LADU May Company Presentation

TOWARDS A WORLD CLASS
COPPER-GOLD DEVELOPMENT
CASCABEL, NORTHERN ECUADOR
solgold.com.au
1
IMPORTANT NOTICE AND DISCLAIMER
These presentation slides (the “Slides”) have been issued by SolGold plc (the “Company”) in relation to an update on activities by the Company.
These Slides do not comprise an admission document, listing particulars or a prospectus relating to the Company, do not constitute an offer or
invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or
subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision
to sell or purchase securities in the Company.
The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for your information and may
not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. No reliance may be placed for any purpose
whatsoever on the information contained in the Slides and the accompanying verbal presentation or the completeness or accuracy of such
information. No representation or warranty, express or implied, is given by or on behalf of the Company, directors, officers, employees, agents or
advisors or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal
presentation, and no liability is accepted by such persons for any such information or opinions or otherwise arising in connection therewith (including
in the case of negligence, but excluding any liability for fraud).
The Slides contain certain statements and expressions of belief, expectation or opinion which are forward-looking statements, and which relate, inter
alia, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking
statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the
actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not
rely on any forward-looking statements and neither the Company nor SP Angel accept any obligation to disseminate any updates or revisions to such
forward-looking statements. Any statement as to the past activities of the Company’s directors should not be relied upon as being an indication of
their future performance.
The Slides have not been approved by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000 (“FSMA”).
They are exempt from the general restriction on the communication of invitations or inducements to engage in investment activity set out in section
21 of FSMA on the grounds that they are directed only at those persons who have professional experience in matters relating to investments and
who are: (i) investment professionals (within the meaning of article 19(5) of The Financial Services and Markets Act 2000 (Financial Promotion) Order
2005 as amended (the “FPO”)); (ii) persons or entities of a kind described in article 49(2)(a) to (d) of the FPO; and (iii) other persons who have
professional experience in matters relating to investments and to whom it may otherwise lawfully be communicated (all such persons together being
referred to as “Relevant Persons”). Any investment, investment activity or controlled activity to which the Slides relate is available only to Relevant
Persons and will be engaged in only with Relevant Persons. Persons of any other description, including those that do not have professional
experience in matters relating to investments, should not rely or act upon the Slides. Reliance on the communication set out in these Slides for the
purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property invested or of incurring
additional liability. Any individual who is in any doubt about the investment to which these Slides relate should consult an authorised person
specialising in advising on investments of the kind referred to in these Slides.
Metal prices used in this presentation: US$2.70/lb for copper & US$1120/oz for gold.
solgold.com.au
2
SolGold has acquired 85% of ENSA and 11% of Cornerstone
– USD $30M to date
SolGold plc
USD $30M
85%
11%
15%
USD $30M
100%
Very
Rich
$1.4M
CORNERSTONE
Capital Resources
Very
Large
TSX Listed
Multiple
Targets
•
Cascabel
Project
1 km
solgold.com.au
•
•
•
•
UK AIM listed
(LSE:SOLG)
953,897,601 shares
market cap GBP36M
~2,000 shareholders
Avg daily vol 6.8M
shares
3
SolGold – What can we expect as we advance Cascabel?
• Growing investment fund and institutional interest
• Maiden Resource statement at Alpala
• Repeat discoveries on Satellite targets in Cascabel area
• Targeting a discovery based re-rating (examples below)
Imperial Minerals (Red Chris) III:
Reservoir Minerals (Timok) RMC:V
solgold.com.au
Intrepid Mines Ltd (Tujuh Bukut) IAU:ASX
4
Demand rising, grades falling, profitable production declines
and forces exploration for high grades – Cascabel Wins!
•
Global urbanization is irrevocably
driving copper demand skyward
•
Supply growth is constrained by
geopolitics and technology
•
Global resource inventory grades are falling
•
Profitable Production is falling
•
•
1.6% underground and 0.75% in 1990
1.1% underground
and 0.5% in 2015
35_
30_
Likely Range for Global Demand from 2015 - 2025
Copper Price - US$/ton Cu
10000 _
9000 _
8000 _
7000 _
6000 _
5000 _
4000 _
3000 _
2000 _
1000 _
Global Copper Demand - Mt Cu
25_
~ 5Mt increase over
The next decade
Increasing
Demand
20_
15_
Copper Price set
to close this gap.
10_
5_
I
I
