SolGold plc has delivered its strongest near-surface drilling results to date at the Tandayama América deposit, part of its flagship Cascabel copper-gold project in northern Ecuador.
The standout result came from hole TAD-58, which intersected an impressive 140 meters grading 0.92% copper equivalent from just 8 meters depth. Within this interval, the company hit 106 meters at 1.10% copper equivalent from 22 meters depth.
These exceptional shallow intercepts strengthen SolGold’s strategy to develop a low-cost, open-pit starter operation that could generate early cash flow at Cascabel.
The group has recently pivoted to focus on Ecuador after all Australian licenses were written off and Solgold encountered some of the ‘greatest drill hole intercepts in porphyry copper-gold exploration history’ at Cascabel.
Key Drilling Results
All in all, investors should be highly encouraged by the drill results.
The latest assay results from three drill holes continue to build on the existing resource at Tandayam with Hole TAD-58 in the Pit 2 area delivered the strongest performance, opening considerable potential for further resource definition.
Hole TAD-55, also in Pit 2, intersected 58 meters at 0.29% copper equivalent from 6 meters depth. This mineralisation extends southeast from hole TAD-58, as both holes started from the same collar location.
Meanwhile, hole TAD-56 in Pit 1 returned 280 meters at 0.32% copper equivalent. This hole tested the border of the preliminary Pit 1 design, confirming economically viable grades within the proposed pit boundary.
Strategic Development Plan
The results reinforce SolGold’s staged production strategy at Cascabel. The company plans to integrate the near-surface Tandayama operation with the deeper Alpala underground development.
The company believes this approach could significantly reduce capital expenditure and operating costs while accelerating cash flow generation in the early years of mine life.
“TAD-58 is one of the most robust results we’ve seen from Cascabel to date – with high grades from near surface over substantial widths in a location that aligns with our open-pit to underground strategy. These results continue to show the potential to deliver early, high-margin tonnes from Tandayama-the kind of material that can provide valuable flexibility in the development of Cascabel,” said CEO Dan Vujcic.
“As I’ve noted on previous occasions, SolGold, relative to global peers and precedents, is considerably undervalued; continuing to deliver results like this and increasing market awareness of the quality of our endowment in Northern Ecuador is how we close the value gap. Early results suggest an increase in the size of the resource being open at depth, and the grades exceed what we have internally modelled previously for the deposit. We will continue to update the market as we finalise and potentially expand the current drill program, while continuing to progress early works and preparation at Alpala.”