SolGold Regulatory News (SOLG)

23 Jan 2007 08:51

Solomon Gold PLC23 January 2007 23 January 2007 Solomon Gold plc Exploration update Porphyry drill intersections at Sutakiki confirm discovery of significant copper gold mineralisation Highlights: •Significant porphyry style mineralisation intersected in Sutakiki drill hole SK001: €61 meters @ 0.64g/t gold & 0.21% copper, between 305 - 370 m. €84 metres @ 0.92g/t gold, between 84 - 227 m •Results from 227 - 305 m and 370 - 450 m are expected shortly. •Drilling has.commenced at the second Sutakiki hole SK002 •Airborne electromagnetic and detailed aeromagnetics at Mbetilonga, Sutakiki and Kuma is in preparation. The Directors of Solomon Gold plc confirm the discovery of a significant coppergold system at Sutakiki on the main Island of Guadalcanal in the SolomonIslands. Results for part of the first drill hole at Sutakiki have been received andindicate potential ore grade mineralisation over long intercepts. Anomalousresults up to 0.92 g/t gold were encountered from a depth of 84 to 227 metresand results are yet to arrive for mineralised core between 227 and 305 metresand below 370 metres down hole. Results for the interval between 305 and 370 metres average 0.64 g/t gold and0.2 % copper. The best 1 metre results range up to 2.09 g/t gold and 0.43%copper; 1.85 gold and 0.54% copper; and 0.62 g/t gold and 0.50 % copper. (Theaveraged results are equivalent at current copper and gold prices to 1.35 g/tgold equivalent for the section between 305 and 370 metres. Results from 227 and 305 metres and between 370 metres to 450 metres areexpected shortly. The hole is planned to drill to at least 600 metres subject togeology and other technical considerations Solomon Gold directors are encouraged by the core retrieved from the drill holewhich shows mineralisation characteristic of a core of a mineralised porphyrysystem rich in copper and gold. An airborne electromagnetic survey is expectedto define zones of highly conductive copper sulphide and magnetite which willpresent high priority targets for the current drilling program of 10,000 metresover 20 holes as set out on the plan on the website; www.solomongold.com .Photographs of the core samples are also available on the website. The second drilling rig is now onsite and drilling of the second hole SK002 hascommenced. The drill hole is expected to intersect the mineralisation on theeastern end of the mineralised zone, approximately 600 metres east of the firstdrill hole SK001. Photographs of the second drilling rig on location on SK002are also posted on the website. About Solomon Gold plc The Solomon Gold exploration programme on Guadalcanal is based in Honiara wherethe company has established an office from which to manage the field program,including government and landholder liaison, logistics, technical and datamanagement and sample preparation and despatch centre. The Company stores asplit half of the cores from the drilling program for future reference andreferee testing and use in future studies including feasibility programs.Databases are managed in house and backed up independently and externally. Theexploration program is staffed by both local and highly experienced expatriategeologists and headed by Mr David Jelley, Executive Director Operations forSolomon Gold plc and the local operating subsidiary, Australian resourceManagement (ARM) Pty Ltd. The Company has, through ARM, held licences over themost prospective ground on Guadalcanal since 1995 and enjoys the support of thelocal communities with which the Company has developed mutually cooperative andsupportive relationships over the last ten years. The programme is now augmented by the services of two drilling contractors and ahelicopter service contract. It is the current intention of Solomon Gold plc to define a world class porphyrycopper gold deposit with an overprinted epithermal gold deposit and ultimatelybring it to production. Solomon Gold has access to the required explorationdevelopment and financing skills to achieve this goal. The south western PacificRim of Fire is host to a number of ore bodies which have hosted in excess of 40million ounces of gold and copper as gold equivalent. These projects exemplifythe potential evident at Sutakiki. The Company has 26.5 million shares on issue having completed a capital raisingof £5 million and listing on AIM in February 2006. Qualified Person Information in this report relating to the exploration results is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.), the Chief Executive Officer of the Company. Mr Mather is a Fellow of the Australasian Institute of Mining and Metallurgy who has in excess of 25 years experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Mather consents to the inclusion of the information in the form and context in which it appears. Contacts: Nicholas Mather, Chief Executive Officer Email: nmather@solomongold.com Phone +61 417 880 448 (mobile) +61 7 3303 0660 (office) Duncan Cornish, Secretary Email: dcornish@solomongold.com Phone +61 407 6233 302 (mobile) +61 7 3303 0660 (office) This information is provided by RNS The company news service from the London Stock Exchange