CSD-17-023R-D1: 1027.

9m

Alpala: the discovery and geology of a

world-class porphyry copper-gold deposit,
Cascabel project, northern Ecuador
Steve Garwin, Benn Whistler (presenter), Jason Ward, Nick Mather, Bruce Rohrlach, Santiago Vaca, Alfredo Cruz,
Santiago Mantilla, Carlos Diaz, Alex Chafla, Leonardo Aguilar, Alvaro Guachamin, Jose Silva, Bayardo Rosero.
www.solgold.com.au
Important Notice and Disclaimer
These presentation slides (the “Slides”) have been issued by SolGold plc (the “Company”) in relation to an update on activities by the Company. These
Slides do not comprise an admission document, listing particulars or a prospectus relating to the Company, do not constitute an offer or invitation to
purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any
such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase
securities in the Company.
The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for your information and may not
be reproduced or distributed to any other person or published, in whole or in part, for any purpose. No reliance may be placed for any purpose
whatsoever on the information contained in the Slides and the accompanying verbal presentation or the completeness or accuracy of such
information. No representation or warranty, express or implied, is given by or on behalf of the Company, directors, officers, employees, agents or
advisors or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal
presentation, and no liability is accepted by such persons for any such information or opinions or otherwise arising in connection therewith (including
in the case of negligence, but excluding any liability for fraud).
The Slides contain certain statements and expressions of belief, expectation or opinion which are forward-looking statements, and which relate, inter
alia, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking
statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the
actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely
on any forward-looking statements and neither the Company nor SP Angel accept any obligation to disseminate any updates or revisions to such
forward-looking statements. Any statement as to the past activities of the Company’s directors should not be relied upon as being an indication of their
future performance.
The Slides have not been approved by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000 (“FSMA”).
They are exempt from the general restriction on the communication of invitations or inducements to engage in investment activity set out in section
21 of FSMA on the grounds that they are directed only at those persons who have professional experience in matters relating to investments and who
are: (i) investment professionals (within the meaning of article 19(5) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
as amended (the “FPO”)); (ii) persons or entities of a kind described in article 49(2)(a) to (d) of the FPO; and (iii) other persons who have professional
experience in matters relating to investments and to whom it may otherwise lawfully be communicated (all such persons together being referred to as
“Relevant Persons”). Any investment, investment activity or controlled activity to which the Slides relate is available only to Relevant Persons and will
be engaged in only with Relevant Persons. Persons of any other description, including those that do not have professional experience in matters
relating to investments, should not rely or act upon the Slides. Reliance on the communication set out in these Slides for the purpose of engaging in
any investment activity may expose an individual to a significant risk of losing all of the property invested or of incurring additional liability. Any
individual who is in any doubt about the investment to which these Slides relate should consult an authorised person specialising in advising on
investments of the kind referred to in these Slides.
Metal prices used in this presentation: US $3.00/lb (6,614/t) for copper, and US $1300/oz (US 41.8/g) for gold. Gold conversion factor for CuEq = 0.63.
BASE ASSUMPTIONS
• WE HAVE ACCESS……………………

 Experienced / understanding management

 Suitable Regulatory & Fiscal environment
 Community / Social inclusion

• NOW WE CAN DO REAL, UNHINDERED EXPLORATION

CASE HISTORIES OF DISCOVERY
• Keynote Address: Dan Wood
THE FUTURE OF GOLD(-COPPER) EXPLORATION

• Look Deeper >600m – (1-3km depth sweet-spot)

• Au in porphyry deposits
• Think Leakage - understand vertical & lateral
distribution of plume elements

• Know what your looking for!

