Solomon Gold (AIM: SOLG) has acquired three new early stage exploration properties with low minimum spend requirements in the Solomon Islands.
The company bought Honiara Holdings, which owns the properties, for A$50,000. The acquisition also included one reconnaissance licence.
The licences, which span 389 square kilometres, have returned encouraging gold geochemical and geological results, including anomalous gold from stream sediment sampling, during early stage exploration.
Solomon Gold is planning to begin follow-up work in the June quarter of 2012.
The company owns a portfolio of exploration assets in the Solomon Islands and in Australia.
At the Rannes gold and silver Project in Queensland, one of the more advanced project’s in the portfolio, a new Resource upgrade is expected within weeks as Solomon Gold continues to target 2 million ounces of gold equivalent.
The current Inferred Resource, which was upgraded by 20% in November last year, is 812,000 ounces of gold equivalent comprising 486,935 ounces of gold and just over 13 million ounces of silver.
Highlighting the potential of the Rannes Project is the very competitive discovery cost of A$6.70 per ounce versus an average of $60 per ounce in Australia.
Indicating the prospectivity of the project, exploration to date has only tested the top 200 metres of two prospects.
At a conservative resource ounce valuation of A$70 per ounce, Rannes is worth $57 million. To put this into perspective, Solomon Gold currently has a market cap of around A$50 million.
The group is also exploring for gold on the Solomon’s Fauro and Guadalcanal islands.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/25499/solomon-gold-targets-anomalous-gold-on-new-prospecting-licences-in-solomon-islands--25499.html