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Mining Referendum Quashed, SolGold Takes Flight

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(Kitco News) - SolGold traded up 7% to 58 cents after the company announced today that a mining referendum in Ecuador was rejected by the courts.

SolGold, an Australian gold and copper mining company which is listed on the Toronto and London stock exchanges, said the referendum petition was rejected on technicalities, and the court did not rule on merits. Further details of the ruling are pending.

Last month, SolGold (TSE:SOLG) shares dropped after there were <a href="">reports that the country may hold a mining referendum that could impact the company's Cascabel project</a>.

In April, SolGold released a positive preliminary economic assessment for the project showing a net present value ranging from US$4.1Bn to US$4.5Bn. Capital cost to build a mine ranges from US$2.4B to US$2.8B.

SolGold says Cascabel "...has produced some of the greatest drill hole intercepts in porphyry copper-gold exploration history." One of its holes returned 1560m grading 0.59% copper and 0.54 g/t gold including, 1044m grading 0.74% copper and 0.54 g/t gold.

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