Australian Solomons Gold - Drilling intersects further encouraging gold mineralisation in Charivunga Gorge



    /THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
    FOR DISSEMINATION IN THE UNITED STATES/

    (TSX:SGA)

    TORONTO, March 20 /CNW/ - Australian Solomons Gold Limited ("ASG" or the
"Company") today announced results from two recent drill holes at its Gold
Ridge Project in the Solomon Islands.
    Both holes intersected significant widths of low grade mineralisation.
Hole DDH157 was abandoned due to drilling difficulties however succeeded in
intersecting the upper 62m of the mineralised zone from 192m to the end of the
hole, with an intersection of 22m @ 1.89 g/t Au virtually replicating the
excellent results from DDH156 at similar depth on the same section (see
Fig, 2). It was disappointing the hole had to be abandoned and it will be
re-drilled in the near future. Hole DDH158, drilled at an oblique angle to the
N - S trending mineralised zone, has helped define the updip extent of the
mineralised zone.
    Previous drilling from the Charivunga Mineralised Zone ("CMZ") has
delivered some outstanding results as released on December 18 2007 including
DDH 155, 37m @ 4.05 g/t Au and DDH 156, 50m @ 7.77 g/t Au, and 44m @ 3.52 g/t
Au.
    Based on the drilling results to date this mineralised CMZ has the
potential to add a number of years of life to the project or to justify a
significant upgrade of the existing plant with a higher production of gold.
The preferred outcome will depend upon the results of future drilling but also
on other exploration activities being undertaken around the four current pit
designs. Significant increases in ore adjacent to the four pits would increase
the likelihood of an increase in production.
    The Company is continuing with its plans to refurbish the existing plant
with an increase of throughput to 2.5 million tonnes per annum producing on
average 135,000 ounces per year of gold for the first three years of
operation. A review of a possible further increase in throughput will be
ongoing as exploration data progressively becomes available and confirms the
Company's expectations.

    
    Exploration work planned

    -   The LY44 rig will continue drilling deep exploration holes along the
        CMZ trend.

    -   A man portable rig has been mobilised to enable drilling in parts of
        the CMZ inaccessible to the larger rig and is currently undergoing
        refurbishment. Drilling with this rig is planned to commence by mid
        April.

    -   A Helimag survey will be carried out over 160km(2) of project
        tenements with the goal of identifying structures that may host
        additional gold and gold / copper mineralisation. This survey is
        planned to commence by late April.

    -   Grid clearing for the proposed Induced Polarisation (IP) survey is
        continuing. This survey will concentrate on the Mining Lease 1/1997
        and will cover areas where there is little drilling or soil
        geochemical data, in particular the area to the south west of
        Charivunga Gorge and the area to the east of Kupers and Dawsons. IP
        is an excellent tool for locating disseminated sulphide
        mineralisation, similar to the four previously defined deposits. This
        survey is planned to commence at the end of the Monsoon season (May -
        June).

    Charivunga Mineralised Zone ("CMZ")

    Recent drilling results include the following highlights:

    -   DDH157 : 22m @ 1.89 g/t Au from 192m, 14m @ 1.14 g/t Au from
        216m, 20m @ 2.00 g/t Au from 234m

    -   DDH158 : 10m @ 0.76 g/t Au from 243m, 7m @ 1.08 g/t Au from
        254m

    A full tabulation of all the results from the recently drilled holes
DDH157 - 158 is included in the Appendix to this release.

    -   The location of completed and planned drill holes in the CMZ in
        relation to the planned Kupers and Namachamata pits are shown on the
        attached figure 1.
    

    To view figures please visit:
    http://files.newswire.ca/351/ASG_figures_0320.doc

    Quality Assurance Program

    Strict sampling and QA/QC protocols are followed including the insertion
of blanks and standards on a regular basis. Half core samples are pulverised
on site using an LM5 ring pulveriser. One split is sent to ALS Chemex in
Brisbane, Australia, for analysis where it is subject to a 50g fire assay with
atomic absorption finish. The second split and coarse rejects are stored in
secure facilities at the Gold Ridge plant site or Honiara Exploration Office.

