SolGold names new CEO, reshapes strategy

Ecuador-focused SolGold (LON, TSX: SOLG) has appointed Dan Vujcic as its new chief executive officer as part of a restructuring aimed at accelerating the development of its flagship Cascabel copper-gold project in the South American country.The company also named Paul Smith as non-executive chairperson and announced that outgoing CEO Scott Caldwell will transition to a non-executive director role.SolGold said Vujcic, a veteran of the resource industry, brings extensive experience in investment banking and corporate leadership, having advised on mergers, acquisitions, and large-scale fundraisings. Most recently, he served as chief development officer at MAC Copper, where he helped secure more than $1 billion in capital for the acquisition of the CSA Copper mine from Glencore (LON: GLEN).“The opportunity is immense for all stakeholders, especially the country of Ecuador, which has already seen mining success with Lundin Gold’s Fruta del Norte project and ECSA’s Mirador project,” Vujcic said.The incoming CEO also said that SolGold would explore the merits of listing on the ASX.Strategic overhaulThe leadership shakeup is part of a broader realignment that includes the formation of a technical committee for the Cascabel project and the establishment of an exploration subsidiary, ExploreCo.The technical committee will oversee critical development aspects of Cascabel, including optimizing plant location and design, refining tailings storage strategies, and assessing early cash flow opportunities. The company is considering an early access tunnel to the Alpala ore body, as well as the potential for open-pit mining at the nearby Tandayama deposit to expedite copper-gold production.SolGold also aims to capitalize on Ecuador’s hydropower resources to reduce operating costs. “Key programs to be undertaken include early commencement of access tunnelling to the Alpala ore body, definition of reserves at Tandayama, and metallurgical investigations to improve recoveries,” the company said in a statement.The newly formed ExploreCo will house SolGold’s exploration portfolio, comprising 89 licenses across more than 3,000 km² of highly prospective copper-gold targets. Among its high-priority assets are the Porvenir project, which boasts a 493.7-million-tonne resource grading 0.43% copper equivalent, and the Blanca project, located just north of Cascabel, which exhibits signs of a significant porphyry system.A definitive plan for ExploreCo is expected in the second quarter of 2025.Multi-generation assetSolGold began its exploration at Cascabel in 2012, which led to the significant discovery at Alpala in early 2014, followed by the identification of the Tandayama-America deposit in subsequent drilling programs.Last year, the company released a new pre-feasibility study (PFS) for Cascabel, managing to significantly reduce upfront costs. Pre-production capital for initial mine development, the first process plant module, and infrastructure is now estimated at $1.55 billion, down from $2.75 billion in the April 2022 PFS.According to SolGold, the size of the entire resource indicates the mine’s potential to be a multi-generational asset, potentially ranking among the 20 largest copper-gold mines in South America.Despite this potential, investors have remained skeptical of SolGold management’s ability to deliver on the project. The company’s share price has halved over the past year, forcing cost-cutting measures to remain afloat and prompting a strategic review of its assets.Major mining companies have invested in SolGold, including BHP (ASX: BHP), Newmont (NYSE: NEM) through its acquisition of Newcrest, and China’s Jiangxi Copper.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com