• porphyry’s show same elemental distributions
 There is a consistent element distribution in global porphyry systems.
Vertical geochemical dispersion model in porphyry Cu-(Mo-Au) systems
0 km Note: Absolute elemental values will vary

vertical = horizontal scale *Cohen, 2011 and Halley et al., 2015

6
Local discrepancies in metal sequence may reflect late argillic overprints or varying H2O:CO2:S proportions of the ore fluid. Distribution of Au-Ag varies
and is partially controlled by oxidation / sulfidation state, temperature and metal-complex speciation.
Examples of what Alpala would look like at various erosion levels

(absolute values will vary)

0 km

6 vertical = horizontal scale

Look for zoning of immobile elements

– central Mo-(W), through intermediate Bi-Te, to distal As-Sb.
Discovery and Geology of the Alpala Deposit

1. BACKGROUND
• Location
• Why Ecuador?

2. DISCOVERY
• Alpala Creek - Discovery Outcrop
• Tenement Wide Geochem/Geology/Geophysics
• Hole 5 – Discovery Hole

3. GEOLOGY
• Developing understanding of the geology, geometry,
grade distribution, genesis, and ongoing targeting
Location & Logistics

Cascabel has
ECUADOR plenty
of water

Cascabel
COLUMBIA

CASCABEL

●QUITO

ECUADOR

PERU
Giant Copper-Gold Deposits - look where there’s lots of them.
 Andean Copper Belt – production base of around half the world’s copper
 New Discoveries being made – under-explored northern portion of Andean Copper Belt

Queensland
Well explored

Solomon Islands
Data derived from USGS
(Singer, Berger, & Moring, 2008)
Ecuador Well explored – excepting
Classical porphyry geology, blossoming mining Kuma and Mbetilonga.
industry. Gone from “Red light” to “Green light”.
 Northern Ecuador – under-explored, thick slab subduction
88 84 80 76 72  Thick buoyant oceanic
slab – Carnegie Ridge
 Low angle plate collision
8
 Promotes uplift
 Chokes volcanoes
Eocene Belt  Porphyrys stew in their
4 Miocene Belt own volatiles.
Jurassic Belt

CASCABEL

*after Gutscher, Malavieille, & Collot, 1999

 Cascabel is Eocene
 Same age as Chilean
Giants
Mineralisation at Alpala is Eocene

CSD-14-009: 811.9m
U-Pb SHRIMP dates on zircons in
a late-mineral QD20 dike and
early-mineral QD10 intrusion
D10 QD20
• 38.7 + 0.6 Ma (late-mineral QD20)
• 39.4 + 0.6 Ma (early-mineral QD10)

(ANU, 2015 and 2016)

CSD-14-007: 605.8m

Re-Os date on molybdenite in

chalcopyrite bearing quartz-
anhydrite-pyrite “D” vein
D20 • 38.6 +/- 0.2 Ma
(Antofagasta Minerals, 2015)
Eocene Porphyry Belt - CHILE
Late Eocene–Early Oligocene from 43 – 31 Ma Porphyry Deposits of Northern Chile
> 25% of global copper production
The most significant metallogenic epoch.
Giant porphyry Copper deposits formed in Chile. Collahouasi
Quebrada Blanca

 200Mt of copper produced from these deposits

Radomiro Tomic
Chuquicamata

Esperanza
 Almost Half the World’s Copper Production

Escondida

*after Kuraminerals.com,
Kura Geoscience SpA, 2016
Relatively under-explored Eocene Porphyry Belt - ECUADOR
Late Eocene–Early Oligocene from 43 – 31 Ma Porphyry Deposits of Northern Chile
> 25% of global copper production
The most significant metallogenic epoch.
Giant porphyry Copper deposits formed in Chile.
Northern Ecuador
Eocene
200MtBelt
of copper produced from these deposits
CASCABEL
Under-explored
 Almost
Weakly Half the World’s Copper Production
defined

*after Kuraminerals.com,
Kura Geoscience SpA, 2016
Regional Geological Framework
• 1st order NE Cross Faults (arc-parallel)
Toachi Fault Zone

• 2nd order NW Corridors (arc-normal)

CASCABEL • 3rd order NNE and NNW structures

Tenement

. Alpala
• Regional granodiorite batholith 5km
south - porphyry deposits often discovered
along fringes of regional batholiths

• Major Ring Feature crowning regional

batholith immediately south

• Structural Regime “Fractal” repeated

at smaller scales
Granodiorite
Structural Framework
• Structural Regime “Fractal” repeated at smaller scales
Project History
1980-1984: INEMIN
1984-1995: INEMIN & Belgium-Ecuadorian Mission
- Preliminary inspections

