Announces Environmental Licence Granted for Advanced Exploration Phase at Porvenir Project
Environmental Licencesecured following completion of the Environmental Impact Study and public consultation process
Preliminary Economic Assessment underway, aiming to demonstrate scale and economic upside of the Cacharposa copper-gold deposit and will include results from recent c.2,600m of drilling as well as potential additional drilling, updates to market assumptions, and re-examined mining approaches
Given the significant potential scale of Porvenir, strategic options for the asset are under evaluation as the cornerstone asset of SolGold's ExploreCo strategy
BISHOPSGATE, LONDON / ACCESS Newswire / May 12, 2025 / SolGold (LSE:SOLG)(TSX:SOLG) is pleased to announce that the Government of Ecuador has granted the Environmental Licence ("Licence") for the Porvenir Project ("Porvenir" or the "Project"), located in southern Ecuador's Zamora Chinchipe province. The concessions that comprise the Project are held by Green Rock Resources S.A., SolGold's 100%-owned Ecuadorian subsidiary.
The Licence, issued under Resolution MAATE-SCA-2025-0012-R by the Ministry of Environment, Water and Ecological Transition ("MAATE") and supported by a phase change declaration to the Advanced Exploration Phase from the Ministry of Energy and Mines, authorises SolGold to undertake a comprehensive suite of advanced-stage exploration activities. These include diamond drilling, trenching, geotechnical investigations, hydrogeological and metallurgical studies, and other related field programs to support Project development.
The Licence covers all four Porvenir Project concessions, totalling 5,261 hectares. This includes the Cacharposa deposit and nearby porphyry targets such as Diablo, Mula Muerta, Eudis, Barolo, Pamal, and Balmore. Project development activities will proceed under Ecuador's gran minería (large-scale mining) regime, which governs the development of projects with significant scale and long-term potential.
The approval comes following the successful completion of the Environmental Impact Study and a constructive public consultation process. Local stakeholders expressed support for continued exploration at Porvenir, recognising its potential to bring long-term employment and economic development. SolGold's established presence in the region, commitment to hiring and training local workers, and strong environmental practices have helped to foster a collaborative, forward-looking relationship with surrounding communities.
PRELIMINARY ECONOMIC ASSESSMENT IN PROGRESS
SolGold is finalising its internal technical and economic studies, which it will share, with the necessary caveats, with the market when complete. In parallel, the Company is in the process of engaging an independent engineering firm to complete a Preliminary Economic Assessment ("PEA") for the Porvenir Project. The study will integrate updated geological modelling, the most recent drilling data, and more current market assumptions - including revised metal prices and operating cost frameworks. The PEA will evaluate both open-pit and potential underground mining scenarios, as well as low-cost bulk mining methods suited to the system's scale and geometry.
Dan Vujcic, CEO of SolGold, commented:
"This licence allows us to advance Porvenir, the cornerstone asset of ExploreCo, into its next phase with momentum. The Company has an exciting portfolio of tenements in the southern part of the country, a region which consists of top-tier success stories, namely Fruta de Norte and Mirador. We're excited to build on the solid geological foundation already demonstrated at Cacharposa and take a technically driven look at how best to achieve its significant potential and to see its value acknowledged in our share price. Over the coming weeks, site visits will be conducted, allowing us to fully evaluate all options and the optimum path forward. The strong support of our Ecuadorian team and local communities has made this possible, and we're ready to move forward."
STRATEGIC CONSIDERATIONS
The Porvenir asset will be the cornerstone asset in SolGold's ExploreCo portfolio. The Company is currently evaluating the capital requirements to continue developing Porvenir, as well as maintaining ongoing discussions with potential ExploreCo partners and stakeholders.
ENVIRONMENTAL AND COMMUNITY COMMITMENT
As technical work advances, SolGold remains committed to sustainable development and responsible mining. All plans will continue to be guided by environmental responsibility, inclusive stakeholder engagement, and alignment with community values. This permitting milestone builds on SolGold's proven track record of progressing projects through Ecuador's regulatory framework.
CACHARPOSA: A LARGE, OPEN MINERAL SYSTEM1,2,3
Note: The following information is based on previously released data and does not reflect updates from the PEA, which is currently in progress.
The Cacharposa deposit hosts a significant porphyry copper-gold system with near-surface mineralisation. The Cacharposa Mineral Resource Estimate ("CACMRE#1") (Porvenir Property NI 43-101 Technical Report Mineral Resource Estimate, 26 October 2021)1 was defined using a dataset comprised of 18,635.7m of diamond drilling; 439.6m of surface rock-saw channel sampling from 23 outcrops; and 16,982.4m of final assay results from 20 drill holes.
