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Solomon Gold shares sky-rocket after assays show Fauro's world-class potential

Trading in Solomon Gold (LON:SOLG) reached fever pitch on London’s AIM market after the group revealed its Fauro Island Project has the potential to be a world class deposit.


Trading in Solomon Gold (LON:SOLG) reached fever pitch on London’s AIM market after the group revealed its Fauro Island Project has the potential to be a world class deposit.

The shares burst into life this afternoon with a four-fold increase to hit a staggering 81p intraday-high, before settling at around 50p each.

Having been relatively unmoved compared to some of the market’s other gold companies over the summer, the momentum suddenly picked up earlier this month.

The catalyst for the initial movement, which saw the stock move from 6.7p, came on September 14 when it issued some very encouraging results of 58 assays it carried out.

And just before lunch today the company reported the final batch of bumper assays from Fauro.
Solomon now believes that its wholly-owned project "has the potential to host a world class gold deposit", similar to the massive Lihir mine – which holds one of the world's largest gold resources.

Solomon revealed that the remaining 157 samples from recent exploration at Fauro, returned up to 97.6 grams per Tonne (g/t) gold and 90.1g/t silver.

“These exciting assay results from Fauro continue to show the potential for a large gold deposit similar in style to Lihir Island in PNG,” Solomon chief executive Nicholas Mather commented.

Newcrest Mining’s (ASX:NCM) Lihir mine, on the neighbouring Niolam Island of Papua New Guinea, has 28.8 million ounces (Moz) of gold in reserves, and 43Moz in measured and indicated resources.

“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."

According to Solomon, the results strongly support "the presence of high tonnage porphyry gold, copper and molybdenum targets" on Fauro.

"The company is pleased to report that all the results from the August 2010 surface sampling exploration campaign have now been received,” Mather said.

“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.”

“Extraordinarily, over 42% of the total sample results from the program reported over 0.5g/t gold. This is a very strongly mineralised system." 

With these excellent results in hand, and substantially more investor interest, Solomon will move on to the next stage of exploration.

Work is scheduled to restart next week to follow up the prospects from August's campaign, as well two more of Fauro’s 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,” Mather noted.

“This will be our first campaign in these areas."

Given the meteoric rise of Solomon’s share price and the Thursday’s frantic trading, it's fair to say that investors will await the next update with bated breath.

Quick facts: SolGold plc

Price: 24.5 GBX

Market: AIM
Market Cap: £4.91 m

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