Last checked at 24 Aug 2010 07:07
24 August 2010
Solomon Gold Plc
("Solomon Gold" or the "Company")
Exploration Update:
Strong progress made on Queensland Exploration projects
Work recommences on Solomon Island projects
Solomon Gold (AIM Code: SOLG), the gold and copper explorer in Solomon Islands and Australia, is pleased to announce that both work has recommenced on its 100% owned Fauro Island Project in Solomon Islands, and the Guadalcanal joint venture with Newmont has commenced aggressive exploration activity.
KEY POINTS
General
·; Highly active period which has seen work continue on the Company's Queensland Projects with further encouraging results and the recommencement of work at its Solomon Island projects.
·; Successful Placement in July raising £1,654,455.
·; Recently announced 200Koz Au maiden resources at Rannes, Central Queensland.
·; The Company is reinvigorated, rebuilt and refocused with 37,500 meters A$11.2m in the ground in the next 4 months.
·; Management remains well invested.
·; Results for the year ended 30 June 2010 expected to be announced in October.
Mt Perry Projects, South East Queensland Projects (100% Solomon Gold)
·; Geochemical surveys undertaken at Augustine, Nicko's Reward and Spring Creek have defined new targets in preparation for drilling in the next campaign, expected to commence in September.
·; Spring Creek is defined as a significant drill target. An initial hole has been drilled on the edge of the strongest and widest surface gold mineralisation, referred to as Spring Pig. Assay results are pending.
·; Three elongated breccias to the south of Nickos Reward and nine mineralised vein targets east of Augustine has firmed as drill targets with numerous rock values up to 40g/t gold.
Rannes, Central Queensland Projects (100% Solomon Gold)
·; The drilled resource at Crunchie has been extended to the east into the El Dente Prospect, where it is not closed off.
·; Geochemical surveys undertaken at Police Camp Creek, and Pinnacles have defined new targets in preparation for drilling in the next campaign, expected to commence in September / October.
Fauro Island, Solomon Islands (100% Solomon Gold)
·; Trenching and sampling has recommenced at eight priority targets outlined by the recent airborne magnetic and electromagnetic survey.
Guadalcanal Venture, Solomon Islands (JV with Newmont)
·; Field exploration work, including drilling, has recommenced on the Guadalcanal Joint Venture with Newmont as operator.
Reference to figures and tables in this announcement refer to the version available on the Company's website at www.solomongold.com
Commenting on the news, Nicholas Mather, Solomon Gold Chief Executive, said: "The Company is pleased to report that the current phase of drilling at Crunchie, Central Queensland, Australia, where the Company reported the 200,000oz gold equivalent maiden resource in early June continues to provide positive results. Management is continuing to work towards the delivery of an increased resource by the end of the year. Results from the other Central Rannes area prospects are encouraging and the Company aims to include resource estimates from these targets by year-end. Spring Creek / Spring Pig at Mt Perry in Queensland is now defined as a significant drill target based on strong gold in soil geochemistry. Further drill targets have been identified at Augustine (nine gold mineralised veins) and at Nicko's Reward (three gold mineralised breccia zones).
In the Solomon Islands, trenching and sampling has recommenced at Fauro Island, on eight priority targets; some identified by previous explorers, Solomon Gold's initial ground reconnaissance in early 2010, and the recent airborne magnetic and electromagnetic survey. Work on the Guadalcanal Joint Venture, now being managed by Newmont, is focussed on drill testing the porphyry targets at Chikora (which has commenced), advancing the Mbetilonga and Kuma projects, and conducting regional reconnaissance sampling within the Central prospecting licence" he added.
The Rannes Project
The Rannes Project, part of the Company's 100% owned Central Minerals Pty Ltd., is located in Queensland (Figure 1 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com). The project comprises a series of prospects; Homestead, Kauffmans, Cracklin Rosie, Porcupine and includes the Crunchie deposit where a 200,000oz gold eq. maiden resource was announced in early June 2010 (Figure 2 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com).
