SolGold (TSX: SOLG) has released an independently verified mineral resource estimate for the Tandayama-Ameríca (TAM) porphyry copper-gold deposit at its flagship Cascabel project in northern Ecuador.
Cascabel is located on northern section of the Andean Copper Belt, which accounts for nearly half of the world’s copper production. The project is 85% owned by SolGold.
The TAM deposit lies approximately 3 km north of the Alpala deposit, the main target in the Cascabel concession.
Alpala has produced some of the greatest drill hole intercepts in porphyry copper-gold exploration history. The deposit comprises 2,663 Mt at 0.53% CuEq in the measured and indicated resource categories, for a contained metal content of 9.9 Mt Cu, 21.7 Moz Au and 92.2 Moz Ag.
SolGold’s latest update provides for a maiden resource estimate (open pit and underground) of the TAM deposit, showing 233 Mt at 0.33% CuEq containing 0.53 Mt Cu and 1.2 Moz Au in the indicated category, plus 197 Mt at 0.39% CuEq containing 0.52 Mt Cu and 1.24 Moz Au inferred.
This estimate is based on assays from the first 18 holes drilled at the TAM deposit. Drilling has continued during the estimation process, and visual mineralization from an additional 12 holes suggests there is potential for future resource growth, the company said. The highest-grade mineralization encountered thus far remains open.
Commenting on the work being advanced at Cascabel, SolGold’s interim CEO Keith Marshall said: “The TAM deposit adds further copper and gold mineralization to Alpala’s large metal inventory at the Cascabel project. The resource offers optionality and the potential to generate economic ore earlier, which will complement the high-grade Alpala underground ore.”
The company also recently released a statement regarding its progress on the project’s pre-feasibility study, saying it expects to receive a briefing from the project committee on the PFS later this month.