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(SOLG) SolGold

Discussion in 'General Share Chat (SOLG)' started by Inspiration, Feb 25, 2016.

  1. Inspiration

    Inspiration Moderator Moderator

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    SolGold PLC
    Cascabel Exploration Update - Hole 16 Progress
    RNS Number : 1413Q
    SolGold PLC
    25 February 2016

    SolGold plc

    ("SolGold" or the "Company")


    Cascabel Exploration Update


    Hole 16 at Alpala Continues to Intersect Visible Copper Mineralisation at 973m Depth.


    The Board of SolGold (AIM code: SOLG) is pleased to provide the following exploration update for the Company's Cascabel copper-gold porphyry project in Ecuador.


    HIGHLIGHTS:


    Ø CSD-16-016 ("Hole 16") was at a depth of 973m at 6pm Central America time Tuesday 24 February. Drilling has intersected continuous visible copper mineralisation shallower than expected, from 568m, an intersection so far of 405m.


    Ø Hole 16 progressing without difficulty, targeting a depth of 1800m. Intense mineralisation is being encountered.


    Ø Mineralisation to date in Hole 16 comprises diagnostic "B" type quartz veins containing magnetite, chalcopyrite (a sulphide mineral containing 34% copper) and bornite (a sulphide mineral containing 63% copper). Disseminated chalcopyrite and bornite occur in the groundmass. Mineralisation is enriched by overprinting of later "C" type veins consisting of pure chalcopyrite.


    Ø Mineral alteration indicators show assemblages in the phyllic and propyllitic zones suggesting that the predicted richer potassic core is yet to be intersected at depth.


    Ø Hole 16 extends the Alpala deposit by 100m to the south east in the direction of significant magnetite/hematite alteration at surface at Hematite Hill and significant bornite mineralisation evident at surface at Alpala Southeast and Cristal prospects.


    Ø Drill hole CSD-16-015R2 ("Hole 15R2") is underway from the Hole 15 pad, and is at a current depth of 149m. Hole 15R2 targets extensions of the Alpala deposit to the north east, and at depth.


    Ø Carmen road, being built by the Ecuadorean Government is expected to reach Alpala camp from Santa Cecilia in April, lowering exploration costs and enhancing logistic efficiency and drill rig access.


    Ø Negotiations for additional rig and additional contractor are progressing.


    References to figures and tables relate to the version of this release on the Company's website (www.solgold.com.au) or visible in PDF format by clicking the link below:


    http://www.rns-pdf.londonstockexchange.com/rns/1413Q_-2016-2-25.pdf


    DETAILED INFORMATION:


    The Directors of SolGold advise that Hole 16 is drilling at the Alpala copper-gold deposit within well mineralised porphyry host rock.


    The Cascabel copper gold porphyry is located in northern Ecuador on the Andean copper belt which produces 48% of the world's copper(Figure 1). Paradigm shifts in the development of sophisticated geophysical and geochemical surveying techniques identified a cluster of targets at Cascabel, of which Alpala Central is the only prospect drilled to date. The project area has significant advantages over competitor projects in South America, being high grade and rich in gold, as well as being located close to power supply, water, sealed highways and port sites for access and export (Figure 2).


    The Alpala deposit has been confirmed to date with 16 drill holes as a world class copper-gold porphyry discovery and is one of 6 major targets on the Cascabel project concession of which SolGold holds an 85% interest (Figure 3).


    Hole 16 Confirms Trend to the Southeast


    Hole 16 is located along the south eastern margin of the Alpala drilling area to date (Figure 4). This hole is being drilled off the same pad location as Holes 4 and 14, towards the south-south west at 198 degrees azimuth and a declination of 85 degrees.


    The drill hole is currently at a depth of 973m, progressing at the planned rate of 30m/day and is expected to traverse some 250m width of the Alpala structural zone. The hole is designed to outline a continuation of the Alpala deposit some 100m south east of where it was previously intersected in Hole 12. The addition of Hole 12 defined the Alpala deposit over a total vertical column of over 1700 metres from near surface and a cross width of some 250m.


    Strong mineralisation and intense veining has been encountered thus far in Hole 16 from 568m depth. The prospective "D10" diorite intrusion was intersected from 609m, more than 270m shallower than previously predicted from geological modelling. Drilling is expected to enter the highly prospective "QD10" quartz diorite intrusion from around 1270m (Figure 5).


