SolGold Regulatory News (SOLG)

14 Sep 2006 07:01

Solomon Gold PLC14 September 2006 14 September 2006 Solomon Gold plc Operations update Sutakiki Gold project strengthens for Solomon Gold plc Highlights • Gold assays at Sutakiki confirm widespread high grade gold in quartz veins up to 39 g/t gold with spot assays up to 1020 g/t gold, 3.3per cent. copper and 228 g/t silver. Average grades, in the veins sampled, are 7.34 g/t gold and 0.41 per cent. copper. • Coherent high grade gold mineralisation in multiple quartz veins at Sutakiki evident over a 150m wide 1500m long zone. Extensions to 500m wide. • Additional drilling rig contracted for 5000m drilling program at Sutakiki • Drilling at Mbetilonga encounters mineralised and altered porphyry system at Hahala • Eight drillholes for 2400m planned at Grovers Hill, and Vatuchichi, Mbetilonga project • Access agreement in principle reached at Kuma project The Directors of Solomon Gold plc ("The Company" or "Solomon Gold") are pleasedto advise of the latest exploration and operations activities on the Company'ssearch for world class copper gold orebodies on the Island of Guadalcanal,Solomon Islands. Since the last Operations Update, on 8 August 2006, the Company has continued toadvance the exciting Sutakiki gold discovery and has advanced to drillingactivity on the Hahala porphyry project north of Hambusimaloso at Mbetilonga, 14km south of the national capital and the Company's base in Honiara. Recently the Company reached agreement in principle with landowners to gainaccess to the Kuma Valley to the immediate south of Sutakiki and the east ofKoloula. Subject to documentation this will provide Solomon Gold with access toa highly prospective mineralised system believed to include the Sutakiki projectand the upper Koloula Valley, covering approximately 50 sq. km within whichthere are numerous drilling targets. The Company is negotiating a secondagreement with a new drilling contractor for 5000m of diamond core drilling inthe Sutakiki Valley. Sutakiki is ready to drill The Sutakiki gold prospect has now been defined as a zone of high grade goldmineralisation in quartz veins, emplaced in a mineralised porphyry system. Theproject occurs in prospective host rocks over an area of approximately 4 sq. kmin a drainage basin of the upper Sutakiki River, 30 km south east of Honiara.The veining carrying the rich gold overprint has been defined over an extent ofapproximately 1 km long and 150m wide. Recent sampling has also indicated anextension to mineralisation up to 500m wide. Solomon Gold mapped and sampled 68 individual and separate veins crossing atributary of the Sutakiki River. All samples carried potential ore gradescommonly ranging up to 39.6 (and a maximum of 1020) g/t gold in veins up to 5 cmthick. Only areas of outcrop were sampled and numerous fine veins were not specificallysampled. Recent sampling by Solomon Gold geologists has indicated that the hostporphyry is also mineralised at up to 0.8g/t gold and 0.25 per cent. copper. Inthe sampling programs to date, copper grades up to 3.3 per cent. were returned.The chemical signature of the samples continues to indicate that it is the upperpart of the mineralised system that is exposed. In the veins sampled in the two recent sampling programs gold grades averaged7.34 g/t gold and copper grades averaged 0.41 per cent.. Solomon Gold considerson the characteristics of a typical southwest Pacific copper gold porphyrysystem, that both copper and gold grades in both the veins and the host porphyryshould increase with depth. Owing to the size of the system and the apparent high tenor of mineralisation atsurface, Solomon Gold is moving to drill test the target immediately. Ten drillholes have been planned to test the mineralised zone to a vertical depth ofapproximately 500m. Drilling activity is scheduled to commence in late October.A plan of the proposed drillhole locations and the accompanying plan of assayresults from mapping and sampling in the Sutakiki River are available on theSolomon Gold website www.solomongold.com Mbetilonga - Mineralised porphyry encountered in drilling At Mbetilonga, the company has completed drilling MB 04 at the Hahala prospect.The drill hole terminated at a depth of 200m and intersected a variablyfractured and mineralised porphyry from surface. The drillhole was designed totest an area of relatively high gold in soil samples, coincident with a magneticfeature thought to indicate a magnetite rich