Further Significant Mineralisation at Rannes

RNS Number : 4385I

SolGold PLC

25 July 2012

 



25 July 2012

SolGold Plc

("SolGold" or the "Company")

RANNES DRILLING UPDATE

Further significant mineralisation discovered

The Board of SolGold plc (AIM code: SOLG) is pleased to update the market on further higher grade drilling results from the current phase of drilling at the Company's 100% owned Rannes gold-silver Project in Queensland, Australia ("Rannes Project").

Key Points:

·      Hole KAU147 intersected 38m at 1.1g/t gold and 7.0g/t silver, including 2m at 6.75g/t gold and 27.3g/t silver.

·      The intersection in hole KAU147 is located approximately 200m from previously reported intersections in hole KAU139 at Kauffmans which intersected 2.2m at 2.36g/t Au, 2m at 3.03g/t Au and 2m at 3.84g/t Au.

·      The intersections in KAU147 and KAU139 are interpreted to be from 2 parallel lodes, which combine into the main Central lode to the northwest.

·      As previously announced, the Rannes Project carries a currently Indicated and Inferred resource 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).

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/4385I_1-2012-7-25.pdf 

Further Significant Mineralisation Discovered

The Board is pleased to announce further higher grade drilling results from the current phase of drilling.  Diamond and Reverse Circulation drilling is ongoing at Kauffmans prospect (Rannes Project) utilizing one drilling rig.

The current drilling is outside the area of the previously reported resource block model, and is targeting areas of potential higher grade gold, at depth below the current resource, as well as along structural strike to the southeast.  Since the previously reported results on 20 June 2012, 2 additional diamond drill holes have been completed and assay results have been received for an additional 6 holes.  Of these, hole KAU147 intersected higher grade zones, returning 2m @ 4.15g/t Au and 23.8g/t Ag and 2m @ 6.75g/t Au and 27.3g/t Ag, within a broad mineralised interval of 38m @ 1.1g/t Au and 7.0g/t Ag.  The current geological model suggests that this is a separate lode to that reported in KAU139, which also intersected higher than average gold grades in the deeper parts of the lode structure.

On a project scale, systematic soil sampling is continuing and has defined several anomalies which require follow-up.  The data collection phase of the 3-D Induced Polarisation survey was completed on 16 July 2012 and the data is now being processed.  The processed data will be integrated with other data sets to define additional drill targets.  It is expected that this work will be completed by early August.

Commenting on the results Malcolm Norris, Chief Executive Officer of SolGold, said: "The strategy of drilling outside the previously reported resource block model and targeting potential higher grade zones is meeting with success.  We are particularly encouraged by the improvement in gold tenor with depth on more than one lode.  We are now compiling data on all zones of higher grades, that are greater than 5g/t gold, and attempting to further refine our geological model.  The Board is encouraged by today's news and looks forward to updating shareholders on further progress in due course."

Qualified Persons

Information in this report relating to the exploration results, gold:silver ratios and cut-off grades 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, Australia, and the Solomon Islands. In Australia, they comprise the Rannes, Mt Perry, Cracow West and Normanby Projects, all in southeast Queensland.  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 July 2012, SolGold and Cornerstone Capital Resources Inc. announced that they had signed a Definitive Option Agreement 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 project is 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 class copper-gold deposits through Chile, Peru, Ecuador and Colombia.

At the Rannes project SolGold has announced Indicated and 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 in progress.

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 17.8% 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 a total of 346,715,267 fully-paid ordinary shares, 1,070 Convertible Redeemable Preference Shares, 9,472,000 options exercisable at 50p, 1,250,000 options exercisable at 28p and 1,250,000 options exercisable at 14p on issue.  

Further details concerning the Company's key projects and personnel can be found at www.solgold.com.au.

 

END

 

 

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