Fauro Island Update
September 23 2010 - 6:11AM
UK Regulatory
TIDMSOLG
RNS Number : 1864T
Solomon Gold PLC
23 September 2010
23 September 2010
Solomon Gold Plc
("Solomon Gold" or the "Company")
Exploration Update:
Further encouraging gold assay results confirm significant targets at Fauro
Island, Solomon Islands
Solomon Gold (AIM Code: SOLG), exploring for gold and copper in Solomon Islands
and Australia, is pleased to announce encouraging high grade results in the
remaining 157 of 215 assay results from the recent surface sampling on its 100%
owned Fauro Island Project in the Solomon Islands.
Management believes the Fauro Project has the potential to host a world class
gold deposit with geological similarities to Lihir, and today's news follows the
announcement by the Company on 14 September 2010, which reported on excellent
gold, molybdenum and copper assay results from the Fauro Project in Solomon
Islands.
KEY POINTS
· Remaining 157 samples from Fauro sampling return up to 97.6g/t gold and
90.1g/t silver. 64% over 0.1g/t gold, 41% over 0.5g/t gold 32% over 1g/t gold
and 11% over 10g/t gold.
· Indications of a significant high grade gold and silver mineralisation
similar in style to Lihir Island in PNG.
· Additional high tonnage porphyry style targets for copper gold and
molybdenum.
· Kiovakase prospect yields up to 169g/t gold and 0.16% copper (previously
announced).
· Kiovakase now defined over a 700m by 1,500m zone, including recent
extensions.
· Hornbill prospect yields up to 139g/t gold and 0.35% copper (previously
announced).
· Recent trench results at Hornbill; BK1; 7m at 17.1 g/t Au (incl. 2m @ 53.6
g/t Au and 1m @ 97.6 g/t Au) and GHT1; 6m at 7.4 g/t Au (incl. 1m @ 20.4 g/t
Au).
· Meriguna prospect yields up to 173g/t gold.
· Hornbill and Meriguna defined over a 700m by 1,500m zone.
· Ballyorlo prospect yields up to 0.43% molybdenum and 0.2% copper
(previously announced).
· Third exploration program due to commence next week to follow-up northern
prospects, Piru and Masa Masa Islands.
· Planning and track access advanced for drilling at Fauro planned for late
2010.
Commenting on the recent results from Fauro, Nicholas Mather, Solomon Gold Chief
Executive, said: "The Company is pleased to report that all the results from the
August 2010 surface sampling exploration campaign have now been received. These
have been combined with the previous assay results from the exploration work
completed by Solomon Gold since being granted the tenement in November 2010.
The best results were from Hornbill, Kiovakase and Meriguna, with respective
gold assays being 139g/t, 169g/t and 173g/t. The best copper results were 0.35%
and 0.21% from Hornbill, as well as 0.2% at Ballyorlo and 0.16% at Kiovakase.
Extensive Molybdenum mineralisation was discovered at Ballyorlo, the highest
grade being 0.43% Molybdenum.
These exciting assay results from Fauro continue to show the potential for a
large gold deposit similar in style to Lihir Island in PNG. Extraordinarily,
over 42% of the total sample results from the program reported over 0.5g/t gold.
This is a very strongly mineralised system. There are important mega structural
similarities between Lihir and Fauro, which are supported by the structures
evident in the seafloor and on the bathymetric maps.
Coincident magnetic anomalies and gold, copper and molybdenum values in porphyry
style rocks with disseminated sulphide mineralisation strongly supports the
presence of high tonnage porphyry gold, copper and molybdenum targets on Fauro.
Exploration work is due to recommence next week and we will revisit prospects
from the August campaign, as well as the two eastern Fauro prospects; Piru and
Masa Masa Islands. Magnetic signatures at Piru and Masa Masa are similar to the
strongly mineralised porphyry systems on western Fauro, which we've now sampled
and are about to be drilled. This will be our first campaign in these areas."
he added.
Fauro Island Project (100% Solomon Gold plc)
Solomon Gold has now received the remaining 157 of 215 assay results from the
August ground based exploration program. The exploration work tested the eight
identified electromagnetic anomalies. The sampling program has outlined high
grade gold targets (sampled at up to 169g/t gold) lying above porphyry systems
at Hornbill, Meriguna and Kiovakase and a copper gold molybdenum porphyry system
underlying surface gold mineralisation at Ballyorlo in the south of the
exploration licence area. At Ballteara and Bataha on the northwestern extension
of the fauro volcanic rim, the younger Masamasa Volcanics overlie the rich gold
zone and gold mineralisation, up to 1.75g/t gold has been detected in sampling.
