SolGold PLC on Friday said it has successfully completed a new pre-feasibility study at its Cascabel project, noting a significantly reduced initial capital cost.

Shares in SolGold rose 6.7% to 6.43 pence each in London on Friday morning.

The Ecuador-focused copper and gold exploration company said the study showed ‘excellent economic viability’, with additional $1 billion initial capital expenditure savings compared to previous estimates. This reflects efficient project development strategies, lower technical risk attributed to the phased strategy, the firm said.

Cascabel holds $5.4 billion pretax net present value and a 33% internal rate of return.

Cascabel is 100%-owned through SolGold’s Ecuadorian subsidiary Exploraciones Novomining SA.

SolGold Chief Executive Officer Scott Caldwell said: ‘Cascabel is not just a mining project; it’s a promise of responsible mining, lasting value for all stakeholders and a sustainable legacy for the planet. With reduced capital needs and lower risk compared to previous approaches, together with our ongoing commitment to sustainability and responsible mining, Cascabel is more than copper and gold; it’s a story of innovation, collaboration and a vision for a greener and more prosperous tomorrow for the people of Ecuador. This study was conducted with the best outcomes for all our stakeholders in mind.’

This comes after SolGold released its interim results on Thursday, reporting that its pretax loss widened to $21.9 million in the six months to December 30 from $17.6 million the year before. This was partly due to finance costs rising to $8.1 million from $5.5 million the year prior, it said. SolGold did not generate any revenue for the half-year, unchanged from a year ago.

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