Cascabel Copper-Gold Project Advances to Pre-Feasibility as SolGold Secures $180mn Tranche

SolGold Plc announced that its flagship Cascabel copper-gold project in Imbabura province has formally entered the pre-feasibility study (PFS) phase, supported by a $180 million project financing tranche led by Franco-Nevada and Jiangxi Copper, the company's two largest strategic shareholders.

The updated mineral resource estimate, prepared by independent consultants AMC and released alongside the PFS announcement, confirms Cascabel's Alpala deposit contains:

Measured & Indicated: 2.65 billion tonnes at 0.52% copper, 0.27 g/t gold, 1.41 g/t silver
Contained metal: approximately 10.9 million tonnes of copper equivalent
Mine life estimate: 57 years under the proposed block-cave scenario

"Cascabel is a generational asset," said Scott Caldwell, SolGold's chief executive. "The scale and grade profile place Alpala in the top five undeveloped copper-gold deposits worldwide."

Project economics

Preliminary economic modelling based on the PFS base case suggests:

Capex: $3.8-4.2 billion for initial construction
Annual production (steady state): ~190,000 tonnes of copper and ~340,000 ounces of gold
All-in sustaining cost: $0.85/lb copper equivalent (net of gold credits)
Post-tax NPV (8% discount): $5.2 billion at $4.00/lb copper and $2,000/oz gold

Regulatory and community landscape

The project has secured its environmental impact assessment (EIA) approval from Ecuador's Ministry of Environment, though community relations in the parishes of Buenos Aires and Lita remain a focus. SolGold has committed $12 million annually to local development programmes including road infrastructure, healthcare facilities, and agricultural diversification.

Ecuador's mining sector remains nascent relative to neighbours Peru and Chile, but Cascabel -- along with Lundin Gold's operating Fruta del Norte gold mine -- signals the country's emergence as a serious player in Andean mining. The full feasibility study is expected by Q1 2027, with a final investment decision targeted for late 2027.