At last, some drilling away from Alpala (link)! SolGold have finished the first hole at Aguinaga (link). Unfortunately, I don't think the results will be very special, I'm guessing that they come in around the 0.4-0.6% CuEq level.
This is what we are told about the first hole:
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| Translation - feck, we hope it gets better at depth |
It is very early days (1 hole), but the concern is that the Aguinaga Porphyry appears to be small and low grade. We see that the 'strongly mineralized porphyry' was intersected ~300m vertically below the discover which limits its extent to the NW and being just ~250m wide (horizontally) limits is potential to become huge. Bollocks!
The core photos from hole 01 look a bit anemic. They look similar to the low grade holes at Alpala, that typically ran around 0.5% CuEq (typically 0.3% Cu and 0.1-0.2 g/t Au)
At Alpala, if a drill hole was bulging with copper sulfides, Sol Gold would rush out an early release with partial results. They haven't done the same here, we get some confirmation of lack of optimism in the hole by the company in this statement.
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| i.e. the core looks crap, we're leaving the rigs to drill the good stuff |
However, if we work back we know that the drilling would have passed through the 'well mineralized' porphyry around the start of April, so we should expect the results to be released before the end of the month if they are good enough to stand on their own. If they are below expectations, they'll be buried in a PR with a load of intercepts from Alpala.
I've created a separate Leapfrog project for Aguinaga, you can get the viewer file from here (link)
So would you say you're regretting the decision to invest now? Do you still see much upside?
ReplyDeleteIf I had invested now, I would probably be disappointed. However, I was lucky and picked this up last year, so I've still made a bit.
DeleteHowever, with today's announcement of South32's acquisition of Arizona Mining, I feel that someone will come in and acquire SolGold, which is what I'm waiting for.