1988-1991: Lumina Gold (ODIN Mining & Exploration)

- Preliminary stream sediment sampling
Alpala Creek (Rock-saw channel sampling)

1998-2000: EMDEC Project (Ecuadorian Mining Development & Environmental Control Project)
- 1:50,000 scale regional mapping

2008-2011: Santa Barbara Copper and Gold (SBCG)

- Stream Sediment & Rock Sampling (Indicated presence of nearby porphyry system)

Alpala Discovery Outcrop – Alpala Creek

2011-2012: Cornerstone Capital Resources (CCR)
- Stream sediment, pan-con, rock chip sampling (93 samples)

April 2012: SolGold PLC

- First systematic exploration:
Intermed. Epithermal
Polymetallic (BMV)
Veins
(form Peripheral to
porphyry centres)
 Aggressive, Systematic Exploration
• Solgold assume management of Cascabel project – Apr 2012

• BOOTS ON THE GROUND – dedicated reconnaissance mapping & note taking

Alpala discovery outcrop found – May 2012

• Immediate follow-up field programs – soil / rock chip / rock-saw channel sampling / Anaconda
mapping 1:2000: 1:500, 1:200 scales
• Soil spectral mapping – coarse fragments in soils

• Geophysics – Nov 2012 - current

• Environmental licence received from MAE – 23 Aug 2013

• Drilling commences at Alpala – 1 Sep 2013, ongoing

• Hole 1 confirmed sheeted porphyry style quartz veining 150m below discovery outcrop. World class
intersection achieved in Hole 5 – Jan 2014
Discovery and Geology of the Alpala Deposit

1. BACKGROUND
• Location
• Why Ecuador?

2. DISCOVERY
• Alpala Creek - Discovery Outcrop
• Tenement Wide Geochem/Geology/Geophysics
• Hole 5 – Discovery Hole

3. GEOLOGY
• Developing understanding of the geology, geometry,
grade distribution, genesis, and ongoing targeting
May 2012, reconnaissance mapping located an ~80 m wide zone of copper-
and gold-bearing, sheeted, porphyry-style quartz veins in Alpala Creek
Sep13: Drill Hole 1 targeted Alpala discovery outcrop
● Rock-saw channel sampling in Alpala Creek
Channel 5: 33.3m @ 0.65 Cu, 1.02 Au Channel 56A: 53.9m @ 0.32 Cu, 1.38 Au
TR 5

1m
2m
1m
1.30 Cu 0.51 Cu
0.83 Cu 1.14 Au
4.86 Au
2.35 Au
Grid based soil geochemistry (3000samples, 48 elements)
Soil Molybdenum Soil Manganese Soil Cu/Zn Ratio

Chinambicito Chinambicito Chinambicito

Tandayama-America Tandayama-America Tandayama-America

Aguinaga Aguinaga Aguinaga

Moran Moran Moran

Trivinio Trivinio Trivinio

Alpala West Parambas Alpala West Parambas Parambas

Alpala NW Alpala NW Alpala West Alpala NW
Carmen Alpala Central Carmen Alpala Central Alpala Central
Carmen
Alpala East Alpala East Alpala East
Hematite Hill Hematite Hill Hematite Hill
Alpala South Alpala South Alpala South
Alpala SE Alpala SE Alpala SE

Cristal Cristal Cristal

Heli-borne magnetic survey + IP Survey
Mineralised Structural Corridors

 RTP Magnetic Highs Rocafuerte

Rocafuerte
Site
Site
Office
Office
 Manganese Lows
 Molybdenum Highs
 Cu/Zn Ratio Highs
 Mineralised Corridor
Structural Intersections Santa
Cecilia
Santa
Cecilia
– compiled from interpretation of:
1. Magnetics Structures
2. Topo structures
3. Electrical survey structures
4. Mapped sulphides & Bveins
5. Soil Mo and Cu/Zn geochemistry

Alpala
CapAlpala
Camp
Alteration mapping

 RTP Magnetic Highs Rocafuerte

Site
Office
 Manganese Lows
 Molybdenum Highs
 Cu/Zn Ratio Highs
 Mineralised Corridor
Structural Intersections Santa
Cecilia
– compiled from;
1. Magnetics Structures
2. Topo structures
3. Electrical survey structures
4. Mapped sulphides & Bveins
5. Soil Mo and Cu/Zn geochemistry

