Cascabel has potential to be 'top 20 mine in South America'

SolGold believes the Cascabel project in Ecuador has the potential to be a top 20 gold and copper mine in South America, after completing a pre-feasibility study.

The project, held by Exploraciones Novomining S.A., an 85% owned subsidiary of SolGold, is expected to produce a clean copper-gold-silver concentrate, to be sold to Asian and European smelters as part of a project construction financing package.

SolGold - anticipating Tier 1 status with a high-grade core - estimates an US$5.2bn pre-tax Net Present Value (NPV) and 25.3% Internal Rate of Return, with estimated average production of 132ktpa of copper, 358kozpa of gold, 1Mozpa of silver, 212ktpa copper equivalent and peak copper production of 210ktpa. 

An investors presentation will be held at 9.30am London time today (click here).

SolGold's Managing Director and CEO, Darryl Cuzzubbo, said the PFS supports what it has believed all along – that this project is no ordinary mining asset.

"Cascabel will be a significant, multi-decade and very low cost producer of copper that can help enable Ecuador’s emergence as the next copper frontier at a time when the world needs copper the most as we transition to a net zero carbon emissions future," he said.

"Such a project will create over 6,000 indirect and direct jobs, not to mention will bring significant royalty and tax revenue benefiting all Ecuadorians.”

SolGold's Chair of the Cascabel Project Steering Committee, Keith Marshall, said the PFS offers a robust but flexible solution for the development of the underground mine at Cascabel.

"The study focused on the “right sizing” of the project, with the objective of reducing the technical and execution risk. It also provides a straightforward approach to mining the deposit that optimises selectivity, without compromising any of the resource and maintaining optionality," he said.

"I am confident that the study lays the solid groundwork for the next steps in the Cascabel project."

Nick Mather, former CEO and now Non-Executive Director and a direct and indirect shareholder with 12.9% of SolGold, said the various upsides at Cascabel offered by additional mineralised porphyry systems are still being outlined and assessed.

"The potential for additional production and treatment plant capacity, refinements to the mine plan, continued low cost of capital and what I see as the opportunity for long run higher copper prices as the world electrifies, suggest that this project indeed has considerable further upside to be evaluated," he said.

"More importantly, SolGold’s comprehensive exploration footprint and ongoing exploration success will, in my view, establish not just one project of significance but a string of them throughout Ecuador, defining a globally important copper province and the potential to have a significant impact on Ecuador’s economy."