TORONTO, ONTARIO--(Marketwire - June 23, 2008) –
Australian Solomons Gold Limited ("ASG" or the
"Company")(TSX:SGA)
today announced results from three recent drill holes at its Gold Ridge Project
in the Solomon Islands.
Summary
DDH161:These intersections expand on the previously
reported results from the Charivunga
Mineralised Zone (CMZ). The results from DDH161
indicate the mineralised zone extends further south
and further drilling will be required to test this area. This is the most
southern hole drilled so far to test the CMZ and the results received are
encouraging. The CMZ now extends over a strike distance of 400m.
In addition DDH 162 & DDH163 were targeted for near mine
exploration adjacent to the Kupers
pit on the results from geological mapping in the region.
/T/
Charivunga Mineralised
Zone ("CMZ") Drilling Highlights
-----------------------------------------------------
Hole From To Width
(m)
Au g/t
-----------------------------------------------------
DDH161
80
89
9
1.39
-----------------------------------------------------
105
115
10
1.03
-----------------------------------------------------
118
131
13
0.94
-----------------------------------------------------
151
163
12
1.44
-----------------------------------------------------
175
188
13
1.22
-----------------------------------------------------
215
226
11
1.10
-----------------------------------------------------
256 264
8
2.43
-----------------------------------------------------
268
276
8
3.53
-----------------------------------------------------
281
294
13
1.97
-----------------------------------------------------
393
398
5
2.51
-----------------------------------------------------
DDH162
31
34
3
25.52
-----------------------------------------------------
38
42
4
2.01
-----------------------------------------------------
DDH163
24
31
7
1.00
-----------------------------------------------------
32
34 2
1.38
-----------------------------------------------------
- Note these intersections represent
approximate true width
/T/
DETAIL
DDH161
Mineralisation occurs in this hole over an
interval of 214m between 80 and 294m (see above for the best intersections). The
width and orientation of the mineralisation
is consistent with results from earlier drilling in the central portion of the
CMZ (figure 3). More drilling to the south will determine the full strike
extent of the CMZ.
DDH162 & 163:
These two short holes are not part
of the CMZ exploration and were completed to test a collapse breccia identified during a
recent mapping program (figure 4). The targeted breccia unit was, in this instance, barren. However
the holes did encounter both sub-vertical high grade and disseminated low -
medium grade gold mineralisation.
Significantly these holes are approximately 60m west of the planned Kupers pit and the mineralisation encountered is at
shallow depth, indicating the potential to extend the pit in this direction. These
results and near surface mineralisation
intersected in nearby holes provide a priority target area 300m x 140m for
further drilling. Near surface intersections from recent drilling (primarily
targeted at the deeper CMZ mineralisation)
within this zone are tabulated below. See figure 5 for location of these holes
in relation to the adjacent Kupers
pit.
/T/
--------------------------------------------------
Hole
From
To Width (m) Au
g/t
--------------------------------------------------
DDH032
19
26
7
1.42
--------------------------------------------------
32
39
7 1.26
--------------------------------------------------
47
48
1
1.87
--------------------------------------------------
62
67
5
2.56
--------------------------------------------------
69
76
7
0.92
--------------------------------------------------
DDH131
20
26
6
0.88
--------------------------------------------------
33
44
11 0.80
--------------------------------------------------
54
59
5
0.94
--------------------------------------------------
62
67
5
24.65
--------------------------------------------------
78
80
2
0.89
--------------------------------------------------
DDH138
0
3
3 2.87
--------------------------------------------------
6
10
4
2.04
--------------------------------------------------
16
46
30
1.62
--------------------------------------------------
58
67
9
2.14
--------------------------------------------------
DDH159
0
3
3 0.87
--------------------------------------------------
9
31
22
2.02
--------------------------------------------------
43
44
1
1.51
--------------------------------------------------
48
57
9
1.49
--------------------------------------------------
62
64
2
0.89
--------------------------------------------------
70
71
1
17.05
--------------------------------------------------
79
83
4
1.03
--------------------------------------------------
DDH160
0
18
18 1.10
--------------------------------------------------
58
65
7
1.28
--------------------------------------------------
69
74
5
0.75
--------------------------------------------------
76
82
6
0.74
--------------------------------------------------
- Note: All results previously
reported
- This table only includes
intersections from depths less than 83m
- Intersections represent
approximate true width
/T/
Previous drilling from the Charivunga Mineralised
Zone ("CMZ") has delivered some outstanding results as released on
December 18 2007 including DDH 155, 37m @ 4.05 g/t Au and DDH 156, 50m @ 7.77
g/t Au, and 44m @ 3.52 g/t Au.
