Solomon Gold (LON:SOLG) reported that the first drill hole on its Fauro Island project in Solomon Islands intersected what the company referred to as encouraging mineralisation.
Hole FDDH001 at Fauro, which commenced on the Meriguna prospect on the 23 December 2010, has entered magnetite bearing potassic alteration with sulphide mineralisation at 450 metres, which is consistent with the strong magnetic anomalies and target porphyry modelled.
The report showed the mineralisation in the drill core from propylitic zone at 426.9 metres, 455.5 metres and 465.8 metres respectively.
This is the first hole of the proposed 9,900 metre diamond drilling program over the Fauro Island project area, which is planned to continue throughout 2011.
The company said that the increasing magnetite content with increasing sulphide mineralisation down hole supports its strategy of testing magnetic anomalies on Fauro.
The hole is also targeting gold rich quartz veining encountered in surface trenches.
“Solomon Gold is pleased to report that drilling at the Fauro project is confirming the potential for a significant mineralised porphyry body at Meriguna and that encouraging gold assay results continue to be received from drilling at the Rannes project in central Queensland,” said chief executive officer of Solomon Gold Nicholas Mather.
From the results so far, Solomon Gold believes that the project represents a gold rich high level variant of a mineral system similar to the giant copper gold mine on Bougainville in neighbouring Papua New Guinea (PNG).
Solomon believes that Fauro’s best comparison geologically is with the giant 40 million ounce (Moz) Lihir Gold Mine deposit, 560 kilometres to the north-west in PNG.
At Solomon’s other major project, Rannes in Australia, the Kauffmans and Homestead prospects have returned encouraging assay results.
Deeper drilling under the best part of Kauffmans, to date, has intercepted a high grade zone of 4 metres at 10 grammes per tonne (g/t) gold in hole KAU50 within a zone of 38 metres at 1.6 g/t gold and 5.2 g/t silver.
The second hole will target the grade zone to see whether it is part of a coherent body near holes KAU 6, 8, 11, 13, 26, 29, 31, 36 and 54.
Holes KAU6, 8 and 36 reported gold grades of 6.35 g/t, 7.04 g/t and 3.7 g/t respectively.
The best result was from KAU50, which intersected 66 metres at 0.9 g/t gold equivalent and 38 metres at 1.69 g/t gold mineralisation.
“Drilling at Kauffmans and Homestead has identified economic ore close to surface.
“Solomon Gold believes the deeper intersections indicate potential for bulk style mineralisation at Kauffmans,” said Mather.
Assay results from the recently drilled diamond hole KAUD1, which showed vein breccia at a depth of 35.3 metres, are pending.
KAUD1 results and the percussion drill hole results to date will be used to complete an initial resource statement for Kauffmans planned by the end of February 2011.
The prospect has variable strikes and dips, and additional holes are planned to be drilled to further define the deposit shape.
Further drilling at the Crunchie prospect continued to increase the size of a potential resource with high grade extensions to mineralisation to the north and at depth, while drilling at the Brother prospect indicated gold mineralisation over an area of 250 metres strike 30 metres wide with potential to yield additional resources.
Solomon also told investors that the flooding in Queensland has had only a minor impact on drilling at Rannes project. The company expects to commence drilling at Mount Perry shortly, once access has been re-established.
At the Mt Perry project, crews are currently establishing access to the site and drilling should commence shortly following delays due to bad weather before and after Christmas.
The last hole BAN23 intersected 36m at 0.80 g/t gold and includes 12 metres at 1.57 g/t gold.
The update met with a positive reaction from investors as shares in the company rose 2 percent in early deals.