porphyry system, Elsewhere in theMbetilonga area, pieces of highly magnetic and copper mineralised volcanic rockoccur in the volcanic agglomerates without yet presenting a copper mineralisedporphyry host. The drilling rig has been turned around on the same drilling padand is now drilling MB05 to test the same porphyry to the south, including thecontact zone with the surrounding host volcanic rocks. The contact zone isthought to be the source of high grade mineralisation, assaying 55 g/t in areconnaissance sample from the area previously.) Assays are awaited for drill holes MB03 and MB04 Following the completion of Hahala hole MB5 the Company will commence drilling aline of coincident gold and magnetic anomalies to the north at Vatuchichi, whereepithermal gold vein float has been sampled returning 55 g/t gold. Recentmapping has also identified a further area of visible base metals sulphides inloose vein material at surface and assays are awaited. Vatuchichi is believed tobe geologically similar to Newcrest Mining's Halmahera (Indonesia) mine, wherehigh grade epithermal gold mineralisation underlies a limestone cap . TheVatuchichi and Grovers Hill gold in soil and magnetic anomalies are planned tobe tested with a further eight drill holes for approximately 2400m of drillingin the next half year. Definition of drill targets at Vuralanggoma on the eastside of the Mbetilonga project is continuing. An extensive zone ofsilicification and sulphide mineralisation has been mapped and assay data isawaited. A plan of the proposed drillhole locations and the accompanying plan ofassay results to date from mapping and sampling in the Mbetilonga area areavailable on the Solomon Gold website www.solomongold.com Kuma access agreement Solomon Gold has successfully negotiated access in principle to the Kuma Valley.The agreement is currently being documented. The Kuma valley lies to the southof the Sutakiki area and has not previously been the subject of any recordedgeological exploration whatsoever. From the air Solomon Gold has recognised anextensive alteration system covering over 4 sq. km in an eroded drainage basinand a trail of mineralised boulders visible in the Kuma River which emanate fromthe centre of the drainage. Geophysical and geochemical reconnaissance stream sediment sampling datasuggests that the Kuma Valley mineralisation may be contiguous with the SutakikiValley approximately 10 km to the north north west, now known to be highlyauriferous; and the Mbina and Chikora prospects in the Koloula Valleyapproximately 8km to the west north west, also known to be highly auriferous.Sampling and mapping work conducted previously by Solomon Gold's wholly ownedsubsidiary Australian Resource Management in 1997, has led to the identificationof geological, geochemical and geophysical features which define a highlyprospective 50 sq. km priority target area in host rocks diagnostic of anenvironment capable of hosting a major world class copper gold orebody. Aeromagnetics and Electromagnetics to target sulphide bodies Solomon Gold is currently finalising details for a comprehensive stream sedimentand river float sampling program in the Kuma Valley and other highly prospectivedrainages east of the SutakikiValley and an airborne aeromagnetics andradiometrics program over the Kuma tenement. In addition the airborne surveywill include an electromagnetic survey over the Mbetilonga project area and the50 sq. km priority target area over the upper Kuma, Koloula and SutakikiValleys. The airborne electromagnetic survey is expected to rapidly defineconductive sulphide targets for drilling. Qualified Person Information in this report relating to the exploration results is based on datareviewed by Mr Nicholas Mather B.Sc Hons Geol., Executive Director for theCompany, who is a Fellow of the Australasian Institute of Mining and Metallurgy,has in excess of 25 years experience in mineral exploration and is a QualifiedPerson under the AIM Rules. Mr Mather consents to the inclusion of theinformation in the form and context in which it appears. -End- A complete copy of this update and details of the Company's exploration projectmay be viewed on the Company's website http://www.solomongold.com For further information: Solomon Gold +61 7 33030680Nicholas Mather, CEODuncan Cornish ( Secretary ) Conduit PR +44 (0) 20 7429 6666 / + 44(0)7739 461 061Abigail Singleton This information is provided by RNS The company news service from the London Stock Exchange