The Mineral Resource Estimate (effective 26 October 2021) includes:
The copper equivalency factor of 0.632 (whereby CuEq (%) = Cu (%) + Au (g/t) x 0.632) is based on third-party metal price forecasts, estimated recoveries, and cost inputs based on data available from similar deposits.
Table 1. Cacharposa Mineral Resource Estimate (Porvenir Property NI 43-101 Technical Report Mineral Resource Estimate, 26 October 2021)1,2
Potential Mining Method
Cut-offGrade
(Cu Eq%)
Resource Category
Tonnage
(Mt)
Grade
Contained Metal
Cu
(%)
Au(g/t)
CuEq(%)
Cu(Mt)
Au(Moz)
CuEq
(Mt)
Open Pit
0.16
Indicated
396.8
0.35
0.14
0.44
1.40
1.80
1.75
Inferred
96.9
0.29
0.12
0.37
0.28
0.38
0.36
Notes:
1. Dr Andrew Fowler, MAusIMM CP(Geo), Principal Geology Consultant of Mining Plus, is responsible for this Mineral Resource statement and is an "independent Qualified Person" as such term is defined in NI 43-101.
2. The Mineral Resource is reported using cut-off grades that are applied according to the mining method where 0.16 % CuEq applies to potentially open pittable material and 0.28 % CuEq applies to material potentially mineable by underground bulk mining methods. Copper equivalency is discussed in detail in "Reasonable Prospects for Eventual Economic Extraction",
3. The Mineral Resource is considered to have reasonable prospects for eventual economic extraction by open pit mining.
4. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
5. The statement uses the terminology, definitions and guidelines given in the CIM Standards on Mineral Resources and Mineral Reserves (May 2014) as required by NI 43-101.
6. Figures may not compute due to rounding.
A conceptual starter pit was previously modelled at 44 Mt @ 0.64% CuEq, highlighting potential for phased development.
Since the release of CAC MRE#1, SolGold has completed an additional 2,610m of infill and extension diamond drilling at Cacharposa, bringing the total to more than 21,200 metres. New drilling is planned to further test extensions of the mineralised system. A mineralised corridor approximately 1,200 metres long, 800 metres wide, and 1,000 metres vertically has been outlined. The deepest drill hole to date (PDH-20-002) reached 1,200 metres and terminated in mineralisation, indicating that the system remains open at depth.3
Figure 1: Location of the Porvenir Project in Ecuador
Figure 2. Areas of Interest of the Porvenir Property
Notable Drill Intercepts
Assay results from the drilling at Cacharposa have returned a number of outstanding drillholes, including:
Figure 3. Plan view of drilling at the Cacharposa Deposit, showing additional drilling completed since CAC MRE#1 (red) and proposed drilling (green)3
Figure 4. Cacharposa Mineralisation and Drilling Model1
Plan view showing drill hole traces and mineralisation extents with CuEq grade shells at 0.15% (blue), 0.40% (green), and 0.70% (orange), overlaid on a conceptual open-pit optimisation wireframe (grey).
Figure 5. Sectional View of Grade Distribution at Cacharposa1
Cross section through the Cacharposa deposit looking north-northwest showing vertical extent of mineralisation and CuEq grade shells at 0.15% (blue), 0.40% (green), and 0.70% (orange), along with indicated (IND) and inferred (INF) resource boundaries and the open-pit optimisation shell.
Grade Distribution CuEq (%)
LOOKING AHEAD
SolGold will continue advancing the PEA and advanced exploration phase field activities in the coming months, with further updates to be provided as new technical results and plans are finalised.
CONTACTS
Dan Vujcic
Chief Executive Officer
Tel: +61 461 304 393
ENDNOTES
1. Porvenir Property NI 43-101 Technical Report, Mineral Resource Estimate, October 2021, effective date 26 October 2021.
2. SolGold plc news release dated 15 December 2021: 'Cacharposa Maiden Mineral Resource Estimate'.
3. SolGold plc news release dated 1 December 2023: 'Porvenir Project Update - Advancing Exploration Across a Cluster of Porphyry Copper-Gold Targets'.
ABOUT SOLGOLD
SolGold is a leading resources company focused on the discovery, definition and development of world-class copper and gold deposits and continues to strive to deliver objectives efficiently and in the interests of shareholders.
