Copper demand is expected to double from 2022 to 2035, largely driven by the global transition to a lower carbon economy. Copper plays a critical role in electrifying the transportation sector and producing renewable energy, making it an essential industrial metal. While many mining companies operate copper mines, not all of them can expand their copper production due to limited reserves. However, SolGold stands out as a leading copper miner with vast reserves and viable expansion projects.

SolGold: A Sustainable and Responsible Mining Company

SolGold (LSE & TSX: SOLG) is a leading exploration company, focusing on discovering, defining, and developing world-class copper and gold deposits. As one of the largest concession holders in Ecuador, SolGold is exploring the highly prospective and gold-rich section of the Andean Copper Belt, which is responsible for 40% of global mined copper production. With a market cap of $930.344M and a share price of $0.3100, SolGold is well-positioned to capitalize on the growing demand for copper and support Ecuador's transformation into the next copper frontier, critical to achieving a net-zero future.

SolGold's First Mover Advantage in Ecuador

SolGold has emerged as the largest concession holder in Ecuador, providing the company with a unique opportunity to tap into a largely untapped market. Ecuador's highly prospective, under-explored geological terrain presents immense opportunities for SolGold to expand its mining growth. Moreover, Ecuador's dollarized economy and low inflation rate make it an attractive destination for foreign investors.

The recent legislation in Ecuador's mining sector has propelled the country into the forefront of mining investments, attracting major players to explore and invest in the region. SolGold has seized this opportunity by building strong community partnerships and establishing its presence in the country for over a decade.

SolGold's (LSE & TSX: SOLG) Exploration Portfolio

SolGold's exploration portfolio is vast and highly prospective, with a disciplined approach to advancing the highest priority exploration targets, applying SolGold's proven exploration methodology. The recent Cornerstone merger consolidates 100% of Cascabel, simplifies the company's structure, and enhances strategic opportunities while expanding its exploration portfolio. This merger between SolGold and Cornerstone Capital, holding 15% of the Alpala joint venture, was a crucial step in attracting serious buyers.

Chinese entities have shown growing interest in SolGold. China recognizes the opportunity to secure long-term copper assets in Ecuador. Jiangxi Copper's strategic investment in SolGold signifies a potential alignment with Chinese interests, raising the prospect of a sale to a Chinese entity.

Cascabel: SolGold's (LSE & TSX: SOLG) Flagship Project

SolGold's Cascabel project is the company's flagship and most promising asset with strong economics and significant potential for growth. Cascabel contains over 20% and approximately 16% of total copper and gold in new major deposit discoveries in the last ten years (2012-2021). The Alpala deposit at Cascabel is one of the most significant copper-gold discoveries in the last decade. The project's main target, the Alpala deposit, has been confirmed as a world-class, Tier 1 asset with the potential to be a large, low-cost, and long-life mining operation.

Strong Economics of Cascabel

The Cascabel project's strong economics are underscored by the results of the recent Preliminary Feasibility Study (PFS): which showed an

• After-tax NPV of US$2.9bn and an after-tax IRR of 19.3%.
• Payback period of 4.7 years from the start of operations
• Initial 26-year operating life, the project has the potential to generate total after-tax free cash flow of US$14.4bn, averaging over US$1.3bn per year in the first five years post ramp-up.
• Mineral Reserve of 558Mt containing 3.3Mt Cu, 9.4Moz Au and 30Moz Ag, ranking it among the top 5 largest porphyry systems in the world.

Potential for Further Growth

Beyond the Alpala deposit, the Cascabel project has significant potential for further growth. SolGold has identified satellite targets on the Cascabel concession, including Tandayama-America, Aguinaga, and Moran, which have shown resource potential for copper and gold porphyry deposits. The Cascabel project is expected to be a top 20 South American copper and gold mine, benefiting from a high-grade core, advantageous infrastructure, and an investor-friendly government.

Conclusion

SolGold (LSE & TSX: SOLG) is a key player in the growing copper market, poised to capitalize on the increasing demand for copper and support Ecuador's transformation into the next copper frontier. With its comprehensive growth plan and disciplined approach to exploration, SolGold is well-positioned to deliver value to its shareholders while providing economic and social benefits to the impacted communities and Ecuador as a whole. Although the declining share price reflects market uncertainty, it also presents opportunities for astute investors, with the potential sale of SolGold or its prized assets on the horizon. Please be aware that this is not financial advice, and you should conduct due diligence before investing.

Disclaimer: Please be aware that this is not financial advice and that you should conduct due diligence before investing.

Written By: Thegoldstocks.com

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