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I
I
I
I
I
I
I
I
I
I
I
I
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I
I
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i
2025
2000
1980
1950
1930
1900
solgold.com.au
I
2015
I
2010
0_I
USD1,000/t
5
We need to find a new one of these every 15 months !
The Escondida Copper Mine, Chile: The world's largest producer - same age host rocks as Cascabel. Image: BHP Billiton
“The Global copper industry needs a new Escondida mine every 15 months over the next 10 years in order to meet global demand…”
Rio Tinto copper boss Jean-Sébastien Jacques
solgold.com.au
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Andean Copper Belt produces 48% of the world’s copper
- you have to be there – simple predictable geology
Cascabel
High grades, predictable
geology, mature regulatory
and fiscal environment.
Solomon Islands
Low grades, complex geology.
Location of porphyry copper deposits across the globe.
Data derived from USGS (Singer, Berger, & Moring, 2008)
solgold.com.au
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The thick Carnegie Ridge introduces more copper and gold
– big rich orebodies
88
84
80
76
72
• Thick buoyant oceanic
slabs – Carnegie Ridge
• High copper gold
contents
8
• Low angle shallow plate
collision
• Melts slowly
• Metals distill into
porphyry melt
4
CASCABEL
• Fractured Andean plate
permits high volume
porphyry emplacement
Est aggregate targets up to 10 Bt
@ 0.6% Cu and 0.8 Au (1.4% Cu Eq)
0
*after Gutscher, Malavieille, & Collot, 1999
solgold.com.au
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Ecuador – revealing exploration opportunity
Chilean porphyries - high and dry. Easily visible from space!
In Ecuador they are covered in jungle and cloud. We can now see
through cloud, jungle and soil using state of the art geophysics
solgold.com.au
Escondida from the air
Looking over Alpala Camp, Cascabel
9
Ecuador – The porphyry belts should now yield more enormous
copper deposits like they do in Chile
Chile is arid & ore bodies
exposed - Lots of them
Cascabe is Eocene
38.6Ma
solgold.com.au
Ecuador is sub-tropical, ore bodies
are concealed - Yet to be discovered!
10
Mining Friendly Ecuador
• President Rafael Correa
• Politically Stable
• Benefited from a GDP previously strongly
supported by oil revenues
• Falling poverty, increasing GDP per capita
• Public investment 15% of GDP – triple the Latin
American average
• Outstanding infrastructure
Javier Córdova - Minister of Mines
Rafael Correa – President
(popular, pro-mining)
• Previously funded by oil revenues – now drying up
Javier Córdova
- Minister of Mines
• Now its time for a mining industry
• Significant improvements to mining law
• Reforms and incentives
• Ongoing commitment to continual improvements
solgold.com.au
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Tax Reform & Incentives attarct mining investment
Overated Issue: Windfall Tax!
Tax Reform and
Incentives (eg):
•Improved capital depreciation rules
•Early year tax shields / Tax deferrals
•Import duty exemptions on equipment
•VAT recovery allowed
•Windfall tax after capital return and gold /copper
price > 1 std deviation above 10 year average
The ‘Windfall Tax’ – Extraordinary Gains Tax
❶ Only applies after a company recoups its FULL capital investment.
❷ Only applies at a very high commodity price calculated as the last 10
year average + 1 standard deviation: Gold over $1,500/oz and copper over $4/lb
❸ Clear and transparent formula
Disclaimer. The information on this slide does not purport to be complete or accurate or current and may not prevail in the future. Solgold or its employees or directors do not accept any liability for loss or
damage as a result of reliance on this information and advises readers to seek their own specialist advice.
solgold.com.au
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solgold.com.au
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Visionary Mining Investors Turn to Ecuador
Lundin Mining creates Lundin Gold to acquire Fruta Del Norte gold deposit for US$240m,
strong endorsement for Ecuador – MOU now signed to construct and mine.
solgold.com.au
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The Ecuador Infrastructure Advantage
solgold.com.au
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Ecuador’s Gift is Cascabel’s Advantage
• 180km from a
deep water port
at Esmeraldas
Sealed highway all the
way to Cascabel (180km)
• Mains Power
nearby
• Local workforce
• World class
roads
• Plentiful water
Compared to mines high up in
Chile you don’t need to build a
road, airport, power station or
a water pipeline, and you can
breathe here! – up to $3bn in
capital advantages
• 4 hour drive
from Quito
• Elevation 1500m
solgold.com.au
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Huge capital advantages up to $3bn
Solgold wont have to build:
• A sealed access road
• A desalination plant
Enroute to Cascabel
near Otavalo
Cascabel has plenty
of water
Existing hydro power
at Carolinas
Pacific port
at Esmeraldas
• A water pipeline
• A power station
• A new port.
solgold.com.au
