Tuesday, 1 February 2011 8:42 AM

Solomon Gold Hails 'strong progress'

Solomon Gold says drilling at projects in the South Pacific and Queensland has yielded 'encouraging results'.

The Brisbane-based company indicates the Meriguna prospect at Fauro Island in the Solomon Islands has shown mineralization, which chief executive Nick Mather argues confirms "the potential for a significant mineralized porphyry body there."

Its Rannes project in Queensland, like wholly-owned Fauro Island, has so far yielded assays suggesting low-grade, bulk mineralization at grades ranging from 0.9 to 1.6 grammes of gold equivalent per tonne of ore. One drill hole, Crunchie, has located a higher grade extension, consisting so far of two metres of gold at five grammes a tonne and silver at 188 grammes a tonne.

Floated at 50p in 2006, Solomon Gold shares had lost 90 per cent of their value at one point not so long ago. Growth Company Investor highlighted them at 10.75p in September and suggested partial profit taking at 32p the following month.

They now trade at 29.75p, up 0.75p this morning, valuing the company at £84 million.

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