Last checked at 14 Sep 2010 07:33
14 September 2010
Solomon Gold Plc
("Solomon Gold" or the "Company")
Exploration Update:
Excellent Gold, Molybdenum and Copper assay results from the Fauro Project in Solomon Islands
Solomon Gold (AIM Code: SOLG), exploring for gold and copper in Solomon Islands and Australia, is pleased to announce the assay results from initial surface sampling on its 100% owned Fauro Island Project in the Solomon Islands.
Management believes the Fauro Project has the potential to host a world class gold deposit with geological similarities to Lihir.
KEY POINTS
·; First 58 of 215 samples indicate significant gold mineralisation similar in style to Lihir Island in PNG, and porphyry gold - molybdenum - copper targets.
·; Ballyorlo prospect yields up to 0.43% molybdenum.
·; Up to 173g/t gold from the Meriguna prospect.
·; Hornbill gold prospect defined over a 300m by 400m zone.
·; Further 157 sample results due shortly.
·; Third exploration program due to commence late September 2010.
·; Drilling at Fauro planned for late 2010.
Commenting on the recent results from Fauro, Nicholas Mather, Solomon Gold Chief Executive, said: "The Company is pleased to report that the first set of assay results (58 surface samples) have been received, primarily from the Ballyorlo, Kiovakase, Hornbill, Meriguna and Ballteara prospects. These results are the first 25% of samples from the second exploration campaign completed in late August 2010. The best of the assay results are: Meriguna 173g/t gold and Hornbill 139g/t gold. Other significant results ranged from 11.4glt gold to 69.4g/t gold and up to 0.2% copper in the Meriguna, Hornbill and Kiovakase prospects.
These exciting assay results from Fauro continue to show the potential for a large gold deposit similar in style to Lihir Island in PNG.
In addition, Solomon Gold has discovered extensive molybdenum mineralisation up to 0.43% molybdenum on the Ballyorlo prospect. Coincident magnetic anomalies and copper, gold and molybdenum values in porphyry style rocks with disseminated sulphide mineralisation strongly supports the presence of high tonnage porphyry copper, gold and molybdenum targets on Fauro.
We are expecting further assay results in the coming weeks and look forward to making further announcements in due course.
Exploration work is due to recommence in late September and we will revisit prospects from the August campaign, as well as the two eastern Fauro prospects; Piru and Masa Masa Islands. This will be our first campaign in these areas." he added.
Fauro Island Project (100% Solomon Gold plc)
Solomon Gold's original exploration projects are located in Solomon Islands and are a major focus of the Company to discover a world class copper and gold mine on the south west Pacific Rim of Fire, in the shadow of some of the world's largest gold and copper mines; Ok Tedi (50Moz), Bougainville (50Moz), Grasberg (160Moz) and Lihir Island (40Moz). The Company is the most active explorer in Solomon Islands, with an operational base in the capital Honiara, as well as a newly constructed staging post in Gizo (approximately 380km / 240miles northwest of Honiara) for easier access to the Fauro Project.
The Fauro Island Project covers 15km2 of mineralised volcanic rim on the western side and a further 20km2 on the eastern side, over Piru and Masa Masa Islands, 5km to the east. The project areas cover the remnant rims of a volcano which gave off silica and gold rich mineral fluids as the volcano waned. These fluids soaked into porous and absorbent volcanic rubble known as breccias and agglomerates and precipitated gold and sulphide minerals. Copper and molybdenum sulphide mineralisation are evident in porphyry bodies in the core of the volcanic complex.
The Fauro Project lies 82km south east of the giant copper gold mine on Bougainville in neighbouring PNG, and Solomon Gold's geologists believe that the Project represents a gold rich high level variant of a mineral system similar to Bougainville. Geologically, management believes the Fauro Project's best comparison however is with the giant 40Moz Lihir deposit, 560km to the north-west in PNG. Lihir and Fauro show similar mineralogy and geological settings. Management believes the Fauro Project has the potential to host a world class gold deposit with geological similarities to Lihir.
Alluvial gold is known to be common in the streams draining the Fauro prospects on the western side of the volcanic rim. During the initial exploration program in early 2010, samples taken of silicified volcanic host rocks had gold values up to 169g/t or over 5oz/t, some samples showing gold visible to the naked eye (As reported 24 February 2010 in the 'AIM Announcements' section on the website, www.solomongold.com). New sample results now reported here confirm and extend the known mineralisation.