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The Underestimated Issue The largest existing Andean open cut copper mines are high and dry:
La Escondida
Los Broncos
Los Pelambres
Antamina
Chiquicamata
Collahausi
Morenci
El Teniente
Radiro Tomic
…………………………………………………………………………………………………. all experience water supply challenges
 Mining giants Rio Tinto and BHP Billiton unveiled last year the US$3.4 billion desalination plant that will
supply treated seawater 10,000 feet high to their jointly owned Escondida copper mine.
 Freeport- McMoran Candelaria Mine in the Atacama: US$300M desalination plant under construction
 Anglo American Mantoverde Mine in the Atacama: US$96M desalination plant under construction
 The cost of desalinated water is typically 3 times more than surface water.
solgold.com.au
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25% Higher copper grades and 20% lower electricity prices
deliver an operational advantage
solgold.com.au
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First quartile operating costs in Ecuador
solgold.com.au
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Experienced Team of operators and experts
A Track Record of Discovery and Delivery of Shareholder Value
Nick Mather
Executive Director £5m invested
Jason Ward
Country Manager –
“easiest he’s worked on”
Dr Steve Garwin
Specialist copper gold
Porphyry Advisor
Ex Newmont
Batu Hijau expert
solgold.com.au
Benn Whistler
Technical Services Manager
A Focus on detail
21
Capable Work Force - Accomplished Ecuadorean Geologists
Rocafuerte Office
Alpala Camp
Left: Alfredo Cruz, Santiago Vaca,
Carlos Diaz
And..
Santiago Mantilla
Alvaro Guachamin
Leonardo Aguilar
Alex Chafla
Accomplished Ecuadorean Geologists
solgold.com.au
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Capable Ecuadorian Work Force - Rocafuerte Office
18 – rostered workforce
Geology Office
Core Handling & Storage
Community Relations & HSE
solgold.com.au
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Capable Ecuadorian Work Force - Alpala Camp
45 – rostered workforce (100% Ecuadorian)
Training & Development | Camp Management and Catering
| Medical Professionals |Prospecting/Field Teams |Drill Crews
solgold.com.au
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World leaders in man-portable drilling
An Ecuadorean Drilling
company - HP Hubbard
Perforaciones SA
Man-portable Hydracore 2000 – modified for drilling to 2000m @ 30m /day
solgold.com.au
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New Access Road Improves Logistics at Cascabel
Local community, Provincial Government &
Solgold
co-operate to build new access road from Santa
Cecilia Village to Carmen Village, via Alpala.
Completion scheduled June 2016
For SolGold it means:
•
•
•
•
•
•
Porphyry Centre
Proposed Decline
Inferred Porphyry
Centre
Main Road
Drill Ready Target
Carmen Road
(Completed)
Mira River
Habitation
solgold.com.au
Faster Access
Improved Safety
More Drill Rigs
Deeper- 2500m and
Faster - 80m /day
More freight in and out.
Carmen Road
(In Progress)
26
Safe, engaging and responsible
Health - Safety - Environment
• On site medical Clinic – 2 professional medics
• Regular safety meetings & training drills
• An excellent safety record
• Baseline and Environmental monitoring
Community Relations Focus
•
Sponsoring community enterprises
•
Schools assistance
•
Tree nurseries
•
Fish farms
•
Service providers
•
Transport and labour
•
Core boxes
•
Accommodation
solgold.com.au
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Solgold is safe and responsible
Health - Safety - Environment
ZERO L.T.I
• Onsite medical Clinic – 2 professional medics
• Regular safety meetings & training drills
• An excellent safety record
• Baseline and Environmental monitoring
solgold.com.au
28
Solgold is engaging and supportive of local business
Community Relations Focus
• Sponsoring community enterprises
• Schools assistance
• Tree nurseries
• Fish farms
• Service providers
• Transport and labour
• Core boxes
• Accommodation
solgold.com.au
29
Thorough survey coverage with Geophysics first – lots of
smoke.
State of the art Geophysics:
 magnetics survey over 50km2
 IP survey over 30km2
Known porphyry deposit: Alpala Central
Nine inferred porphyry
Seven inferred
porphyry
centres
centres
being
explored:
Bornite
at surface !!
currently being explored:
Alpala NW
Alpala West
Trivinio
Alpala South East
Alpala South
Cristal
Aguinaga
Tandayama America
Chinambicito
solgold.com.au
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All have strong porphyry geochemical signatures in soils
Geochemistry located the fires
Soil Molybdenum
Soil Manganese
Soil Cu/Zn Ratio
Rocafuerte
Site Offices
CHINAMIBCITO
AMERICA_TANDAYAMA
AGUINAGA
Santa Cecelia
Alpala Cluster
Alpala Cluster
ALPALA NW
ALPALA
Alpala Camp
ALPALA SE
CRISTAL
solgold.com.au
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The porphyry mineralisation outcrops at Alpala at surface !
So we drilled here first !
Trench 5: 33.3m, 0.65 Cu, 1.02 Au, Incl. 18.3m, 0.78 Cu, 1.61 Au
Trench 56A: 53.9m, 0.32 Cu, 1.38 Au, Incl. 15.6m, 0.77 Cu, 0.56 Au
1.30 Cu
4.86 Au
0.83 Cu
2.35 Au
solgold.com.au
0.51 Cu
1.14 Au
32
What else is there at Cascabel?
2300m
Aguinaga

