Solomon Gold unveils further high-grade results

Solomon Gold (SOLG) found favour with investors on Monday after drilling revealed further high-grade gold and silver intersections at its Kauffmans-Homestead Prospect in Central Rannes, Australia.

Results from the additional 18 percussion and diamond core holes included 10 metres at 4.02 grams/tonne (g/t) gold and 24.5 g/t silver from 116 metres, and 24 metres at 3.28 g/t gold and 9.8 g/t silver from 277 metres (deep core).

The news sent its shares nearly 10% higher in morning trading to 19.12p.

The company, which focuses on the Solomon Islands and Australia, said further drilling of the 19 prospects so far defined at Rannes is planned, in order to help it hit its two million-ounce gold target.

Nick Mather, chief executive, said: "The board is pleased to report again on encouraging high grade intercepts. [We] are confident that the currently defined gold and silver system at Central Rannes gives way to deeper high-grade epithermal gold mineralisation in the boiling zone of these epithermal gold-silver systems."

The current drill programme of 4,300 metres over 26 holes kicked off in June and is expected to provide the data for a resource upgrade early next month. The aim was to test the deeper extensions of the mineralisation beneath the current resource at Kauffmans as well as extensions to the north, east, west and south-east.

Kauffmans is currently estimated to house up to 203,000 ounces of contained equivalent gold, based on a 0.35 g/t gold equivalent cut-off grade.