Solgold Share Discussion Threads

[pob69] 25/8/2018 12:39

Worth recalling this April blog from Willem Middelkoop Chair Commodity Discovery Fund $SOLG #ecuador

Solgold ignores (for the time being) the interest of the large miners
Solgold, our biggest position, says for the time being not interested in the great interest of large miners for its Escabel project, a large copper / gold discovery in Ecuador. In 2016, the company already rejected a bid of $ 30 million from BHP for 10% of the project. Recently, the company says it has turned away interest from Vale. For the company the interest comes too early, and the price sentiment is not yet correct.

This continued interest proves the significance of this large copper / gold project in Ecuador. Because of the years of decline in the mining industry, and the associated underinvestments in exploration, the amount of large new discoveries in copper in particular lagged behind. The result is a huge interest from the major miners for those few projects with potential for large copper production.

A takeover even seems to be a matter of time for the company. Despite Solgold's bravado that the company has the expertise to start the production facility itself, this is so capital intensive that it is not realistic to expect that this will take place without the help of a wealthy partner. Solgold openly expresses a preference for a partnership with Newcrest, an Australian gold producer that already owns 14.5% of Solgold.

Solgold is helped by reports that the severe 'windfall tax' imposed by the previous government is likely to be abolished later this year, as Ecuador is embarrassed about foreign reserves. Should this indeed take place, the mineral-rich country will be completely open to new discoveries for the first time since the enormous gold discovery of Aurelian, 12 years ago.

Solgold is a typical example of our investment strategy, where a relatively large position is taken in companies that make major discoveries in raw materials that are becoming scarce. Although the company has dropped significantly, we expect the good times for our investment in Solgold to come. We expect that an acquisition of Solgold will not take place below 60p. The current rate is 27p.

[pob69] 25/8/2018 12:08

Positive article on $SOLG #ecuador

Key points;
1. Know where you are on the chart - See where SOLG is - now into feasibility
2. "...Solgold has been releasing amazing assay results from infill and extension drilling at Cascabel this year and the company’s target of a mineral resource of 10 million tonnes of copper and 25 million ounces of gold is starting to look realistic. Cascabel is a world-class project and considering that Newcrest $NCM.AX and Guyana Goldfields $GUY hold significant stakes in the company, I wouldn’t be surprised if Solgold becomes an acquisition target over the next few years."

[realist6] 25/8/2018 07:22

does anybody share my concern that we, according to nm now seem to be concentrating on becoming a gold explorer. could this be because the copper tier 1 we were expecting is proving to be not the tier 1 he lead us to believe.

[realist6] 24/8/2018 13:55

I've been on lse bb for a few months. just came across this board. how refreshing to read the posts on here. lse board is made up of complete fantasists, completely out of touch with reality and most posting the same wishful thinking day after day after day. I suspect most invested on our rise to 46p and are now out of their depth. probably only ever held solg shares

[alwaysevolving] 24/8/2018 13:19

.....or goes backwards!

[lefrene] 24/8/2018 11:47

This weekend is the last hurrah of the summer hols, so a few more eyes on screens next week, and back to normal the following week. Like most long term holders I'm irked at the failure of the value of the metal discoveries to be reflected in the market value of the company. It's a bit like having a warehouse that continues to stocked with more and more goods, and yet the overall price of the contents remains static.

[onedayrodders] 24/8/2018 11:37

Just got to get through the sleepy August holiday month hopefully.

volume is pitiful everywhere and not just here

[mknight] 23/8/2018 12:24

Only 2 worries with the share.

1 the Chinese ruling which more or less handed the mine back to the people.

2. Fund raising which will have to happen within a year I guess .

[lefrene] 23/8/2018 11:22

We are told there are 12 interested parties and possibly more? But why sink money into shares when all the players know that it will boil down to either an offer, or Solg raising development money from the Banks. Putting money into the shares now is just dead money until one of the players makes his move. If you are an interested miner then you know the value will be established over a short period rather like an auction, and that won't happen until the MRE and PER are in place. The small holders have little idea when that is going to happen so we wait upon the big boys at their leisure.

We know there is huge and growing value in the ground, that value can only be realised when some entity decides they want to mine it. The tumbleweed is doing well this year :¬) (cue theme from the Good the Bad and the Ugly)

[mam fach] 23/8/2018 10:32

Waiting for clarification of way forward.Stuck in low twenties for time being. Very difficult to hold on.

[jerryspaniel] 23/8/2018 10:16

The price action is all very odd to me. All the news is generally good and movements in the cu price shouldn't have as much an effect as the finding of more resource. The posts are generally bullish, some a bit ott, but that is usual.
But for every buyer there is a seller, so what are the sellers reasons for baling? Is it that they are stale bulls or do they not believe that anyone can produce profitable mines in the rainforest?
Maybe all those who want to own the stock already do so. I really do discount the possibility of a Bre-x, as they wouldn't have got a major miner to take a large stake. Or maybe that's it - the large stake is such a blocking stake that any third party t/o is v unlikely.
Or is it a possible new round of fund raising round the corner?
More questions than answers from me....

