Solomon Gold (LON: SOLG) has received a 20% boost in resources to 812,000 gold ounces at the Rannes Project in Central Queensland after a review by FSSI Consultants, where the company continues a drilling campaign which is targeting 2 million gold ounces at the project.
The breakdown of the resource is 25.5 million tonnes at 1.0g/t gold equivalent for 812,307 ounces of contained gold equivalent (486,935 gold ounces and 13.01 million silver ounces).
Importantly, the resources are all close to or at surface which may potentially lead to a low stripping ratio at Rannes.
Solomon's share price shot up around 50% overnight after it unveiled the upgrade to the market.
Highlighting how quickly Solomon is moving the project forward, the latest upgrade follows hot on the heels of the September upgrade, which boosted ounces by 24%.
Drilling at Rannes continues at Kauffmans, Crunchie , Shilo, Double Scoop and Nicks Prospects, with a total project-to-date discovery cost just A$6.70 per ounce.
Malcolm Norris, chief executive, commented “The board is highly encouraged by today’s further resource estimate upgrade.
"Exploration also continues at the 21 other nearby prospects, which have been identified in the Rannes Project area, with the aim of delivering the company’s objective of defining two million ounces of gold equivalent."
The project is located around 150 kilometres west of the major central Queensland port city of Gladstone.