SolGold Regulatory News (SOLG)

19 Apr 2006 15:56

Solomon Gold PLC19 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 goldmining exploration company operating on the island of Guadalcanal in the SolomonIslands, today announces a drilling and exploration update of its licence areas.The Company has four exploration licences (Mbetilonga, Koloula, Sutakiki andCentral Guadalcanal) on the island of Guadalcanal, the largest in the SolomonIslands. MBETILONGA The Company has commenced drilling operations on the Hambusimaloso prospect atMbetilonga, south of Honiara after logistic delays resulting from seriousweather restrictions as a result of regional cyclones. A number of holes areplanned to test the area which includes a zone of 155 m @ 1.3% copperencountered during surface trenching in 1997. Drilling commenced on 29th March2006. After recent encouragement from mapping in the area and the need to test beneathwidespread soil cover, Solomon Gold intends to upgrade the helicopter supportfor the project to enable the addition of a further light weight drilling rig.Numerous targets have emerged from field mapping and sampling activities in theMbetilonga area in the last month and these may be rapidly tested by shallowdrilling with the proposed additional rig. Additional geologists have beenengaged to extend field mapping and sampling programmes. Solomon Gold has eightgeologists working in the field on this project area and expects to increasethat presence in the near future. Field mapping and sampling on the Mbetilonga project to date has focused atHambusimaloso, Chipakalau, Hahala, Vatuchichi, Vurakuvekuve, Chariaravu andVuralaggoma prospects. These prospects lie on north east trending mineralisedfault zones in the Mbetilonga Basin. The most important is the zone fromHambusimaloso and Hahala to Vatuchichi, known as the Hambusimalsos mineralisedcorridor HAMBUSIMALOSO PROSPECT Drilling has commenced at the first of four drill hole locations atHambusimaloso to test north east trending supergene (secondary) and primarycopper mineralisation over a 1km2 zone. Solomon Gold geologists have identifiedboth porphyry related and stratabound / volcanogenic massive sulphide targets inthe Hambusimaloso mineralised corridor. A copper, zinc, molybdenum soil anomaly was outlined in the headwaters ofHambusimaloso Creek and along with the presence of suspected quartz dioriteporphyry on nearby drill pads is considered indicative of the presence ofporphyry mineralisation. Drillhole DDH HAM 005 is proposed to test this target. In addition to the porphyry prospectivity identified on the basis of molybdenumanomalism and aeromagnetics the sediment - volcanic package at Hambusimaloso isprospective for stratabound and volcanogenic massive sulphide deposits in thebrecciated host rocks, particularly at the upper and lower contacts. Detailed geological mapping by Solomon Gold field crews at Hambusimaloso hasrevealed a sequence of sediments overlain by volcanic rocks with prominent northeast trending faults cutting these host rocks. Copper, lead, zinc mineralisationis related to faulting particularly at the upper and lower boundaries of thealtered agglomerates. The faults are open and fractured at surface resulting inlandslips containing mineralised boulders. The anomalous trenches in theheadwaters of Kopa creek are landslips containing copper (chalcopyrite, bornite,chalcocite) rich float boulders. Trenches in Kopa Creek at the headwaters ofHambusimaloso Creek previously recorded 155m at 1.3% copper in sheared andaltered host sediments and volcanics in which landslips had developed onmineralised faults. * VATUCHICHI PROJECT Visibly anomalous skarn copper-zinc mineralisation and widespread silicificationassociated with epithermal quartz veining has been mapped over a 1,000 x 600metre area at Vatuchichi and is open to the east. Two diamond drill sites arenow being prepared to test the subsurface extent of the skarn and epithermalmineralisation. * HAHALA PORPHYRY Detailed follow up along the north east trending mineralised trend linking theHambusimaloso porphyry copper prospect to the Vatuchichi epithermal goldprospect 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 remodellingof aeromagnetic and radiometric data previously held by Solomon Gold's whollyowned subsidiary, ARM. A classic bullseye shaped aeromagnetic signature, traditionally diagnostic of aporphyry system has been backed up by field observations and ARM geologists havereprioritised the "Hahala Porphyry" for deep drill hole testing as soon as islogistically possible, following the completion of the Hambusimaloso holes. The targeted porphyry is generally hidden under tilted sedimentary cover andshows a very limited float trail although previous company float samplingreturned an assay of 55g/t Au less than 150m from the exposure. *CHARIARAVU PROSPECT In Chariaravu Creek, chalcopyrite (primary) and chalcocite (secondary) coppermineralisation has been observed in areas of complex faulting. High potassiumand intense aeromagnetic signatures in the area provide geochemical andgeophysical support for the presence of a proposed quartz diorite porphyry. The southern ridge above Chariaravu and north of Loloto Creeks also representsan east-west trending zone of alteration over the quartz diorite porphyry, whichis prospective for copper and gold mineralisation. Extensive gridding for soilsampling and mapping is being carried out in the area to define drill targetsover this area. *VURALAGGOMA PROSPECT Visually promising skarn copper-zinc mineralisation and epithermal goldmineralisation has been mapped in the Vuralangomma prospect on the east side ofthe Mbetilonga caldera. Assays are awaited for samples taken from this area. Twodiamond drill sites are now being prepared. The first hole is planned to testthe subsurface extent of the high grade epithermal gold mineralisation centredat Rambo Creek, and the second hole is planned to test the skarn mineralisationbeneath an area where Solomon Gold geologists encountered