[pecker1] 22/8/2018 12:00

lefrene,

I think your 2% figure is on the low side! The drill spacing in the Alpala high grade core suggests they will also be able to move more ore into the Measured and Indicated category which has a higher value than inferred resources.

Three catalysts in the coming months for a much higher share price are:

1. Evidence that they have found the high grade "feeder"/ ore conduit to Apala that Steve Garwin says they still have not located.

2. The revised MRE with higher grades and much more contained metal.

3. First drill results from Blanca Nieves or ANother prospect confirming a major new discovery.

Of course, if sentiment in the copper and gold markets changes from dire to bullish we will be quids in, literally!

[pecker1] 22/8/2018 10:42

pob69,

The latest RNS is essential reading because Whistler tells us what all these great new drill results actually mean, namely a larger higher grade core of 750X700X300 cubic metres of ore.

The Diggers presentation you kindly posted in 12788 reveals that their target is 12 million tons of copper and 25 million oz of gold. I doubt they would give a target out that they thought they could not achieve and some.

And this does not include Aguinaga and the other prospects yet to be drilled at Cascabel. The presentation shows thay have changed their strategy (thankfully):

“go for gold” – quicker, cheaper, more efficient and more available development
capital"

When the "market" at last realises that a major gold discovery at Blanca Nieves could "bootstrap" the development of Alpala the share price will react accordingly.

[christy41] 22/8/2018 10:27

They are at Mining 121 on the 20-21 November 2018 in London.

[pob69] 22/8/2018 10:01

Pure speculation on my part.

I thought it odd that $SOLG felt the need for the last RNS when one was released a couple of days beforehand. I also find it odd that Solgold are not exhibiting at the London Mines and Money at the end of Nov (last year $SOLG was a headline sponsor and multiple award winners). This time DGR are exhibiting (and sponsoring). Worth noting that beforehand $SOLG are exhibiting at IMARC Melbourne at the end of October. Is something coming to a head for the company in Nov? How about the MRE as suggested on other wites but then why wouldn't SOLG be at Mines and Money directly to showcase it?

[pob69] 21/8/2018 20:21

New $SOLG presentation from August Diggers and Dealers #ecuador

Looking impressive with US$45m still in the bank for 2018 activities.

Increasingly Blanca Nieves ("very high grade epithermal gold quartz mineralisation") looks to have huge potential: slide 27 "VERY HIGH GRADE GOLD COULD BOOTSTRAP ALPALA DEVELOPMENT" It is 2.5km north of Cascabel’s Rocafuerte
camp.

[whites123] 21/8/2018 13:40

"We're creating an integrated copper-gold exploration, appraisal, development and producing mining company - although we're not at the mining stage yet," Mather said.

"The first discovery of Alpala simply underscores the prospectivity of the 700km of strike that is Ecuador.

"While Cascabel is excellent in its own right and the company is undervalued on that basis alone, there is considerably more upside offered by the other 10 projects that we're working on at the moment."

The priority targets only serve to highlight the under-explored potential of the Andean copper-gold belt in Ecuador.

SolGold's early-mover status also gives it a four-year headstart on other companies looking to explore the prospective country, Mather said.

With its dominant land holdings and exploration blueprint success based on the Cascabel discovery, SolGold has established a solid base from which to build a copper-gold company.

[pob69] 21/8/2018 07:42

SP Angel, house broker to $SOLG has this to say about the laatest Alpala results $CGP #ecuador

"We estimate, see the full programme completed in around a further two months, though there will no doubt be a lag for completion of the assaying."

"Conclusion: The current drilling seems to have expanded the scale of the higher grade central core of Alpala. We look forward to the updated resource for Alpala and for further news of the drilling progress at Aguinaga."

[mrpiggy] 20/8/2018 19:30

Hi all, just checking in.... I'm wallowing in the algarve at the moment. Great RNS this morning with some fab grades with infill and extension drilling. We will soon be out of the doldrums as silly season comes to an end. Majors will be drooling all over cascabel. The usual market reaction to the great news though. SP seems to be stuck (consolidating)between 22-25p trading range.

[pecker1] 20/8/2018 14:46

mamfach,

The market is on vacation - at least the big hitters are. Copper has entered a hopefully temporary bear market, so has gold - the real cost of production is higher than the spot price according to Steve Saville. Sentiment is at rock bottom too. And it's the silly season.

All you have to do is the maths: take the dimensions of 750 X 700 X 300, work out the tons per cubic metre and multiply by the grade and you have the new resource for the " rich core of Apala. Then add on the lower grade stuff below the cut-off grade and you have an idea of what the revised Mineral resource estimate will be.

IMHO , it's a great time to be adding - just wish I had more funds available. Virtually all my miners at rock bottom so done with top slicing and putting more in what I believe could be the biggest winners when the "market" turns.Roll on September.