Two unnamed prospects further to the north are yielding high order stream
sediment anomalism uo to 400 parts per billion gold, but the source of this has
not yet been discovered. Table 1, 2 and 3 in the Appendix summarises all gold,
copper and Molybdenum respective assay results from each of the prospects taken
since Solomon Gold was granted the Fauro Island tenement in November 2009. More
detail about the other metals is outlined below.
Based on results to date, the Ballyorlo prospect is interpreted as a high
tonnage copper molybdenum porphyry system target, whilst Kiovakase, Hornbill and
Meriguna are high grade epithermal (high level) gold prospects with associated
metal credits overlying the porphyry systems (see Figure 1, in the Appendix to
this announcement in the 'Latest News' section on the website,
www.solomongold.com).
Figure 2, in the Appendix to this announcement in the 'Latest News' section on
the website, www.solomongold.com details the location of the Fauro Island
Project and Figure 3, in the Appendix to this announcement in the 'Latest News'
section on the website, www.solomongold.com; details were the prospects are
located on Fauro Island. Figure 4, 5 and in the Appendix to this announcement
in the 'Latest News' section on the website, www.solomongold.com details the
gold, copper and Molybdenum results respectively.
Ballyorlo
A total of 57 samples were taken over the Ballyorlo prospect, with encouraging
copper and molybdenum results and additional gold credits. 44 samples returned
copper grades greater than 0.01%, the three highest results being 0.17%, 0.19%
and 0.20%. Twelve results were more than 0.03% (300ppm) Molybdenum at
Ballyorlo. The three highest molybdenum grades were 0.31%, 0.32% and 0.43%.
Ballyorlo has a porphyry signature, with copper molybdenum and gold credit
potential.
Kiovakase
Fifty-four samples were taken over the Kiovakase prospect. Fourteen of the
samples were greater than 10g/t gold with the highest three samples returning
assay results of 18g/t, 161g/t and 169g/t. There were 40 copper assay results
greater than 0.01%, of which two were greater than 0.1% (0.14% and 0.16%).
Silver was present in all the samples results, the highest being 166g/t, 181g/t
and 190g/t.
Kiovakase has an epithermal or high level gold signature, similar to the Lihir
Island geology, deposited over the top of a porphyry system which is evident in
the magnetic survey.
Hornbill
A total of 70 samples were taken over the Hornbill prospect. Seven samples were
between 5g/t and 10g/t gold and nine samples greater than 10g/t gold. The
highest three gold assay results were 69.4g/t, 97.6g/t and 139g/t. Of the 70
samples taken, 56 returned copper grades greater than 0.01%. The three highest
copper results were 0.14%, 0.21% and 1.16%. Silver was present in 67 of the
samples, the highest being 47.3g/t, 168g/t and 567g/t.
Two trenches at Hornbill returned encouraging bulk gold results. At BK1; 7m at
17.1 g/t Au (incl. 2m @ 53.6 g/t Au and 1m @ 97.6 g/t Au) and at GHT1; 6m at 7.4
g/t Au (incl. 1m @ 20.4 g/t Au).
Hornbill has an epithermal gold signature and the copper mineralisation suggests
potential for a copper porphyry system at depth underneath the gold zone.
Meriguna
Forty-three samples have been taken at Meriguna. There were five assay results
greater than 5g/t gold, ranging from 5.33g/t to 173g/t. Silver was present in
all the samples, the three highest results were 20.4g/t, 36.7g/t and 69.1g/t.
Copper was greater than 0.01% in 35 samples. The highest copper results were
0.04%, 0.06% and 0.11%.
Meriguna has an epithermal gold signature and like the nearby Hornbill Prospect,
the copper mineralisation indicates a copper porphyry target underneath the gold
zone and coincident with the magnetic feature.
Including Hornbill, the system is over 700m by 1,500m in size.
Ballteara
A total of 21 samples were taken from Ballteara. The highest gold assay result
was 1.75g/t gold. Five samples returned above 0.5g/t gold, indicating a higher
grade epithermal gold target concealed beneath the capping Masamasa Volcanics
covering Balteara and Bataha. Five samples returned silver grades greater than
1g/t, the highest being 7.9g/t. The two highest copper results were 0.18% and
0.11% and eight samples were greater than 0.01%. The high anomalous copper is
indicative of a concealed porphyry copper gold target in this location.
