Last checked at 30 Nov 2011 12:01
30 November 2011
Solomon Gold Plc
("Solomon Gold" or the "Company")
Inferred Resource Estimate at Rannes increased by 20% to 812,000oz of gold equivalent
Drilling continues to target 2Moz of Gold equivalent
Solomon Gold (AIM Code: SOLG is pleased to announce a further upgrade of its Inferred resource at its 100% owned Rannes Project in Central Queensland, Australia, from 675,779oz to 812,000oz, representing a 20% increase.
Today's resource estimate upgrade follows on from the Company's statement, dated 29 September 2011, announcing a 24% increase Inferred resource estimate at Rannes.
HIGHLIGHTS
·; Solomon Gold Inferred mineral resource at Rannes increased by 20%.
·; Total Inferred mineral resource estimate upgraded to 25.5Mt at 1.0g/t gold equivalent for 812,307oz of contained gold equivalent (gold to silver ratio of 1 : 40 and a 0.30g/t gold equivalent cut‐off grade).
·; Inferred mineral resources at Kauffmans Prospect and Crunchie Prospects increased by 102koz and 34koz of contained gold equivalent respectively.
·; Drilling at the Rannes Project continues at Kauffmans, Crunchie , Shilo, Double Scoop and Nicks Prospects, with further encouraging results.
·; Solomon Gold's total project-to-date discovery cost (Inferred resource ounces) for Rannes is A$6.70/oz.
·; Solomon Gold presenting at upcoming Mines & Money 2011, London.
At the Kauffmans-Homestead Prospect, the Inferred mineral resource estimate has increased to 15.6Mt at 0.8g/t gold equivalent for 416,418oz of contained gold equivalent (326,111oz gold and 3.51Moz silver). The Inferred resource increase is associated with additional deeperresources from a number of good intersections at depth. The mineralisation component remains open at depth, to the north, east and south. Drilling has still only tested to a depth of 240m below surface in the deepest hole.
At the Crunchie Prospect, the Inferred mineral resource estimate is 6.9Mt at 1.5g/t gold equivalent for 335,875oz of contained gold equivalent (106,066oz gold and 9.28Moz silver).
The mineralisation remains open at depth and to the north . Drilling has still only tested to a depth of 170m below surface in the deepest hole.
The resources are all close to or at surface which may potentially lead to a low stripping ratio at Rannes.
Commenting on the resource upgrade, Malcolm Norris, Chief Executive of Solomon Gold plc, said: "The Board is highly encouraged by today's further resource estimate upgrade. Drilling continues at the Company's Kauffmans, Crunchie, Shilo, Double Scoop and Nicks Prospects with shallow, percussion drilling and deeper diamond drilling., Exploration also continues at the 21 other nearby prospects, which have been identified in the Rannes Project area, with the aim of delivering the Company's objective of defining two million ounces of gold equivalent.
"The Board is also delighted that Nick Mather, who stepped across from his former role as CEO to Executive Director in October this year, remains fully involved with the day-to-day running of the Company. With Nick's knowledge and support, the team look forward to driving towards the stated target of 2Moz Gold equivalent in Inferred resources at Rannes, and in contributing to the strategic direction of Solomon Gold and assessing growth opportunities for the Company."
Table 1 (in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com) shows the Inferred Resource estimate for the individual Prospects. Table 2 (in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com) shows the Inferred Resource estimate for the Company's total Inferred Resource estimate, both at various gold to silver ratios (30, 40, 50 and 60) and gold equivalent cut‐off grades (0.20, 0.25, 0.30, 0.35, 0.40 and 0.50). Table 3 (in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com) shows a range of gold equivalent values ranging from 60 to 40, based on the 12-month, six-month and three-month average monthly metal prices.
The Rannes Project in Central Queensland, Australia is located approximately 150km west of the major central Queensland port city of Gladstone (Figure 1, in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com). The main mineralised trend from Homestead South through Kauffmans to Shilo is 1.6km long and 0.5km wide, and the district includes targets over a 30km strike length (Figure 2, in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com).
Figure 3 (in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com) shows a three-dimensional image of the Kauffmans Prospect and Figure 4 (in the Appendix to this announcement in the 'Latest News' section on the website, www.solomongold.com) shows the three-dimensional image of the Crunchie Prospect.
The resource estimates were compiled by Neil Schofield of FSSI Consultants (Australia) Pty. Ltd. an independent geological consultancy, and have been classified as Inferred for reporting under the JORC Code for Reporting of Mineral Resources and Ore Reserves widely accepted as a standard for professional reporting purposes.
Qualified Person
Information in this report relating to the exploration results is based on data reviewed by Mr Malcolm Norris (B.Sc. Hons, MSc), the Chief Executive Officer of the Company. Mr Norris 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 Norris 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)7769 537 739
Yellow Jersey PR (PR & IR)
dominic@yellowjerseypr.com
NOTES TO EDITORS
Solomon Gold Plc's original gold exploration projects are located on Guadalcanal Island, Solomon Islands. The Company holds a comprehensive and extensive tenement position on the main island of Guadalcanal where its JV partner, NVL Solomon Islands Limited (a subsidiary of NYSE-listed Newmont Mining Corporation) can earn a 70% interest in the project by expending US$12 million by 4 March 2014. The GJV has outlined high priority gold-copper porphyry targets at Chikora, Mbetilonga, and Kuma.
Solomon Gold is also exploring for gold on Fauro Island, Solomon Islands, just south east of Bougainville Island in neighbouring Papua New Guinea.
Solomon Gold has extended its strategy to aim at becoming an integrated gold explorer, developer and miner with projects in lower risk areas as well as the Solomon Islands.
Solomon Gold's projects in Queensland include Rannes, Mt Perry and Normanby. At Rannes, the Company has outlined a 30km long prospective zone in a 200km long trend on the eastern edge of Queensland's Bowen Basin in the same regional geological setting as Newcrest's 100,000 ounce per year Cracow Gold Mine. This extensive exploration licence position hosts several mineralised projects including Rannes. The exploration area is believed to host mineral systems which are geologically similar to the Carlin trend in Nevada USA. At Rannes, the Company has encountered potentially economic mineralisation in five different prospects targeted to yield at least 2 Moz. The total Solomon Gold Inferred Mineral Resource estimate following the continued work at its Rannes Projects, Crunchie, Kauffmans-Homestead, Brother and Cracklin Rosie Prospect is 25.5Mt at 1.0g/t gold equivalent for 812,307oz of contained gold equivalent (486,935oz gold and 13.01Moz silver), based on a gold to silver ratio of 1 : 40 and a 0.30g/t gold equivalent cut‐off grade.
At Mt Perry, the Company is investigating an area of approximately 1,500km2 hosting over 50 historic mines and workings near Newcrest's Mt Rawdon Gold Mine. Mt Perry has yielded potentially economic drill intersections on nine of the ten prospects tested to date.
Solomon Gold's Board includes accomplished professionals with strong track records in the areas of exploration, mine development in Australia and Melanesia, investment, finance and
law. Board and Management have significantly vested interests in the Company holding approximately 17.5% of its issued share capital.
Solomon Gold is based in Brisbane, Queensland, Australia. The Company listed on London's Alternative Investment Market in 2006, under the AIM Code 'SOLG' and currently has 284,623,489 shares on issue and 11,264,000 options exercisable at 50p on issue. Further details concerning the Company's key projects and personnel can be found at www.solomongold.com.