    The progressive shallowing of mineralisation to the south east supports the evolving interpretation that the Alpala deposit plunges towards the north west, and high grade mineralization is expected closer to surface as drill testing progresses further to the south east (Figure 6).


    A feature of Hole 12 was the presence of finely disseminated specks of the high copper content mineral species, bornite. Visible bornite in the Hole 16 core, as both disseminated grains and within veins, and the increasing abundance of bornite in outcrop to the south east provides encouraging evidence of extensions of the central copper-gold rich core zone of the Alpala porphyry system in this area.


    Emerging Resource


    Drill hole, surface mapping and geophysical data support a three dimensional model of the mineralisation at Alpala. At a cut-off grade of 0.6% copper, standard interpolant volumes contain mean estimated copper and gold grades of over 1% Cu and 1g/t respectively, and imply an elongate orebody of some 400m length with an average horizontal thickness of 200m, over a vertical extent of 900m. Mineralisation remains open to the north east and the south east, as well as being open both up-dip and at depth (Figure 7).


    Once the limits of the high grade mineralisation have been defined through further drilling, the increased drill hole density at 100m x 100m spacing should provide sufficient basis for the calculation of a maiden inferred resource. This is expected over the next 6 months and will form the basis for initial scoping studies to address a staged development program (Figure 8).


    Geological similarities with the Golpu copper-gold orebody in Papua New Guinea (50% Newcrest/ 50% Harmony Gold Joint Venture) suggest that the Alpala system could reasonably reveal over 1500 metre vertical extent in the high grade potassic core zone, which despite the extensive high grade intersections returned to date at Alpala, has not yet been encountered. In addition to the evident outcropping, potentially open cut mineralisation, at Alpala, Aguinaga and Trivinio, SolGold geologists are also pursuing high grade underground targets beneath the existing drill hole intersections. The presence of the Alpala Deeps target is supported by a deep 3D Magnetic Vector Image (MVI) model, constrained by down hole magnetics readings from drill core and modelled in 3 dimensions using powerful computer software (Figure 9).


    Additional Rig and Access Road will Expedite Cascabel Program


    In order to test the thick and rich positions in the deposit, SolGold expects to engage a second drilling contractor supplying track mounted rigs capable of over drilling core-holes as deep as 2500m. These rigs will gain access via the new Santa Cecilia-Carmen road, currently under construction by the Ecuadorean Government. The additional contractor and rig is expected to be available in late April in time for the planned completion of the new access road (Figure 10).


    Drill hole CSD-16-015R2 ("Hole 15R2") is underway from the Hole 15 pad, and is at a current depth of 149m. Hole 15R2 targets the extensions of the Alpala deposit to the north east, and at depth. This hole is a re-drill of Hole 15 which was terminated at 1048.4m after drilling contractors were unable to continue the hole due to technical issues. Drilling of Hole 15 intersected visible copper sulphide mineralization from 870m.


    Photos of drill core from Hole 16 to date are provided in Figure 11.
     
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  2. canapa123

    canapa123 A Legendary Member

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    I have been here for the last year and after averaging down I'm at 2.34p
    The next step here is to get a partner to develop the mine and it needs a company with finance otherwise we will be in for dilution.
    NM is very committed with alot of his own money invested. Hopefully this is the break they need as they have got a mine with great potential.
    I will be holding long-term as this could go to 10p in time.
     
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    Inspiration: 5 Points (Good to hear, thank you.) Feb 25, 2016
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  3. Inspiration

    Inspiration Moderator Moderator

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    Many thanks for the above info. I will watch this one closely now and hopefully invest, as gold is clearly on the rise again, which is often ominous for other investments.
     
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  4. taffy21

    taffy21 A Legendary Member

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    I've been in SOLG for a long time and also had to average down. It's been slow but things seem to be moving along a bit now with another drill and getting better results. It could be very promising, as long as it can be mined commercially, but it will take time.
     
