Drilling Progress at the Tandayama-Ame Copper Mine in Ecuador

According to the Mining Journal, SolGold reported assay results from diamond drilling at its Tandayama-América (TAM) deposit in Ecuador.

Hole 74 intersected 160.5 meters at 0.77% copper equivalent from 11.5 meters depth, including 92 meters at 0.93% copper equivalent from 11.5 meters depth. Richer mineralization included 14 meters at 1.58% copper equivalent from 42 meters depth, and 17.82 meters at 1.22% copper equivalent from 70 meters depth.

TAM is part of the company's Cascabel project, which also includes the Alpala underground deposit. While Alpala is a large-scale, long-life underground mine, TAM could support a near-surface open pit with a low strip ratio and lower capital investment. The company stated that combining these two deposits enhances operational flexibility.

TAM has become the top priority for SolGold's phased development strategy at Cascabel, which will transition from open-pit to underground mining.

"These results reinforce our confidence that TAM will soon have sufficient resources for open-pit mining, with production starting within two to three years after permitting," said Dan Vujcic, the company's Chief Executive Officer.

"TAM not only provides an opportunity but also delivers two ore sources in the early years, accelerating Cascabel's development while reducing risk. The ability to develop both ores will allow SolGold to create value faster, lower risk, and, more importantly, reduce initial capital expenditure."

SolGold stated that an updated mineral resource estimate for the TAM gold deposit will be released in the coming weeks.

Cascabel is expected to begin production in 2028, with phased development of the TAM open pit and the Alpala underground mine. First ore from TAM is anticipated in early 2028, and the Alpala underground mine is scheduled to start by the end of that year.

A 2024 pre-feasibility study for Cascabel projected an initial mine life of 28 years, with average annual production of 123,000 mt of copper, 277,000 ounces of gold, and 794,000 ounces of silver, peaking at 216,000 mt of copper per year.

The project is estimated to require an initial investment of $1.55 billion, with an after-tax net present value of $3.2 billion, an internal rate of return of 24%, and a payback period of 4 years.