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02/04/2012

Solomon Gold CEO expects news on a new discovery in the next couple of months

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Additional Information
Market: AIM
Sector: General Mining - Gold
EPIC: SOLG
Latest Price: 4.63p  (2.89% Ascending)
52-week High: 24.63p
52-week Low: 4.38p
Market Cap: 14.55M
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SolGold
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. 

 

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Solomon Gold to create value via two-pronged exploration strategy

2nd Sep 2011, 2:29 pm by Jon Mainwaring Fairfax values Solomon's Rannes project at 12 pence per share

 

Investment bank Fairfax believes that shares in Solomon Gold (LON:SOLG) rate as a ‘buy’ based on the firm’s two-pronged exploration strategy.

The bank said that recent drill results at its Rannes project in Queensland demonstrate that the firm can build up gold resources here and at other sites nearby. Meanwhile, the Solomon Islands – where drilling at the firm’s Fauro 100 per cent-owned Fauro project shows mineralisation with multi-million dollar potential – is “highly prospective for gold and any significant find would be transformational”, said Fairfax.

At Guadalcanal in the Solomon Islands, a joint venture agreement with Newmont Mining “has potential for substantial discovery”, said the bank. Newmont, which has the right to earn 51 per cent by spending US$6 million over three years and 70 per cent by spending US$12 million over six years, is attempting to identify a mineralised system that contains multimillion ounce gold potential.

Fairfax said that it was using Solomon’s 100 per cent-owned Rannes project as a floor to its valuation of the company. “Applying a simply US$100 per ounce valuation on the gold prospect in Rannes of 543,858 ounces of gold equivalent, we get US$54 million for the project or 12 pence per share,” it said. “If Rannes grows to the two million ounce target, then our valuation could grow substantially from here.”

Fairfax said that Mount Perry, Solomon’s other 100 per cent-owned project in Queensland, could show similar value to Rannes, while Fauro and Guadalcanal potentially could be worth US$22 million and US$17 million to the company.

Taking these figures into account, Fairfax has set a price target for the shares of 32 pence.

At lunchtime today, Solomon’s shares were trading 1.2 per cent lower at 16.05 pence each.


 

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