Rannes Exploration Update

RNS Number : 2808X

Solomon Gold PLC

13 February 2012

 



13 February 2012

Solomon Gold Plc

("Solomon Gold" or the "Company")

Announcement to London Stock Exchange

Rannes Gold-Silver Project - Drilling Update

·   Drilling continues to target 2 million ounces of gold equivalent

·   Kauffmans and Crunchie Prospects continue to deliver strong drill intercepts

·   Other nearby prospects also delivering strong results

Solomon Gold plc (AIM code: SOLG) is pleased to update the market today on drilling at the Rannes gold and silver Project in Queensland, Australia. Drilling has continued since the 30 November 2011 Inferred resource update (announced 30 November 2011; 812,000 ounces of gold equivalent comprising 486, 935 ounces of gold and 13,014,294 ounces of silver).

An updated Inferred resource estimate is scheduled to be released towards the end of Q1 2012.

Drilling since November 2011 has comprised 40 drill holes for 6,512m at the two main prospects, Crunchie and Kauffmans. At Crunchie, 27 holes have been drilled for 4,046m and at Kauffmans, 13 holes for 2,466m. Most of this drilling is outside of the current resource boundaries. A number of assay results are still awaited. The drilling has been a combination of reverse circulation (RC) and diamond drilling.

Assay results from the latest drilling include:

At Crunchie

·     5m at 1.9 g/t gold and 211.2 g/t silver (hole CRU077)

·     4m at 2.6 g/t gold and 86.5 g/t silver (hole CRU078)

·     2m at 0.8 g/t gold and 149.5 g/t silver (hole CRU080)

·     26m at 1.3 g/t gold and 65.1 g/t silver (hole CRU 100)

At Kauffmans

·     28m at 0.8 g/t gold and 11.1 g/t silver (hole SHL021)

Follow-up drilling is also being undertaken at Kauffmans to explore the up-dip and down-dip extensions of the high grade zones in SHL008 which intersected 2m at 33g/t gold and 22.6g/t silver, and in KAU098 which intersected 2m at 10g/t gold and 120g/t silver (figure 2 in this announcement, see the 'Latest News' section on the website, www.solomongold.com).

The drilling at both prospects is focussed on

1.    increasing the resource (an upgraded resource estimate is scheduled for release towards the end of Q1 2012), and

2.    delivering higher grade intersections.

The current resource estimates do not include results from nearby prospects such as Double Scoop and Porcupine (figure 1 in this announcement, see the 'Latest News' section on the website, www.solomongold.com) which have delivered some very good results including -

·     28m at 0.5 g/t gold and 11 g/t silver

·     16m at 1.0 g/t gold and 10.7 g/t silver

·     4m at 1.3 g/t gold and 36 g/t silver

·     4m at 0.7 g/t gold and 17.3g/t silver

These will also be followed up in the next round of drilling and brought into our growing resource inventory.

The 2012 exploration program in the Rannes Project area will include

·     further resource drilling at Kauffmans and Crunchie

·     drilling at Double Scoop and Porcupine and addition of these to the resource inventory

·     drill testing of the multitude of surface anomalies (as highlighted in the images below) in the vicinity of the main prospects

·     exploration throughout the 30km long belt comprising additional soil sampling and geophysical surveys to define additional targets for drilling.

"We are encouraged by these results. We are improving our understanding of the mineralised systems and are lowering project risk," said Malcolm Norris, CEO. "The current wet season has commenced and our drilling rate slowed, but that will be ramped up again in Q2 2012. In the meantime we are dramatically improving our understanding of the deposits and commencing preliminary metallurgical testing".

Qualified Person

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]

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's exploration projects are located in 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.

At the Rannes project Solomon Gold has announced Inferred resources of 25.5 million tonnes at 1.0 g/t gold equivalent (gold + silver) for 812,000 ounces of gold equivalent (486, 935 ounces of gold and 13,014,294 ounces of silver; see announcement dated 30 November 2011 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, has commenced.

Exploration continues at Mt. Perry, Normanby and Cracow West with drilling expected to commence in Q2 2012.

In the Solomon Islands, final data from the 2011 exploration program on the Fauro project is being compiled for a late February review. The 2012 Guadalcanal Joint Venture exploration program with NVL Solomon Islands Limited (a subsidiary of NYSE-listed Newmont Mining Corporation) has commenced with drilling on highly prospective gold-copper porphyry targets expected to resume in March 2012.

Solomon Gold's strategy is to be an integrated gold and copper explorer, developer and miner.

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, under the AIM Code 'SOLG' and currently has 284,623,489 shares on issue and 11,264,000 options exercisable at 50p on issue.  Further details concerning the Company's key projects and personnel can be found at www.solomongold.com.

 

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