Solgold Share Discussion Threads

[greenelf] 30/10/2020 08:20

Still waiting for Alpala to be fully priced in.Barrel of laughs the so called 'market '.

[arcadian] 30/10/2020 08:19

LT

"While visual measurements and observations of drill core are extremely encouraging ...."

It`s their business and reputation at stake but they have to cover themselves.Jason was quite strong re the gold in hole 1.

[greenelf] 30/10/2020 08:16

It is amazing. Seriously blind..

[mknight] 30/10/2020 08:12

If NM is watching the opening price action i bet he is thinking stupid fluckers ..

Lay ot out on a plate for them and they still dont get it .

[mknight] 30/10/2020 07:53

Gold mineralisation .

Its huge and they think its alot deeper .

Quite unbelievable to hit 2 from 2 .

You can see the Gold viens in the photos will add a few early while people asleep .

[lowtrawler] 30/10/2020 07:48

All I'm getting from the announcement is that they're continuing to find mineralisation to 674m. Still no mention of finding the core. Hopefully others can interpret better.

[mknight] 30/10/2020 07:27

Looks like a massive gold mine according to Google ..

Google potassic diorite

This is massive news which most on Lse have missed . No doubt the geolgists amoung us will be buying today while the others wait for assays .

[wapping67] 30/10/2020 07:22

Highlights

Ø PDH-20-002, the second drill hole at the Porvenir Project, at Cacharposa is at a depth of 674.0m, currently intersecting potassic altered diorite porphyry containing approximately 2-3 % chalcopyrite by volume and approximately 3-4 % porphyry style quartz veins by volume.

Ø PDH-20-002 has so far intersected 658m of visual chalcopyrite mineralisation from 15.5m depth, including localised chalcopyrite percentage highs of up to an estimated 4 % by volume and as much as 28% porphyry style quartz veins by volume.

Ø PDH-20-002 is being drilled from the same location as PDH-20-001 at a steeper angle of -75 degrees towards the same direction, with minimum target depth of 750m. PDH-20-002 is targeted to more fully transect the interpreted central portion of the Cacharposa porphyry system.

Ø A second drill rig is currently being mobilised to Cacharposa, and will be sited approximately 230m west-northwest of PDH-20-001 with a view to test the central and western portions of the system, including the potential root of the core of the system, which may extend deeper than 1000m as indicated by 3D geochemical modelling.

Ø A third drill rig is also being mobilised to Cacharposa and will be sited approximately 200m south of PDH-20-001 to test the southern extension of the targeted mineralised system.

Ø A fourth machine is expected to be finalised for mobilisation from Hubbard Perforaciones Cuenca workshops in November, and planning and logistical work is underway to ramp up the Porvenir drilling fleet to six man-portable diamond drill rigs as quickly as camp construction and COVID19 restrictions allow.

Ø Mineralisation in Cacharposa Creek is part of a 1700m long northerly-trending mineralised corridor, up to 1000m wide. The mineralisation styles, size and geometry at Cacharposa are consistent with the surface exposure of a vertically extensive, well-preserved porphyry copper-gold system .

[greenelf] 30/10/2020 07:16

They must be dancing back at HQ.

[greenelf] 30/10/2020 07:15

The accompanying hole 2 photographs are awesome. This is huge.

[jammytass] 30/10/2020 07:11

RNS
Out

[mirabeau] 30/10/2020 06:32

The Project

SolGold plc (SolGold) is a leading exploration company focused on the discovery, definition and development of world class copper-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. SolGold holds an 85% registered, and beneficial interest in ENSA. The Cascabel license is 100% owned by ENSA. SolGold is listed on the Toronto Stock Exchange (TSX) and the London Stock Exchange (LSE).

[jlondon] 29/10/2020 23:37

"Prior consultation law may spur mining in Ecuador."-BNA, 26 Oct 2020
hxxps://www.www.bnamericas.com/en/interviews/prior-consultation-law-may-spur-mining-in-ecuador

"Ecuador has only 2 large scale mines in production, Mirador copper mine & Fruta del Norte gold operation, but experts say the country has great geological & mining wealth yet to be d i s c o v e r e d."

