TIDMSOLG
RNS Number : 0636T
Solomon Gold PLC
30 November 2011
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 1,500km(2) 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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