Further exploration work is required a Ballteara, which will be carried out in
the imminent exploration program.
Northern Fauro
Only three samples were taken from the Northern Fauro prospect. The gold
results were up to 0.38g/t gold, 8.6g/t silver and trace copper in one sample.
The source of rich stream sediment samples up to 400ppb gold from the northern
tip of Fauro Island have not been determined. Further exploration work is
required to detect the source mineralisation. This will be carried, in the
immediate exploration program commencing next week.
The third exploration campaign commences in late September and will revisit
prospects from the August campaign, as well as the two northern Fauro prospects
as well as Piru and Masa Masa Islands.
With the data from the airborne electromagnetic and magnetic survey and the
three ground based exploration programs completed to date, drill targets have
been identified and prioritised. Drilling is planned to commence in late 2010.
Preparations are well underway involving track access and drill pad
construction.
As was previously announced (14 September 2010 in the 'AIM Announcements'
section on the website, www.solomongold.com), Solomon Gold's original
exploration projects are located in Solomon Islands and are a major focus of the
Company to discover a world class copper and gold mine on the south west Pacific
Rim of Fire, in the shadow of some of the world's largest gold and copper mines;
Ok Tedi (50Moz), Bougainville (50Moz), Grasberg (160Moz) and Lihir Island
(40Moz). The Company is the most active explorer in Solomon Islands, with an
operational base in the capital Honiara, as well as a newly constructed staging
post in Gizo (approximately 380km / 240miles northwest of Honiara) for easier
access to the Fauro Project.
The Fauro Project lies 82km south east of the giant copper gold mine on
Bougainville in neighbouring PNG, and Solomon Gold's geologists believe that the
Project represents a gold rich high level variant of a mineral system similar to
Bougainville. Geologically, management believes the Fauro Project's best
comparison however is with the giant 40Moz Lihir deposit, 560km to the
north-west in PNG. Lihir and Fauro show similar mineralogy and geological
settings. Management believes the Fauro Project has the potential to host a
world class gold deposit with geological similarities to Lihir.
The Fauro Island Project covers 15km2 of mineralised volcanic rim on the western
side and a further 20km2 on the eastern side, over Piru and Masa Masa Islands,
5km to the east. The project areas cover the remnant rims of a volcano which
gave off silica and gold rich mineral fluids as the volcano waned. These fluids
soaked into porous and absorbent volcanic rubble known as breccias and
agglomerates and precipitated gold and sulphide minerals. Copper and molybdenum
sulphide mineralisation are evident in porphyry bodies in the core of the
volcanic complex. Alluvial gold is known to be common in the streams draining
the Fauro prospects on the western side of the volcanic rim.
Solomon Gold has identified the airborne electromagnetic ("EM") technique to be
particularly useful diagnostic tool in the rapid and efficient identification of
buried silicified deposits of gold ores in mineral systems related to volcanism
at the Fauro Project. Accordingly, a survey was completed over the Fauro
Project, covering 35km2 of total land area, in April 2010. Ten intrusive
systems and associated EM anomalies were identified including 15km2 of the
western rim with eight targets all supported by extensive mapping and sampling.
The key prospects are Ballyorlo, Kiovakase, Hornbill, Meriguna, Bataha and
Ballteara; see Figure 3 in the Appendix to this announcement in the 'Latest
News' section on the website, www.solomongold.com. Piru and Masa Masa Islands
on the eastern side of the volcanic rim also have strong anomalous EM and
magnetic signatures. Sampling over these Islands will take place during the
forthcoming program.
Qualified Person
Information in this report relating to the exploration results is based on data
reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.), the Chief Executive Officer
of the Company. Mr Mather 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 Mather 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 SchlobohmTel: +61 (0)7 3303 0660
Solomon Gold Plc (Company Secretary)
kschlobohm@solomongold.com
Mr Ewan LeggatTel: +44 (0)207 598 5368
Fairfax I.S. PLC (Broker)
eleggat@fairfaxis.com
Mr Stephen WeirTel: +61 (0)2 9250 0048
RFC Corporate Finance (Nominated Advisor)
stephen.weir@rfc.com.au
Mr Dominic Barretto
Tel: +44 (0)208 980 3545
Yellow Jersey PR (PR & IR)
dominic@yellowjerseypr.com
NOTES TO EDITORS
Solomon Gold Plc's original and core gold exploration projects are located on
the Solomon Islands and remain a major focus of the Company. However, the
Company has extended its strategy to include becoming an integrated gold
explorer, developer and miner with projects in lower risk theatres as well as
the Solomon Islands.
