Last checked at 23 Sep 2010 11:11
23 September 2010
Solomon Gold Plc
("Solomon Gold" or the "Company")
Exploration Update:
Further encouraging gold assay results confirm significant targets at Fauro Island, Solomon Islands
Solomon Gold (AIM Code: SOLG), exploring for gold and copper in Solomon Islands and Australia, is pleased to announce encouraging high grade results in the remaining 157 of 215 assay results from the recent 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, and today's news follows the announcement by the Company on 14 September 2010, which reported on excellent gold, molybdenum and copper assay results from the Fauro Project in Solomon Islands.
KEY POINTS
·; Remaining 157 samples from Fauro sampling return up to 97.6g/t gold and 90.1g/t silver. 64% over 0.1g/t gold, 41% over 0.5g/t gold 32% over 1g/t gold and 11% over 10g/t gold.
·; Indications of a significant high grade gold and silver mineralisation similar in style to Lihir Island in PNG.
·; Additional high tonnage porphyry style targets for copper gold and molybdenum.
·; Kiovakase prospect yields up to 169g/t gold and 0.16% copper (previously announced).
·; Kiovakase now defined over a 700m by 1,500m zone, including recent extensions.
·; Hornbill prospect yields up to 139g/t gold and 0.35% copper (previously announced).
·; Recent trench results at Hornbill; BK1; 7m at 17.1 g/t Au (incl. 2m @ 53.6 g/t Au and 1m @ 97.6 g/t Au) and GHT1; 6m at 7.4 g/t Au (incl. 1m @ 20.4 g/t Au).
·; Meriguna prospect yields up to 173g/t gold.
·; Hornbill and Meriguna defined over a 700m by 1,500m zone.
·; Ballyorlo prospect yields up to 0.43% molybdenum and 0.2% copper (previously announced).
·; Third exploration program due to commence next week to follow-up northern prospects, Piru and Masa Masa Islands.
·; Planning and track access advanced for 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 all the results from the August 2010 surface sampling exploration campaign have now been received. These have been combined with the previous assay results from the exploration work completed by Solomon Gold since being granted the tenement in November 2010. The best results were from Hornbill, Kiovakase and Meriguna, with respective gold assays being 139g/t, 169g/t and 173g/t. The best copper results were 0.35% and 0.21% from Hornbill, as well as 0.2% at Ballyorlo and 0.16% at Kiovakase. Extensive Molybdenum mineralisation was discovered at Ballyorlo, the highest grade being 0.43% Molybdenum.
These exciting assay results from Fauro continue to show the potential for a large gold deposit similar in style to Lihir Island in PNG. Extraordinarily, over 42% of the total sample results from the program reported over 0.5g/t gold. This is a very strongly mineralised system. There are important mega structural similarities between Lihir and Fauro, which are supported by the structures evident in the seafloor and on the bathymetric maps.
Coincident magnetic anomalies and gold, copper and molybdenum values in porphyry style rocks with disseminated sulphide mineralisation strongly supports the presence of high tonnage porphyry gold, copper and molybdenum targets on Fauro.
Exploration work is due to recommence next week and we will revisit prospects from the August campaign, as well as the two eastern Fauro prospects; Piru and Masa Masa Islands. Magnetic signatures at Piru and Masa Masa are similar to the strongly mineralised porphyry systems on western Fauro, which we've now sampled and are about to be drilled. This will be our first campaign in these areas." he added.
Fauro Island Project (100% Solomon Gold plc)
Solomon Gold has now received the remaining 157 of 215 assay results from the August ground based exploration program. The exploration work tested the eight identified electromagnetic anomalies. The sampling program has outlined high grade gold targets (sampled at up to 169g/t gold) lying above porphyry systems at Hornbill, Meriguna and Kiovakase and a copper gold molybdenum porphyry system underlying surface gold mineralisation at Ballyorlo in the south of the exploration licence area. At Ballteara and Bataha on the northwestern extension of the fauro volcanic rim, the younger Masamasa Volcanics overlie the rich gold zone and gold mineralisation, up to 1.75g/t gold has been detected in sampling. Two unnamed prospects further to the north are yielding high order stream sediment anomalism uo to 400 parts per billion gold, but the source of this has not yet been discovered. Table 1, 2 and 3 in the Appendix summarises all gold, copper and Molybdenum respective assay results from each of the prospects taken since Solomon Gold was granted the Fauro Island tenement in November 2009. More detail about the other metals is outlined below.
Based on results to date, the Ballyorlo prospect is interpreted as a high tonnage copper molybdenum porphyry system target, whilst Kiovakase, Hornbill and Meriguna are high grade epithermal (high level) gold prospects with associated metal credits overlying the porphyry systems (see Figure 1, in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com).
Figure 2, in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com details the location of the Fauro Island Project and Figure 3, in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com; details were the prospects are located on Fauro Island. Figure 4, 5 and in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com details the gold, copper and Molybdenum results respectively.
Ballyorlo
A total of 57 samples were taken over the Ballyorlo prospect, with encouraging copper and molybdenum results and additional gold credits. 44 samples returned copper grades greater than 0.01%, the three highest results being 0.17%, 0.19% and 0.20%. Twelve results were more than 0.03% (300ppm) Molybdenum at Ballyorlo. The three highest molybdenum grades were 0.31%, 0.32% and 0.43%.