Recent drilling at the Crunchie prospect has been designed to find extensions to the resource or adjacent repetitions (Figure 3 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com). Vertical holes CRU58 (4m at 1.28g/t Au, 81.8g/t Ag and 2.56g/t Au eq.) and CRU59 (6m at 0.61g/t Au, 47.1g/t Ag and 1.35g/t Au eq.) have located extensions to Crunchie, towards the El Dente Prospect where the mineralisation is open and thickening to the north.
The latest drilling at Homestead was designed to test two targets; firstly an old gold open-pit mine, and secondly to confirm the interpreted south westerly pitch of separate mineralisation 200m to the north, in hole HOM43 (32m (24m true width) at 2.13g/t Au, 31g/t Ag). Assay results are pending.
Gold in soil sampling follow-up of potassium radiometric anomalies has been successful in defining extensive new zones of gold mineralisation at Spring Creek and Pinnacles to the southeast and north of Police Camp creek.
Five prospects in the Rannes Project area - Crunchie, Homestead, Kauffmans, Cracklin Rosie and Porcupine Pie - have been subject to first pass drilling by Central Minerals and previous explorers, with potentially economic intersections in all five.
Mount Perry
The first pass holes at Spring Gully intersected sulphide breccias and minor epithermal veins around altered porphyry dykes. The best result was in hole SPG6, which included 24m at 0.78g/t Au, including 8m at 1.74g/t Au.
Confirmation surface sampling has proved very successful in defining an open zone of strong gold within multiple structures currently named Spring Pig (lying between Spring Creek and Flying Pig mines). The zone is >100m wide and appears to extend for several hundred metres and has the strongest and largest geochemical anomaly for gold, of all the Mt Perry prospects.
Further work has been carried out around the Augustine and Nickos Reward prospects. Nine gold mineralised veins at Augustine and three gold mineralised breccia zones at Nickos Reward have been identified and drilling will commence immediately on these targets. Results from historic drill holes at Augustine were AUS6 (13m at 2.3g/t Au, 31.4g/t Ag, 0.25% Cu incl. 2m at 9.1g/t Au) and AUS7 (7m at 3.1g/t Au, 23.4g/t Ag, 6.16% Cu). The gold bearing breccias at Augustine South have been traced for approximate 600m to the south west, and new vein - breccia systems have been located to the east; Rocky Creek, Thornbill, One Tree and Wattle Bird (Figures 4 and 5 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com). Outstanding rock chip values of up to 40g/t gold have come from these linear breccia zones, which are up to 10m wide and 400m long (Figure 5 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com).
Fauro Island
Work has recommenced on Solomon Gold's 100% owned project on Fauro Island in early August and the first 88 rock and BLEG (Bulk Leach Extractable Gold : Ageochemical sampling / analysis tool used during gold exploration to accurately measure fine grained gold) samples have been dispatched to Australia for analysis. The eight priority targets, (Figure 6 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com) as identified from the recent airborne magnetic and electromagnetic survey, as well as previous ground based exploration, are being followed-up with trench sampling. During that initial work in early 2010, rock chip samples taken indicated grades of up to 169g/t gold and in some cases visible gold was present. BLEG sampling will also commence on the neighbouring island of Masamasa and Piru during this current exploration program. These islands are within Solomon Gold's exploration licence for the area. Figure 7 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com shows the Ballteara Prospect Area showing electromagnetic and geochemical results. The electromagnetic image shows a highly conductive anomaly, an indication of a copper gold target. Table 1, in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com shows the significant sample results from Ballteara prospect.
A total of 125 soil samples, part of the soil geochemistry and PIMA Survey (PIMA analysis is an analytical method used to identify minerals, particularly hydrous minerals commonly formed during hydrothermal alteration and gold mineralisation), have been taken to date with the aim of covering the entire peninsular with a 100m by 100m grid. Work commenced in the Hornbill and Meriguna area, before moving to the northern area of Fauro. Figure 8 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com plots the gold grade range in soils, as well as the sample locations.
A total of 35 rock chip samples have been taken to date. PIMA analysis will also be carried out on these samples to determine clay mineral species in order to more accurately define gold drill targets at Fauro. Figure 9 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com plots the gold grade range in rock chips, as well as the sample locations.