Solomon Gold carries a diverse portfolio of higher risk high reward exploration
projects in the Solomon Islands and lower risk projects which are more advanced
towards resource definition in Queensland, where exploration costs are
approximately one third of that in Melanesia. Solomon Gold's projects include:
Guadalcanal and Fauro (Solomon Islands) and Rannes, Mt Perry and Normanby
(Queensland, Australia).
Solomon Gold's Guadalcanal project comprises five prospecting licences covering
300km2 and is part of the Guadalcanal Joint Venture ("GJV") with Newmont
Ventures Inc ("Newmont"). Newmont took management control of the GJV on 1 April
2010. Newmont, one of the world's largest gold and copper miners, can earn a
51% interest in Solomon Gold's five exploration licences on Guadalcanal by
expending US$6million by 5 March 2012, and may then proceed to 70% by expending
a further US$6million by 5 March 2014.
Solomon Gold's Board includes accomplished professionals with strong track
records in the areas of exploration, mine development, investment, finance and
law. Board and Management have significantly vested interests in the Company
holding approximately 19.3% of its issued share capital.
Solomon Gold is based in Brisbane, Queensland, Australia. The Company was
admitted to London's Alternative Investment Market in 2006. Further details
concerning the Company's key projects and personnel can be found at
www.solomongold.com.
APPENDIX: Tables
Table 1 : Gold Assay Results
+-----------+----------+--------------+------------+----------+
| Prospect | Less | 0.5g/t to | 5g/t to | Plus |
| | 0.5g/t | 5g/t | 10g/t | 10g/t |
+-----------+----------+--------------+------------+----------+
| Ballyorlo | 54 | 3 | | |
+-----------+----------+--------------+------------+----------+
| Kiovakase | 23 | 15 | 2 | 14 |
+-----------+----------+--------------+------------+----------+
| Hornbill | 24 | 30 | 7 | 9 |
+-----------+----------+--------------+------------+----------+
| Meriguna | 25 | 13 | 3 | 2 |
+-----------+----------+--------------+------------+----------+
| Ballteara | 16 | 5 | | |
+-----------+----------+--------------+------------+----------+
| North | 3 | | | |
| Fauro | | | | |
+-----------+----------+--------------+------------+----------+
| Total | 145 | 66 | 12 | 25 |
+-----------+----------+--------------+------------+----------+
Table 2 : Copper Assay Results
+-----------+----------+------------+--------------+
| Prospect | Less | Plus 0.1% | Max % |
| | 0.1% | | |
+-----------+----------+------------+--------------+
| Ballyorlo | 54 | 3 | 0.20 |
+-----------+----------+------------+--------------+
| Kiovakase | 52 | 2 | 0.16 |
+-----------+----------+------------+--------------+
| Hornbill | 65 | 5 | 1.16 |
+-----------+----------+------------+--------------+
| Meriguna | 42 | 1 | 0.11 |
+-----------+----------+------------+--------------+
| Ballteara | 19 | 2 | 0.18 |
+-----------+----------+------------+--------------+
| North | 3 | | 0.01 |
| Fauro | | | |
+-----------+----------+------------+--------------+
| Total | 235 | 13 | |
+-----------+----------+------------+--------------+
Table 3 : Molybdenum Assay Results
+-----------+----------+------------+--------------+
| Prospect | Less | Plus 0.03% | Max % |
| | 0.03% | | |
+-----------+----------+------------+--------------+
| Ballyorlo | 45 | 12 | 0.43 |
+-----------+----------+------------+--------------+
| Kiovakase | 54 | | |
+-----------+----------+------------+--------------+
| Hornbill | 70 | | |
+-----------+----------+------------+--------------+
| Meriguna | 43 | | |
+-----------+----------+------------+--------------+
| Ballteara | 21 | | |
+-----------+----------+------------+--------------+
| North | 3 | | |
| Fauro | | | |
+-----------+----------+------------+--------------+
| Total | 236 | 12 | |
+-----------+----------+------------+--------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBXLFLBKFFBBB
Solgold (LSE:SOLG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Solgold (LSE:SOLG)
Historical Stock Chart
From Apr 2023 to Apr 2024
