Exploration Update - Fauro Island, Solomons

RNS Number : 8996G

Solomon Gold PLC

19 May 2011

 

            19 May 2011

Solomon Gold Plc

("Solomon Gold" or the "Company")

Solomon Gold intersects additional gold veining at the Meriguna Prospect, Fauro Island, Solomon Islands

Solomon Gold (AIM Code: SOLG), exploring for gold and copper in Solomon Islands and Australia, is pleased to announce further encouraging results on its 100% owned Fauro Island Project in Solomon Islands.

Highlights:

·     Additional diamond drill hole intersections from FDDH001; 2m @ 1.15g/t Au from 121m and 2m @ 1.50g/t Au from 153m.

·     In FDDH002 additional diamond drill hole intersections; 4m @ 3.26g/t Au from 123m (incl. 1m @ 11.64g/t Au) and 3m @ 14.86g/t Au from 207m (incl. 1m @ 44.45g/t Au).

·     Diamond Drill hole FDDH003 completed to 348m. Porphyry assay results are pending.

·     First diamond drill hole to commence on Ballyorlo Prospect.

·     IP survey completed over Ballyorlo and Meriguna Prospects, now on Kiovakase Prospects.

·     Surface based exploration continues on all the Fauro Island Prospects.

Commenting on the recent results from the Fauro Island Project, Nicholas Mather, Chief Executive of Solomon Gold plc said: "Solomon Gold is pleased to report additional intersections for the first two holes drilled on the Meriguna Prospect.  A total of 1,324m has been drilled since the program commenced on 23 December 2010, with the third hole being completed on 1 May 2011.  Results have been previously reported for the upper portions of each hole.  Recent assay results received show that in FDDH001 there is an additional 2m @ 1.15g/t Au from 121m and 2m @ 1.50g/t Au from 153m.  In hole FDDH002 there is 4m @ 3,26g/t Au from 123m (incl. 1m @ 11.64g/t Au) and 3m @ 14.86g/t Au from 207m (incl. 1m @ 44.45g/t Au).  The Assay results from FDDH003 are pending.  Results to date at Meriguna show that there is commonly near surface gold mineralisation present.

The IP survey continues, having been completed over the Ballyorlo and Meriguna Prospects.   Work has commenced on Kiovakase and will continue over Bataha, Ballteara and Northern Fauro Prospects in the next month.  The IP survey has identified two NE trending high chargeability anomalies measuring 630m X 360m and 340m x 180m over Ballyorlo.  Further modelling has combined the results from the IP survey, magnetic surveys, along with soil geochemical results, structural and geological interpretation.  'Building these information layers' ensures that the proposed drilling targets the priority areas on Fauro Island.

FDDH04 has commenced in the vicinity of strong molybdenum surface mineralisation at Ballyorlo. Rock chip results up to .44%Mo have been previously reported in the area. FDDH04 

is designed to test the western margin of the strong I.P. anomaly andcoincident gold in soil values over 100ppb gold and electromagnetic resistors interpreted to be mineralised zones.

Mapping, rock chip and soil geochemistry programs continue over Fauro Island." he added.

Meriguna Drilling:

As previous reported diamond drill hole FDDH001 intersected 36m @ 1.03g/t Au from 28m (incl. 4m @ 6.75g/t Au), but new results deeper down the hole include 2m @ 1.15g/t Au from 121m and 2m @ 1.50g/t Au from 153m.  The final down hole length was 626m.

As has been reported, diamond drill hole FDDH002 intersected 31m @ 2.28g/t Au from 18m (incl. 18m @ 3.18g/t Au and 3m @ 6,85g/t Au from 25m).  Additional assay results include 4m @ 3.6g/t Au from 123m (incl. 1m @ 11.64g/t Au) and 3m @ 14.86g/t Au from 207m (incl. 1m @ 44.45g/t Au).   The final down hole length was 350m.

Figures 1 in the Appendix shows the location and direction of the three holes drilled at Meriguna.  Figure 2 in the Appendix shows the location of the Fauro Island Prospects.

At Meriguna the results so far suggests that gold mineralisation at Meriguna is extensive close to surface, but more data interpretation is required.  Further work is underway combining all the information that the geologists have collected; IP survey, magnetic surveys, soil geochemical results, structural and geological interpretation. The multi layer model will assist in future drill hole targeting. The drill rig has been recently moved to Ballyorlo and FDDH04 commenced.