"The presence in emerging Ecuadorian mining co*s such as BHP, which has an interest in CASCABEL , Newcrest also in Cascabel & Frueta del Norte, Anglo American..with Luminex, makes experts think that Ecuador has the potential to be an important player at a regional level."

"In cases of opposition to mining, the common denominator is that p r i o r consultation was NOT done or was not done properly..or necessary. Groups that want to stop mining are ignorant..its important to have the LAW as that will prevent groups from taking advantage of LEGAL LOOPHOLES, b e f o r e and after will be created in Ecuador*s legislation."

"BNA: Is there a lot of foreign funding sent to these groups? Answer: There are groups of people who seek to STOP MINING and other extractive industries, with TIES that GO BEYOND the pure relationship with NATURE and go hand in hand with fresh research funds. Also radical groups traditionally funded by LARGER GROUPS with Eur & N.A funds which maintain systemic opposition to ANY extractive activity because that allows funds to be ACTIVATED."

"Benalcazar: The law MUST be APPROVED, by mandate of the Constitutional Court, BEFORE DEC 13."

"Benalcazar: Experts compare it to the Northern part of CHILE, where LARGE MINES have been discovered." [Refering to Ecuador]. As TWO EXECUTIVES OF GLOBAL CO*S TOLD ME, geologically Ecuador has GREAT WEALTH TO BE EXPLORED. If with the little that has been done there*s a deposit like CASCABEL, which is among the 20 MOST IMPORTANT DISCOVERIES IN THE LAST 50 YRS, imagine the wealth that*s still to be DISCOVERED."

"BNA: But anti-mining groups seem to...Benalcazar: These problems are not typical of Ecuador: theyre problems that arise from a global strategy. In Colombia, thro popular consultations projects were stopped for 3 years. In Peru, many environmental & social problems surrounding important projects. In Chili, the social issue is an everyday thing. In Brazil, the social issue and illegal mining are commonplace."

"Only the industries that inject BILLIONS of dollars into the LOCAL ECONOMY will allow the country to move forward & the only sector that will allow that , with real investments signed in 2017,18 &19 is the MINING INDUSTRY."

"Ecuador has an industry that can take off & be one of the MOST IMPORTANT..."
[Cant read after that as its via subscription]

--
My Comment:
So, the law to be passed to close loopholes on Dec 13, 2020 will be of interest. Also, the two executives from global co*s who told Benalcazar ...[Former deputy mining minister of Ecuador talking to BNA via Q & A]

[mirabeau] 29/10/2020 22:05

From today's Talisman (ASX) new release not not directly relevant to SOLG it is relevant as per :--

'Chalcopyrite is the primary copper-bearing sulphide mineral at the Blind Calf Prospect, with very little pyrite or other sulphide minerals present'

As a result, the grade of the primary copper mineralisation has a strong correlation with the chalcopyrite content. While chalcopyrite is a low-conductance sulphide mineral, down-hole EM surveys are a very effective tool for detecting high-grade copper mineralisation in proximity to drill holes'

---

Now where have we heard this before regarding Porvenir as per SOLG on 1st Oct -

'The dominant copper sulphide mineral observed to date is chalcopyrite, an important ore-forming copper sulphide mineral containing 34.5% copper. Chalcopyrite mineralisation has been observed from 15.9m to the current depth of 525.3m. Detailed core logging, to a depth of 491.0m, shows chalcopyrite percentages of up to an estimated 6.0 % by volume with associated porphyry style total quartz vein abundance of up to a measured 11.7 % by volume.'

[jlondon] 29/10/2020 20:31

M & G
Dont get me wrong. I am definately sure that B wants Solgold. They wanted it a long time ago even at Hole 17 although I think they were watching before then. What prompted them was NCM and they couldnt wait any longer so, over 1 wk end they contacted NM.

However, its about price isnt it?