SolGold completed and released a staged development plan, Pre-Feasibility Study on 16 February 2024. The study, completed at US$1750/oz gold, US$3.85/lb copper and US$22.50/oz for silver, delivered an NPV (based on a discount rate of 8%) of US$3.22bn on a capex of US$1.55bn for an initial 12 Mtpa underground block caving operation. The evaluation also showed an after-tax IRR of 24% and a first 10-year free cash flow generation of US$7.1bn. The PFS assessed Mineral Reserves 539.7 Mt tonnes, which represents only 18% of the total resource over an initial 28-year project life.
On 15 July 2024, SolGold announced a gold stream agreement with Franco Nevada and Osisko Royalties (the "Streamers") pursuant to which the Streamers would pay US$100m as pre-development funding in three tranches, conditional on achieving various technical and permitting milestones. The first US$33.3m was received on signing. A further US$650m contribution to development expenditure will be provided on completion of the feasibility study, permitting and financing, subject to CPs, acceptable financing packages for the balance funding required. SolGold has agreed, in consideration for this funding, a life of mine stream priced at 20% of the spot gold price at the time for 20% of gold production for the first 10 years and 12% thereafter. The stream represents approximately 5% of total revenue for the project and provides some 42% of currently estimated capital development costs. SolGold retains change of control buyback options on the stream to the extent of 50% within 3 years and 33 1/3 % for a further two years.
SolGold continues to advance de-risking programs, permitting and financing discussions and to reevaluate the Project at recent consensus prices for copper and gold.
On 28 October 2024, SolGold appointed G-Mining Services to be the Project Manager for the Feasibility Study.
The Company operates with transparency and in accordance with international best practices. SolGold is committed to delivering value to its shareholders while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace, and minimizing environmental impact.
SolGold is listed on the London Stock Exchange and Toronto Stock Exchange (LSE/TSX: SOLG).
The scientific and technical disclosure included in this news release has been reviewed and approved by Mr. Santiago Vaca (M.Sc. P.Geo.), a Qualified Person as defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
The basis for the scientific and technical information included in this news release is a technical report Porvenir Property NI 43-101 Technical Report, Mineral Resource Estimate, October 2021, effective date 26 October 2021 ("Porvenir Technical Report"), which can be found on SEDAR+ under the Company's issuer profile at www.sedarplus.ca. Readers are encouraged to read the Porvenir Technical Report in its entirety. The Porvenir Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.
CAUTIONARY NOTICE
News releases, presentations and public commentary made by SolGold plc (the "Company") and its Officers may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to interpretations of exploration results to date and the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's Directors, including the plan for developing the Project currently being studied as well as the expectations of the Company as to the forward price of copper. Such forward-looking and interpretative 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 interpretations and forward-looking statements.
Accordingly, the reader should not rely on any interpretations or forward-looking statements, and save as required by the exchange rules of the TSX and LSE or by applicable laws, the Company does not accept any obligation to disseminate any updates or revisions to such interpretations or forward-looking statements. The Company may reinterpret results to date as the status of its assets and projects changes with time, expenditure, metals prices and other affecting circumstances.
This release may contain "forward looking information". Forward looking information includes, but is not limited to, statements regarding the Company's plans for developing its properties. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking information, including but not limited to: transaction risks; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, risks relating to the ability of exploration activities (including assay results) to accurately predict mineralization; errors in management's geological modelling and/or mine development plan; capital and operating costs varying significantly from estimates; the preliminary nature of visual assessments; delays in obtaining or failures to obtain required governmental, environmental or other required approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; the global economic climate; fluctuations in commodity prices; the ability of the Company to complete further exploration activities, including drilling; delays in the development of projects; environmental risks; community and non-governmental actions; other risks involved in the mineral exploration and development industry; the ability of the Company to retain its key management employees and skilled and experienced personnel; and those risks set out in the Company's public documents filed on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
The Company and its officers do not endorse, or reject or otherwise comment on the conclusions, interpretations or views expressed in press articles or third-party analysis.
SolGold plc UK Company No. 5449516 ARBN 117 169 856 Email: info@solgold.com.au Website: www.solgold.com.au Head office: Level Level 5/191 St Georges Terrace, Perth WA 6000Australia Postal address: PO Box 7059, Cloisters Square PO Perth WA 6850 Australia Registered office: 1 Cornhill, London, EC3V 3ND, UK Phone: +44 (0) 20 3807 6996
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