Tandayama Mei Copper-Gold Mine Drilling Intersects Thick Ore

According to the Mining Journal, SolGold's Cascabel copper-gold mine project in Ecuador encountered thick ore bodies during drilling at the Tandayama-America (TAM) deposit.

Hole TAD-25-070 intersected 158.2 meters of ore at a depth of 7.8 meters, with a copper equivalent grade of 0.64%, including 50.2 meters of ore at a depth of 7.8 meters with a copper equivalent grade of 0.70%, and 56 meters of ore at a depth of 86 meters with a grade of 0.86%.

Hole TAD-25-066 intersected 125.5 meters of ore at a depth of 16.5 meters, with a copper equivalent grade of 0.47%, including 80 meters of ore at a depth of 40 meters with a grade of 0.63%.

SolGold added that the above results confirm widespread and continuous mineralization starting from the surface, extending further downward and along the strike.

"We continue to observe strong mineralization near the surface at Tandayama-America, highlighting the significance of the deposit within the Cascabel mining rights," said Dan Vujcic, the company's CEO.

"Several holes are nearing completion, with visible mineralization in the core, and we expect each hole to enhance our understanding of Tandayama-America."

SolGold stated that Tandayama-America has become central to the company's phased development approach, with the latest results further reinforcing the strategy of phased open-pit and underground development for the Cascabel project.

The Cascabel project is expected to commence production in 2028, starting with the development of the Tandayama-America open pit, followed by underground mining of the Alpala deposit. The first ore from Tandayama-America will be produced in early 2028, with the Alpala underground mine commencing operations by the end of the same year.

A 2024 pre-feasibility study estimated an initial investment of $1.55 billion for Cascabel, a mine life of 28 years, and annual production of 123,000 mt of copper, 277,000 ounces of gold, and 794,000 ounces of silver, with peak annual copper production reaching 216,000 mt.

The project has an after-tax net present value of $3.2 billion, an internal rate of return of 24%, and a payback period of 4 years.