Ballyorlo has a porphyry signature, with copper molybdenum and gold credit potential.
Kiovakase
Fifty-four samples were taken over the Kiovakase prospect. Fourteen of the samples were greater than 10g/t gold with the highest three samples returning assay results of 18g/t, 161g/t and 169g/t. There were 40 copper assay results greater than 0.01%, of which two were greater than 0.1% (0.14% and 0.16%). Silver was present in all the samples results, the highest being 166g/t, 181g/t and 190g/t.
Kiovakase has an epithermal or high level gold signature, similar to the Lihir Island geology, deposited over the top of a porphyry system which is evident in the magnetic survey.
Hornbill
A total of 70 samples were taken over the Hornbill prospect. Seven samples were between 5g/t and 10g/t gold and nine samples greater than 10g/t gold. The highest three gold assay results were 69.4g/t, 97.6g/t and 139g/t. Of the 70 samples taken, 56 returned copper grades greater than 0.01%. The three highest copper results were 0.14%, 0.21% and 1.16%. Silver was present in 67 of the samples, the highest being 47.3g/t, 168g/t and 567g/t.
Two trenches at Hornbill returned encouraging bulk gold results. At BK1; 7m at 17.1 g/t Au (incl. 2m @ 53.6 g/t Au and 1m @ 97.6 g/t Au) and at GHT1; 6m at 7.4 g/t Au (incl. 1m @ 20.4 g/t Au).
Hornbill has an epithermal gold signature and the copper mineralisation suggests potential for a copper porphyry system at depth underneath the gold zone.
Meriguna
Forty-three samples have been taken at Meriguna. There were five assay results greater than 5g/t gold, ranging from 5.33g/t to 173g/t. Silver was present in all the samples, the three highest results were 20.4g/t, 36.7g/t and 69.1g/t. Copper was greater than 0.01% in 35 samples. The highest copper results were 0.04%, 0.06% and 0.11%.
Meriguna has an epithermal gold signature and like the nearby Hornbill Prospect, the copper mineralisation indicates a copper porphyry target underneath the gold zone and coincident with the magnetic feature.
Including Hornbill, the system is over 700m by 1,500m in size.
Ballteara
A total of 21 samples were taken from Ballteara. The highest gold assay result was 1.75g/t gold. Five samples returned above 0.5g/t gold, indicating a higher grade epithermal gold target concealed beneath the capping Masamasa Volcanics covering Balteara and Bataha. Five samples returned silver grades greater than 1g/t, the highest being 7.9g/t. The two highest copper results were 0.18% and 0.11% and eight samples were greater than 0.01%. The high anomalous copper is indicative of a concealed porphyry copper gold target in this location.
Further exploration work is required a Ballteara, which will be carried out in the imminent exploration program.
Northern Fauro
Only three samples were taken from the Northern Fauro prospect. The gold results were up to 0.38g/t gold, 8.6g/t silver and trace copper in one sample. The source of rich stream sediment samples up to 400ppb gold from the northern tip of Fauro Island have not been determined. Further exploration work is required to detect the source mineralisation. This will be carried, in the immediate exploration program commencing next week.
The third exploration campaign commences in late September and will revisit prospects from the August campaign, as well as the two northern Fauro prospects as well as Piru and Masa Masa Islands.
With the data from the airborne electromagnetic and magnetic survey and the three ground based exploration programs completed to date, drill targets have been identified and prioritised. Drilling is planned to commence in late 2010. Preparations are well underway involving track access and drill pad construction.
As was previously announced (14 September 2010 in the 'AIM Announcements' section on the website, www.solomongold.com), 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 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.
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. Alluvial gold is known to be common in the streams draining the Fauro prospects on the western side of the volcanic rim.
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 3 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.
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: Tables
Table 1 : Gold Assay Results
| Prospect | Less 0.5g/t | 0.5g/t to 5g/t | 5g/t to 10g/t | Plus 10g/t |
| Ballyorlo | 54 | 3 |
|
|
| Kiovakase | 23 | 15 | 2 | 14 |
| Hornbill | 24 | 30 | 7 | 9 |
| Meriguna | 25 | 13 | 3 | 2 |
| Ballteara | 16 | 5 |
|
|
| North Fauro | 3 |
|
|
|
| Total | 145 | 66 | 12 | 25 |
Table 2 : Copper Assay Results
| Prospect | Less 0.1% | Plus 0.1% | Max % |
| Ballyorlo | 54 | 3 | 0.20 |
| Kiovakase | 52 | 2 | 0.16 |
| Hornbill | 65 | 5 | 1.16 |
| Meriguna | 42 | 1 | 0.11 |
| Ballteara | 19 | 2 | 0.18 |
| North Fauro | 3 |
| 0.01 |
| Total | 235 | 13 |
|
Table 3 : Molybdenum Assay Results
| Prospect | Less 0.03% | Plus 0.03% | Max % |
| Ballyorlo | 45 | 12 | 0.43 |
| Kiovakase | 54 |
|
|
| Hornbill | 70 |
|
|
| Meriguna | 43 |
|
|
| Ballteara | 21 |
|
|
| North Fauro | 3 |
|
|
| Total | 236 | 12 |
|