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  5. taffy21

    taffy21 A Legendary Member

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    http://www.moneyam.com/action/news/showArticle?id=5226753

    Cascabel Exploration Update


    Hole 16 at Cascabel Continues to Intersect Intense Copper

    and Gold Mineralisation to Current Depth of 1,217m


    Assay Results Extend Rich Copper - Gold Deposit at Alpala


    Surface Copper-Gold Results Confirm Trivinio Drill Target

    HIGHLIGHTS:


    Hole 16 - Alpala Central Deposit

    Ø Hole 16 at a depth of 1,217m.

    Ø Mineralisation increasing in intensity.

    Ø Over 650 metres of mineralisation encountered thus far.

    Ø Hole 16 Assay Received from 516m to 764m:

    · 216m @ 0.94 % Copper and 1.26g/t Gold from 548m (open at depth), including:

    · 60m @ 2.01 % Copper and 3.41g/t Gold from 704m (open at depth).

    Ø Intense multidirectional quartz-magnetite-copper sulphide veining in drill core.

    Ø Increasing intensity of bornite (a copper sulphide mineral containing 63% copper) down hole and to the south east.

    Trivinio Prospect

    Ø Trivinio Prospect drilling planned based on confirmation of copper-gold anomalism up to 0.43% Cu and 0.43g/t Au at surface.
     
  6. Inspiration

    Inspiration Moderator Moderator

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    I had an alert this morning with the news, but didn't buy. Pity, as it rose 47% today! Still, with gold back in favour, there will be plenty of opportunities with numerous companies. I've set RNS alerts for any gold companies, which look interesting. Am learning to rely on my own judgement when there's an RNS, because by the time I've read about it elsewhere, I've missed out on some of the rise.
     
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  7. taffy21

    taffy21 A Legendary Member

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    I took profit on this today. Not too worried if I don't get back in immediately as it probably has a long way to run. Having said that there will now be good news! I still hold my core on it though.
     
  8. westa2

    westa2 A Legendary Member

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    Mind if I ask what you are using for RNS alerts for any gold companies?

    I use RNS alert and morningstar but haven't seen that option.
     
  9. Inspiration

    Inspiration Moderator Moderator

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    Login, then add any alerts you like to your list.
    http://www.investegate.co.uk/Watchlist.aspx

    Use the Stock Exchange list of co's to filter by sector. There's a subsector for gold, but several gold miners also mine other metals, so might be under a more general thread. I think I posted details on the XTR thread by MCAP. I lose track of what I post where!
    http://www.londonstockexchange.com/statistics/companies-and-issuers/list-of-all-companies.xls
     
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    westa2: 5 Points (Thanks for the info) Mar 4, 2016
    Last edited: Mar 4, 2016
  10. Larry

    Larry Demi God of BlueShare

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  11. Inspiration

    Inspiration Moderator Moderator

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    This isn't intended to cause any panic, but just be aware that the latest 6 months results had a note about its ability to continue as a going concern due to cash flow issues:

    "Material Uncertainty Regarding Going concern

    The half year financial report has been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of assets and discharge of liabilities in the ordinary course of business. The Group has not generated revenues from operations. As such, the Group’s ability to continue to adopt the going concern assumption will depend upon a number of matters including subsequent successful raisings in the future of necessary funding and the successful exploration and subsequent exploitation of the Company’s tenements. In the absence of these matters being successful, there exists a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, it may be unable to realise its assets and discharge its liabilities in the ordinary course of business."
    http://solgold.com.au/userfiles/2015.12.31 SOLG Half Year -(Unaudited) - Final.pdf

    There is good news to come, but I wonder if there will be more placements?
     
    Last edited: Mar 7, 2016
  12. Inspiration

    Inspiration Moderator Moderator

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    What bizarre timing!

    See the RNS below:

    Monday 07 March, 2016

    SolGold PLC
    Issue of Shares
    RNS Number : 3179R
    SolGold PLC
    07 March 2016

    7 March 2016


    SolGold plc

    ("SolGold" or the "Company")


    Share Issues


    The Board of SolGold Plc ("SolGold" or "Company"; AIM code: SOLG) is pleased to advise that the Company has entered into agreements to issue a total of 131,180,996 new ordinary shares of 1p each ("Ordinary Shares") for a total consideration of £3,017,163 or A$5,746,977.


    The agreements to issue new Ordinary Shares cover:


    a) the conversion of the outstanding Convertible Loan Notes ("Convertible Notes") and interest thereon;


    b) the conversion to equity of the Company for amounts owed to various parties; and


    c) the raising of some new cash.


