Good news on Cascabel project lift SolGold shares

SolGold (LSE, TSX: SOLG) reported Thursday that drilling has commenced on the Tandayama-America porphyry copper-gold target on its Cascabel project in northern Ecuador. The Cascabel Project is one of the most ambitious mining projects in Ecuador hoping to develop mineral resources to boost its sluggish economy. According to the Company, stone saw sewer samples over the surface exposure in Tandayama Creek returned a significant assay result of 37m @ 0.25% CuEq (0.15Cu, 0.18 Au). "Rig 5 drills the first hole at Tandayama-America, TAD-20-001, and is at a current depth of 258m. The hole has intersected visible chalcopyrite copper sulfide mineralization from 55m with additional visible molybdenite and sphalerite mineralization occurs at depths of 199 meters, "the company said in a news release. Rig 6 drills the second hole at Tandayama-America, TAD-20-002, at a current depth of 104 meters. The hole intersected visible chalcopyrite mineralization from 44 meters, including visible traces of bornite from 68 m depth. " The Alpala mineral deposit "could become the largest underground silver mine, the third largest gold mine and the sixth largest copper mine in the world," the Department of Energy said in a statement last year. Cascabel has mineral reserves of 10.9 million tons of copper and more than 23 million ounces of gold, according to official data. The assessment estimates that the project could operate underground for 49 to 66 years. In addition, the project would produce approximately 207,000 thousand tons of copper, 438,000 ounces of gold and 1.4 million ounces of silver annually for the first 25 years, the ministry said. On Thursday lunchtime, SolGold's stock on the TSE rose 6%. The company has a market capitalization of C $ 1.44 billion.