700m
Trivinio

Alpala NW

Alpala

Drill Ready Satellite Prospects – Aguinaga & Trivinio
solgold.com.au
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Aguinaga - compelling geophysical signature
- central mag high, annular mag low, highly chargeable root
500m
Discovery
Outcrop
MVI Magnetic Inversion Model >800
nT
A
solgold.com.au
IP Chargeability Model >145 msec
B
A
B
34
Aguinaga looks like Alumbrera
Aguinaga
Grasberg
Potassic zone
~ 5% - 10% magnetite
Discreet central magnetic
high:
Indonesia
Chalcopyrite-Magnetite
mineralization.
Red ~ 1000nT
Batu Hijau
Red ~ 2000nT
Alumbrera
Surrounded by an
annular magnetic low:
Magnetite Destructive Alteration
Indonesia
N
0
Argentina
500
Red ~ 1000nT
solgold.com.au
Red ~ 2000nT
35
Aguinaga – textbook geochemical and Geophysical Pattern
- central Cu-Mo-Au, peripheral Zn-Mn porphyry signature
Discovery
Outcrop
Discovery
Outcrop
Discovery
Outcrop
Discovery
Outcrop
Discovery
Outcrop
Discovery
Outcrop
Discovery
Outcrop
Discovery
Outcrop
solgold.com.au
36
Strong rich copper - magnetite veins discovered at surface
at Aguinaga
“B1” type porphyry veining with strong malachite growth
“B1” type quartz – magnetite – chalcopyrite
porphyry stockwork quatz veining
solgold.com.au
Coarse Bornite veining
37
Outcropping copper gold just the tip of the iceberg
Trench AG001: 9.0m @ 1.01 % Cu, and 0.79 g/t Au
“B1” type quartz – magnetite – chalcopyrite - bornite porphyry stockwork veining
– major orientation NE-SW: sub-vertical (050/85/SE)
– outcrop remains open to the North .
0.47 Cu, 0.24 Au
1m
solgold.com.au
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Trivinio Porphry Copper-Gold Prospect, Cascabel
700m
TRIVINIO HILL
ALPALA NW
Discovery Outcrops
Looking north east
solgold.com.au
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Trevinio and Alpala North west to grow
solgold.com.au
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A Journey through Alpala –
It starts with Airborne Magnetics
solgold.com.au
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MOLYBDENUM IN SOIL
TRIVINIO
ALPALA WEST
ALPALA NW
ALPALA CENTRAL
ALPALA SOUTH
ALPALA SE
CRISTAL
solgold.com.au
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ALPALA ROCK SAW
TRENCHING RESULTS
8
5
1
2
TRENCH 56a
TRENCH 5
solgold.com.au
12
43
Visible copper mineralisation underestimates copper
grades
Hole 5
Cu% (Estimated & Assay) vs Depth
3.50
3.00
Cu % Estim
Cu% Assay
CU%
2.50
2.00
1.50
1.00
0.50
6
42
78
114
150
186
222
258
294
330
366
402
438
474
510
546
582
618
654
690
726
762
798
834
870
906
942
978
1014
1050
1086
1122
1158
1194
1230
1266
1302
1338
0.00
DEPTH
Hole 12 Cu% (Estimated & Assay) vs Depth
5.0
4.5
Cu % Estim
4.0
Cu% Assay
3.5
2.5
2.0
1.5
1.0
0.5
0.0
2
48
94
140
186
232
278
324
370
416
462
508
554
600
646
692
738
784
830
876
922
968
1014
1060
1106
1152
1198
1244
1290
1336
1382
1428
1474
1520
1566
1612
1658
CU%
3.0
DEPTH
solgold.com.au
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High grade extension in hole 12 southeast - Alpala Central –
Open to the south east
solgold.com.au
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The Sulphides shine out in conductivity survey at Alpala!
IP Survey
Resistive
> 30 sq.km
TRIVINO
Conductive
Resistive
ALPALA NW
ALPALA
WEST
ALPALA CENTRAL
Conductive
•
Alpala
>15 sq.km
• Aguinga
>15 sq.km
ALPALA SE
Resistive
CRISTAL
DC Resistivity at 800mRL
solgold.com.au
46
Magnetics suggests that Alpala is very large
2.5 km
Magnetite and magnetics –
a proxy for copper grade?
Large portions of
highly magnetic rock
remain untested ~
(10.5 bt)
solgold.com.au
47
Bring on the bornite…….
Bornite is the most important
copper rich sulphide species
in Porphyry copper gold
orebody endowment around
the world !
solgold.com.au
48
Hole 16 – established south-east extensions into the
bornite zone
 Successfully extends the Alpala deposit by
120m to the south east, in the direction of
significant magnetite/hematite alteration at
surface at Hematite Hill.
 Shows the deposit continues to be open to the
south east and increases the known strike
extent of copper and gold mineralisation along
the greater Alpala trend to over 650m.
 Hole 16 intersected some 700m of intense
multidirectional stockwork veining to 1248m.
 Assay results from 764m remain pending, and
are expected to extend the previously reported
open-ended intersection of:

