Australian
Solomons Gold increased strike length of mineralised zone in Charivunga Gorge
/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES/
(TSX:SGA)
TORONTO, April 15 /CNW/ - Australian Solomons Gold Limited ("ASG" or the
"Company") today announced results from two recent drill holes at its Gold
Ridge Project in the Solomon Islands.
<<
Charivunga Mineralised Zone ("CMZ") Drilling Highlights
-------------------------------------------------------------------------
Hole ID From (m) To (m) Width Au g/t
-------------------------------------------------------------------------
DDH159 9 31 22 2.02
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88 102 14 2.09
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196 232 36 2.29
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236 249 13 1.70
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251 272 21 1.54
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275 297 22 2.56
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307 349 42 3.35
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Hole ID From (m) To (m) Width Au g/t
-------------------------------------------------------------------------
DDH160 0 18 18 1.10
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240 251 11 3.96
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270 281 11 1.69
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306 325 19 2.44
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(*) Note these intersections represent approximate true width
>>
These intersections expand on the previously reported results from the
Charivunga Mineralised Zone (CMZ) in holes DDH 155 and DDH 156. Significantly,
DDH 159 and DDH160 intersected mineralisation from the surface, also, as with
most mineralised intersections from the CMZ, they are wider and above the
average Gold Ridge mine plan grade. The CMZ is outside the currently defined
resource and reserve areas for Gold Ridge.
<<
The drill results provide ASG with two further drill targets:
1) Further drilling to delineate the CMZ to the south and at depth.
Drilling to date indicates the CMZ is 350 m along strike, up to 150 m
true width, and extends at least 150 m down dip.
2) The discovery of a stratabound mineralised zone at depth below
Charivunga Gorge has raised the possibility of similar style
mineralisation beneath the four pits in the current mine plan.
>>
DDH159 was drilled from the same collar location as DDH138 on line 40330N
at a shallower angle to test for up-dip extensions of the CMZ. The hole
intersected the top of the CMZ at a slightly higher RL, some 25m up-dip and
has repeated the excellent intersections of DDH138 see figure 2.
DDH160, drilled on line 40240N, has intersected the CMZ 80m south of
DDH138, and 10m south of DDH151 (drilled from the opposite side of the Gorge).
The CMZ remains open to the south and assay results are pending for DDH161
drilled a further 25m south of DDH160 see figure 3.
These two holes have improved our understanding of the geometry of the
CMZ which appears to be a stratabound, north plunging, shallow east dipping
tabular zone up to 150m true width, extending 150m down dip.
Previous drilling from the Charivunga Mineralised Zone ("CMZ") hasdelivered 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 a number of years of life 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.
- Grid clearing for the proposed Induced Polarisation (IP) survey has
been completed. This survey will concentrate on the Mining Lease
1/1997 and will cover areas where there is little drilling or soil
geochemical data, in particular the area to the south west of
Charivunga Gorge and the area to the east of Kupers and Dawsons. IP
is an excellent tool for locating disseminated sulphide
mineralisation, similar to the four previously defined deposits. This
survey is planned to commence at the end of the Monsoon season (May -
June).
A full tabulation of all the results from the recently drilled holes
DDH159 - 160 is included in the Appendix to this release.
- The location of completed and planned drill holes in the CMZ are
shown on the attached figure 1.
>>
To view figures please visit:
http://files.newswire.ca/476/ASG0415.doc
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 Q2 of 2009.
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.
The Toronto Stock Exchange has neither approved nor disapproved the
contents of this press release
<<
Appendix
--------
>>
Charivunga Gorge
Assays have been received for holes 16 & 17 in the current series of deep
holes drilled to test for continuity of mineralisation below the Charivunga
Gorge (DDH159 - 160).
DDH159: This hole was drilled at a shallow angle from the same collar
location as DDH138 to test the updip extent of the wide mineralised zone
intersected in that hole. This hole intersected similar widths and grade of
mineralisation. Importantly this hole appears to have penetrated through the
mineralised zone to the unmineralised footwall indicating a true width of
150m.