Solomon Gold has identified the airborne electromagnetic ("EM") technique to be particularly useful diagnostic tool in the rapid and efficient identification of buried silicified deposits of gold ores in mineral systems related to volcanism at the Fauro Project. Accordingly, a survey was completed over the Fauro Project, covering 35km2 of total land area, in April 2010. Ten intrusive systems and associated EM anomalies were identified including 15km2 of the western rim with eight targets all supported by extensive mapping and sampling. The key prospects are Ballyorlo, Kiovakase, Hornbill, Meriguna, Bataha and Ballteara; see Figure 1 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com. Piru and Masa Masa Islands on the eastern side of the volcanic rim also have strong anomalous EM and magnetic signatures. Sampling over these Islands will take place during the forthcoming program.
Ground based exploration work recommenced on the Fauro Project in early August to test the eight identified electromagnetic anomalies, with BLEG (Bulk Leach Extractable Gold : A geochemical sampling / analysis tool used during gold exploration to accurately measure fine grained gold), trench and rock sampling.
A total of 215 samples (153 rock chip, 5 BLEG and 57 trench samples) were taken over the prospects. Table 1, in the Appendix details the sample locations, sample type and quantity of samples taken.
The first set of assay results (58 surface samples) have been received, primarily from the Ballyorlo, Kiovakase, Hornbill, Meriguna and Ballteara prospects. The location and gold grades of the rock chip samples are summarised in Figure 2, 3, and 4 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com. Table 2 in the Appendix details the number of samples of the four main metal and the ranges as specified. The best of the gold assay results from the initial assays in the recent program are from Meriguna and Hornbill; Meriguna 173g/t gold and Hornbill 139g/t gold.
Highly significant molybdenum mineralisation was recorded from rocks in the Ballyorlo prospect area (Figure 5 in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com). Up to 0.43% molybdenum, with up to 16ppm silver was returned from samples at Ballyorlo. Other significant results ranged from 11.4g/t gold to 69.4g/t gold and up to 0.2% copper in the Meriguna, Hornbill and Kiovakase prospects. The Hornbill area is the most mature currently with results consistently over a 300m by 400m area.
Coincident magnetic anomalies and copper, gold and molybdenum values in porphyry style rocks with disseminated sulphide mineralisation strongly supports the presence of potentially high tonnage porphyry copper, gold and molybdenum targets on the Fauro Project.
The Company is expecting further assay results in the coming weeks and will make announcements when they are received and processed.
The next exploration campaign will commence late September and will revisit prospects from the August campaign, as well as the two northern Fauro prospects; Piru and Masa Masa Islands.
With the data from the EM airborne survey and the three ground based exploration programs completed, drill targets will be identified and prioritised. Drilling is planned to commence in late 2010.
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 Guadalcanal project comprises five prospecting licences covering 300km2 and is part of the Guadalcanal Joint Venture ("GJV") with Newmont Ventures Inc ("Newmont"). Newmont took management control of the GJV on 1 April 2010. Newmont, one of the world's largest gold and copper miners, can earn a 51% interest in Solomon Gold's five exploration licences on Guadalcanal by expending US$6million by 5 March 2012, and may then proceed to 70% by expending a further US$6million by 5 March 2014.
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 was admitted to London's Alternative Investment Market in 2006. Further details concerning the Company's key projects and personnel can be found at www.solomongold.com.
APPENDIX: Figures and Tables
Table 1: Sample location, type and number
| Prospect Area | Rock chip | BLEG | 2m Composite Trench Sample |
| Ballteara | 5 |
|
|
| Meriguna | 23 |
| 19 |
| Hornbill | 49 | 2 |
|
| Between Hornbill and Kiovakase | 28 |
|
|
| Kiovakase | 17 | 2 | 13 |
| Ballyorlo | 31 | 1 | 25 |
| Total | 153 | 5 | 57 |
Table 2 : Metal samples per range specified
| Gold | Less 1g/t | 1g/t to 10g/t | Plus 10g/t |
| Samples | 36 | 19 | 3 |
| Silver | Less 1g/t | 1g/t to 10g/t | Plus 10g/t |
| Samples | 11 | 29 | 18 |
| Copper | Less 0.01% | 0.01% to 0.1% | Plus 0.1% |
| Samples | 7 | 44 | 7 |
| Molybdenum | Less 0.01% | 0.01% to 0.1% | Plus 0.1% |
| Samples | 36 | 14 | 8 |