 Alteration Mapping Alpala

– compiled from; Camp

1. Geological Mapping
2. Spectral mapping (soil/auger chips)
Defining Cu-Au Targets - “Clustering”

● 15 Likely Targets identified Cascabel Porphyry Centres

over Airphoto Mosaic
Site Office

o Alpala Central
o Alpala Southeast Chinambicito

o Alpala East
o Alpala West
o Cristal Tandayama-America

Aguinaga
o Trivinio
o Moran Santa Cecilia

o Aguinaga Moran

o Tandayama-America
Trivinio
Parambas
Alpala West
Alpala NW
Carmen Alpala Alpala Central
Alpala East
Camp Hematite Hill
Alpala Central Deposit Alpala South
Alpala Porphyry Cluster
Alpala SE
Drilling Area
Cristal
Coincident Magnetic and Geochemical Targets
Hi Resolution 3D Ground Magnetic Data 3D Geochemical Modelling

Rocafuerte Rocafuerte

Site Site
Office Office

CHINAMBICITO CHINAMBICITO

TANDAYAMA TANDAYAMA
AMERICA AMERICA

AGUINAGA AGUINAGA
Santa Santa
Cecilia Cecilia

MORAN MORAN

TRIVINIO TRIVINIO

ALPALA ALPALA ALPALA ALPALA

PARAMBAS PARAMBAS
WEST NORTHWEST WEST NORTHWEST

ALPALA CENTRAL ALPALA CENTRAL

CARMEN ALPALA EAST CARMEN ALPALA EAST
Alpala Alpala
Camp HEMATITE HILL Camp HEMATITE HILL
ALPALA ALPALA ALPALA ALPALA
SOUTH SOUTHEAST SOUTH SOUTHEAST

CRISTAL CRISTAL

RTP Magnetics
Anaconda style Geological Mapping

Lithology Alteration Mineralisation

Old School Geology works………………………

Anaconda Mapping Interpretations
Anaconda Mapping Interpretations
Anaconda Mapping Interpretations
Anaconda Mapping Interpretations

Use your 10x and 20x hand lens

Use your modal abundance chart
Anaconda Mapping Interpretations
Man-portable Drill Rigs
Hole 1
Hole 1
Hole 1
 Holes 1-9
Geophysics & Geology
Targets

Hole 5 DISCOVERY HOLE

Hole 1 MAPPING

Hole 12
Focus back on
Anaconda Geology
 Hole 5 – DISCOVERY HOLE
hole_id depth_from depth_to interval group phase
CSD-13-005 0.00 544.45 544.45 V V CSD-13-005: B_C veins b_vein_pct
CSD-13-005 544.45 560.50 16.05 IM D15
50
CSD-13-005 560.50 628.00 67.50 V V
CSD-13-005 628.00 675.00 47.00 IM D15
CSD-13-005 675.00 778.60 103.60 V V
CSD-13-005
45
CSD-13-005
778.60
1222.00
1222.00
1248.50
443.40
26.50
D10
IM
D10
QD15
714m @ 1.4 % CuEq (0.89Cu, 0.87Au)
CSD-13-005 1248.50 1309.00 60.50 D10 D10
CSD-13-005
40 1309.00 1370.00 61.00 LM QD QD20