Based on the drilling results to
date this mineralised CMZ has the potential to add to
the project or to justify a significant upgrade of the existing plant with a
higher production of gold. The preferred outcome will depend upon the results
of future drilling but also on other exploration activities being undertaken
around the four current pit designs. Significant increases in ore adjacent to
the four pits would increase the likelihood of an increase in production.
The Company is continuing with its
plans to refurbish the existing plant with an increase of throughput to 2.5
million tonnes per annum producing on average 135,000 ounces per
year of gold for the first three years of operation. A review of a possible
further increase in throughput will be ongoing as exploration data
progressively becomes available and confirms the Company's expectations.
Exploration work
- The LY44 rig will continue
drilling deep exploration holes along the CMZ trend.
A full tabulation of all the results
from the recently drilled holes DDH161 - 163 is included in the Appendix to
this release.
- The location of the CMZ in
relation to the other deposits and mine infrastructure is shown in figure 1
- The location of completed and
planned drill holes in the CMZ are shown on the attached figure 2
To view the Figure 1: CMZ Location
map, please visit the following link:
http://media3.marketwire.com/docs/sgafig1.pdf
To view the Figure 2:CMX Drill Hole Locations map,
please visit the following link: http://media3.marketwire.com/docs/sgafig2.pdf
To view the Figure 3: Section 40210N
map, please visit the following link:
http://media3.marketwire.com/docs/sgafig3.pdf
To view the Figure 4: Section 40180N
map, please visit the following link:
http://media3.marketwire.com/docs/sgafig4.pdf
To view the Figure 5 map, please
visit the following link: http://media3.marketwire.com/docs/sgafig5.pdf
Quality Assurance Program
Strict sampling and QA/QC protocols
are followed including the insertion of blanks and standards on a regular
basis. Half core samples are pulverised on site using
an LM5 ring pulveriser. One
split is sent to ALS Chemex
in Brisbane, Australia,
for analysis where it is subject to a 50g fire assay with atomic absorption
finish. The second split and coarse rejects are stored in secure facilities at
the Gold Ridge plant site or Honiara Exploration Office.
Qualified Person
The Gold Ridge drilling program is
being carried out under the direction of Tony Field, BSc
Geology, ASG's Exploration
Manager and the Qualified Person as defined by National Instrument 43-101 of
the Canadian Securities Administrators responsible for the exploration program
and the technical aspects of this news release.
About ASG
ASG is developing the Gold Ridge
Project, a former producing mine, located on Guadalcanal in the Solomon Islands.
The mine operated from August 1998 to June 2000 and produced approximately
210,000oz gold during this period. ASG acquired the project in May 2005 and has
completed a Feasibility Study to redevelop the Gold Ridge Project which is
expected to commence operations by Q1 of 2010.
