SolGold to start mining copper from Cascabel in early 2028

[Ben Graham]

SolGold (LON, TSX: SOLG) is fast-tracking the development of its flagship Cascabel copper-gold project in northern Ecuador, with first production now expected in 2028, three to four years ahead of its original schedule.

The board has formally approved a revised plan that includes early-stage site works, an accelerated drilling campaign, and the creation of two subsidiaries to manage SolGold’s exploration assets. One unit will oversee Cascabel and surrounding northern tenements, while the other will manage the southern portfolio, which includes the Porvenir project and sits in the same district as Lundin Gold’s Fruta del Norte and Ecuacorriente’s Mirador mines.

The streamlined approach combines open-pit and underground development, aiming to reduce time to production. SolGold will begin with open-pit mining at Tandayama-America (TAM) in January 2028, followed by underground extraction at Alpala by year-end. The processing plant and on-site tailings facility are also scheduled for completion by that time. 

Chief executive officer, Dan Vujcic, who joined earlier this year, said the accelerated plan aligns with projected copper supply shortages driven by the global shift to electrification.

“We are now in execution mode,” Vujcic said. “We have a plan that prioritizes momentum, risk management, and early returns.”

Early work at Alpala is expected to enable underground access by the end of 2027, several months ahead of the original plan. The construction timeline for the concentrator has been trimmed from 24 months to 18–21 months through modular construction and early procurement of long-lead items.

Majors circling

Cascabel has long been seen as a high-potential copper-gold asset, attracting investments from majors like BHP (ASX: BHP) and Newmont (NYSE: NEM).

SolGold, founded in Australia and headquartered in London, believes the scale of the project could position it among South America’s 20 largest copper-gold mines.

A February 2024 prefeasibility study estimates a 28-year mine life with average annual production of 123,000 tonnes of copper, 277,000 ounces of gold, and 794,000 ounces of silver. Peak copper output is projected to reach 216,000 tonnes per year.

SolGold to quit Toronto exchange, eyes listing in Australia

SolGold is also pursuing strategic changes, including its recent delisting from the Toronto Stock Exchange and a potential secondary listing on the Australian Securities Exchange.

Despite this momentum, SolGold continues to face financial challenges. Ongoing losses and negative cash flow weigh on its valuation, although recent governance reforms and targeted investments suggest a path to recovery.