600m
35

30

25
%

20

15
2.2

10

0.5 0
100
120
140
160
180
200
220
240
260
280
300
320
340
360
380
400
420
440
460
480
500
520
540
560
580
600
620
642
662
682
702
722
742
762
782
802
822
842
862
882
902
922
942
962
982
1002
1022
1042
1062
1082
1102
1122
1142
1162
1182
1202
1222
1242
1262
1282
1302
1322
1342
1362
0
20
40
60
80
 Delivering some very long high grade porphyry intersections
Interval Cu Au Cu.Eq m%
Rank Operator Property Location
(m) (%) (g/t) (%) CuEq
1 Anglo American Los Sulphatos Central Chile 717.0 3.60 0.00 3.60 2581
2 Codelco Chilean Giants Northern Chile unknown unknown unknown unknown 2500
3 Kennecott Bingham Canyon Utah, USA unknown unknown unknown unknown 2500
4 Newcrest Mining Wafi-Golpu Papua New Guinea 1421.5 1.14 0.64 1.54 2195
5 Newcrest Mining Wafi-Golpu Papua New Guinea 943.5 1.44 1.28 2.25 2122
6 Imperial Metals Red Chris BC, Canada 1024.0 1.01 1.26 1.81 1850
7 Anglo Gold Ashanti Nuevo Chaquiri Colombia 810.0 1.65 0.78 2.14 1736
8 Freeport McMoran Grasberg Irian Jaya 591.0 1.70 1.80 2.84 1677
9 Ivanhoe Mines Oyu Tolgoi Southern Mongolia 326.0 3.77 1.23 4.55 1482 TYPICAL MINERALISATION
10 SolGold Plc Cascabel - Hole 12 Ecuador 1560.0 0.59 0.54 0.93 1455 CSD-15-012: 898.1m
11 SolGold Plc Cascabel - Hole 9 Ecuador 1197.4 0.63 0.83 1.16 1385
12 Exeter Resources Caspiche Northern Chile 1214.0 0.90 0.33 1.11 1346 1.23 % Cu, 0.71 g/t Au
13 SolGold Plc Cascabel - Hole 5 Ecuador 1358.0 0.61 0.53 0.94 1279
14 Metallica El Morro, La Fortuna Chile 780.0 0.84 1.24 1.62 1266
15 SolGold Plc Cascabel - Hole 16 Ecuador 936.0 0.75 0.95 1.35 1266
16 Anglo American Los Sulphatos Central Chile 990.0 1.26 0.00 1.26 1247
17 Ivanhoe Mines Oyu Tolgoi Southern Mongolia 476.0 2.16 0.67 2.58 1230
18 SolGold Plc Cascabel - Hole 23R Ecuador 1030.0 0.59 0.90 1.16 1195
19 Metallica El Morro, La Fortuna Chile 758.0 0.93 0.99 1.56 1179
20 Newcrest Cadia Ridgeway NSW, Australia 341.0 0.93 3.86 3.37 1149
21 Ivanhoe Mines Hugo Dummet Southern Mongolia 302.0 3.11 0.98 3.73 1126
22 Ivanhoe Mines Oyu Tolgoi Southern Mongolia 422.0 2.48 0.21 2.61 1103
23 Imperial Metals Red Chris Canada 1135.0 0.50 0.59 0.87 991
24 Exeter Resources Caspiche Northern Chile 1058.0 0.70 0.35 0.92 975
25 SolGold Plc Cascabel - Hole 15R2 Ecuador 1402.0 0.48 0.34 0.69 974
26 Exeter Resources Caspiche Northern Chile 792.5 0.96 0.40 1.21 961
27 Imperial Metals Red Chris BC, Canada 716.3 0.79 0.74 1.26 901
28 Nevsun Timok Serbia 798.0 0.80 0.22 1.11 886
29 SolGold Plc Cascabel - Hole 17 Ecuador 954.0 0.60 0.52 0.93 884
30 SolGold Plc Cascabel - Hole 21 Ecuador 946.0 0.67 0.39 0.92 872
31 Metallica El Morro, La Fortuna Chile 820.0 0.59 0.73 1.05 862
32 SolGold Plc Cascabel - Hole 19 Ecuador 1344.0 0.44 0.28 0.62 829
33 SolGold Plc Cascabel - Hole 18 Ecuador 864.0 0.57 0.61 0.96 825
34 Seabridge Gold Inc. KSM Canada 1023.4 0.24 0.77 0.73 744
NOTES: *Gold Conversion Factor of 0.63 calculated from a copper price of US$3.00/lb and a gold price US$1300/oz. True widths of downhole interval
lengths are estimated to be approximately 25% to 50%. Sources: peer review, snl.com, various company releases & broker reports, intierra.com,
 World Record Holders in Man-Portable Drilling
● Deepest hole ever drilled with man-portable rig : Hole 18 – 2216.75m
Ecuadorean Contractor
HP DRILLING
(Hubbard Perforaciones SA)

