Shares in Solomon Gold (LON:SOLG) soared and at one point nearly doubled after the company announced the assay results from initial surface sampling on its 100% owned Fauro Island project in the Solomon Islands. The stock was still trading up 62% at midday.
The company said that Fauro Island has the potential to host a world class gold deposit with geological similarities to the 40 Moz (million ounce) Lihir Island gold
mine, which was indicated by the first 58 of the total 215 samples taken at Fauro.
The “exciting” results indicated the potential for a large gold deposit similar in style to Lihir Island in Papua New Guinea, also highlighting the molybdenum mineralisation discovery at Ballyorlo.
The best results included 173 g/t (grammes per tonne) gold from the Meriguna prospect and 139 g/t gold from Hornbill.
Other significant results ranged from 11.4 g/t gold to 69.4 g/t gold and up to 0.2% copper in the Meriguna, Hornbill and Kiovakase prospects.
The samples have also shown that the Ballyorlo prospect yields up to 0.43% molybdenum and defined the Hornbill prospect over a 300 by 400 metre zone.
“Coincident magnetic anomalies and copper, gold and molybdenum values in porphyry style rocks with disseminated sulphide mineralisation strongly supports the presence of high tonnage porphyry copper, gold and molybdenum targets on Fauro,” said chief executive Nicholas Mather.
Further 157 results are expected shortly.
Solomon Gold plans to commence the third exploration programme later this month, while drilling at Fauro is planned for late 2010.
The company will revisit prospects from the August campaign as well as two eastern Fauro prospects, Piru and Masa Masa Islands, marking its first campaign in these areas.
Disclosure: The author of holds no position in the company