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TORONTO, ONTARIO--(Marketwire - Nov. 13, 2009) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Australian Solomons Gold Limited ("ASG" or the "Company") SGA is pleased to announce the results of the recently completed 4 hole drill program designed to test for updip extensions of the Charivunga Mineralised Zone (CMZ).
A summary of the best intersections is tabulated below, with more complete details listed in the Annex to this announcement:
Comments on each of the 4 drill holes are provided as follows.
DDH177: This hole was collared on the eastern side of Charivunga Gorge adjacent to the previously drilled DDH151. The hole intersected a strong argillic altered volcanoclastic sequence with abundant, disseminated pyrite, and minor quartz-carbonate-base metal sulphide +/- visible Au veining from the surface to a depth of 70m. Disseminated gold mineralisation is present at low levels from surface to 97m. Further down hole isolated low to moderate vein style gold mineralisation was intersected.
DDH178: This hole was collared on the west side of Charivunga Gorge. It intersected a sequence of weakly altered and mineralised volcanoclastics intercalated with numerous fine grained tuffaceous horizons. Five fault zones identified are more strongly mineralised with up to 3% disseminated pyrite. Due to access constraints this hole was collared 50m west of the planned location and may have missed the target mineralised zone. Assays received for 0 -- 68m, no Au mineralisation present.
DDH179: This hole was collared on the west side of Charivunga Gorge 100m north and 50m east of DDH178. The hole intersected a sequence of volcanic breccia with intercalated lapilli tuff and minor siltsone. Strong argillic alteration with co-incident strong disseminated sulphide (pyrite) mineralisation was noted between 56 -- 177m. The remainder of the hole exhibited propylitic alteration with weak sulphide mineralisation. Numerous faults / fractures were observed, mainly within the argillic alteration zones, often containing up to 5% disseminated fine grained pyrite. Gold mineralisation (low grade, disseminated) is restricted to a 20m interval from 140 -- 160m.
DDH180: This hole was collared on the west side of Charivunga Gorge, 50m south west of the planned south west corner of the Namachamata Pit. Due to access issues the actual collar location was 45m west and 45m north of the planned location. In order to intersect the target zone, the hole was drilled vertically. The hole intersected a sequence of hydrothermal collapse breccia (0 -- 22m), and volcanic breccia with intercalated tuff and minor bedded siltstone (22 -- EOH). Strong disseminated sulphide mineralisation (3 -- 5% pyrite) is present to 255m. The collapse breccia intersected to 22m displays strong argillic alteration, and intense fracturing. Further moderate to intense argillic alteration zones are present in the vicinity of fractures and faults to 255m. Visible gold was noted in quartz-pyrite veins from 195-196m. Gold mineralisation occurs in the interval 96 -- 248m displaying disseminated low -- moderate grade style and high grade sub vertical vein style.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/australian.pdf
Sample Preparation and Assaying
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.
Qualified Person
The Technical and scientific information contained in this news release was reviewed by 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.
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. ASG is currently working on finalising the financing plan in preparation for this redevelopment task. ASG is currently working on finalising the financing plan in preparation for this redevelopment task and is expected to commence operations during Q1 2011. The Gold Ridge Project has a Measured and Indicated Resource base of 1.6 million ounces with an Inferred category of a further 0.5 million ounces.
On September 17, 2009 ASG announced that Allied Gold Limited ("Allied Gold") will make an agreed off-market takeover offer for all the shares of ASG (the "Offer"). The Offer was made on October 2, 2009. ASG shareholders who accept the Offer will receive 0.85 Allied Gold shares for every share of ASG held. On November 9, 2009 Allied announced that the Offer was now unconditional and that as at that date they had received acceptances totalling 63,694,013 shares, representing approximately 49.08% of ASG. Full details of the Offer are contained in a Bidder's Statement and Offer to Purchase which has been filed on ASG's profile on www.sedar.com and at the website of Allied at www.alliedgold.com.au
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 15 hours ahead of Toronto time.
Appendix
Charivunga Gorge
Assays have been received for holes DDH177 - 180 in the series of deep holes drilled to test for continuity of mineralisation below Charivunga Gorge.
ABN 96 109 492 373
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