216m @ 0.94 % Cu and 1.26g/t Au from 548m.
solgold.com.au
49
 0.3 % Cu
Preliminary Copper Interpolant
13
QD20
Dyke
6
15 15R2
11
10
7
9
14
4
16
8
Wembley Stadium
1,5
2
12
Pre Resource Estimates:
426.4Mt @ 1.05 Cu.Eq
3
500m
solgold.com.au
50
 0.5 % Cu
Preliminary Copper Interpolant
13
QD20
Dyke
6
15 15R2
11
10
7
9
14
4
16
8
Wembley Stadium
1,5
2
12
Pre Resource Estimates:
218.6Mt @ 1.72 Cu.Eq
3
500m
solgold.com.au
51
 0.6 % Cu
Preliminary Copper Interpolant
13
QD20
Dyke
6
15 15R2
11
10
7
9
14
4
16
8
Wembley Stadium
1,5
2
12
Pre Resource Estimates:
161.7Mt @ 1.98Cu.Eq
3
500m
solgold.com.au
52
 0.7 % Cu
Preliminary Copper Interpolant
13
QD20
Dyke
6
15 15R2
11
10
7
9
14
4
16
8
Wembley Stadium
1,5
2
12
Pre Resource Estimates:
123.2Mt @ 2.29Cu.Eq
3
500m
solgold.com.au
53
 1.0 % Cu
Preliminary Copper Interpolant
13
QD20
Dyke
6
15 15R2
11
10
7
9
14
4
16
8
Wembley Stadium
1,5
2
HIGH-GRADE
CORE
12
Pre Resource Estimates:
54.7Mt @ 2.94Cu.Eq
3
500m
solgold.com.au
54
LOOKING NORTH
+1500
6
+750
Burj Khalifa
Relative Size
828 meters
tall
10
15
“D10”
DIORITE
HOST INTRUSION
8
5
13
+0
11 7
9
500m
Geology Model
12
16
QD20
Dyke
solgold.com.au
55
LOOKING NORTH
+1500
6
+750
Burj Khalifa
Relative Size
828 meters
tall
10
15
“QD10”
QUARTZ-DIORITE
PARENT INTRUSION
8
5
13
+0
11 7
9
500m
Geology Model
12
16
QD20
Dyke
solgold.com.au
56
 1.0 % Cu
Preliminary Copper Interpolant
LOOKING NORTH
+1500
HIGH-GRADE
CORE
6
+750
Burj Khalifa
Relative Size
828 meters
tall
10
15
8
5
13
+0
11 7
9
500m
Pre Resource Estimates:
54.7Mt @ 2.94Cu.Eq
12
16
QD20
Dyke
solgold.com.au
57
 0.7 % Cu
Preliminary Copper Interpolant
LOOKING NORTH
+1500
6
+750
Burj Khalifa
Relative Size
828 meters
tall
10
15
8
5
13
+0
11 7
9
500m
Pre Resource Estimates:
123.2Mt @ 2.29Cu.Eq
12
16
QD20
Dyke
solgold.com.au
58
 0.6 % Cu
Preliminary Copper Interpolant
LOOKING NORTH
+1500
6
+750
Burj Khalifa
Relative Size
828 meters
tall
10
15
8
5
13
+0
11 7
9
500m
Pre Resource Estimates:
161.7Mt @ 1.98Cu.Eq
12
16
QD20
Dyke
solgold.com.au
59
 0.5 % Cu
Preliminary Copper Interpolant
LOOKING NORTH
+1500
6
+750
Burj Khalifa
Relative Size
828 meters
tall
10
15
8
5
13
+0
11 7
9
500m
Pre Resource Estimates:
218.6Mt @ 1.72Cu.Eq
12
16
QD20
Dyke
solgold.com.au
60
 0.3 % Cu
Preliminary Copper Interpolant
LOOKING NORTH
+1500
6
+750
Burj Khalifa
Relative Size
828 meters
tall
10
15
8
5
13
+0
11 7
9
500m
Pre Resource Estimates:
426.4Mt @ 1.05Cu.Eq
12
16
QD20
Dyke
solgold.com.au
61
CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa
Relative Size
828 meters tall
QD20
Dyke
14
“QD10”
QUARTZ-DIORITE
PARENT INTRUSION
8
500m
solgold.com.au
62
CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa
Relative Size
828 meters tall
QD20
Dyke
14
“QD10”
QUARTZ-DIORITE
PARENT INTRUSION
8
Disseminated Chalcopyrite
and Bornite Mineralisation
500m
solgold.com.au
63
CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa
Relative Size
828 meters tall
QD20
Dyke
14
“QD10”
QUARTZ-DIORITE
PARENT INTRUSION
8
Disseminated Chalcopyrite
and Bornite Mineralisation
500m
solgold.com.au
64
CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa
Relative Size
828 meters tall
QD20
Dyke
14
“QD10”
QUARTZ-DIORITE
PARENT INTRUSION
8
Disseminated Chalcopyrite
and Bornite Mineralisation
500m
solgold.com.au
65
CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa
Relative Size
828 meters tall
QD20
Dyke
14
8
U.S.T. Hole 8: 1143.4m
Disseminated Chalcopyrite
and Bornite Mineralisation
500m
solgold.com.au
66
CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa
Relative Size
828 meters tall
QD20
Dyke
14
8
U.S.T. Hole 8: 1143.4m
Disseminated Chalcopyrite
and Bornite Mineralisation
500m
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67
CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa
Relative Size
828 meters tall
QD20
Dyke
14
8
U.S.T. Hole 8: 1143.4m
Disseminated Chalcopyrite
and Bornite Mineralisation
500m
solgold.com.au
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CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa
Relative Size
828 meters tall
14
PRIMARY
VEIN ORIENTATION
MEASUREMENTS
8
500m
solgold.com.au
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CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa Relative
Size 828 meters tall
14
8
PRIMARY
VEIN ORIENTATION
MEASUREMENTS
SECONDARY
VEIN ORIENTATION
MEASUREMENTS
500m
solgold.com.au
70
CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa Relative
Size 828 meters tall
14
FLAT VEINS
8
500m
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CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
MULTI - DIRECTIONAL
STOCKWORK
VEINS
Burj Khalifa Relative
Size 828 meters tall
14
FLAT VEINS
8
500m
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LOOKING
NORTHWEST
Burj Khalifa Relative
Size 828 meters tall
SHEETED
VEINS
CROSS-SECTION
100m Wide Slice
Through Hole 8
MULTI - DIRECTIONAL
STOCKWORK
VEINS
14
FLAT VEINS
8
500m
solgold.com.au
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CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa Relative
Size 828 meters tall
14
‘B’-type
Quartz Vein
Abundance
8
500m
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CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa Relative
Size 828 meters tall
SHALLOW
WEST &
SOUTHWEST
EXTENSIONS
14
‘B’-type
Quartz Vein
Abundance
8
500m
solgold.com.au
75
CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa Relative
Size 828 meters tall
SHALLOW
WEST &
SOUTHWEST
EXTENSIONS
14

