Sol Gold Advances Development of Cascavel Copper-Gold Mine

According to a report from Mining.com, SolGold is rapidly advancing its Cascabel copper-gold project in northern Ecuador, with commissioning expected in 2028, three to four years ahead of the initial estimate.

The board has formally approved a revised plan that includes early site work, an accelerated drilling program, and the establishment of two subsidiary companies to manage its exploration assets. One subsidiary will oversee Cascabel and surrounding assets in the north, while the other will manage assets in the south, including Porvenir and assets in the same region as Lundin Gold's Fruta del Norte and Ecuacorriente's Mirador copper-gold mines.

This efficient plan includes open-pit and underground development facilities aimed at reducing the commissioning time. In January 2028, SolGold will commence open-pit mining at Tandayama-America (TAM), followed by underground mining at the Alpala deposit by the end of the same year. At that time, the beneficiation plant and mine tailings facilities will also be completed.

Dan Vujcic, who became CEO earlier this year, said that the accelerated mining plan is a response to the copper supply deficit caused by the global transition to electrification.

"We are moving forward now," Vujcic said. "We have a plan that prioritizes trends, risk management, and early returns."

Early work at Alpala is expected to enable underground mining by the end of 2027, seven months ahead of the initial schedule. Through modular construction and early procurement of long-lead items, the construction time for the beneficiation plant will be reduced from 24 months to 18-21 months.

Cascabel has long been considered a copper-gold asset with significant potential, attracting investments from mining giants such as BHP and Newmont.

SolGold, founded in Australia and headquartered in London, believes that the scale of the project is sufficient to place it among the top 20 copper-gold mines in South America.

A preliminary study completed in February 2024 projects a mine life of 28 years, with annual production of 123,000 mt of copper, 277,000 ounces of gold, and 794,000 ounces of silver, reaching a peak annual copper production of 216,000 mt.

SolGold is also adjusting its strategy, including a recent delisting from the Toronto Stock Exchange and a secondary listing on the Australian Securities Exchange.

Despite this, SolGold will continue to face funding challenges. Persistent losses and negative cash flows have affected its market value, although recent governance reforms and targeted investments may lead to an improvement.