www.solgold.com.au
Solomon Gold was listed on the London Stock Exchange (AIM code : SOLG) on 10 February 2006.
Solomon Gold is headed up by experienced and committed mining industry professionals with demonstratable track records of mineral discovery and providing valuable shareholder return. The Board of Directors include accomplished professionals with experience in exploration, mine development, investment, finance and law. The Board and Management have significant vested interests in the Company, holding approximately 17.5% of its issued share capital. The Company currently has 284,623,489 shares in issue.
Solomon Gold has Exploration tenements in Queensland, Australia and the Solomon Islands.
Solomon Gold progress report on Australian drilling and Fauro licence news boost share price
Shares in Solomon Gold (LON:SOLG) rose more than 6 per cent in morning trade as the group delivered an upbeat drilling update.
Solomon advanced 1.85p to 32.1p, building on the momentum which has seen a stratospheric 505 per cent gain in the past three months.
Today’s announcement focused primarily on the company’s Australian assets and specifically progress at Rannes and Mount Perry projects in Queensland.
However there was also news on Fauro East in the Solomons, where the company has been granted a prospecting licence for the Masamasa and Piru Islands.
This is expected to double the available inventory of gold and copper targets in the Fauro Caldera, the group reported.
Fieldwork there continues and a 9,900m drilling program is expected to begin in the middle of the month.
Chief executive Nicholas Mather said: “The grant of the extension licence over the Fauro prospect is indeed encouraging and exciting for Solomon Gold.
“We regard the eastern rim of the Fauro Caldera, represented by Masamasa and Piru islands as being similarly prospective to the west side where the company has already received and reported high grade mineralisation coincident with strong magnetic anomalies interpreted to be concealed porphyry systems.
“Known gold anomalism and magnetic anomalies on Masamasa and Piru are therefore certainly very encouraging.”
Initial data from Fauro lit the blue touch-paper under the shares price two-and-a-half months ago.
The results from the first 58 assays provided the initial catalyst, which saw the stock move from just 6.7 pence on September 14.
Nine days later Solomon reported the second and final batch of bumper assays from the exploration programme.
In this second batch Solomon revealed that the remaining 157 samples returned up to 97.6 g/t gold and 90.1 g/t silver.
Solomon has said that its project "has the potential to host a world class gold deposit", similar to the massive Lihir mine – which holds one of the world's largest gold resources.
The Newcrest-owned (ASX:NCM) mine, on the neighbouring Niolam Island of Papua New Guinea, has 28.8 million ounces of gold in reserves, and 43 million ounces in measured and indicated resources.
Earlier Solomon moved the focus from Pacific islands as it updated on the Brother prospect, part of the Rannes Project in Queensland.
The best result there was a 10 metre section at grade of 2 grams per tonne and 1.1 grams of silver from surface providing the “potential for a significant resource discovery”.
Meanwhile, drilling at Cracklin Rosie, also part of Rannes, produced a 6 metre section at 1.37g/t of gold and 8.88 g/t of silver.
Hole CLK66 on nearby Crunchie produced a 6 metre section at 2.43 grams per tonne of gold and 76 grams of silver.
At Mount Perry work continues at the Bania, Spring Pig, Flying Pig, Nickos South and Augustine prospects, the company said.
The best result from Bania was 62 metres at 1.03g/t of gold, including 24m at 2.08g/t from a depth of 16m.
Following completion of drilling at Flying Pig, the rig will move back to Bania.
Separately, at Fauro East a prospecting licence has been granted for the Masamasa and Piru Islands, east of the existing Fauro prospecting licence.
This is expected to double the available inventory of gold and copper targets in the Fauro Caldera, the group reported.
Fieldwork here continues and a 9,900m drilling program is expected to begin in the middle of the month.
Chief executive Nicholas Mather reckons the eastern rim of the Fauro Caldera is “similarly prospective” to the west side where the company has already reported high grade mineralisation.
Mather said added:"Solomon Gold is pleased to report that results from recent drilling at various Queensland prospects continue to support the targeted resource definition of 1Moz gold equivalent as gold and silver.
“The company is particularly pleased with the recent drill result from the Brother Prospect at Rannes in Central Queensland, where potential for a near surface mineable resource is indicated.
“Further drilling is planned for Brother. Further encouraging gold intersections have also been returned from holes at Cracklin Rosie and we are seeing depth extensions to the mineralisation at Crunchie.
“The company continues discover mineralised prospects returning significant gold intersections in drilling over a 25km long north westerly trend at Rannes. The discoveries provide further support for Solomon Gold's discovery of a new Carlin style sediment hosted gold trend on the eastern margin of the southern Bowen Basin in Queensland.
“Similarly the Bania prospect at Mt Perry, near to the Newcrest Mt Rawdon Mine has yielded further encouraging results and we are optimistic that the prospect will yield a significant resource to contribute to the maiden Mt Perry resource statement.
“Preparations are being made for the upgrade of resources at Rannes and the maiden resource statement at Mt Perry.
“Excessive rain in south east and central Queensland has delayed the collection of drilling and assay data at the optimum rate and accordingly the resource upgrades have been delayed as indicated.”
