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QUITO - SolGold plc (LSE:SOLG) has completed and approved a Project Execution Plan for its flagship Cascabel copper-gold project in northern Ecuador, outlining a path to first production by late 2028, according to a company statement released Thursday.
The development strategy includes initial ore production from the Tandayama-Ameríca open pit targeted for January 2028, followed by underground ore from the Alpala Sub-Level Cave in the fourth quarter of 2028. Construction of processing facilities and an on-concession tailings storage facility is expected to conclude by late 2028.
Independent (LON:IOG) geotechnical assessments have confirmed the viability of on-concession tailings storage sites, which are designed to accommodate approximately ten years of operations. The company stated these sites will streamline the permitting process.
G Mining Services, which completed the execution plan, has identified opportunities to compress the development timeline through strategic sequencing of critical activities. Early works on the Alpala portal and decline system are expected to enable underground access by the fourth quarter of 2027.
"We are now in execution mode - we have a plan that prioritizes momentum, risk management, and early returns," said Dan Vujcic, Chief Executive Officer of SolGold, in the press release.
The company also announced plans to create a separate exploration company focused on its southern Ecuador assets, including the Porvenir project. This new entity would potentially list on either the Australian or Canadian market.
Diamond drilling continues at the Tandayama-Ameríca deposit with three rigs currently operating and a fourth to be added next week. The company reports that initial assays show "materially improved grades and widths."
In July 2024, SolGold secured a $750 million gold stream agreement with Franco-Nevada and OR Royalties International, with $33.3 million of the initial $100 million pre-development funding recently approved.
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