Cautionary Statement Regarding
Forward-Looking Information
All statements, trend analysis and
other information contained in this press release relative to markets for ASG's trends in resources,
recoveries, production and anticipated expense levels, as well as other
statements about anticipated future events or results constitute
forward-looking statements. Forward-looking statements are often, but not
always, identified by the use of words such as "seek",
"anticipate", "believe", "plan",
"estimate", "expect" and "intend" and statements
that an event or result "may", "will", "should",
"could" or "might" occur or be achieved and other similar
expressions. Forward-looking statements are subject to business and economic
risks and uncertainties and other factors that could cause actual results of
operations to differ materially from those contained in the forward-looking
statements. Forward-looking statements are based on estimates and opinions of
management at the date the statements are made. Some of these risks,
uncertainties and other factors are described under the heading "Risk
Factors" in the Company's annual information form available on
www.sedar.com. ASG does not undertake any obligation to update forward-looking
statements even if circumstances or management's estimates or opinions should
change. Investors should not place undue reliance on forward-looking
statements.
Please note that the Head Office of
ASG is located in Queensland,
Australia
and is 14 hours ahead of Toronto
time.
Appendix
Charivunga Gorge
Assays have been received for holes
18 - 20 in
the current series of deep holes drilled to test for continuity of mineralisation below the Charivunga Gorge (DDH161 - 163).
DDH161: This hole was drilled
towards the west from a location 115 metres south of
DDH138. This is the most southern hole drilled so far to test the CMZ and the
results received are encouraging.
Significant intersections in DDH161
are tabulated below.
Kupers
Assays have been received for 2
holes drilled adjacent to the western margin of the Kupers pit. These 2 short holes were drilled to test
a collapse breccia
identified during a recent detailed mapping project. The mapping indicates
these structures may be more numerous than previously thought.
DDH162: Was targeted to intersect an
outcropping breccia located
30m to the west of the planned Kupers
pit. The unit was intersected over the interval 23 to 35m and two narrow high
grade veins returned assay values up to 74 g/t Au.
DDH163: Was drilled from the same
collar location at a steeper dip to test the breccia down-dip, and help delineate its structure. The
breccia was intersected at
from 13 to 22m indicating a much shallower dip than expected. Disseminated gold
mineralisation was
intersected in the underlying matrix supported epiclastic, not the breccia unit which was barren.
/T/
Assays
Table 1 Drill Hole Location
----------------------------------------------------------------------------
Hole No.
(DDH)
Location Easting
Northing Azi RL Dip Depth
----------------------------------------------------------------------------
161 Charivunga Gorge 23867.82 40213.74 270.5 460.93 -50.5 403.6
----------------------------------------------------------------------------
162
Kupers
23596.58
40183.11
90 438.32 -45 48.9
----------------------------------------------------------------------------
163
Kupers
23596.00
40183.11
90.5 438.32 -65 52.6
----------------------------------------------------------------------------
Intersections include:
Table 2 Assays
----------------------------------------------------------------------------
HoleID From (m) To (m) Width (m) Au g/t As ppm
Comment
----------------------------------------------------------------------------
DDH161 5 7
2 0.90 115 Recovery
68%
----------------------------------------------------------------------------
Quartz - carbonate vein
cutting through collapse
14 16
2 3.29 107
breccia. Recovery 54%
----------------------------------------------------------------------------
Fault gouge, strong argillic
47 48
1 1.18 53
alteration
----------------------------------------------------------------------------
69 73
4 0.79 31
----------------------------------------------------------------------------
75 77
2 1.14 39
----------------------------------------------------------------------------
Tuff, strongly clay altered,
80 89
9 1.39 41 pyritic
----------------------------------------------------------------------------
105 115 10 1.03 4 Disseminated mineralisation
----------------------------------------------------------------------------
Disseminated
mineralisation
throughout plus
moderately
abundant quartz -
pyrite
118 131 13 0.94 3
veining
----------------------------------------------------------------------------
carbonates
precipitating at
134 135
1 1.07 1 clast margins
----------------------------------------------------------------------------
Moderately abundant, thin,
quartz -
carbonate - pyrite
142 148
6 1.31 113
veins
----------------------------------------------------------------------------
Silicified zone, 40-50cm
wide, with disseminated
151 163 12 1.44 138 pyrite,
arsenopyrite at 160m
----------------------------------------------------------------------------
Disseminated mineralisation
throughout plus
moderately
abundant quartz -
pyrite
175 188
13 1.22 63
veining
----------------------------------------------------------------------------
Disseminated mineralisation
throughout plus
moderately
abundant quartz - pyrite
215 226 11 1.10 2
veining
----------------------------------------------------------------------------
232 237
5 1.19 9 Strong argillic alteration
----------------------------------------------------------------------------
Quartz - carbonate veins
responsible
for better
250 255
5 1.11 10
Au grades
----------------------------------------------------------------------------
Vuggy quartz -
pyrite
vein, 3 cm wide, with
256 264
8 2.43 24
minor arsenopyrite
----------------------------------------------------------------------------
includes
1m @
268 276
8 3.53 29
14.9g/t Au at 268m
----------------------------------------------------------------------------
Disseminated mineralisation
throughout plus
moderately
abundant quartz -
pyrite
281 294
13 1.97 24
veining
----------------------------------------------------------------------------
Clast, 20cm, with
abundant visible
296 302
6 0.59 18
hornblende phenocrysts
----------------------------------------------------------------------------
Strong argillic
altered
band, 5cm wide,
317 321
4 0.61 3 pyritised.
