A 100-metre intersection grading 3.44 grams gold per tonne sent Australian Solomons Gold (SGA-T) shares soaring 43% today, as the company announced the final drill results from its Gold Ridge mine project in the Solomon Islands.
Shares rose 44 to $1.46 on a trading volume of 399,000 shares.
The final hole includes two 1-metre intersections grading more than 100 grams gold per tonne each.
The last three holes of the 4,500-metre program were focused between two planned open pits in the Charivunga Gorge area.
As a result, Australian Solomons has changed direction in its Gold Ridge exploration program, which will now focus on the Gorge area to determine the extent of the mineralization.
John Bovard, Australian Solomons CEO, says the results show a new mineralized zone
Our exploration program has identified a number of other areas near the existing four designed pits with potential to significantly expand the overall resources but these will now be deferred in favour of our focus on the new discovery zone, Bovard said in a statement.
The strike of the new zone is about 175 metres and remains open in both directions and at depth.
The company began a second drill program in June to test the zone and includes two holes drilled from the west side of the Gorge.
Australian Solomons plans to start production by early next year. The mine was in production between 1998 and 2000 when civil unrest put an end to production. The mine has a measured and indicated resource of 1.5 million oz. gold and reserves of 1 million oz. The company expects the mine will produce about 124,000 oz. gold per year at a cash cost of about US$388 per oz.
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