    Qualified Person

    The Gold Ridge drilling program is being carried out under the direction
of Tony Field, BSc Geology, ASG's Exploration Manager and the Qualified Person
as defined by National Instrument 43-101 of the Canadian Securities
Administrators responsible for the exploration program and the technical
aspects of this news release.

    About ASG

    ASG is developing the Gold Ridge Project, a former producing mine,
located on Guadalcanal in the Solomon Islands. The mine operated from August
1998 to June 2000 and produced approximately 210,000oz gold during this
period. ASG acquired the project in May 2005 and has completed a Feasibility
Study to redevelop the Gold Ridge Project which is expected to commence
operations by Q2 of 2009.

    Cautionary Statement Regarding Forward-Looking Information

    All statements, trend analysis and other information contained in this
press release relative to markets for ASG's trends in resources, recoveries,
production and anticipated expense levels, as well as other statements about
anticipated future events or results constitute forward-looking statements.
Forward-looking statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "believe", "plan", "estimate", "expect"
and "intend" and statements that an event or result "may", "will", "should",
"could" or "might" occur or be achieved and other similar expressions.
Forward-looking statements are subject to business and economic risks and
uncertainties and other factors that could cause actual results of operations
to differ materially from those contained in the forward-looking statements.
Forward-looking statements are based on estimates and opinions of management
at the date the statements are made. Some of these risks, uncertainties and
other factors are described under the heading "Risk Factors" in the Company's
annual information form available on www.sedar.com. ASG does not undertake any
obligation to update forward-looking statements even if circumstances or
management's estimates or opinions should change. Investors should not place
undue reliance on forward-looking statements.

    The Toronto Stock Exchange has neither approved nor disapproved the
    contents of this press release

    
                                   Appendix
                                   --------
    

    Charivunga Gorge

    Assays have been received for holes 14 & 15 in the current series of deep
holes drilled to test for continuity of mineralisation below the Charivunga
Gorge (DDH157 - 158).

    DDH157: This hole was drilled from the same site as our best hole DDH156,
and tests the down-dip potential. As expected, mineralisation towards the end
of the hole is encouraging and fairly consistent with the deeper parts of the
CMZ. Unfortunately the hole was abandoned 100m short of its target depth due
to drilling difficulties.

    DDH158: This hole was drilled towards the NW from a location in the
central part of the Charivunga Mineralised zone. While significant widths of
mineralisation were intersected towards the bottom of the hole, grades are
lower than expected. Examination of sections along strike indicates the
trajectory of this hole was too shallow to intersect the deeper, higher grade
mineralisation encountered to the south.

    
    Assays

    Table 1 Drill Hole Location
    -------------------------------------------------------------------------
    Hole No.
    (DDH)     Location    Easting   Northing     Azi       RL    Dip   Depth
    -------------------------------------------------------------------------
    DDH157       CMZ      23830.5   40389.75     270   382.49    -72   254.7
    -------------------------------------------------------------------------
    DDH158       CMZ        23831   40389.25   312.5   382.49  -50.5     293
    -------------------------------------------------------------------------

    Intersections include:

    Table 2 Assays
    -------------------------------------------------------------------------
              From   To
    HoleID     (m)   (m)  Interval    Au g/t   As ppm                Comment
    -------------------------------------------------------------------------
    DDH157     26    38         12      2.80       32        includes 1m @
                                                         26.3g/t Au from 26m
    -------------------------------------------------------------------------
               48    54          6      1.21       15
    -------------------------------------------------------------------------
              101   105          4      1.22      143
    -------------------------------------------------------------------------
              120   124          4     23.34       38        includes 1m @
                                                        89.6g/t Au from 121m
    -------------------------------------------------------------------------
              138   147          9      1.22       18
    -------------------------------------------------------------------------
              153   159          6      1.16       58            Recovery 90%
    -------------------------------------------------------------------------
              162   168          6      1.02        1    sporadic qtz-carb-py
                                                                        veins
    -------------------------------------------------------------------------
              169   173          4      0.62        1
    -------------------------------------------------------------------------
              174   185         11      0.99        2
    -------------------------------------------------------------------------
              192   214         22      1.89       30      sporadic veins in
                                                      pervasive altered zone
    -------------------------------------------------------------------------
              216   230         14      1.14        3
    -------------------------------------------------------------------------
              234   254         20      2.00        2   pervasive consistent
                                                         mineralisation with
                                                                   few veins
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH158     22    24          2     1.34       190           Recovery 93%
    -------------------------------------------------------------------------
               66    67          1     3.11        95       66-68.5m, strong
                                                            argillic altered
                                                       pyritised fault gouge
    -------------------------------------------------------------------------
               77    78          1     0.92        16
    -------------------------------------------------------------------------
               84    85          1     0.82       142    quartz-pyrite veins
    -------------------------------------------------------------------------
               89    93          4     0.58        19 quartz-carbonate veins
    -------------------------------------------------------------------------
              104   105          1     0.63         3
    -------------------------------------------------------------------------
              113   118          5     0.53         9      quartz-carbonate-
                                                      pyrite veins with trace
                                                                   sphalerite
    -------------------------------------------------------------------------
              143   146          3     1.21         3
    -------------------------------------------------------------------------
              155   161          6     1.98        40
    -------------------------------------------------------------------------
              170   171          1     0.54         5         carbonate vein
    -------------------------------------------------------------------------
              172   173          1     0.57        23
    -------------------------------------------------------------------------
              187   188          1     1.66        13 quartz-carbonate-clay-
                                                                 pyrite vein
    -------------------------------------------------------------------------
              212   213          1     0.79         8      quartz-carbonate-
                                                                 pyrite vein
    -------------------------------------------------------------------------
              217   218          1     0.55        11
    -------------------------------------------------------------------------
              233   241          8     0.94         5      235 - 236 quartz-
                                                      carbonate-pyrite vuggy
                                                        silicified vein with
                                                       abundant disseminated
                                                                  sphalerite
    -------------------------------------------------------------------------
              243   253         10     0.76        73
    -------------------------------------------------------------------------
              254   261          7     1.08       290      quartz-carbonate-
                                                              pyrite veining
    -------------------------------------------------------------------------
              263   264          1     0.66        19   263-293m to EOH rock
                                                       texture is of a finer
                                                          grained silicified
                                                                     breccia
    -------------------------------------------------------------------------
              274   279          5     0.95       502     275 - 276m quartz-
                                                       carbonate-pyrite vein
                                                           with interlayered
                                                               black mineral
                                                              (arsenopyrite?)
    -------------------------------------------------------------------------
              281   286          5     0.63        32  strong silicification
                                                       of core from 284-291m
    -------------------------------------------------------------------------
              288   290          2     1.56        19  abundant fine grained
                                                        pyrite deposition at
                                                       margins of large 15cm
                                                                       clast
    -------------------------------------------------------------------------

    -   Minimum cut-off 0.50g/t Au
    -   Maximum of 2m internal waste
    -   No maximum cut-off applied
    -   Intersections for holes drilled at -600 represent approximate true
        width, except for narrow ((less than) 1cm) polymettalic quartz veins.
        The orientation of these veins to the core axis is noted in the
        comments. Intersections for holes drilled at -500 or -700 may
        exaggerate true width by up to 10%.
    -   Holes DDH157, 158 were drilled in PQ from surface to approximately
        100m depth and thence in HQ.
    -   Drilling was carried out by Radial Drilling with a Longyear 44 rig
    -   Core recovery was (greater than)95% except as noted
    -   Gold assays are by 50g Fire Assay carried out at ALS Chemex Brisbane
    





For further information:

For further information: ASG: John Blake, CEO, +617 3624-9000,
John.Blake@solomonsgold.com.au, Please note that the Head Office of ASG is
located in Queensland, Australia and is 15 hours ahead of Toronto time;
Investor Relations: Rebecca Greco, (416) 839 8610,
Rebecca.Greco@solomonsgold.com.au, (ASG's Investor Relations Manager -
Toronto); Michael Joyner, (416) 815-0700 x 275, mjoyner@equicomgroup.com, The
Equicom Group, Toronto, Canada

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