re: solgold

Minesite article dated 29th October
Solgold’s Shares Are Riding High As Drilling At Cascabel Continues Apace



But it will be interesting to see what happens next.

The company is still drilling, midway through a five or six hole programme at the Alpala target on Cascabel, that should total around 2,500 metres when it’s complete. The second hole has been completed and the results are due out in a couple of weeks.

No one knows what they’ll show, but already it looks as though the company is on the right track. “In hole 2 we did intersect disseminated copper throughout the whole hole”, says Alan. The plan now is to go deeper to depths of 700 metres and higher.

“We need to get a good feel for these depth extensions”, says Alan. “These systems can be a kilometre vertical.”

So, does SolGold have a tiger by the tale, as they say in mining circles? Well, it wouldn’t be the first time that chief geologist Bruce Rohrlach has led a company onto a major discovery.

He was responsible for finding the Tujuh Bukit porphyry deposit in Indonesia for Intrepid Mines, a discovery which lead to a 30-fold increase in Intrepid’s share price as the true size of the deposit became clear.

Politics have subsequently got in the way of Intrepid’s attempt to realise full value at Tujuh Bukit, but the resource numbers still speak for themselves.

In the oxide cap, Tujuh Bukit holds 1.6 million ounces of gold and 60 million ounces of silver. But in the porphyry it holds 19 billion pounds of copper and 28 million ounces of gold.

That is some discovery to be writing home to your shareholders about, and in some respects Bruce’s new hunting ground at Cascabel has real similarities to the ground at Tujuh Bukit. The geochemistry and magnetics shows similar potential, Cascabel has already demonstrated high grade porphyry mineralisation in trenching, and the lithocap at Cascabel is more extensive than that at Tujuh Bukit.

But of course, it’s early days. “This is not resource drilling or resource delineation”, says Alan. “But the geologists on site are very aware that this is a big system. Have we made a discovery? Yes, I think so.”

The question now is: how can SolGold best exploit the opportunity? “The company is pretty well cashed up at the moment”, says Alan.

“This programme will cost around US$1 million, or about US$300 to US$400 per metre. We’re well and truly funded through phase one. At the end of December we’ll still have US$4 million in the bank and we’ll be able to proceed to the next phase.”
http://minesite.com/news/solgolds-shares-are-riding-high-as-drilling-at-cascabel-continues-apace