A total of 20 BLEG samples, part of the regional stream sediment BLEG program, have been taken to date. BLEG coverage is yet to be completed over Masamasa and Piru Islands, but is planned for the current exploration program, together with the completion of the BLEG sampling on the southern portion of the main Peninsula which was commenced during the early 2010 exploration campaign. Figure 10 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com plots the gold grade range in BLEG's, as well as the sample locations.
Guadalcanal Joint Venture
The five projects (Figure 11 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com) in the Guadalcanal Joint Venture with Newmont, are now being managed by Newmont.
The exploration program will be focussing on a 3,000m drilling campaign which commenced last week on the copper gold porphyry targets at the Chikora and Levisivisi Prospects (Koloula project area). Geological mapping will be conducted on the Mbetilonga and Kuma projects and regional reconnaissance sampling on Central prospecting licence over the ensuing months to assist with drill target definition for those areas.
Further drill target delineation at Chikora is underway in order to provide steady preparation for continuous drilling. A ground pole-dipole IP program will be conducted over the area to identify chargeability anomalies, particularly at the Levisivisi Prospect which will identify regions of strong copper sulphide in the host porphyry rock, following high grade copper discoveries in 2009. Additional rock saw channel sampling and is also planned at the Chikora, Levisivisi, Vurakara and Kolohaipoto areas, to further define drill targets (Figure 12 and 13 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com).
At Mbetilonga, geological mapping will be carried out and will be supported by ASD analysis (Advanced Spectral Device: a handheld device used in the field to analyse samples for their mineral assemblage, especially regarding altered clays), BLEG, soil and trench sampling of the high ranking targets. This work will identify the drill targets at Mbetilonga. Principal targets at Mbetilonga are the strong electromagnetic resistor at Vuanimaho, and the copper rich zones at Hambusimaloso.
Exploration at Kuma will involve geological mapping and will be supported by ASD analysis, channel sampling, soil sampling and completion of the BLEG program which was commenced in 2009.
The Central prospecting licence work program will involve completion of the BLEG program commenced in 2009.
The Sutakiki prospect licence remains a lower priority, given higher ranking targets elsewhere. Time permitting, work may involve a technical review of the Tabarora / Valehailala mineralised systems.
Table 2, in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com summarises the proposed planned activities.
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.
By order of the Board
Karl Schlobohm
Company Secretary
Contacts:
Mr Karl Schlobohm Tel: +61 (0)7 3303 0660
Solomon Gold Plc (Company Secretary)
kschlobohm@solomongold.com
Mr Ewan Leggat Tel: +44 (0)207 598 5368
Fairfax I.S. PLC (Broker)
eleggat@fairfaxis.com
Mr Stephen Weir Tel: +61 (0)2 9250 0048
RFC Corporate Finance (Nominated Advisor)
stephen.weir@rfc.com.au
Mr Dominic Barretto Tel: +44 (0)208 980 3545
Yellow Jersey PR (PR & IR)
dominic@yellowjerseypr.com
NOTES TO EDITORS
Solomon Gold Plc's original and core gold exploration projects are located on the Solomon Islands and remain a major focus of the Company. However, the Company has extended its strategy to include becoming an integrated gold explorer, developer and miner with projects in lower risk theatres as well as the Solomon Islands.
Solomon Gold carries a diverse portfolio of higher risk high reward exploration projects in the Solomon Islands and lower risk projects which are more advanced towards resource definition in Queensland, where exploration costs are approximately one third of that in Melanesia. Solomon Gold's projects include: Guadalcanal and Fauro (Solomon Islands) and Rannes, Mt Perry and Normanby (Queensland, Australia).
Solomon Gold's Board includes accomplished professionals with strong track records in the areas of exploration, mine development, investment, finance and law. Board and Management have significantly vested interests in the Company holding approximately 19.3% of its issued share capital.
Solomon Gold is based in Brisbane, Queensland, Australia. The Company listed on London's Alternative Investment Market in 2006. Further details concerning the Company's key projects and personnel can be found at www.solomongold.com.