DDH160: This hole was drilled to test the depth extent of a wide, low
grade mineralised zone intersected in DDH151. The hole intersected over 100m
of the zone and was still in mineralisation at the end of the hole.
<<
Assays
Table 1 Drill Hole Location
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Hole No.
(DDH) Location Easting Northing Azi RL Dip Depth
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DDH159 CMZ 23813.68 40328.58 270 399.14 -50 398.2
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DDH160 CMZ 23731.85 40242.02 271 414.48 -60.5 353.6
-------------------------------------------------------------------------
Intersections include:
Table 2 Assays
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From
HoleID (m) To (m) Interval Au g/t As ppm Comment
-------------------------------------------------------------------------
DDH159 0 3 3 0.87 17 Recovery 63%, extensively
fractured & broken and
strongly clay altered
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9 31 22 2.02 37 Recovery 62%, core
extremely fractured &
broken with large core
losses 8-24m
-------------------------------------------------------------------------
43 44 1 1.51 11 Recovery 91%
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48 57 9 1.49 115 1 cm wide quartz-
carbonate-pyrite vein
running along axis,
absence of polymetallic
sulphides
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62 64 2 0.89 5
-------------------------------------------------------------------------
70 71 1 17.05 2 Carbonate vein
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79 83 4 1.03 1 quartz-carbonate-pyrite
vein 80 - 81m
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88 102 14 2.09 244 Recovery 85%, includes
1m @ 10.40 g/t Au from
99m, core silicified,
partially oxidised,
pyritised, strongly
fractured, broken
-------------------------------------------------------------------------
104 111 7 0.73 9 Quartz-carbonate-pyrite
colloform banded vein
with minor grey blue and
brown sphalerite
104 - 105m
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113 114 1 1.77 2 Carbonate vein with minor
pyrite at vein margins
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123 127 4 0.90 5 30 cm strong argillic
altered pyritised gouge
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133 134 1 8.26 46 Recovery 93%, vuggy
silicified quartz-pyrite
vein with abundant
sphalerite grains, minor
chalcopyrite
-------------------------------------------------------------------------
140 141 1 1.33 1 Quartz-carbonate veins
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146 148 2 1.09 3 Coarse grained pyrite
disseminations
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152 158 6 0.83 2 Bedding sedimentary
structures with
fine grained disseminated
pyrite
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165 168 3 0.68 1 Vuggy quartz-carbonate
vein with pyrite
disseminated at clast
margins
-------------------------------------------------------------------------
170 171 1 0.75 3
-------------------------------------------------------------------------
174 176 2 4.92 1941 10 cm zone of strongly
pyritised, silicified
breccias
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185 186 1 2.32 129
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191 192 1 0.86 8
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196 232 36 2.29 311 Strong pyrite
mineralisation (3-5%)
from 197-266m, mod
numerous quartz-carbonate
-pyrite vuggy veins 215 -
225m
-------------------------------------------------------------------------
236 249 13 1.70 296 Vuggy quartz-carbonate-
vein with minor
disseminated pyrite
grains, open vuggy
quartz-carbonate-pyrite
vein, strong
silicification from 245 -
247m
-------------------------------------------------------------------------
251 272 21 1.54 121 Quartz-carbonate-pyrite
veins with minor
sphalerite 253 - 259m
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275 297 22 2.56 30 Includes 1m @ 27.6 g/t
Au from 289m, quartz-
pyrite-sphalerite vein
with trace to minor
chalcopyrite 289 - 290m
-------------------------------------------------------------------------
300 304 4 11.50 8 Includes 1m @ 43.5 g/t
Au from 303m,
anastomising dark
coloured disseminated
pyrite in vein 303 - 304m
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307 349 42 3.35 38 Includes 1m @ 46.0 g/t
Au from 314m, quartz-
pyrite-sphalerite vein
with few grains visible
Au 314 - 315m, moderately
numerous quartz-carbonate
-pyrite veins with minor
sphalerite t/o
-------------------------------------------------------------------------
