"Monster" SolGold's potential excites investors

SolGold soared by over 8% in early morning trading on Thursday as investors celebrated strong mineralisation in the miner's copper-gold exploration project in northern Ecuador.

Copper-rich sulphides were found in Hole 5 at the Alpala prospect, suggesting a "world-class copper-gold porphyry system", the miner announced. Hole 5 has currently been drilled to a depth of 1,303.5 metres as part of the company's Stage 1 drilling programme.

SolGold will continue drilling until either the hole reaches a depth of 1,500 metres, which is expected in 10 days, or copper mineralisation runs dry.

Chief executive and managing director Alan Martin commented: "The geological features, mineralogy and strong copper sulphide mineralisation encountered from near the top of the hole to the current reported depth at 1,303.5 metres indicates that we have drilled into a very substantial copper-gold porphyry system.

"The bulk style of the mineralisation we are encountering presents great potential for cost efficient and effective bulk extraction."

The miner expects to meet its copper-gold porphyry targets as evidence of chalcopyrite, bornite, chalcocite and magnetite have been found in the hole, which is part of the Cascabel project. Results from the urgent assay of 324 metres of core are expected within 14 days.

Martin said: "Encouragingly, from an exploration point of view, we are finding a very strong correlation between visual copper sulphide contents, assayed copper grades, and a strong relationship between copper, gold and magnetite mineralisation.

"We are accordingly excited by the significance of the magnetic model and believe that the 12 square kilometre induced polarisation survey, which we are shortly commissioning, will enable further refinement of our drill-hole targeting process."

Investor view

Interactive Investor discussion board users were excited after the news, with many celebrating the strong mineralisation of the hole despite its depth.

'Dmat22' said: "[SolGold has] confirmed it's a discovery. It is now confirming it's 'world class'. It is 1,300 metres plus and still in a highly mineralised core zone.

"It is ticking absolutely every box off. The company is valued at £56.5 million. Just think about that. We are sitting on a monster, proving it up with every drill. The way this is going, that value could easily be doubled, tripled or even quadrupled. Let's be honest, this should be much higher than where it is at the moment! What a year 2014 could be for SolGold!"