Induced Polarisation Survey

The 11km2 IP survey which identifies subsurface mineralised rocks with disseminated sulphides continues over the identified Prospects of Kiovakase, Bataha, Ballteara and Northern Fauro, having completed the survey over Ballyorlo and Meriguna Prospects. 

The Ballyorlo chargeability anomaly recently identified is coincident with the magnetic high previously defined.  From the geology modelling it is also coincidental with gold in soil being greater than 100ppb and disseminated pyrite in the volcanics, dacite and dacite breccias at Ballyorlo. Solomon Gold believes a significant porphyry target may underlie this surface zone. 

Qualified Person

Information in this report relating to the exploration results is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.), the Chief Executive Officer of the Company.  Mr Mather 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 Mather 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]

Solomon Gold Plc (Company Secretary)

[e-mail]

Mr Ewan Leggat                                                                                                                Tel: [phone]

Fairfax I.S. PLC (Broker)

[e-mail]

Mr Stephen Weir                                                                                    Tel: [phone]

RFC Corporate Finance (Nominated Advisor)

[e-mail]

Mr Dominic Barretto                                                                             Tel: [phone]

Yellow Jersey PR (PR & IR)

[e-mail]

NOTES TO EDITORS

Solomon Gold Plc's original and core gold exploration projects are located on the Solomon Islands and are the major focus of the Company.  The discovery in September 2010 of extensive and rich gold mineralisation on Fauro Island, just south east of Bougainville Island in neighbouring Papua New Guinea, presents Solomon Gold with potential for a world class gold and copper-gold-molybdenum discovery on the south west Pacific Rim of Fire.  The region is one of the world's most strongly endowed gold and copper provinces, hosting Grasberg, Lihir, Panguna and Ok Tedi, each with in excess of 40Moz gold equivalent metal endowment. 

The Company also holds a comprehensive and extensive tenement position on the main island of Guadalcanal where its JV partner, NVL Solomon Islands Limited (a subsidiary of NYSE-listed Newmont Mining Corporation) can earn a 51% interest in the project by expending US$6million by 4 March 2012, and may elect to expend a further US$6million (total US$12million) to earn a further 19% to a total 70% by 4March 2014.  The GJV has outlined high priority gold-copper porphyry targets at Chikora, Mbetilonga, and Kuma.

Solomon Gold has also extended its strategy to include becoming an integrated gold explorer, developer and miner with projects in lower risk theatres as well as the Solomon Islands.

Solomon Gold's projects in Queensland include Rannes, Mt Perry and Normanby.  At Rannes, the Company has outlined a 30km long prospective zone in a 200km long trend on the eastern edge of Queensland's Bowen Basin in the same geological setting as Newcrest's 100,000 ounce per year Cracow Gold Mine.  This extensive exploration licence position hosts three mineralised projects at Cooper, Rannes Central and Police Camp.  The exploration area is believed to host mineral systems which are geologically similar to the Carlin trend in Nevada USA.  At Rannes Central, the Company has encountered potentially economic mineralisation in five different prospects targeted to yield at least 1 Moz.  A maiden 200,000oz gold equivalent Inferred Mineral resource was defined at the Crunchie Prospect, with in Central Rannes Project Area.  With a further upgrade, from the Kauffmans / Homestead Prospect, also with in Central Rannes Area, Solomon Gold's total Inferred Mineral Resource Estimate is 12.3Mt at 1.02g/t gold equivalent for 404koz gold equivalent (244koz Au and 9.62Moz Ag) based on a 0.35g/t gold equivalent cut-off grade.

At Mt Perry, the Company is investigating an area of approximately 1,500km² hosting over 50 historic mines and workings near Newcrest's Mt Rawdon Gold Mine.  Mt Perry has yielded potentially economic drill intersections on nine of the ten prospects tested to date.

Solomon Gold's Board includes accomplished professionals with strong track records in the areas of exploration, mine development in Australia and Melanesia, investment, finance and law.  Board and Management have significantly vested interests in the Company holding approximately 17.5% of its issued share capital.

Solomon Gold is based in Brisbane, Queensland, Australia.  The Company listed on London's Alternative Investment Market in 2006.  Further details concerning the Company's key projects and personnel can be found at www.solomongold.com.

APPENDIX: Figures and Tables

Figure 1: Plan view of FD001, FD002 and FD003

Figure 2: Fauro Island Prospect gold samples results on the aeromagnetics

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/8996G_1-2011-5-19.pdf

 

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