    All new Ordinary Shares will be issued at a price of 2.3p per share, being 80% of the 5 day VWAP prior to the allotment.


    The issue of new Ordinary Shares includes the conversion of amounts owing to Directors and employees of the Company on account of fees and remuneration due to them. A total of 5,609,031 new Ordinary Shares have been issued to Directors of SolGold and a total of 35,364,320 new Ordinary Shares have been issued to employees, consultants and service providers to the Company.


    The Company's drilling contractor has again agreed to convert in excess of A$1,000,000 of their fees in new Ordinary Shares.


    The Convertible Notes issued by the Company on 2 October 2015, together with interest accrued thereunder, have been converted at 2.3p per share, in accordance with the pricing mechanisms contained within the Convertible Notes. The Convertible Notes were held by DGR Global Limited ("DGR Global") (A$1,250,000) and Tenstar Trading Limited ("Tenstar") (GBP500,000). A total of 50,271,739 new Ordinary Shares have been issued to DGR Global and Tenstar from the conversion of all the Convertible Notes held by them. In addition, a total of 2,142,457 new Ordinary Shares have been issued to DGR Global and Tenstar in lieu of interest due to them in connection with the Convertible Notes.


    In addition, DGR Global has provided the Company with a number of loans amounting to approximately £805,803 which it has elected to convert into 35,034,896 new Ordinary Shares at 2.3p per share. The issue price exceeds the VWAP over the period since October during which the loans were made. No interest has been accrued on this amount.


    The issue of new Ordinary Shares to certain of the Directors of SolGold and to DGR Global is a related party transaction, as specified in Rule 13 of the AIM Rules for Companies. John Bovard, being the independent Director for the purposes of Rule 13, considers, having consulted with the Company's nominated adviser, SP Angel Corporate Finance LLP, that the proposed issue of new Ordinary Shares to the Directors and DGR Global is fair and reasonable insofar as the shareholders of the Company are concerned.


    A small number of suppliers and affiliated parties approached the Company as a result of the conversion process with offers to invest additional cash. The Company has accommodated this as part of the overall allotment, issuing 2,758,553 new Ordinary Shares at 2.3p per share for total consideration of approximately £63,447.


    Application will be made for the admission of 131,180,996 new Ordinary Shares to trading on AIM ("Admission"). Admission is expected to occur on or around Friday 11 March 2016.


    Holdings in Company
     
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  13. taffy21

    taffy21 A Legendary Member

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    I have skimmed profits on this for the last week but was not really happy with the last RNS so sold out the rest today. I may well get back in if they can sort the finances out. The placings are always at such a low price. Are they so desperate that they couldn't have waited a few days to show the cores and assay results around first?
     
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    Inspiration: 2 Points (Good timing with your sale!) Mar 8, 2016
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  14. Inspiration

    Inspiration Moderator Moderator

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    The placing shares announced at 2.3p per share yesterday are causing the price drop. They will be admitted to trading on Friday. Often after a placing, the price seems to fall lower.
     
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  15. Inspiration

    Inspiration Moderator Moderator

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    Have just looked through the RNS again. The amount they are raising doesn't seem a lot.

    "issuing 2,758,553 new Ordinary Shares at 2.3p per share for total consideration of approximately £63,447."

    Not invested here, but just looking at all the gold stocks.
     
  16. Inspiration

    Inspiration Moderator Moderator

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    Placing shares admitted to trading this morning at 2.3p. Very brief dip after opening, then up 16%.
     
  17. canapa123

    canapa123 A Legendary Member

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    Yes I was surprised as on LSE there were a number of folk not least Miss Golightly, who felt the SP would come back to the placing price. On that basis I sold at 0.301p.
    To get back in today I had to pay 0.329 but will wait to see how it is on Monday to buy more.
     
  18. Inspiration

    Inspiration Moderator Moderator

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    With smaller companies, they always seem to drop down to the placing price (and within half an hour they dip slightly, before rising significantly, then they drop back again slowly over the next few weeks, unless anything newsworthy happens). As they haven't raised a huge sum, I expect there might be another placing in a few months' time. If I can get a feel for how quickly they get through the cash, I'll post it. The RNS above on 7th March gives details on what the money will be used for.
     
