Impact: Positive
SolGold released initial exploration results from its 100%-owned Timbara project in Southern Ecuador. The company has deployed field teams to assess 75 regional concessions across 14 provinces in the country. To-date, SolGold has identified 13 priority targets that could have excellent potential for discoveries. We note that the company’s flagship Alpala project is the only Cu-Au porphyry project in the hands of a “junior” with the scale to attract super majors such as BHP. SolGold owns 12 other high-potential projects in Ecuador. Given the dampened mood surrounding base metals stocks at present (see SNL Base Metals Index chart in sidebar), this could be an excellent buying opportunity that could see SolGold’s share price recover in H2/20 as sentiment is likely to rebound post the global coronavirus scare and the potential for a stimulus package.
