SolGold Regulatory News (SOLG)

29 Feb 2008 07:01

Solomon Gold PLC29 February 2008 29 February, 2008 Announcement to London Stock Exchange Solomon Gold plc EXPLORATION PROGRESS GUADALCANAL, SOLOMON ISLANDS - FOCUS ON SUTAKIKI The directors of Solomon Gold are pleased to advise of progress on the Company'sgold and copper exploration programs on Guadalcanal, Solomon Islands. In November 2007 Solomon Gold announced the discovery of a high grade gold zoneon its Sutakiki prospect, 30 km south east of the capital Honiara. Anintersection of 32 metres at a grade of 9.45 g/t gold from a depth of 108 metresin drillhole SK11 was reported. Since that discovery Solomon Gold has beenengaged in a detailed mapping, sampling and surveying program in the environs ofthe SK11 drill pad. In addition, further drilling activities are beingconducted to follow up the SK11 discovery. Gold anomalous mineralisation has been encountered over an extent of some 800metres from the Vurakindi Creek headwaters west of SK11 to the Tapalata Creekoccurrence, east of SK11. The mapping and sampling program has establishedstructural orientation of the mineralized structure in rough terrain andidentified extensive mineralisation not constrained by structures, in the limerich sediments and volcanics which host the gold mineralising system. Thisstyle, known as "skarn" mineralisation is typical of a significant porphyrysystem and mineral studies conducted on behalf of the Company have supportedthat genetic model for the Sutakiki gold occurrence. Following the report on the gold discovery in SK11, Solomon Gold completed SK 11to a depth of 500 metres and has drilled two more holes at Sutakiki. Additionalzones of gold mineralisation were encountered in SK 11 and provide support forthe main intersection (7 metres @ 2.37 g/t gold from 144 metres and 4 metres @3.08 g/t from 154 metres). SK12 was drilled to intersect the gold bearingstructure to the south west, but had to be abandoned before the target depth dueto hole instability. SK 13 was drilled from a drill pad located 15 metres nw ofSK 11 and 12 and intersected the target fault structure at a depth of 158metres. The zone was 64 metres thick in the drillhole and appears to have a truethickness of approximately 30 metres. Mineralisation is not as intense as inSK11 and Solomon Gold does not expect gold grades to be as high in SK13 as inSK11. Assays are awaited. SK 14 was drilled from the SK13 pad to the south east (135 degrees) andintersected a zone of mineralisation very similar in appearance to the goldbearing zone in SK11. The intersection was made between 207 and 220 metresdepth. A zone of intermittent fracturing and quartz veining (veins up to 0.5mthick was also encountered between 99m and 126m (27 metres thick). The hole isstill drilling ahead to a planned target depth of 300 metres. Photographs of the cores from each hole have been posted on the Solomon Goldwebsite www.solomongold.com. Assay results for the entire mineralized sectionin SK13 and the available drilled mineralised section of SK14 are awaited. Following the encouraging results to date from Sutakiki, the Company has movedone of the drilling rigs currently in the Koloula Valley to the south on theMbina and Chikora prospects, to Sutakiki. Solomon Gold has established six moredrilling pads covering the 800 metre extent of visible surface mineralisation atSutakiki and ultimately expects, barring any significant discovery in theKoloula Valley, also to relocate the third rig to Sutakiki. Solomon Gold drilling operations are currently achieving 400 metres per rig permonth and it is expected that focus in the Sutakiki area will lead to furtheroperating efficiencies. The Company continues to expect to drill 18,000 metresin calendar 2008. Drilling at the Mbina and Chikora targets has so far notidentified any significant mineralisation following the veins intersected inKL01 which reported up to 6.77 g/t gold in 1 metre samples taken across thinveins. The Company has executed a contract to collect airborne electromagnetic,magnetic and topographic data over 2,200 line km (220 km2). The survey areacovers a 6x20 km strip over the strongly mineralised Guadalcanal transformstructure linking Mbina, Sutakiki and the 2 m oz Gold Ridge deposit (not anasset of Solomon Gold) 13 km north of Sutakiki. The survey will also cover 50 km2 over the Mbetilonga area, 15 km south ofHoniara. The survey is expected to identify high sulphide content rocks, similarto those encountered at Sutakiki. About Solomon Gold Solomon Gold holds extensive tenements on the main Island of Guadalcanal,Solomon Islands, for minerals exploration, focusing on copper and gold richporphyry systems and high grade epithermal gold mineralisation. The Companylisted on AIM on 10 February 2006 after a £5m capital raising. The Company hasidentified approximately 30 km2 of mineralisation indicative of significantporphyry copper gold and epithermal gold mineralisation systems and is currentlyconducting a three rig program drilling key targets. Solomon Gold believes thearea to host potential for the discovery of a world class copper gold porphyrysystem similar to other large orebodies in the region such as Ok Tedi, Grasbergand Bougainville. The Company is staffed by an active team of expatriate andSolomon Island geologists and field hands, supported by integrated logisticssupport services. The program is now augmented by the services of two drilling contractorsoperating a total of three rigs for Solomon Gold, and a helicopter servicecontract. In December 2007 Solomon Gold raised a further £3.5m to continue working on theGuadalcanal projects. 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 atSutakiki is characteristic of high grade gold deposits related to mineralisedtransform structures 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. By order of the Board DP Cornish Company Secretary Contacts: Mr Duncan Cornish Secretary Tel: +61 7 3303 0660 or dcornish@solomongold.com Mr Stephen Weir RFC Corporate Finance Nominated Advisor Tel +61 2 9250 0048 or Stephen.Weir@rfc.com.au This information is provided by RNS The company news service from the London Stock Exchange