WEST &
SOUTHWEST
EXTENSIONS
‘B’-type
Quartz Vein
Abundance
8
500m
solgold.com.au
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CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
Burj Khalifa Relative
Size 828 meters tall
SHALLOW
WEST &
SOUTHWEST
EXTENSIONS
14

WEST &
SOUTHWEST
EXTENSIONS
‘B’-type
Quartz Vein
Abundance
8

500m
“ALPALA DEEPS”
solgold.com.au
EXTENSIONS
77
CROSS-SECTION
100m Wide Slice
Through Hole 8
LOOKING
NORTHWEST
14

WEST &
SOUTHWEST
EXTENSIONS
‘B’-type
Quartz Vein
Abundance

Burj Khalifa Relative
Size 828 meters tall
SHALLOW
WEST &
SOUTHWEST
EXTENSIONS
8
EAST &
SOUTHEAST
EXTENSIONS

500m
“ALPALA DEEPS”
solgold.com.au
EXTENSIONS
78
LOOKING NORTH
+1500
Burj Khalifa
Relative Size
828 meters tall
6
+750
10
15
MOLYBDENUM
HALO
8
5
13
+0
11 7
9
12
16
500m
solgold.com.au
79
LOOKING NORTH
+1500
Burj Khalifa
Relative Size
828 meters tall
6
+750
10
15
ALPALA DEPOSIT
DEFINED BY
 5% ‘B’-type
Quartz Veins
8
5
13
+0
11 7
9
12
16
500m
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80
LOOKING NORTH
+1500
Burj Khalifa
Relative Size
828 meters tall
6
+750
10
15
ALPALA DEPOSIT
DEFINED AT
 0.5% Copper
8
5
13
+0
11 7
9
12
16
500m
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LOOKING NORTH
+1500
Burj Khalifa
Relative Size
828 meters tall
6
+750
 0.5 % Cu
10
15
Preliminary Copper Interpolant


