SolGold Regulatory News (SOLG)

5 Nov 2007 11:31

Solomon Gold PLC05 November 2007 Solomon Gold plc Spectacular high grade gold discovery at Sutakiki Highlights • Spectacular, high gold grades at Sutakiki in drillhole SK11: 32 m @ 9.75 g/t gold from 108 m depth including 10 m @ 21 g/t. • Mineralisation occurs in favourable high level vein systems, with visible free gold in places • Structural interpretation and magnetics defines potential extensions up to 1 km to west • Drilling commenced at Chikora porphyry copper project. First drillhole CK01 intersects disseminated copper mineralisation. • Hole KL 02 at Mbina terminated at 580 m depth • Hole KL 03 commenced to test western extension of Mbina vein trend and magnetic porphyry related features. Solomon Gold advises that it has intersected high grade gold mineralisation atits Sutakiki Gold Prospect on Guadalcanal, Solomon Islands. The intersection, indrillhole SK11 between 108 and 140 metres depth graded 9.45 g/t gold over 32metres and included a very high grade zone of 10 metres at 21.1 g/t gold ,including 1 metre at a grade of 74g/t gold. Free visible gold is evident in thecore at a number of points throughout the intersection. Copper grades up to amaximum of 0.28% copper over a 1 metre section between 135 and 136 metres. Thedrillhole appears to have intersected the mineralisation at an angle close tothe host structure and the intersection in the drillhole is therefore believedto be close to the true thickness. Table 1, as found on the Company's website (www.solomongold.com), sets out the detailed assay results on a metre by metrebasis for the intersection. The intersection represents a zone of favourable vein minerals (including quartzand calcite) which has been emplaced in several phases on a substantial faultzone trending west north west. The fault cuts across basic volcanic rocks of theSuta Volcanics unit. Mineralisation is also evident on north easterly trendingfractures related to the main north easterly transform structure throughGuadalcanal. The transform controls the localisation of numerous prospects inExploration Licences held by Solomon Gold plc on Guadalcanal. The structure isalso believed to localise the 2 million ounce Gold Ridge deposit held by a thirdparty, 13 km north north east of Sutakiki. Solomon Gold has identified magnetic anomalies which indicate extensions to thehigh grade zone for approximately 1 km to the west. The extension is broadlycoincident with the previously identified Ulunda dome structure, the Uluda dome.Rock chip sampling in the Ulunda area on Vurakindi creek has returnedmineralisation to 3.85 g/t gold in a diatreme (intrusive) breccia, a fragmentalrock type indicative of a mineralisation event in the area. The results to dateconfirm that the Ulunda area is a high priority, high grade target. Solomon Gold intends to relocate additional drilling rigs from the KoloulaValley to the Sutakiki Valley to expedite drilling on the highgrade structurediscovered in hole SK11. Chikora Porphyry Prospect At Chikora, 2 km south west of Mbina in the Koloula valley and and 6km southwest of Sutakiki, Solomon Gold has commenced a two hole drilling program. Thefirst hole CK01 has penetrated 44 m of loose surface material before enteringdisseminated 1% bornite (copper sulphide) mineralisation in a porphyryintrusive. The company is testing an area of high copper anomalies in soils anda drill intersection by Utah Mining in 1974. Utah intersected 115m @ 0.34%Copper and 142 ppm Molybdenum between 152m and 266m, the end of the hole.Importantly the intersection showed mineralisation strengthening with depth.Maximum values of 0.76% Cu and 820ppm Molybdenum (0.082%) were intersected inthe zone near the end of the Utah hole. The hole was drilled vertically and isbelieved to have missed the sub-vertical quartz copper molybdenum sulphide veinsoutcropping in the Chikora prospect area. The current Solomon gold hole CK01 isinclined so as to better test the steeply dipping veins in the area. Maps Maps outlining the drilling programme referred to in this announcement may beaccessed on Solomon gold's website www.solomongold.com Contact Mr Nicholas MatherCEOTel: +61 4178 80448 or nmather@solomongold.com Mr Duncan CornishSecretaryTel: +61 7 3303 0680 or dcornish@solomongold.com Mr Simon EdwardsEvolution Securities LimitedTel: +44 207 071 4300 or simon.edwards@evosecurities.com About Solomon Gold plc Solomon Gold holds extensive tenements on the main Island of Guadalcanal SolomonIslands, for minerals exploration, focusing on copper and gold rich porphyrysystems and high grade epithermal gold mineralisation. The company listed on AIMon 10/2/06 after a £5m capital raising. The company has identified approximately30 km2 of mineralisation indicative of significant porphyry copper gold andepithermal gold mineralisation systems and is currently conducting a three rigprogram drilling key targets. Solomon Gold believes the area to host potentialfor the discovery of a world class copper gold porphyry system similar to otherlarge orebodies in the region such as Ok Tedi, Grasberg and Bougainville. Thecompany is staffed by an active team of expatriate and Solomon Island geologistsand field hands, supported by integrated logistics support services including ahelicopter contract. The program is now augmented by the services of two drilling contractorsoperating a total of three rigs for Solomon Gold, and a helicopter servicecontract. It is the current intention of Solomon Gold to define a world class porphyrycopper gold deposit with an overprinted high grade epithermal gold deposit andultimately bring it to production. Solomon Gold has access to the requiredexploration development and financing skills to achieve this goal. The southwestern Pacific Rim of Fire is host to a number of ore bodies which have hostedin excess of 40 million ounces of gold and copper as gold equivalent. Theseprojects exemplify the potential evident between Sutakiki and Chikora. The high grade gold mineralisation encountered in the recent drilling ischaracteristic of high grade gold deposits related to mineralised transformstructures in Papua New Guinea and the Indonesian archipelago. Qualified Person Information in this report relating to the exploration results is based on datareviewed by Mr Nicholas Mather (B.Sc. Hons Geol.), the Chief Executive Officerof the Company. Mr Mather is a Fellow of the Australasian Institute of Miningand Metallurgy who has in excess of 25 years experience in mineral explorationand is a Qualified Person under the AIM Rules. Mr Mather consents to theinclusion of the information in the form and context in which it appears. This information is provided by RNS The company news service from the London Stock Exchange