what appear to behighly mineralised skarn rocks in a fresh landslip. Two holes drilled by Utah development Corporation in 1970 intersected low gradecopper mineralisation in this area. Solomon Gold drill holes will target highgrade copper mineralisation below the landslip area. GENERAL Widespread pyrite - zinc mineralisation is interpreted to be indicative of theperipheral zones to a significant and complex porphyry copper gold system in theMbetilonga project area. Detailed studies of the style of mineralisation isexpected to indicate the likely depth and distance to the primary porphyrysystem. The presence of visible zinc, lead and pyrite mineralisation in dirtylimestones in the vicinity of these prospects supports the potential for highgrade skarns. SUTAKIKI At the Company's Sutakiki project, preparations are currently underway tofinalise custom ceremonies prior to the commencement of field work in theSutakiki Valley. A Custom Ceremony to formalise access will be held at the endof April after which field mapping and sampling will commence. The area isprospective for bulk epithermal gold and porphyry copper gold mineralisation.Previous work by Newmont in 1989 identified the area as being prospective for asignificant porphyry system. KUMA Exploration Licence (application) Access negotiations are continuing at Kuma. Solomon Gold expects to finaliseaccess to the Kuma valley by the end of April. The area is prospective forporphyry copper gold mineralisation and exhibits oxidised sulphidemineralisation in landslips evident from the air. No previous geochemicalsampling has been conducted by Solomon Gold or other workers in the area. Thearea of mineralisation evident from the air is estimated to cover some 4km2Solomon Gold expects the tenement to be granted on completion of the accessagreements, following which field work will commence. KOLOULA At the Company's Koloula project, drill targets and pads have been selected butthese and targets in the central tenement have been ranked behind moreaccessible targets at Mbetilonga. Follow up work at Poleo has been delayed owingto higher priority targets in the company's granted tenements. GENERAL OPERATING STABILITY General elections were held in Solomon Islands on 5 April. Following theelection results the law and order situation in Honiara has unfortunatelydecayed. The Regional Assistance Mission to Solomon Islands ("RAMSI") officersare engaged in efforts to restore law and order. Solomon Gold is not able tocomment on the timing of any outcomes in this respect. At present there is no threat to Solomon Gold operations and field operationsand drilling are continuing. -ends- For more information please contact: Nicholas Mather, Chief Executive Tel +61(0) 7 33030680 / +61 (0) 417 880448Solomon Gold Plc nmather@solomon.com Kevin Tomlinson Tel: +44 (0)20 78987552Williams de Broe kevin.tomlinson@williamsdebroe.com Abby Singleton Tel: + 44(0) 207 429 6606/+44 (0) 7739 461 061Conduit PR abigail@conduitpr.com BACKGROUND Solomon Gold plc's projects are located on the island of Guadalcanal in SolomonIslands, 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 itslarge porphyry copper-gold ore bodies. The Rim of Fire includes the Andean beltin Chile, the south-western USA cordillera, western Canada, Japan, thePhilippines, Indonesia and Papua New Guinea. In the south-west Pacific, the Rimof Fire hosts numerous ore bodies each of which have in excess of 40m ounces ofGold Equivalent Value. These ore bodies include several in Papua New Guineawhich are considered by the Directors to occur in a geological environmentsimilar to that seen on Guadalcanal. ARM, a 100% subsidiary of Solomon Gold, has held prospecting licenses over theseareas since 1995 and between 1996 and 1998 conducted detailed reconnaissancemapping and sampling exploration programme in the area. The tenements are validuntil 10 November 2008, with extensions of up to a further four years availableat the option of the Company. Twenty-two targets have been identified from earlier works, twelve of which areconsidered to have immediate potential for follow-up work. Four of these targetshad been followed up between 1996-98 and significant porphyry copper-goldmineralisation associated with two intrusive rock suites was identified atMbetilonga and Koloula-Sutakiki. ARM's tenement areas on Guadalcanal cover two main intrusive centres, the mostprospective areas in Guadalcanal for copper-gold porphyry. Both areas containactive and strong mineralising systems rich in gold and/or copper. Within the Mbetilonga intrusive centre, the northern boundary of which lies only8km south of the capital Honiara, a portfolio of high grade copper and highgrade epithermal gold prospects are preserved within the Mbetilonga Basin, acomplete metalliferous system covering approximately 56km2. South-east of theMbetilonga intrusive centre, the more deeply eroded Koloula-Sutakiki intrusivecentre is concentrated at the head of the Koloula and Sutakiki Valleys. Samplingin this area has identified extensive gold mineralisation in a halo around themargins of the Koloula intrusives. Gold/silver mineralisation at Sutakiki isconsidered to be epithermal and emplaced peripherally to a large porphyry systemlocated in the south-west corner of the Sutakiki tenement area and thenorth-east corner of the Koloula tenement area. The copper mineralisationidentified at Chikora and Hambusimaloso is representative of supergene copperenrichment zones. The Directors and management have successful records in the discovery of orebodies and extensive experience in the fields of mineral exploration andassessment. Solomon Gold's senior management also has experience in conductingbusiness and operations in Solomon Islands, with a demonstrated ability toliaise with both local government and inhabitants. David Jelley, as ExecutiveDirector (Operations), is based in Honiara, the Capital of the Solomon Islands. This information is provided by RNS The company news service from the London Stock Exchange