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  19. taffy21

    taffy21 A Legendary Member

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    I think I might buy back in again now. I put the profits from my previous sell into 88e so struck lucky with that. How rarely do those sort of successful decisions come around!

    GPback on ii mentions the possibility of a JV coming.
     
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  20. Inspiration

    Inspiration Moderator Moderator

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    Wednesday 30 March, 2016

    SolGold PLC
    Cascabel Exploration Update
    RNS Number : 5330T
    SolGold PLC
    30 March 2016

    30 March 2016

    SolGold plc

    ("SolGold" or the "Company")


    Cascabel Exploration Update


    HIGHLIGHTS:


    Ø Final assay results from CSD-15-014 ("Hole 14"), which tested eastern extensions of the Alpala Central deposit, returned the following intersections:

    · 768m @ 0.50 % copper and 0.45 g/t gold, including

    · 476m @ 0.63 % copper and 0.65 g/t gold, including

    · 222m @ 0.83 % copper and 1.08 g/t gold.


    Ø The intersections achieved in Hole 14 increase the average width of the Alpala Central Deposit to 300m and show the deposit continues to remain open to the east and north-east.


    Ø Drill hole CSD‐16‐015R2 ("Hole 15R2") continues from the Hole 15 drill site, and is at a current depth of 724.9m in mineralized porphyry. Hole 15R2 targets extensions of the Alpala deposit to the north, and at depth, some 100m north of the deeper high-grade zone intersected in CSD-15-009 ("Hole 9)", which returned an intersection of 420m @ 1.00 % copper and 1.34 g/t gold.


    Ø Drill hole CSD‐16‐016 ("Hole 16") was completed on 21 March 2016 at a total depth of 1661.1m, extending the Alpala deposit by at least 120m to the south-east in the direction of significant magnetite/hematite alteration at surface at Hematite Hill. The mineralization intersected in Hole 16 shows that the deposit remains open to the south-east and increases the known strike extent of copper and gold mineralisation along the greater Alpala trend to over 650m.


    Ø Hole 16 intersected approximately 700m of intense multidirectional quartz-magnetite-copper sulphide veining from 548m to 1248m. Assay results from 764m are pending, and expected to extend the previously reported open-ended intersection of 216m @ 0.94 % Copper and 1.26g/t Gold from 548m.


    Ø Drill hole CSD-16-017 ("Hole 17") will be drilled from the same drill site as Hole 16 and is being positioned to drill towards the south-west on an azimuth of 233° and at a declination of -74°. Hole 17 will test up-dip extensions of strong copper and gold mineralisation intersected in Holes CSD-13-005 and CSD-15-012 ("Hole 5" and "Hole 12"), both of which returned world class intersections of over 1000m grading over 1% copper equivalent.




    Ø The Alpala Central deposit now extends over 450m in length, 300m in width and 700m vertically, in a broader Alpala trend of 650m in length, 300m in width and 1800m vertically. Both the broad trend and the Alpala Central deposit are open in all lateral directions and at depth.


    Ø Negotiations for an additional drilling contractor are being finalised.


    References to figures and tables relate to the version of this release on the Company's website (www.solgold.com.au) or visible in PDF format by clicking the link below:



    http://www.rns-pdf.londonstockexchange.com/rns/5330T_-2016-3-30.pdf


    DETAILED INFORMATION:


    Cascabel Project

    The Cascabel Project is located within the northern portion of the Andean copper belt, renowned as the host of 48% of the World's copper production, and numerous Tier 1 global copper resource assets. Cascabel boasts numerous large porphyry copper-gold targets within a cluster of prospective porphyries in a relatively unexplored section of the northern oxidised and gold rich Andean copper belt (refer Figure 1Regional Setting).


    SolGold, as an active explorer in Ecuador, enjoys the support of the Ecuadorean Government in developing the nation's exploration and mining industry. Cascabel presents numerous logistic advantages which augment its likely large scale and known high copper-gold grades. The project is located on a sealed multi-lane national highway at a low elevation with abundant water, labour, hydroelectric power and a short 80km distance to a Pacific deep water port site at San Lorenzo and 150kms to an established deep water port at Esmeraldas (refer Figure 2Location Map).


