Drilling & Exploration Update
Solomon Gold PLC
19 April 2006
19 APRIL 2006
Solomon Gold plc
Drilling and exploration update
Solomon Gold plc ('Solomon Gold' or 'the Company' AIM:SOLG) the copper and gold
mining exploration company operating on the island of Guadalcanal in the Solomon
Islands, today announces a drilling and exploration update of its licence areas.
The Company has four exploration licences (Mbetilonga, Koloula, Sutakiki and
Central Guadalcanal) on the island of Guadalcanal, the largest in the Solomon
Islands.
MBETILONGA
The Company has commenced drilling operations on the Hambusimaloso prospect at
Mbetilonga, south of Honiara after logistic delays resulting from serious
weather restrictions as a result of regional cyclones. A number of holes are
planned to test the area which includes a zone of 155 m @ 1.3% copper
encountered during surface trenching in 1997. Drilling commenced on 29th March
2006.
After recent encouragement from mapping in the area and the need to test beneath
widespread soil cover, Solomon Gold intends to upgrade the helicopter support
for the project to enable the addition of a further light weight drilling rig.
Numerous targets have emerged from field mapping and sampling activities in the
Mbetilonga area in the last month and these may be rapidly tested by shallow
drilling with the proposed additional rig. Additional geologists have been
engaged to extend field mapping and sampling programmes. Solomon Gold has eight
geologists working in the field on this project area and expects to increase
that presence in the near future.
Field mapping and sampling on the Mbetilonga project to date has focused at
Hambusimaloso, Chipakalau, Hahala, Vatuchichi, Vurakuvekuve, Chariaravu and
Vuralaggoma prospects. These prospects lie on north east trending mineralised
fault zones in the Mbetilonga Basin. The most important is the zone from
Hambusimaloso and Hahala to Vatuchichi, known as the Hambusimalsos mineralised
corridor
HAMBUSIMALOSO PROSPECT
Drilling has commenced at the first of four drill hole locations at
Hambusimaloso to test north east trending supergene (secondary) and primary
copper mineralisation over a 1km2 zone. Solomon Gold geologists have identified
both porphyry related and stratabound / volcanogenic massive sulphide targets in
the Hambusimaloso mineralised corridor.
A copper, zinc, molybdenum soil anomaly was outlined in the headwaters of
Hambusimaloso Creek and along with the presence of suspected quartz diorite
porphyry on nearby drill pads is considered indicative of the presence of
porphyry mineralisation. Drillhole DDH HAM 005 is proposed to test this target.
In addition to the porphyry prospectivity identified on the basis of molybdenum
anomalism and aeromagnetics the sediment - volcanic package at Hambusimaloso is
prospective for stratabound and volcanogenic massive sulphide deposits in the
brecciated host rocks, particularly at the upper and lower contacts.
Detailed geological mapping by Solomon Gold field crews at Hambusimaloso has
revealed a sequence of sediments overlain by volcanic rocks with prominent north
east trending faults cutting these host rocks. Copper, lead, zinc mineralisation
is related to faulting particularly at the upper and lower boundaries of the
altered agglomerates. The faults are open and fractured at surface resulting in
landslips containing mineralised boulders. The anomalous trenches in the
headwaters of Kopa creek are landslips containing copper (chalcopyrite, bornite,
chalcocite) rich float boulders. Trenches in Kopa Creek at the headwaters of
Hambusimaloso Creek previously recorded 155m at 1.3% copper in sheared and
altered host sediments and volcanics in which landslips had developed on
mineralised faults.
* VATUCHICHI PROJECT
Visibly anomalous skarn copper-zinc mineralisation and widespread silicification
associated with epithermal quartz veining has been mapped over a 1,000 x 600
metre area at Vatuchichi and is open to the east. Two diamond drill sites are
now being prepared to test the subsurface extent of the skarn and epithermal
mineralisation.
* HAHALA PORPHYRY
Detailed follow up along the north east trending mineralised trend linking the
Hambusimaloso porphyry copper prospect to the Vatuchichi epithermal gold
prospect has confirmed the presence of significant clay-quartz-pyrite-
chalcopyrite alteration and mineralisation in a narrow exposure of andesitic
porphyry at high elevations in the Livobili Ck area between Hambusimaloso and
Vatuchichi.
The area was delineated as a high priority target from geophysical remodelling
of aeromagnetic and radiometric data previously held by Solomon Gold's wholly
owned subsidiary, ARM.
A classic bullseye shaped aeromagnetic signature, traditionally diagnostic of a
porphyry system has been backed up by field observations and ARM geologists have
reprioritised the 'Hahala Porphyry' for deep drill hole testing as soon as is
logistically possible, following the completion of the Hambusimaloso holes.
The targeted porphyry is generally hidden under tilted sedimentary cover and
shows a very limited float trail although previous company float sampling
returned an assay of 55g/t Au less than 150m from the exposure.
*CHARIARAVU PROSPECT
In Chariaravu Creek, chalcopyrite (primary) and chalcocite (secondary) copper
mineralisation has been observed in areas of complex faulting. High potassium
and intense aeromagnetic signatures in the area provide geochemical and
geophysical support for the presence of a proposed quartz diorite porphyry.
The southern ridge above Chariaravu and north of Loloto Creeks also represents
an east-west trending zone of alteration over the quartz diorite porphyry, which
is prospective for copper and gold mineralisation. Extensive gridding for soil
sampling and mapping is being carried out in the area to define drill targets
over this area.