DDH160 0 18 18 1.10 87 Recovery 87%, oxidation
with limonitic staining
from 0-12m
-------------------------------------------------------------------------
58 65 7 1.28 1127 Recovery 86%, mod
numerous quartz-carbonate
-pyrite vein with minor
arsenopyrite
-------------------------------------------------------------------------
69 74 5 0.75 32 Moderately numerous
quartz-carbonate-pyrite
veins, trace sphalerite
-------------------------------------------------------------------------
76 82 6 0.74 6 Calcite vein
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83 90 7 1.77 3 Carbonate veins
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94 95 1 0.62 11 Carbonate-pyrite vein
-------------------------------------------------------------------------
106 109 3 1.50 16 Quartz-carbonate-pyrite
vuggy veins
-------------------------------------------------------------------------
116 120 4 0.94 11 Carbonate veins, about 2%
pyrite-coarsely
disseminated
-------------------------------------------------------------------------
126 129 3 0.66 2 2 - 3 % pyrite
disseminations
-------------------------------------------------------------------------
132 133 1 1.61 3
-------------------------------------------------------------------------
152 154 2 0.76 4 Carbonate vein cross
cutting fine grained
siltstone bedding
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159 161 2 4.13 108 Carbonate veins
-------------------------------------------------------------------------
164 165 1 0.56 102 15-20cm strong argillic
alteration halo of
quartz-pyrite vein
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173 183 10 0.77 29
-------------------------------------------------------------------------
185 193 8 0.95 11 Quartz-carbonate-pyrite
vein within 15 cm strong
argillic alteration halo
189 - 190m
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196 200 4 1.08 2
-------------------------------------------------------------------------
208 213 5 4.16 5 Quartz-carbonate-pyrite
veins
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214 223 9 0.94 8
-------------------------------------------------------------------------
225 231 6 0.72 6
-------------------------------------------------------------------------
235 237 2 1.01 11
-------------------------------------------------------------------------
240 251 11 3.96 37 Includes 1m @
12.15 g/t Au from 241m,
1m @ 15.05 g/t Au from
250m, quartz-carbonate-
pyrite vein with
sphalerite & 6 grains
visible Au 241 - 242m
-------------------------------------------------------------------------
253 260 7 1.68 5 Quartz-pyrite vein with
minor sphalerite,
x-bedding structures from
258-262m
-------------------------------------------------------------------------
270 281 11 1.69 4 2-3% pyrite
disseminations throughout
interval
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291 294 3 1.05 10
-------------------------------------------------------------------------
297 302 5 1.96 7
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306 325 19 2.44 44 Includes 1m @
17.45 g/t Au from 311m,
sparse quartz-carbonate-
pyrite veins with minor
sphalerite
-------------------------------------------------------------------------
328 334 6 1.71 30 Recovery 93%, quartz-
carbonate-pyrite vein
330 - 331m
-------------------------------------------------------------------------
337 339 2 2.01 25 Carbonaceous rich
horizons in
siltstone/mudstone from
338-353.6m
-------------------------------------------------------------------------
342 351 9 1.32 32 Quartz-pyrite vein with
minor sphalerite grain
disseminations 350 - 351m
-------------------------------------------------------------------------
353 353.6 0.6 1.13 23
-------------------------------------------------------------------------
- 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 DDH159, 160 were drilled in PQ from surface to approximately
100m depth and thence in HQ.
- 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
>>
For further information: ASG: John Blake, Chief Executive Officer,
Phone: (617) 3624-9000, Email: John.Blake@solomonsgold.com.au, Please note
that the Head Office of ASG is located in Queensland, Australia and is 14
hours ahead of Toronto time; Investor Relations: Rebecca Greco, ASG Investor
Relations Manager, Toronto, Phone: (416) 839 8610, Email:
Rebecca.Greco@solomonsgold.com.au; The Equicom Group: Toronto, Canada, Joanna
Longo, Phone: (416) 815-0700 x 233; Michael Joyner, Phone: (416) 815-0700 x
275
Regards
Rebecca Greco
Rebecca J.
Greco
Investor
Relations Manager
Australian
Solomons Gold
416 839 8610
www.solomonsgold.com.au