Knowing there are always newbies, I take care not to push out anything further than 45p per Money Week [not take-out price but BHP*s last buy-in] or Cronford*s 42p [it should be 43p-43p+ per charts & not 42p?].
Should a bid come, it will have to be re-valued by the bidder.

I give an example. There is a Australian project in NSW and Anglo-American has buy-in rights. Should they want to buy, it is in the agreement that an independent valuation will be taken.

Another example is GGP - if NCM were to buy their 5%, then again, an independent valuation will be taken.

Not to worry, on the London South East Solgold forum, from singing and dancing, they are now furious eg iceberg mentioned about Nevada*s $50m if Solgold wants it and money still in the bank.

As NM said, he wants to make it expensive for any buyer so regionals are good for this?

[gisjob2] 29/10/2020 20:23

Jlondon,

Can't see SOLG being taken out for as little as 50p !

[mirabeau] 29/10/2020 20:15

'further improve his defences' as per today's article by Cornford. There's always the inference that Mather is in constant defence mode waiting for a bid that some believe is inevitable and a fait accompli. I also believe a bid of some form is inevitable simply as a result of the size, quality and long lead nature of SOLG's assets and exploration upside. Buying SOLG almost guarantees national access to Ecuador's riches.

[jlondon] 29/10/2020 19:56

What Mr Cronford said was interesting:
Some time ago, there was a commissioned report and it advised the majors to do exploration, JV*s or farm-ins. This what they have been doing eg Rio at Paterson etc.
This is so that shareholders will come first re: dividends etc.

However, in the latest reporting, it was said that soon, analysts will ask the majors: So where is the growth?

So, until that point comes, they need not make an immediate decision. Industry has supply-demand curves so they know exactly when they need to replenish stock which is pretty soon [not saying how soon as it can be taken out of context as I am not privy to internal info].

NCM
What is of interest is that NCM said they were going to commission an investment bank to view strategy options relating to their Solgold stake. Yeah, if they are not going to bid and pay for the financing via borrowing etc, then they might as well sell their 13% stake to a BIDDER who will then take their place.

Strange, they pulled out of this idea. Why? Perhaps, they think they will hang on and it can only get dearer over time? Otherwise, what is the logic except money?

BHP
NCM voiced their unhappiness over Solgold*s deal with Nevada Franco. They wanted Solgold to do the financing and they would have had to be the major takers = more shares. No surprise that NM pulled the Nevada deal as he wanted to hang on to shares, not issue more.

EXPLORATION
From the Solgold presentation, regional exploration [from chart] will go on until 2025 which is up to the time of the Alpala mine. They have 700 employees and so, workers eg junior geo*s [Ecuadorian] could be busy instead of being let go.
So, in a sense the cost is carried or has to be carried as a good employer?
As far as I am aware, most of the exploration at Rio etc is a TEST drill nature. However, Porvenir may be a bit different as NM was keen but how many holes is left to be seen but certainly max may be 16/18-23 or it could be taken more slowly as Alpala in the past?

Cronford
If there is any need next year, say, then if BHP and NCM are still on board, then they may have to agree to 49.5p. How did I get this thesis? NCM paid 41p and BHP paid 45p = nearly 10% more. So, 10% more from 45p = 49.5p. Worst case, 45p that BHP paid.

I have to check whether Nevada*s next $50m could be used for this.
I have not looked into the details yet as to me, the conditional funding is of interest.

COMPETITIVE BIDS
As far as I am aware, the said report did suggest or rather history tells them that at the last height of the gold price @$1,900, one major paid the world. So, any bid would be more considered anyway & hence why bidding wars are no longer seen for anything in the mining sector.

Suits NM anyway as he is hedged for all eventualities although he did say to Mining Journal everyone has a price.

So, in the meantime, cat and mouse and all that.

J.London 29 Oct 2020
I am gathering my own thoughts to see what to expect for myself. I am sure there are other insights.

[jlondon] 29/10/2020 18:48

MK
I have proof for what I said re: ASX.

Link:
Official DGR Global Twitter site.