*VURALAGGOMA PROSPECT
Visually promising skarn copper-zinc mineralisation and epithermal gold
mineralisation has been mapped in the Vuralangomma prospect on the east side of
the Mbetilonga caldera. Assays are awaited for samples taken from this area. Two
diamond drill sites are now being prepared. The first hole is planned to test
the subsurface extent of the high grade epithermal gold mineralisation centred
at Rambo Creek, and the second hole is planned to test the skarn mineralisation
beneath an area where Solomon Gold geologists encountered what appear to be
highly mineralised skarn rocks in a fresh landslip.
Two holes drilled by Utah development Corporation in 1970 intersected low grade
copper mineralisation in this area. Solomon Gold drill holes will target high
grade copper mineralisation below the landslip area.
GENERAL
Widespread pyrite - zinc mineralisation is interpreted to be indicative of the
peripheral zones to a significant and complex porphyry copper gold system in the
Mbetilonga project area. Detailed studies of the style of mineralisation is
expected to indicate the likely depth and distance to the primary porphyry
system. The presence of visible zinc, lead and pyrite mineralisation in dirty
limestones in the vicinity of these prospects supports the potential for high
grade skarns.
SUTAKIKI
At the Company's Sutakiki project, preparations are currently underway to
finalise custom ceremonies prior to the commencement of field work in the
Sutakiki Valley. A Custom Ceremony to formalise access will be held at the end
of April after which field mapping and sampling will commence. The area is
prospective for bulk epithermal gold and porphyry copper gold mineralisation.
Previous work by Newmont in 1989 identified the area as being prospective for a
significant porphyry system.
KUMA Exploration Licence (application)
Access negotiations are continuing at Kuma. Solomon Gold expects to finalise
access to the Kuma valley by the end of April. The area is prospective for
porphyry copper gold mineralisation and exhibits oxidised sulphide
mineralisation in landslips evident from the air. No previous geochemical
sampling has been conducted by Solomon Gold or other workers in the area. The
area of mineralisation evident from the air is estimated to cover some 4km2
Solomon Gold expects the tenement to be granted on completion of the access
agreements, following which field work will commence.
KOLOULA
At the Company's Koloula project, drill targets and pads have been selected but
these and targets in the central tenement have been ranked behind more
accessible targets at Mbetilonga. Follow up work at Poleo has been delayed owing
to higher priority targets in the company's granted tenements.
GENERAL OPERATING STABILITY
General elections were held in Solomon Islands on 5 April. Following the
election results the law and order situation in Honiara has unfortunately
decayed. The Regional Assistance Mission to Solomon Islands ('RAMSI') officers
are engaged in efforts to restore law and order. Solomon Gold is not able to
comment on the timing of any outcomes in this respect.
At present there is no threat to Solomon Gold operations and field operations
and drilling are continuing.
-ends-
For more information please contact:
Nicholas Mather, Chief Executive Tel +61(0) 7 33030680 / +61 (0) 417 880448
Solomon Gold Plc nmather@solomon.com
Kevin Tomlinson Tel: +44 (0)20 78987552
Williams de Broe kevin.tomlinson@williamsdebroe.com
Abby Singleton Tel: + 44(0) 207 429 6606/+44 (0) 7739 461 061
Conduit PR abigail@conduitpr.com
BACKGROUND
Solomon Gold plc's projects are located on the island of Guadalcanal in Solomon
Islands, in the southwest Pacific to the east of Papua New Guinea.
The island of Guadalcanal is located on the Pacific Rim of Fire, known for its
large porphyry copper-gold ore bodies. The Rim of Fire includes the Andean belt
in Chile, the south-western USA cordillera, western Canada, Japan, the
Philippines, Indonesia and Papua New Guinea. In the south-west Pacific, the Rim
of Fire hosts numerous ore bodies each of which have in excess of 40m ounces of
Gold Equivalent Value. These ore bodies include several in Papua New Guinea
which are considered by the Directors to occur in a geological environment
similar to that seen on Guadalcanal.
ARM, a 100% subsidiary of Solomon Gold, has held prospecting licenses over these
areas since 1995 and between 1996 and 1998 conducted detailed reconnaissance
mapping and sampling exploration programme in the area. The tenements are valid
until 10 November 2008, with extensions of up to a further four years available
at the option of the Company.
Twenty-two targets have been identified from earlier works, twelve of which are
considered to have immediate potential for follow-up work. Four of these targets
had been followed up between 1996-98 and significant porphyry copper-gold
mineralisation associated with two intrusive rock suites was identified at
Mbetilonga and Koloula-Sutakiki.
ARM's tenement areas on Guadalcanal cover two main intrusive centres, the most
prospective areas in Guadalcanal for copper-gold porphyry. Both areas contain
active and strong mineralising systems rich in gold and/or copper.
Within the Mbetilonga intrusive centre, the northern boundary of which lies only
8km south of the capital Honiara, a portfolio of high grade copper and high
grade epithermal gold prospects are preserved within the Mbetilonga Basin, a
complete metalliferous system covering approximately 56km2. South-east of the
Mbetilonga intrusive centre, the more deeply eroded Koloula-Sutakiki intrusive
centre is concentrated at the head of the Koloula and Sutakiki Valleys. Sampling
in this area has identified extensive gold mineralisation in a halo around the
margins of the Koloula intrusives. Gold/silver mineralisation at Sutakiki is
considered to be epithermal and emplaced peripherally to a large porphyry system
located in the south-west corner of the Sutakiki tenement area and the
north-east corner of the Koloula tenement area. The copper mineralisation
identified at Chikora and Hambusimaloso is representative of supergene copper
enrichment zones.
The Directors and management have successful records in the discovery of ore
bodies and extensive experience in the fields of mineral exploration and
assessment. Solomon Gold's senior management also has experience in conducting
business and operations in Solomon Islands, with a demonstrated ability to
liaise with both local government and inhabitants. David Jelley, as Executive
Director (Operations), is based in Honiara, the Capital of the Solomon Islands.
This information is provided by RNS
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