Hole 23

DISCLOSURE: I own shares in Sol Gold.

Question: What is the easiest way to find a million ounces of gold!

Answer: Drill a hole through the guts of a high-grade copper-gold porphyry

Each of those squares measures 300m

Here is hole 23R from Alpala (link). It went straight through the core of the Alpala deposit. There is a lot of grade smearing going on. In reality they only drilled 474m of economic mineralization (>0.5% Cu and 0.5 g/t Au), with a spectacular high-grade heart grading >1% Cu and ~3 g/t Au.

Here are the updated official bad resources:

A nice jump-up in contained metal!

Alpala will be an underground operation, and here is an excellent summary on costs involved for block cave operations - link. Here are some comparative sizes of some of these projects:

• Cadia: 1.5BT @ 0.47 g/t Au, 0.27% Cu
• Hudo Dummit: 500Mt @ 1.66% Cu, 0.35 g/t Au
• Resolution: 1.8Bt @ 1.54% Cu

Brown = brownfield projects; green = greenfield projects

When we look at the project listed in the figure above we can see that there are 2 types of projects:

Brownfield

• Satellite, high grade deposits next to an active open-pit mine
• Depth extension of ore-bodies that were mined by an open-pit but now is too deep to be mined from an open-pit

Greenfield

• standalone development projects

The reason I highlight this is that the cost to developing a brownfield deposit next to an active open pit mine or going underground to mine the deeper part of the same deposit a lot cheaper than building a new mine one from scratch. This also means that brownfield projects don't need to be as large or as high-grade to be developed.

At the moment, Alpala isn't quite big enough or high-grade to be a stand-alone operation, a few more holes like 23R will help! However, this is where the other exploration targets come in.

From Sol Gold June presentation

At the moment, all drilling has focused on Alpala, let us have a look at Aguinaga.

the hair nicely outlines the Cu mineralization found in a porphyry

We are told that they plan to start drilling there later this year. From Surface mapping and sampling they found some nice juicy rocks at surface, that look very similar to what they have been drilling at depth at Alpala.

Here is Aguinaga and Alpala. What Sol Gold are drilling at depth appears to exist at surface at Aguinaga.

Imagine what would happen if they found another Alpala at Aguinaga?