SolGold Regulatory News (SOLG)

22 Oct 2007 10:28

Solomon Gold PLC22 October 2007 22 October 2007 Solomon Gold plc Exploration Update Highlights •Extensive low grade gold mineralization intersected at Mbina, Koloula River •KL01 at Mbina intersected numerous low grade gold/zinc/lead veins to end of hole @ 554 metres (assay results received to 454 metres) •Sporadic low grade intersections in SK07, SK08 indicate structural complexity •Assay results awaited for SK09 (terminated at 340 m) and SK10 (terminated at 458 m) •Drill hole KL02 at Mbina (Koloula Valley) and SK11 at Valehailala (Sutakiki Valley) commenced. •Drill hole CK01 at Chikora Copper Molybdenum porphyry commenced •Grant of Exploration Licence and commencement of nickel exploration at Nggela, Florida Island, Solomon Islands Summary The Solomon Gold exploration effort on Guadalcanal continues to deliver resultswhich indicate the extensive nature of mineralized intrusive host rocks in thetenement area. Mineralisation extends in a 4 km wide corridor from the southcoast of Guadalcanal to the Gold Ridge deposit, a distance of some 28 km overwhich Solomon Gold holds tenure over 25 km. The results to date while not yethaving defined a definitive resource, confirm the presence of suitable intrusivehost rock bodies at several locations over this distance and at heights rangingfrom 600 to 1250m above sea level. Mineralisation ranges from porphyry stylecopper molybdenum at the low levels ( Chikora Prospect, 600m asl, currentlybeing drilled ) and the high level Sutakiki epithermal low temperature veins at1250m asl. The exploration program in the Sutakiki and Koloula Valleys to date hasidentified east west vein sets which are mineralized at potentially economicgrades, subject to the discovery of sufficiently intense veining. Theexploration programs at Sutakiki, including Valehailala creek and at Mbina, 4 kmto the south, at both locations of which mineralised vein sets have beenidentified, are focused on that aim. Post mineralization faulting has disruptedthese vein sets resulting in the unpredictability of drill results to date The exploration effort at Chikora, 2 km south south west of Mbina is targeting acopper molybdenum porphyry in an area where vertical drilling by Utah in the1970s is believed to have underestimated the grade of the mineralized porphyrysystem. Sutakiki and Koloula Since the Company's previous exploration update in July 2007 it has completed afurther five drillholes and commenced two more in the Sutakiki and KoloulaValleys for 2,277 metres of drilling. Assay results have been received for SK07and SK08, and results are awaited for SK09 and SK10. Holes SK07 and SK08 weredrilled on the western side of the SK01 discovery hole and outcrop. Both holesintersected predominantly Suta volcanics with only minor alteration andmineralization. These results and the regular identification of mineralizationin east west trending veins support a model for structural control of goldmineralization at Sutakiki. A similar structural control is evident at Mbina,4km south of Sutakiki, in the Koloula Valley. Sutakiki and Mbina lie within thesame north north east trending structural zone, which also hosts the 2M ounceGold Ridge gold deposit 13 km north east of Sutakiki and the promising Chikoracopper-molybdenum porphyry prospect 2km south south west of Mbina. At Valehailala Creek, 500 m north of the SK01 discovery hole at Sutakiki, alandslide has exposed an outcropping zone of east west quartz carbonate andsulphide veining approximately 50 metres wide containing gold grades up to 3.99g/t from rock chip samples of the mineralized veins. The Company has commenceddrilling this zone with drillhole SK1, currently at a depth of 80m inmineralisation At Mbina channel sampling of outcropping polymetallic veins emplaced in broadzones of low grade mineralized host porphyry returned grades of up to 1.5m @9.34 g/t gold, 393 g/t silver, 0.94% copper and 0.74% zinc. Drillhole KL01 was drilled into this zone of gold and copper mineralization andencountered anomalism over the entire hole with best results over 1m intervalsof 6.77, 2.36, 1.28, 1.25, 1.26, 3.61, 3.43, and 1.93 g/t gold in thin veinswith associated copper, zinc and lead mineralization. Assay results have so far only been received to a depth of 454 metres and thebalance of the assay results for this hole to total depth of 554 metres areawaited. The mineralization at Mbina is diagnostic of a gold and zinc rich haloon the margins of a significant porphyry copper body. The Solomon Goldexploration team believes the source porphyry zone to lie to the south westwithin 2 km. Chikora is the main target and is currently being drill tested.(see below) Drilling of hole KL02 has commenced and is testing the eastern extension ofthese vein sets and associated magnetic lows postulated to have developed as aresult of more intense alteration and mineralization. Drillhole KL02 iscurrently at a depth of 117 metres and has intersected vein style mineralizationin altered and weakly mineralized host rocks from 60 metres. A further drillhole KL03 is planned to test vein extensions and an additional target to thewest, exhibiting an intense magnetic high signature, considered diagnostic of amagnetite rich porphyry core zone. Valley / Easting / Direction Hole Geology & Significant intersectionsProspect northing degrees / length/ Hole Declination from Horizontal degrees Sutakiki/ 618598/ 010 / -70 596m Suta Volcanics with sporadic quartz/Stuakiki 8928431 EOH calcite veins.SK006/ 9m @ 0.6 g/t Au from 226m, 4m @ 0.85 g/t Au from 308m, 1m @ 1.83 g/t Au from 319m, 8m @ 0.55 g/t Au from 375m, 6m @ 0.58 g/t Au from 462m, 1m @ 1.07g/t Au from 483 g/t Au, 1m @ 1.29 g/t Au from 491m Sutakiki/ 618583/ 220 / -60 511.1m Zones of stockwork quartz veining inSutakiki/ 8928604 EOH andesite from 266m to 500m.SK007 Epithermal quartz - carbonate veining from 483 - 485m. Best zones are comparable with SK001. 