Flexibility of SolGold &

HP Drilling to adapt to
the project’s needs

Hydracore 4000 – modified for drilling to 2200m @ 26m /day

Discovery and Geology of the Alpala Deposit

1. BACKGROUND
• Location
• Why Ecuador?

2. DISCOVERY
• Alpala Creek - Discovery Outcrop
• Tenement Wide Geochem/Geology/Geophysics
• Hole 5 – Discovery Hole

3. GEOLOGY
• Developing understanding of the geology, geometry,
grade distribution, genesis, and ongoing targeting
Alpala Vein Paragenesis
• Alpala intrusives are similar composition (Diorite & Qtz-diorite)
• - after Gustafson & Hunt 1975 (at El Savlador de Chile)

UST: Uni-directional Solidification Texture: syn-magmatic quartz crystals Early / Hotter

A: early quartz veins (minor to rare)
M: magnetite veinlets
Main Mineralisation Stage

B1: quartz-coarse magnetite-chalcopyrite veins

B2: quartz-magnetite-chalcopyrite-pyrite veins
MCA: magnetite-chalcopyrite-pyrite-anhydrite veins
C: chalcopyrite-(rare bornite) veins
CD: pyrite-(chalcopyrite) veins with major envelopes

D: pyrite-(chalcopyrite) veins with major envelopes

ANH: anhydrite veins
CAL: calcite veins
BMV: base metal veins (+ calcite and / or anhydrite)
Late / Cooler

NOTES: • Anhydrite occurs over wide temperature range • Later vein-stages re-open earlier vein stages
• A, AB veins and EDM veins uncommon • EDM veins preferentially mineralised by later Cpy
Alpala Vein Styles
 Porphyry-Type Vein Cross Cutting Relationships

AB veinlet cut by M vein and veinlets. AB veinlets truncated by B1 veins M veinlet truncated by B1 vein

AB and M veinlets truncated by B2 vein B1 vein truncated by B2 vein B1 and B2 veins cut by MCA vein

B1

B2
CD
C

MCA vein cut by C vein ANH veinlet cut by D vein B1, cut by B2, cut by C, cut by CD, cut by D
(D selvage partially obscured by late alteration)
Intrusive Phases (contacts)

Pre-Mineral Diorite “D10”

Late Mineral Diorite “QD20”

D10 QD20
B2
CD
B1
Geological Units and Intrusive Phases
Cross-section interpretation
82850N 82850N
Geology Group
SOI Bvein
FLT
BX
PM
LM QD
LM
IM
QD15
QD10
D10
V
BX

200m 200m
Level Plan interpretation
500RL 500RL
Geology
Group
SOI Bvein
FLT
BX
PM
LM QD
LM
IM
QD15
QD10
D10
V
BX

200m 200m
B vein abundance in section & level-plan
 Leapfrog 3D Models
Geology B-Vein (%) Cu.Eq (%)

Looking Northwest Looking Northwest Looking Northwest

 CROSS-SECTION
Alpala Cu-Au Deposit: SEP 2017 Looking Northwest

26 3

Cross Section Plane

CN
Tower
553m

24-D1R 24-D1R
20R
22 6

17 17
21 13 21 27
11 24
24 23-R 25 23R 25
7 23R-D1 26 7
19 19 23R-D1
12 LONG-SECTION
16 16
9
12 Looking Northeast
18 14
15R2
14 18
55,000m
Devico directional drilling
Saves about 20,000m a year (US10M)
SolGold Strategy

• Ecuador highly prospective and

underexplored. Similar geology to
Chile, Peru and Colombia.
Through to the end of 2018:
 Will host major copper-gold
porphyry systems  55,000 metres of drilling now
 SolGold first mover advantage  Up to 12 rigs / 120,000m p.a
- 3.5 years of research
 Extend Alpala
 Directed, methodical approach
to target generation  Test satellite targets

 Selection of new porphyry

targets
CASCABEL  70 licenses granted
CASCABEL

SolGold applying the Cascabel blueprint skills and knowledge throughout the country,
unveiling the hidden value in Ecuador for SolGold.

THANK YOU