Impact: Positive
SolGold released an exploration update from its Rio Amarillo project in Northern Ecuador that is 35km southeast of the company’s Alpala deposit (Figure 1). The company has discovered a cluster of new preserved porphyry lithocap zones and associated surface Cu-Au mineralization that could potentially indicate large porphyry related systems at depth. SolGold owns at least 12 other high-potential projects in Ecuador. The mood surrounding base metals stocks is currently in the doldrums, but now could be a great buying opportunity for SolGold shares as its stock price should recover in H2/20 amid improving sentiment post the global coronavirus scare and the near-guaranteed additional Chinese stimulus package to combat the as yet unquantifiable slowdown in GDP that the virus has already caused in country.