reposting this piece of mega analysis..best I have seen in months

------------


Rio Amarillo - a HS Au epithermal + porphyry Cu-Au system?Today 11:55

I cannot help but wonder if, apart from highlighting the porphyry Cu-Au potential of the Rio Amarillo prospect, and the Varela target in particular, the Oct. 8, 2020 SOLG RNS is also providing geological hints that it may additionally contain what could be the icing on the cake – a high sulfidation (HS) state epithermal gold deposit.

Jackson (

target='window'>https://www.911metallurgist.com/blog/high-sulphidation-epithermal-deposits ) provides a good, general introduction to the characteristic features of such deposits while more technical, geological descriptions are provided by Arribas 1995 ( ), White and Hedenquist 1995 (SEG Newsletter, No. 23, pp. 9-13) and Thomsen 2017 (

Some of the key features of HS deposits include gold deposition from highly acidic fluids (vs. low sulfidation Au deposits from c. neutral pH fluids); advanced argillic alteration haloes in which alunite is a key alteration mineral; feldspar destruction; and where present, as many lithocaps are barren, variable gold deposition modes, in vuggy quartz, breccias and disseminated. See Jackson for a more detailed general introduction.

The key hints to me that this might be an as yet unspoken (by SOLG) possibility are:

1. The scale of the Varela lithocap (p.1), easily visible on Google Earth at latitude 0deg 33’ 47.59N, longitude 78deg 10’ 35.43W;

2. Intense acid alteration in a highly leached lithocap (and variant repetitions pp. I, 3, Fig. 9 caption);

3. A fully preserved, whole column porphyry system.. .. Bi, Se, Te and Li at surface .. .. Li halo (pp.2, 3), the latter coincident with the advanced argillic alteration zone in the schematic section of a full column system, Fig. 8;

4. Magnetite and feldspar destructive, clay rich hydrothermal alteration (p. 3, Fig. 10 caption). Feldspar destruction, and replacement by alunite amongst other minerals, is one of the key alteration processes noted in highly acidic, HS systems;

5. Gold bearing hydrothermal breccia (Fig. 10);

6. What appears to be drusy form quartz lining open cavities (Fig. 11, bottom right).

PART 2.

While I am a geologist, I have no specialist expertise in or knowledge of porphyry and epithermal systems, so I would welcome correction or rebuttal of this admittedly very speculative, personal interpretation by those with greater knowledge/ expertise than myself.

However, if anywhere near correct, it becomes easier to understand why the SOLG team are so excited by this particular prospect, as it potentially combines two distinct types of deposit in one system and begs comparison with the giant Yanacocha HS Au gold deposits system in Peru, operated by Newmont, and reckoned to be the fourth largest gold mine in the world (see Thomsen and ).

But for now, one key question I would pose to SOLG geologists is:
Does the lithocap contain alunite, as I suspect it is on the presence of that mineral that the acidic alteration has been defined, and thus confirm that this is indeed an HS epithermal system, whether gold bearing or not?

end

Again, an absolutely superb contribution and one that should trigger salivation..........

[mam fach] 11/10/2020 11:34

Sit back and see the story unfold.
Been an amazing few weeks 25p to 42p with much more to come.
Not ramping
Checking on SOLG price has given us the motivation this pandemic has taken away.
Last few pieces of jigsaw next week.
LT- So glad someone is listening as have husband ,two children and four grandchildren
who have never listened and their favourite word is 'NO'.
How good and pleasant it is when brothers dwell in unity.
Mor dda a mor ddymunol yw i bobl fyw'n gytun.
Psalm 133 v.1.
GLA solgers who have kept the faith.

[rougepierre] 11/10/2020 11:30

husbod...the 98k deal on Friday was the 'Uncrossing Trade'...this is the net MM settlement that goes through every day at c16.35....earlier last week it was over 425k...

The good news was that it was bought in at 42.25p which augurs well for next week...

[cbeadle] 11/10/2020 08:06

The fact that SOLG remains so undervalued with respect to both assets and promising development strategy has encouraged me to dip in for the first time during the last few weeks

[lowtrawler] 10/10/2020 23:30

Listen to mam fach. Strategy will be determined by players in the game. We might like to anticipate what's coming but whatever the strategy, SOLG remains under valued. Ensure you are invested is the winning strategy under all scenarios.

[mknight] 10/10/2020 21:08

An interesting thought

If Solgold annouce on Monday that Povenir have gone to or past 750m with the same type of mineralización then the share price goes to 50p it will be worth to Cornerstone 986 .

If they turn that down their sharholders are not going to be happy thats over 60%
Over their current value .

[goldrush] 10/10/2020 17:32

Thanks pob69.

[pob69] 10/10/2020 17:05

Cornerstone (but not Solgold) exhibiting at the New Orleans Investment Conference 14-17 October SOLG $SOLG $SOLG.L #porvenir #cascabel #ecuador $CGP

[jlondon] 10/10/2020 15:11

NM*S VISION as stated in the Mining Journal interview:

"Nick Mather spoke with Mining Online in an exclusive interview about Solgold*s plan to develop the huge Alpala copper-gold deposit in Ecuador.
Mather has a VISION to grow into a COPPER GIANT, e m u l a t i n g the growth of Fortescue Metals Group." 10 July 2020
httpjs://twitter.com/SolGold_plc/status/281567693582237696

That will mean that ALL prospects will have to be under Solgold and to be able to win any proxy war.

That*s now the position for everyone no matter what the permutations are.

In the Solgold presentations, it was said that Solgold is an emerging major in Ecuador, just as BHP did at Escondida.

N.Mather is 61 yrs old per search online [open file]. Me - x years. Enjoy everyone*s contribution on this Solgold forum - we are all in this as investors. Over this weekend, I am thinking out my own strategy relating to Mather*s vision - Fortescue took 20 years to reach the position of Major as below.
--
Fortescue is listed on the ASX, Australia @A$16.95, M a r k e t C a p: A$52 Billion. On 13 Aug , 1999, the share price was A36c [earliest on chart]. So, from a penny stock to a Australian Major. So, roughly it took 20 yrs. 47 bagger from 36c to A$16.95.

Newcrest @31.26 is smaller at mkt cap A$25.5bn. Rio Tinto @$97.50, Mkt Cap A$36.19 bn. All ASX listed in Oz.

J.London , Sat 10 Oct 2020