DGR re-tweeted the Solgold tweet of Porvenir dated 19 Oct 2020, the last RNS relating to Hole 2. So, for Porvenir, DGR did not generate their own tweet under their own co logo but rather Solgold.

So, yes, it is not within the ASX rules? Maybe, there have been mishaps before of laymen reading the wrong grades? Logical.
===
John Cronford: Thanks to M. I have been waiting for days for Master Investors to come up with their latest view. Mr Cronford mentioned Armarillo & Porvenir. As I said earlier, one has to get ahead of the curve to see if there are any more promising surface targets whether they be copper or gold especially if they are large - left field surprise as a wild card.

As for 42p, it is from the recent charts or rather the last peak but I think it went to 43p+.

What can break the 42p per Mr Cronford - ah that will have to be rather special results as is norm as in either long intersections with good grades or specially good grades.

On London South East Solgold forum, they are now singing and dancing about Alpala, Rio. In my own view, from data, I would think possibly and I could be wrong that Porvenir outcrops eg Bartolo holds some promise given the rocks shown in the latest Solg Oct Presentation which is not only chalcopyrite but caocite, the latter of which was present at Kamoa-Kakula.
Southern Ecuador seems richer in minerals grade than Northern Ecuador where Alpala & Rio Amarillo sit.

History will tell us as Alpala in rankings is behind Pebble No 1 [huge tonnage but lower grades and more for gold ] & Kamoa-Kakula, a higher grade and high grade zone for copper. These were shown in the past Solg presentations.

If any of Solgold*s 100% concessions turn out to be as good as Pebble [gold mainly] or Kamoa-Kakula [copper mainly and consists of a cluster], then it would be helpful in that Mather has said they will never buy assets but explore and create discovery value.

Thur, 29 Oct 2020 JLondon.

[mirabeau] 29/10/2020 18:29

thanks JL

JC at MI



RE: JC at MIToday 18:28

'As I suggested a fortnight ago, Solgold’s (LON:SOLG) ‘log-jam’ might take longer to free than some hoped after the BHP lock-in ended last week. The shares initially retraced from a strong 40-42p chart resistance level going back three years, despite the promise that Solgold’s new ‘discovery’ at Porvenir will add substantially to the value it already has at Alpala.

As I see it, however, that old jam hasn’t been freed at all. It is still there in the form of the key shareholdings (Newcrest, BHP, Cornerstone, Black Rock) which would have to be ‘unlocked’ before enough are freed for anyone else to think of bidding. Otherwise, there would seem to be no hurry for any interested bidder to do anything, while Solgold shoulders the cost of further exploration drilling.

So perhaps my warning that investors would start to focus on that cost some time next year wasn’t so premature. Meanwhile, Solgold’s Nick Mather promises that the forthcoming Alpala PFS, and news of ‘conditional’ funding for Alpala, will further improve his defences.

So far, however, any share price improvement is stemming from the initial drilling success at Porvenir. More might come with news from another ‘promising’ target, closer to and possibly even larger than, Alpala or Porvenir, Rio Amarillo, where drilling is just starting.

But, as for Mather’s strategy to take his discoveries to production rather than selling them off at financing stage in order to fund further exploration, I think it is increasingly being seen by others, as well as by me, as ‘for the birds’.

So maybe things will start to happen in smoke-filled rooms behind closed doors. What I don’t think will happen is any public bidding war. More likely is a farm-in by a major to participate in funding Alpala. Such development, I think, would give a more permanent boost to the shares.

If not that, there might be a two-way pull on them during the next six months between drilling success and fears of the next fund raise. And any news would have to be pretty significant to break through that 42p level.'

end

[cbeadle] 29/10/2020 17:57

Very promising day and a good rise. I am not into charts, but evidence of a double bottom and firm support close to 34p

[arcadian] 29/10/2020 17:41

Pob

That was very good reading. Thanks.

[mknight] 29/10/2020 16:56

Jl london

Not sure what to make of your post about
La Hueca .

If that report was dated in the last few days i would be very excited but as it was dated the 14th of October and didnot mention Porvenir then perhaps not as much .