    A total of 15 drill holes have been completed over the Alpala trend to date for a total of 21,100m. The geometry of the Alpala Deposit remains open in virtually all directions (refer Figure 3 Alpala Drilling Program). Hole 16 has been completed at a depth of 1,661.5m, and Hole 15RD2 is continuing at a depth of 724.9m.


    Drilling at the Alpala Deposit is focussed on extending the known body of copper and gold mineralisation at 100m centres, towards definition of a maiden resource. A number of preliminary copper interpolants have been created, and are constrained by the geological model at Alpala (refer Figure 4 Copper Interpolants).


    SolGold's understanding of the deposit grows with each drill hole, and a robust three dimensional geological model has been developed using LeapfrogTM modelling software. This model is consistently updated with new drill data. Recent work on intrusive phases and geological markers at Alpala Central provide insight into the geometry of copper and gold mineralisation and the potential source intrusions (refer Figure 5 Alpala Geological Model).


    Hole 14

    Hole 14 at Alpala tested north-eastern extensions of the Alpala Central deposit. The drill intersections achieved in Hole 14 increase the width of the Alpala deposit to an average of 300m.


    Hole 14 intersected intense porphyry style stock work copper and gold mineralisation from within Diorite and Quartz Diorite intrusions from 669.0m to 1176.0m (refer Figure 6 Cross-Section).


    Final assay results from CSD-15-014 ("Hole 14") returned the following intersections:


    · 768m @ 0.5 % copper and 0.45 g/t gold from 628m, including:

    · 476m @ 0.63 % copper and 0.65 g/t gold from 808m, including

    · 222m @ 0.83 % copper and 1.08 g/t gold from 958m.


    Hole 15R2

    Drill hole CSD‐16‐015R2 ("Hole 15R2") continues from the Hole 15 drill site, and is at a current depth of 724.9m. Hole 15R2 targets extensions of the Alpala deposit to the north, the north-east and at depth, some 100m north of the lower high-grade zone intersected in CSD-15-009 ("Hole 9)", which returned a world class intercept of 420m @ 1.00 % copper and 1.34 g/t gold.


    Hole 16

    Drill hole CSD‐16‐016 ("Hole 16") was completed on 21 March 2016 at a total depth of 1661.1m, successfully extending the Alpala deposit by 120m to the south-east in the direction of significant magnetite/hematite alteration at surface at Hematite Hill. The intersections achieved in Hole 16 show the deposit remains open to the south-east increasing the known strike extent of copper and gold mineralisation along the greater Alpala trend to over 650m.


    Hole 16 intersected approximately 700m of intense multidirectional quartz-magnetite-copper sulphide veining from 548m to 1248m. Assay results from 764m remain pending, and are expected to extend the previously reported open-ended intersection of 216m @ 0.94 % copper and 1.26g/t gold from 548m.


    These assay results are expected in the coming month.


    Hole 17

    Drill hole CSD-16-017 ("Hole 17") will be drilled from the same drill site as Hole 16 and is being positioned to drill towards an azimuth of 233 degrees at a declination of -74 degrees to a planned depth of 1300m. Hole 17 will test upper extensions of strong copper and gold mineralisation intersected in Holes CSD-13-005 and CSD-15-012 ("Hole 5" and "Hole 12"), both of which returned world class intersections of over 1000m grading above 1% copper equivalent.


    This upper target zone is expected to link the deeper mineralisation intersected in Holes 5 and 12 with that intersected in CSD-13-001 ("Hole 1"), which returned 100m @ 0.65 % Copper and 1.00g/t Gold from 222m. The intense porphyry style stock work copper and gold mineralisation intersected in Hole 1 lies close to surface where rock-saw channel sampling in Alpala Creek demonstrated broad zones of copper and gold mineralisation in trenches TR05, and TR56A, which returned 33.3m @ 0.65 % copper and 1.02g/t gold, and 53.9m @ 0.32 % copper and 1.38 g/t gold respectively.


    Current Alpala Dimensions

    The Alpala Central deposit now extends over 450m in length, 300m in width and 700m vertically, in a broader Alpala trend of 650m in length, 300m in width and 1800m vertically. Both the broad trend and the Alpala Central deposit are open in all lateral directions and at depth.


    Drilling Contractor

    The major commercial terms of a contract with an additional, and highly experienced, drilling contractor have been agreed, and the parties are now moving to the legal documentation phase. A further update will be provided in due course.
     

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