Drilling Update - Mt Perry, Queensland

RNS Number : 9792G

SolGold PLC

05 July 2012

 

5 July 2012

SolGold Plc

("SolGold" or the "Company")

MT. PERRY DRILLING UPDATE

Drilling at Nicko's Reward prospect returns encouraging results

The Board of SolGold plc (AIM code: SOLG) is pleased to announce an update of drilling results from its 100% owned Nicko's Reward prospect at the Mt. Perry Project in Queensland.

Key Points:

·     9 hole RC drilling program at Nicko's Reward prospect conducted in May and June 2012

·     Very encouraging gold assay results returned

·     Hole NIC 012 delivers 50m at 0.68g/t gold, including 2m at 5.46g/t gold

·     Hole NIC 014 delivers 56m at 1g/t gold, including 4m at 4.82g/t gold

·     Hole NIC 016 delivers 26m at 1.41g/t gold, including 6m at 2.19g/t gold

References to figures and tables relate to the version of this release on the Company's website (www.solgold.com.au) or visible in PDF format by clicking the link below:

 http://www.rns-pdf.londonstockexchange.com/rns/9792G_-2012-7-5.pdf

The Nicko's Reward prospect is located 20km NW from the 2 million ounce Mt. Rawdon gold mine currently owned and operated by Evolution Mining (ASX:EVN). Current published resources at Mt. Rawdon stand at 36.7 million tonnes at 0.87g/t gold for 1 million ounces*.

The 9 hole RC drilling program (1,169m) at Nicko's Reward prospect was conducted in May and June 2012.  The program was undertaken to follow-up on historical drilling at Nicko's Reward prospect with goals of clarifying the geometry of the mineralised system, delivering an improved understanding of the geology to justify follow-up drilling, and to set the foundation for future resource definition.

These goals have been achieved. Very encouraging gold assay results have been returned and a working model of the mineralised system has been developed (see the figures below and the tables which tabulate all drill intersections).

There is scope for further drilling to the south and at depth, beyond the limits of the current and historical drilling. The geological interpretation suggests the presence of several intrusive bodies with the identification of a granodiorite that is associated with mineralisation. This mineralised body has been recognised in surface outcrop and in drill holes. It is expected that further mapping and a broader soil geochemical program will define future drill targets. There are key similarities to the style of mineralisation described at the Mt. Rawdon mine.

Commenting, Malcolm Norris, Chief Executive Officer of SolGold, said: "Nicko's Reward prospect represents another opportunity for SolGold to work towards the definition of gold resources at Mt. Perry.  The location close to the Mt. Rawdon mine, and the comparable geology, is encouraging.  Follow-up work will be undertaken in line with other project priorities."

*  For details of Mt. Rawdon gold mine see www.evolutionmining.com.au. Historical production during the period 2001 - 2011 was 1 million ounces of gold. Current resources are quoted as 36.7 million tonnes at 0.87g/t gold and 2.4g/t silver for 1.0 million ounces of gold and 2.8 million ounces of silver. Mining is by open pit and processing is conventional crush-grind-CIL. Strip ratio is approximately 1.2:1. Annual gold production is approximately 100,000 ounces per year. The surface extent of ore at >0.7g/t gold is approximately 200m x 300m, and the pit depth is approximately 150m.

Qualified Persons

Information in this report relating to the exploration results is based on data reviewed by Mr Malcolm Norris (B.Sc. Hons, MSc), the Chief Executive Officer of the Company.  Mr Norris is a Fellow of the Australasian Institute of Mining and Metallurgy who has in excess of 25 years' experience in mineral exploration and is a Qualified Person under the AIM Rules.  Mr Norris consents to the inclusion of the information in the form and context in which it appears.

By order of the Board

Karl Schlobohm

Company Secretary

Contacts:

Mr Karl Schlobohm                                                                                                         Tel: [phone]

SolGold Plc (Company Secretary)

[e-mail] 

Mr Ewan Leggat                                                                                                                Tel: [phone]

Fairfax I.S. PLC (Broker)

[e-mail] 

Mr Stephen Weir                                                                                                            Tel: [phone]

RFC Ambrian Limited (Nominated Advisor)

[e-mail] 

Mr Dominic Barretto                                                                                                      Tel: [phone]

Yellow Jersey PR (PR & IR)

[e-mail] 

NOTES TO EDITORS

SolGold's exploration projects are located in northern Ecuador,Queensland, Australia, and the Solomon Islands. In Australia, they comprise the Rannes, Mt. Perry, Cracow West and Normanby Projects. In the Solomon Islands they comprise the Fauro Project (located on Fauro Island), and the Guadalcanal Joint Venture with Newmont Mining Corporation, and in Ecuador a JV with Cornerstone Capital Resources on the Cascabel gold-copper project.

In April 2012, SolGold andCornerstone Capital Resources Inc. announced that they had signed a binding Letter of Intent whereby SolGold may acquire up to 85% of Cornerstone's 100% owned 5,000 hectare Cascabel gold-copper-silver property in northern Ecuador.

The Cascabel projectis located approximately 120 km north of Ecuador's capital, Quito, 20 km south of the Colombian border, and 75 km inland from the coastal city of San Lorenzo. The gold-copper porphyry project is located within the Andean western cordillera, host to numerous Tier 1 world classcopper-gold deposits through Chile, Peru, Ecuador and Colombia.

At the Rannes project SolGold has announced Inferred resources of 18.7 million tonnes at 0.9 g/t gold equivalent (gold + silver) for 550,146 ounces of gold equivalent (296,657 ounces of gold and 10,137,736 ounces of silver; see announcement dated 23 May 2012 for details of the resource statement and gold equivalent ratios). The 2012 exploration program, including drilling to define new ore positions and grow the resource, is underway.

Exploration continues at Mt. Perry, Normanby and Cracow West.

In the Solomon Islands, the 2012 exploration program on the Fauro project has been delayed while a JV partner is sought to pursue drilling of gold-copper targets defined in the 2011 exploration program. The 2012 Guadalcanal Joint Venture exploration program with NVL Solomon Islands Limited (a subsidiary of NYSE-listed Newmont Mining Corporation) is underway and includes drilling on highly prospective gold-copper porphyry targets.

SolGold's strategy is to be an integrated gold and copper discoverer, developer and miner.

SolGold's Board includes accomplished professionals with strong track records in the areas of exploration, mine development in Australasia and Melanesia, investment, finance and law.  Board and Management have significantly vested interests in the Company, holding approximately 16.3% of its issued share capital.

SolGold is based in Brisbane, Queensland, Australia.  The Company listed on London's Alternative Investment Market in 2006, under the AIM Code 'SOLG' and currently has 313,381,934 shares on issue and 10,472,000 options exercisable at 50p on issue.  Further details concerning the Company's key projects and personnel can be found at www.solgold.com.au.

 

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