Solomon cuts gold at Bayantsagaan

Vancouver — Solomon Resources‘ (SRB-V, SLRLF-O) modest drill program on its Bayantsagaan gold project, in north-central Mongolia, has delivered significant gold values indicating a strong mineralizing system.

The 9-hole, 1,600-metre program identified three areas of gold mineralization, including a high-grade zone in the Main Bayantsagaan area that returned up to 10.8 metres of 6.3 grams gold per tonne in hole BT-07. The high-grade section was part of a wider interval averaging 54 metres of 1.4 grams gold and included visible gold in quartz veins.

Holes 7 and 9, in the main zone, are spaced 225 metres apart and skirted by a number of other holes containing low-grade gold mineralization. Drilling in this area of Bayantsagaan has identified a northeast-trending gold zone that remains open to depth and possibly along strike.

About 400 metres northwest of the Main zone, a new area of mineralization dubbed the Sujegtei zone has been identified. Hole BT-08, targeting a geophysics-interpreted, major northeast-trending fault structure, cut 20.9 metres of 1.1 grams gold in a wider zone averaging 0.65 gram gold over 51.7 metres. Although the new zone does not outcrop, it remains open in all directions and is interpreted as a similar geological setting to Centerra Gold‘s (CG-T, CAGDF-O) nearby Gatsuurt deposit. Gatsuurt hosts an indicated resource of 11.3 million tonnes grading 3.5 grams gold and is undergoing a feasibility study for development.

Solomon’s holes 1-6 at Bayantsagaan all intersected broad zones of lower-grade gold mineralization over wide intervals. The initial two holes were collared to twin a couple of historic holes drilled by a joint Mongolian-Hungarian geologic expedition.

Solomon’s Bayantsagaan project is located in the North Khentii gold belt structural corridor, about 80 km northwest of Ulaanbaatar. It is situated on-trend and about 35 km southwest of Centerra’s Boroo gold mine (11.8 million tonnes of proven and probable reserves grading 3.1 grams gold). The area also hosts some of the same major fault structures evident at Gatsuurt.

Mineralization at Bayantsagaan is hosted within and adjacent to granitic intrusives with silica-sericite-sulfide alteration. Proterozoic sediments have undergone intrusion by Ordovician granites, followed by younger Triassic to Jurassic intrusives. Gold is associated with a north-to-northeast trending quartz-tourmaline-breccia system. Fractures tend to harbour higher-grade gold values.

In March 2005, Solomon entered a memorandum of agreement to acquire an interest of up to 80% in 20 of Gallant Minerals‘ precious and base metal projects in Mongolia. Gallant, a private explorer financed by Harrods owner Mohamed Al Fayed, has been active in Mongolia since 1997 and holds extensive exploration licences covering almost 1,900 sq. km.

Solomon plans additional drilling (at least four holes) to follow up high-grade values from the Bayantsagaan main zone and further test the new discovery at the Sujegtei zone.