Alpala Project Improvements And Modelled Revenue Increases

AUSTRALIA – SolGold reported an update on the ongoing comprehensive metallurgical test work program underway at the Company’s flagship Alpala copper-gold porphyry Project in northern Ecuador. Following the completion of further metallurgical test work at Alpala, the Company has received the Phase 2 Test Work Report by ALS Metallurgical Laboratories, Canada. Phase 1 and 2 together represent an evaluation of the metallurgy for the whole planned mine life of the Alpala deposit.

Improved recoveries in metallurgical tests across all valuable minerals indicate a potential increase in the revenues from the Alpala project. Results from these metallurgical test programs form important elements of the Pre-Feasibility Study (“PFS”) currently underway. Phase 2 allowed SolGold to conduct flowsheet optimization testing followed by flowsheet development.

Highlights of the Phase 2 metallurgical test-work: Life of mine increase in gold recovery by 7% compared to results of the Preliminary Economic Assessment (PEA); Ability to produce 26%-30% copper concentrate (plus gold and silver) for modelled life of mine; Low deleterious elements in concentrate for life of mine, such as arsenic, bismuth, cadmium, fluorine and others; All composite samples from Phase 2 (as in Phase 1) responded well to conventional froth floatation with high valuable metal recovery rates overall; & Mineralogical testing confirmed that the copper sulphide mineral was substantially chalcopyrite.

The Phase 2 test work program following the PEA, builds on initial previously reported Phase 1 test work (PEA) and includes: Confirmatory tests on samples representative of the initial ten years of the mine life; Expansion of tests with a focus on years ten to twenty of the mine life; & Tests to evaluate performance on lower grade material in the later mine life (after year 20)

The Phase 2 test work program was based upon further composite samples from 785 meters (1,437kg) of core from previous diamond drilling at the Alpala project. This generated a total of 33 variability composites (each comprising 24 metres of core) as well as four master composites. The master composites represent low, medium (x2) and high grade feed material.