1m @ 0.84 g/t Au from 127m, 2m @ 1.8 g/t from 372m (with 2145 ppm Cu) Sutakiki/ 618598/ 040 / -70 690.5m Stockwork quartz veining in dioriteSutakiki/ 8928432 EOH from 330m to 550m. Vein densitySK008 comparable to SK001. Fracture controlled cpy throughout. 1m @ 0.75 g/t Au from 306m, 1m @ 1.09 g/t Au from 311m, 1m @ 1.23 g/t Au from 318m, 7m @ 0.4 g/t Au from 438m (with 1822 ppm Cu), 1m @ 1.87 g/t from 459m, 13m @ 0.54 g/t from 470m, 11m @ 0.7 g/t from 505m Sutakiki/ 618255/ 285 / -50 446.0m Suta Volcanics. No significantSutakiki/ 8928386 EOH mineralisation Assays awaited Sutakiki/ 618548/ 350 / -65 457.9m Suta Volcanics. No significantSutakiki/ 8928386 EOH mineralisationSK0010 Assays awaited Sutakiki/ TBA/TBA TBA/TBA 600m Collaring in Progress at ValehailalaSutakiki/SK0011 No results as yet Koloula/ 616566/ 028 / -55 554.0m Stockwork quartz veins in sil-py altMbina/ 8923596 andesite from 17m to 65m. EpithermalKL001 qz-sb-py veins from 29m to 34m. A series of isolated argillic qtz-sb-py veins spaced at 20-50m intervals throughout from 65m to 265m. Strong argillic alteration and sulphide mineralisation from 295 to 510 m. Assay results below 454 m awaited 5m @ 1.98 g/t Au from 29m (with 17.38 g/t Ag), 1m @ 1.28 g/t Au from 87m, 1m @ 1.25 g/t Au from 140m, 1m @ 1.26 g/t Au from 162m, 4m @ 2.28 g/t from 314m, 1m @ 1.21 g/t Au from 451m, 1m @ 1.69 g/t Au from 454m Koloula/ 616566/ 058 / -60 600m Currently at 117m. VeiningMbina/ 8923596 intersected from 60mKL002 Chikora - Vurakave. At Chikora copper and molybdenum mineralization is evident over a 2.5 x 1.5 kmzone in which soil sampling data collected by Utah International in the 1970sand Solomon Gold's subsidiary ARM in the late 1990s and augmented by recentsampling, has returned values over 3000 ppm copper. Molybdenum is also presentand has been assayed up to 0.17% in rock chip samples at the Vurakave prospecton the north east of the Chikora grid. Mapping and rock chip sampling atVurakave has identified intermittent zones of quartz veining containing visiblemolybdenite over a 600m x 200m zone of interest. At Chikora, Utah drilled 13 short vertical holes in the 1970s. The best hole wasCH08 returning 115m @ 0.34% Copper and 142 ppm Molybdenum from 152m to 266m andshowing mineralisation strengthening with depth,. Maximum values of 0.76% Cu and820ppm Molybdenum (0.082%) were intersected in the zone near the end of thehole. The hole was drilled vertically and is believed to have missed thesub-vertical quartz copper molybdenum sulphide veins outcropping in the Chikoraprospect area. Solomon Gold has designed a two hole inclined programme to a depth of 600 metresto test the true grade of the mineralization evident on north south and eastwest vein sets at Chikora. Field work is continuing on the Vurakave area on thenorth eastern part of the Chikora grid, where high grade molybdenum samples onthe north south vein set have been outlined. The Chikora prospect is situated at a vertical elevation of between 650 and 1000metres above sea level, and only 6 km from the south coast of Guadalcanal. TheChikora prospect is believed by Solomon Gold geologists to represent a deeper,copper and molybdenum phase of the gold/ zinc/ lead mineralization evident athigher elevations at the Mbina (850 to 1100 m asl ) and Sutakiki prospects ( 950to 1300 m asl). Nickel exploration Nickel exploration has commenced on the Nggela prospect in the Florida Islands,north of Honiara. The area was selected by Solomon Gold as a lateritic nickeltarget, after the identification of nickeliferous ultrabasic rocks in the area.Solomon Gold geologists have identified a 5 km2 area underlain by weatheredultrabasic rocks with visible nickel oxides and silicate mineralizationcharacteristic of the saprolite or lower horizon in a nickel laterite prospect.Upper iron rich levels are also evident in surface scrapes and cuttings on theoutcrops. The company has commenced a program of pitting to collect bulk samples on a 150x 150 m grid for analysis. 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 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. The company listed on AIM on 10/2/06 after a £5m capital raising. Thecompany has identified a very extensive area of mineralisation indicative ofsignificant porphyry copper gold and epithermal gold mineralization systems andis currently conducting a three rig program drilling key targets. Solomon Goldbelieves the area to host potential for the discovery of a world class coppergold porphyry system similar to other large orebodies in the region such as OkTedi, Grasberg and Bougainville. The company is staffed by an active team ofexpatriate and Solomon Island geologists and field hands, supported byintegrated logistics support services including a helicopter 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 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 between Sutakiki and Chikora. 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