8
5
13
+0
11 7
9

12
16
500m
solgold.com.au
Cutoff (Cu%)
tonnes (Mt)
Est. Mean Grade Cu %
Est. Mean Grade Au g/t
Est. Mean Grade Cu.Eq
Est. Contained Copper (Mt)
Est. Contained Gold (Moz)
SG
* Gold Conversion Factor 0.82
** Copper (US$/lb) $2.30
*** Gold (US$/oz) $1,300
**** Recovery 100%
0.50
218.6
0.94
0.95
1.72
2.05
6.71
2.78
82
Pre Resource tonnage volumes are large
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High grade enrichment - Helps early production
CSD-14-009 – 1300.0m
3.99% Cu & 7.92g/t Au, US$520/t
CSD-13-005 – 1209.2m
2.97% Cu & 4.09 g/t Au, US$310/t
CSD-14-009
1.28% Cu & 3.73g/t Au, US$217/t
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Hole 17- More High grade enrichment (bornite-chalcopyrite,
results pending) Helps early production
CSD-16-017 – 880.5m
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How could we develop Alpala ?
- multiple development options
SolGold makes the Grade !
Global Block Cave Copper-Gold Mines in Operation or Development
Cu-Au grades and relative deposit size
2.00 Northparkes Lift 1
1.75 -
Hole Int. (m)
1
100
5
1306
5
532
5
258
7
238
8
448
9
772
Cu (%) Au (g/t)
0.65
1.00
0.62
0.54
1.05
1.08
1.27
1.40
0.65
0.35
0.56
0.64
0.80
1.19
Northparkes Lift 2
Copper (%)
1.50 1.25 -
Hugo
North
Lift
0.75 -
Block cave New Afton
bulk development
7 11
5
8
0.50 -
Pebble
0.25 Au = US$40/gram
Cu = US$ $5600/ton
Cadia
East
5
Grasberg GBC
Northparkes E48
1.00 -
Initial high grade
development
Carapateena
(target size)
Grasberg DOZ
Grasberg DZ
5 12
Golpu
10
Zone
9
Hole Int. (m)
9
298
9
212
10
156
11
636
12
576
12
284
Main Limb
Bulk
Main Limb
Lower Zone
Main Limb
Main Limb
Bulk
Cu (%) Au (g/t)
1.24
1.72
1.46
2.18
0.63
0.74
0.58
0.54
1.03
1.19
1.33
1.82
Zone
Lower Zone
Lower Zone
Open at Depth
Bulk
Main Limb
Lower Zone
9
12
9
Interim high grade
development
Red Chris 1
Ridgeway Deeps
0.00 -+
+
+
+
+
+
+
+
+
+
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0
+
1.2
+
1.4
+
1.6
+
1.8
+
2.0
+
2.2
+
2.4
+
2.6
+
2.8
+
3.0
Gold (g/t)
Operating Mine
Development Project
Size : Reserves (Mt)
1
Alpala Drill Hole - Grade Comparison Only
* Modified from Oz Minerals, BMG Capital Markets, 2013 Globals Metals & Mining Conference
solgold.com.au
86
Topographic advantage
……Suited to
underground
development
Heading Up to Alpala
Looking back down to Rocafuerte
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Cascabel should be suited to both open cut and
underground development and exploration
Potential Decline - 6000m of development
DECLINE PLAN
• Vertical gains: Alpala 1800m / Aguinaga 1250m
• Aguinaga Relative Level is near surface
• Aguinaga has both open Pit and U/G Potential
• Justified by 80 drill holes and paid for with 500,000 tonnes at 2.0 % Cu and 2.5g/t Au – an easy target
Alpala
Aguinaga
“B1” type qtz-mt-cpy
stock work veining
at surface
RELATIVE LEVEL
“B1” type qtz-mt-cpy
stock work veining
IP Chargeability 125 msec >>>>
<<<<
IP Chargeability 100 msec
untested
<<<<
<<<<<<<
<<<<<<<
MVI Magnetics 0.012 msec >>>>
MVI Magnetics 0.010 msec
Alpala Copper Shell >0.45%
Alpala Copper Shell >0.70%
Aguinaga U/G
Drill Cuddy
Alpala U/G
Drill Cuddy
SW