Recovery 94%.
----------------------------------------------------------------------------
Stockwork veining,
30-35cm
silicified,
pyritised with
fine grained pyrite,
347 352
5 0.75 940 arsenopyrite mineralisation
----------------------------------------------------------------------------
Quartz - pyrite vein
within 10cm moderately
argillic
altered, pyritised
372 377
5 0.66 2
zone
----------------------------------------------------------------------------
Quartz - pyrite veining
with minor base metal
393 398
5 2.51 146
sulphides
----------------------------------------------------------------------------
402 403.6 1.6 1.04 3
----------------------------------------------------------------------------
Base metal sulphide vein
within puggy fault
DDH162 14 15
1 23.00 6890
zone at 14.4m
----------------------------------------------------------------------------
Quartz - pyrite vein within
clay altered clast supported
volcaniclastic,
includes 1m @
31 34
3 25.52 24
74.2g/t from 31m
----------------------------------------------------------------------------
38 42
4 2.01 17
Pyritic tuff
----------------------------------------------------------------------------
45 46
1 2.50 12
----------------------------------------------------------------------------
Strong clay alteration with
DDH163 16 23
7 0.64 310 fine pyrite, puggy in part
----------------------------------------------------------------------------
24 31
7 1.00 98
----------------------------------------------------------------------------
32 34
2 1.38 136
----------------------------------------------------------------------------
38 43
5 0.67 82
----------------------------------------------------------------------------
/T/
-
Minimum cut-off 0.50g/t Au
- Maximum of 2m internal waste
- No maximum cut-off applied
- Intersections represent approximate
true width, except for narrow (less than 1cm) polymettalic quartz veins. The orientation of these
veins to the core axis is noted in the comments.
- Holes DDH161, was drilled in PQ
from surface to approximately 100m depth and thence in HQ. Holes DDH162, 163
were drilled in PQ to EOH.
- Drilling was carried out by Radial
Drilling with a Longyear 44
rig
- Core recovery was greater than 95%
except as noted
- Gold assays are by 50g Fire Assay
carried out at ALS Chemex
Brisbane
ABN 96 109 492 373
-30-
FOR FURTHER INFORMATION PLEASE
CONTACT:
ASG:
John Blake
Chief Executive Officer
(617)
3624-9000
(617)
3862-1100 (FAX)
Email:
John.Blake@solomonsgold.com.au
OR
Investor Relations:
Rebecca Greco
ASG Investor Relations Manager
Toronto Phone: (416) 839-8610
Email: Rebecca.Greco@solomonsgold.com.au
The Toronto Stock Exchange has
neither approved nor disapproved the contents of this press release
INDUSTRY: Manufacturing and Production-Mining and
Metals
SUBJECT: DRM
-0-
Rebecca J. Greco
Investor Relations Manager
Australian Solomons Gold
416 839 8610
www.solomonsgold.com.au