Exploration Update : Queensland

RNS Number : 0583H

Solomon Gold PLC

23 May 2011

 



            23 May 2011

Solomon Gold Plc

("Solomon Gold" or the "Company")

Major Gold Copper Silver Intersection at Harpurs Prospect, Mount Perry, Queensland

Solomon Gold (AIM Code: SOLG), exploring for gold and copper in Solomon Islands and Australia, is pleased to announce major gold, copper and silver intersections at the Harpurs Prospect, Mount Perry in Queensland.  The Company has received completed three-dimension animated models of the Crunchie and Kauffmans / Homestead orebodies in order to demonstrate the structure and geometry of the deposits and define extension targets.

Highlights:

·     Encouraging results from the historic Harpurs Mine, Mount Perry, Queensland.

·     HAR001; 4m @ 0.30g/t gold, 45g/t silver and 0.68% copper from 56m.

·     HAR002; 2m @ 3.30g/t gold, 163g/t silver and 3.17% copper from 32m.

·     HAR006; 14m @ 1.24g/t gold, 21.8g/t silver and 0.61% copper from 80m and 22m @ 2.4g/t gold, 27.2g/t silver and 0.64% copper (Incl. 8m @ 5.11g/t gold, 63.8g/t silver and 1.52% copper) from 104m.

·     Harpurs hole, HAR006 still in mineralisation at 126m, the end of the hole.

·    Three-dimension models of the Crunchie and Kauffmans / Homestead Resources have been completed showing the structure and geometry of the orebodies.

Commenting on the recent results from the Harpurs Prospect, Nicholas Mather, Chief Executive of Solomon Gold plc said: "Solomon Gold is pleased to report very encouraging results from the drilling at the Harpurs Prospect, part of the Mount Perry Project in Queensland.

Recent drilling at the old Harpurs Mine, which has been delayed due to unseasonably bad weather that Queensland has experienced in the first quarter of 2011, has resulted in encouraging assay results.  So far six-holes have been drilled.  The results from the last two holes HAR004 and HAR005 are still pending.  Hole HAR003 had insignificant results.

The assay results for HAR001 are 4m @ 0.30g/t gold, 45g/t silver and 0.68% copper from 56m from surface, and HAR002, the assay results are 2m @ 3.30g/t gold, 163g/t silver and 3.17% copper from 32m from surface.  In hole HAR006 assay results are 14m @ 1.24g/t gold, 21.8g/t silver and 0.61% copper from 80m from surface and 22m @ 2.4g/t gold, 27.2g/t silver and 0.64% copper (Incl. 8m @ 5.11g/t gold, 63.8g/t silver and 1.52% copper) from 104m.  The hole which reached a depth of 126m ended in mineralisation. Further drill results from Mt Perry are pending.

Drilling is continuing at Rannes with a focus on the Kauffmans deeps. Additional resources are targeted at the Kauffmans deeps, Cracklin Rosie and the Pinnacles-Brother-Spring-Creek trend. Including other targeted zones the Rannes Project now represents a new 30km long gold trend.

Following the recent adverse weather conditions experienced in Queensland, drilling has commenced in the more accessible areas of the Mount Perry Project, including the Harpurs, Augustine, Dingle and Globe Prospects.  Previous drilling at Harpurs has identified a number of narrow intersections of arsenical sulphides and there are also wide zones of porphyry style copper disseminations. 

The latest drilling at the southern end of the historic Harpurs mine, under the largest abandoned open-pit at the Harpurs Prospect has produced an encouraging intersection of arsenical sulphides with high gold, copper and silver results.  In hole HAR006, assay results are 14m @ 1.24g/t gold, 21.8g/t silver and 0.61% copper from 80m from surface and 22m @ 2.4g/t gold, 27.2g/t silver and 0.64% copper (Incl. 8m @ 5.11g/t gold, 63.8g/t silver and 1.52% copper) from 104m.  The hole which reached a depth of 126m ended in mineralisation, but poor ground conditions related to alteration prevented deeper drilling.  These holes were percussion drilled and diamond drill holes will be required in the altered ground and the Company is currently sourcing a suitable drill rig.

Harpurs holes HAR001 and HAR002 have also intersected encouraging grades over narrower widths under old mine dumps about 1 kilometre to the northeast of HAR006.  The assay results for HAR001 are 4m @ 0.30g/t gold, 45g/t silver and 0.68% copper from 56m from surface.  In hole HAR002, the assay results are 2m @ 3.30g/t gold, 163g/t silver and 3.17% copper from 32m from surface.  There were no significant results from hole HAR003.

Results from holes HAR004 and HAR005 are pending.

Figures 1 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com shows the location of the drill holes at the Harpurs Prospect.  Table 1 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com details the Harpurs drilling results.

The Company has commissioned three-dimensional animated models of the Crunchie orebody and the Kauffmans / Homestead orebody, with data gathered to date.  These animations help to show and understand the structures and geometry of the orebodies defined so far.  The information shows the resources could be potentially 'easily' mined by conventional open-pit mining methods.  These can be viewed by clicking on the links below or in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com.

Crunchie orebody

Kauffmans / Homestead orebody

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 4 March 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

 

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