San Pedro
Conceptual Underground
development
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NE
88
Cascabel is delivering some of the worlds best porphyry
copper-gold intersections
Company
Property
Location
Codelco
Codelco
Kennecott
Newcrest / Harmony Gold
Anglo American
Anglo American
Newcrest / Harmony Gold
Reservior Minerals / Freeport Mcmoran
Imperial Metals
Anglo Gold Ashanti
Freeport McMoran
Solgold - Hole 12
Ivanhoe Mines
Exeter Resources
Solgold - Hole 9
Anglo American
Anglo American
Ivanhoe Mines
Solgold - Hole 9
Ivanhoe Mines
Newcrest
Ivanhoe Mines
Ivanhoe Mines
Solgold - Hole 5
Imperial Metals
Exeter Resources
Exeter Resources
Exeter Resources
Solgold - Hole 5
Imperial Metals
Chiquicamata***
El Teniente***
Bingham Canyon
Wafi-Golpu
La Poloma
Los Sulphatos
Wafi-Golpu
Chukaru-Peki**
Red Chris
Nuevo Chaquiri
Grasberg
Cascabel
Oyu Tolgio**
Caspiche
Cascabel
Los Sulphatos
La Poloma
Oyu Tolgio**
Cascabel
Hugo Dummet
Cadia Ridgeway
Oyu Tolgio**
Oyu Tolgio**
Cascabel
Red Chris
Caspiche
Caspiche
Caspiche
Cascabel
Red Chris
Northern Chile
Central Chile
Utah, USA
PNG
Central Chile
Central Chile
PNG
Eastern Serbia
BC, Canada
Colombia
Irian Jaya
Northern Ecuador
Southern Mongolia
Northern Chile
Northern Ecuador
Central Chile
Central Chile
Southern Mongolia
Northern Ecuador
Southern Mongolia
NSW, Australia
Southern Mongolia
Southern Mongolia
Northern Ecuador
Canada
Northern Chile
Northern Chile
Northern Chile
Northern Ecuador
BC, Canada
Interval (m)
Copper (%)
Gold (g/t)
?
?
?
883
730
717
799
291
1024
810
591
1312
326
1214
1050
990
989
476
772
302
341
258
422
1088
1135
1058
793
906
552
716
?
?
?
2.15
3.58
3.60
1.9
5.13
1.01
1.65
1.7
0.67
3.77
0.90
0.68
1.26
1.26
2.16
0.80
3.11
0.93
3.68
2.48
0.66
0.50
0.70
0.96
0.87
1.03
0.79
?
?
?
2.23
1.43
3.40
1.26
0.78
1.8
0.63
1.23
0.33
0.92
0.67
1.19
0.98
3.86
0.98
0.21
0.89
0.59
0.35
0.40
0.26
1.05
0.74
* sources: www.intierra.com, and various market announcements. | * CuEq% Gold Conversion Factor of 0.6 calculated from Cu price US$3/lb and Au price US$40/oz
**Codelco's Chiquicamata and El Teniente deposits, first went into modernised productionin around 1915. These state owned exploration drilling results remain unpublished.
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89
With more drilling Alpala Central could be as big as Golpu
W
E
Golpu
NE
1,000 Mt
0.90 % Cu
0.63 g/t Au
SW
>1.0g/tAu
Alpala
Target 1,000Mt
QD20
Dyke
Quartz-diorite
Syn-mineral
intrusion
500 m
Same scale
Source: market_releases/2016/5._NCM_150216_Market_Release_-_Golpu_FS_PFS
Comparison to Wafi-Golpu indicates how much Cu and Au can be contained in a steeply plunging porphyry stock
solgold.com.au
90
SolGold is about Cascabel
CASCABEL
ECUADOR
1
Andean copper belt – Worlds Richest!!
2
Gold endowed northern section
3
Ecuador now open for mining business
4
Outstanding infrastructure
5
SolGold holds 85% and is Operator
6
Motivated and invested management
7
Highly accomplished technical team
8
State of the art geophysics sees through the cover
9
Gold rich high grade copper discovery
10
Drill intersections in the company of the worlds best
11
Five year program and 230,000 metres of drilling to
development at Cascabel
12
Generated 24 Additional porphyry targets in Ecuador
solgold.com.au
91
Thank you!
Photo (left) – Chalcopyrite from Hole 5 – 1.7% Cu & 1.9 g/t Au, 1204.1m
Photo (right) – Chalcopyrite from Hole 9 – 1.18% Cu & 2.26 g/t Au, 764m
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Qualified Persons
Qualified Person
Information in this report relating to the exploration results is based on data
reviewed by Nicholas Mather(BSc (Hons), Executive Director. Mr Mather is a
Member of the Australasian Institute of Mining and Metallurgy who has in excess
of 34 years’ experience in mineral exploration and is a Qualified Person under the
AIM Rules. Mr Mather consents to the inclusion of the information in the form
and context in which it appears.
Jason Ward President of ENSA and Exploration Manager
Corporate Office: Av 12 Octubre N26-97 Abraham Lincoln Piso 11oficina 1101, Quito Ecuador
Office+59326011021 / 2986606|Mobile+593 (0)990503077
Email: [email protected]
Nicholas Mather Executive Director
Corporate Office: Level 27, 111 Eagle Street, Brisbane QLD 4000
Mobile: +61 417 880 448|Office: +61 7 3303 0660
Email: [email protected]
UK Broker and Nominated Advisor
SP Angel Corporate Finance LLP
Prince Frederick House
35 – 39 Maddox Street, London, W1S 2PP
United Kingdom
T: +44 (0) 20 3463 2260
F: +44 (0) 20 7629 1341
solgold.com.au
@SolGold_Plc
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