SolGold Regulatory News (SOLG)

7 Aug 2006 09:44

Solomon Gold PLC07 August 2006 For immediate release 7 August 2006 Solomon Gold plc Exploration Programme Update Highlights * Additional sample results at Sutakiki continue to substantiate the discoveryof a significant copper gold porphyry system * Definition of final detailed drill sites at Vatuchichi, Mbetilonga * Continuing drilling at Hambusimaloso Solomon Gold plc ('Solomon Gold' or 'the Company' (AIM:SOLG)) the copper andgold exploration company operating on the island of Guadalcanal in the SolomonIslands, today announces an 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. Sutakiki Additional sample results from areas of available outcrop in the Sutakiki Riverheadwaters have returned further high grade copper and gold results. A tributaryon the southern side of the Sutakiki River was sampled intermittently onavailable outcrops over a zone of 90 metres. Gold mineralisation was observed tobe disseminated through the porphyry, without being confined to vein structures,grading from 0.16 to 16 g/t gold over the 90 metre stretch of the tributary. Inaddition, a result of 1,020 g/t (approximately 33 oz per tonne) gold wasreturned from a narrow quartz pyrite vein. Veins of this material are believedto be responsible for the enrichment of the mineralisation above the gold andcopper disseminated throughout the porphyry host which has bulk tonnagepotential in the prospect area. Potassium rich mineralisation in this creek is believed to indicate closeproximity to the copper rich core of a mineralised porphyry system below. Coppergrades of up to 3.29% and silver of 229 g/t silver from the same vein materialappears to support this interpretation. Local conditions, characterised by dense vegetation and rubble from landslideshas restricted the number and extent of outcrops from which meaningful samplesmay be taken. However, exploration work carried out in areas wheremineralisation is visible and in place at surface suggests that themineralisation is open in all directions. Together with previous exploration results at Sutakiki, encouraging gold andcopper bearing surface mineralisation has now been identified over a 1,000 metrelong zone approximately 600 metres wide in an exposed and mineralised porphyrycovering some 4km2. The mineralisation has been exposed intermittently over avertical section of approximately 300 metres. High gold and tellurium valuessubstantiate the Solomon Gold plc interpretation that the mineralised system isexposed at a very high level and that significantly higher copper grades will bepresent at depth. The Company is sufficiently encouraged by the explorationresults to date to commence planning a drilling programme immediately and havecommenced negotiations to secure a mobile rig as soon as possible. Mapping and sampling is ongoing at Sutakiki. Hambusimaloso drilling Drilling is continuing at MBO3 in difficult terrain and weather conditions. Thehole is targeting a deep magnetic anomaly and coincident molybdenum and copperanomalism in the soil profile. Vatuchichi, Grovers Hill and Hahala targets, Mbetilonga The Company has finalised drill sites at the Vatuchichi and Hahala prospects atMbetilonga, 12 to13 km south of the capital Honiara and plans to commencedrilling once the drilling at Hambusimaloso has been completed. At Hahala, two holes are planned to test for porphyry systems under coincidentgold in soil and magnetic anomalies. A spot gold grade of 82 g/t was returnedfrom an epithermal quartz vein float beside mapped porphyry rocks grading 0.5g/tgold, within the area of the soil anomaly. Solomon Gold believes the contactbetween the porphyry and the surrounding rocks is prospective for similar highgrade mineralisation. Grovers Hill, a 300 x 200 m breccia showing high telluriumgrades indicative of the top of a porphyry will be tested with one drill hole.At Vatuchichi, seven holes are planned to test magnetic anomalies underneathlimestone cover, within a broad zone of copper and gold in soils anomalies overa 1km x 500m area. This area hosts copper and zinc mineralisation in skarns andepithermal quartz veins, not in situ, assaying from low grades up to 55g/t gold. Mbetsihata Porphyry Copper Gold prospect A new porphyry copper gold target at Mbetsihata has been outlined 5 kilometresto the south-south west of Hambusimaloso on the main north east trendinglineament, on which are also located Hambusimaloso, Grovers, Vatuchichi andHahala. The prospect consists of outcropping granodiorite porphyry showingvisibly the copper minerals, bornite and chalcopyrite. Mapping and sampling ofthis prospect is planned in the next month. Koloula Drilling locations for the main targets in the Koloula Valley are to befinalised in the next two months. These will include the Chikora copper porphyryand the Mbina gold rich porphyry at the head of the Koloula Valley, 7km southsouth west of the related Sutakiki zone, thought to be geologically related. In addition, local workers have reported finding numerous15 cm sized/1kg piecesof native copper said to be have been located between the Chikora and Mbinaprospects on the Company's licence area. Solomon Gold will commence detailedmapping and sampling in the area next week. Conclusion Since its February 2006 flotation the Company has extended its exploration workand finalised drilling sites at Mbetilonga, discovered a new porphyry system atSutakiki and identified a new porphyry target at Mbetsihata. Whilst drillingresults are yet to come, the Directors are encouraged by the results of thefurther exploration work at Mbetilonga and excited by the significant newexploration opportunities at Sutakiki and Mbetsihata. -End- A complete copy of this update and details of the Company's exploration projectmay be viewed on the Company's website http://www.solomongold.com For further information: Solomon Gold +61 7 33030680Nicholas Mather, CEODuncan Cornish ( Secretary )Conduit PR +44 (0) 20 7429 6666/ + 44(0)7739 461 061Abigail Singleton This information is provided by RNS The company news service from the London Stock Exchange