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LONDON - SolGold PLC (LSE & TSX: SOLG), a leading resources company, has announced its intention to commence early production from open-pit and sub-level caving opportunities at its Cascabel project in Ecuador. This initiative is part of the company’s broader strategy to expedite production and enhance the financeability of the project.
The company, which specializes in the discovery, definition, and development of copper and gold deposits, has outlined a targeted drilling program at the Tandayama resource area near the Alpala deposit. Scheduled to begin in early May 2025, the program aims to establish resources in the measured and indicated categories and test for open pittable resources at or near the surface. The drilling, estimated to take three months, is budgeted at $3.25 million and will include 11 priority holes with a total of up to 15 holes.
Dan Vujcic, CEO of SolGold, emphasized the significance of the Tandayama drilling plan in improving the Cascabel development plan, noting that the ability to bring forward production could greatly enhance the project’s value, particularly in the current metal price environment.
SolGold’s pre-feasibility study, released on February 16, 2024, indicated a net present value (NPV) of $3.22 billion based on an 8% discount rate, with an initial capital expenditure of $1.55 billion for a 12 million tonnes per annum underground block caving operation. The study also showed an after-tax internal rate of return (IRR) of 24% and a projected free cash flow generation of $7.1 billion in the first 10 years.
The company has also secured a gold stream agreement with Franco Nevada and Osisko Royalties, providing significant pre-development funding and contributing to capital development costs. SolGold retains buyback options on the stream, providing flexibility in its financing strategy.
SolGold continues to work closely with G Mining Services, the study manager, on various trade-off studies to potentially expedite the Cascabel project. These studies focus on tails and waste rock management, power supply, and improvements in underground access, mining and milling efficiencies, and metallurgical recoveries.
Investors are advised that this information is based on a press release statement from SolGold PLC. The company’s shares are publicly traded on the London Stock Exchange (LON:LSEG) and Toronto Stock Exchange under the ticker symbol SOLG.
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