Australian Solomons Gold - Further drilling expands gold mineralisation and confirms Charivunga Gorge as a highly prospective new zone



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

    (TSX:SGA)

    TORONTO, June 8 /CNW/ - Australian Solomons Gold Limited ("ASG" or the
"Company") today announced new drilling results from its 100% owned Gold Ridge
mine located in the Solomon Islands.
    A diamond drilling program initiated in September 2006 was recently
completed. Thirty-seven holes were drilled (DDH104 - DDH140), totalling
4,536m. To date, assay results have been received for all holes up to and
including DDH139. This release details results for 8 drill holes (DDH132 -
DDH139) completed since the previous news release of May 10 2007. Six of these
holes are located in an area extending 150m south from the southern margin of
the planned Namachamata Pit while two holes (DDH138 and DDH139) test the
south-western part of Charivunga Gorge. These holes include multiple
intersections totalling 212m and 93m of gold mineralisation in excess of
0.5 g/t gold respectively.
    John Bovard, CEO of Australian Solomons Gold said, "these most recent
drill results are seen as being highly favourable to an extension of current
pit designs for Namachamata and Kupers, as well as indicating significant
potential for further higher grade targets of mineralisation in Charivunga
Gorge. This newly identified, highly prospective zone in the Gorge could
extend to the current pit boundaries on either side. Extensions of this newly
discovered zone may contain potentially economic mineralisation with further
drilling." Assay results are pending for DDH 140, the last hole drilled in the
Gorge in the recently completed drilling program.

    
    -  Namachamata: The presence of two mineralisation styles has resulted in
       higher average gold grades and the greater likelihood of additional
       resource tonnes. Further drilling in this area is being planned as
       mineralisation has not been closed off by the recent holes.

    -  Charivunga Gorge: DDH138 is the most consistently mineralised deep
       diamond drill hole completed to date at Gold Ridge. Mineralisation is
       persistent to a depth from surface of at least 250m. Approximately
       two-thirds of the 316.6m deep hole is mineralised above the cut-off
       used (0.5g/t Au) and the hole terminates in mineralisation. The
       average grade of the mineralised section is 212 meters at 2.05 g/t and
       the highest 1m gold grade is 45.1g/t. DDH 139 drilled from a location
       50m north and 90m east (due to access limitations) intersected the
       lower portion of the same mineralised zone with the last 80m of the
       hole averaging 1.55 g/t Au.

       These two holes have defined a west dipping mineralised zone up to
       150m wide, extending from surface to at least 250m vertical depth with
       a probable strike extent of at least 220m in a NE - SW direction. The
       zone lies between the Namachamata and Kupers pits and is open along
       strike in both directions and at depth. A strong potential exists for
       ASG to define additional open pit resources at this prospect.

    A table of recent assay results from drilling at Gold Ridge and drill hole
location details are outlined in the Appendix. In addition a more detailed
description of highly significant results for DDH138 is detailed in the
Charivunga Gorge section.

    To view the Charivunga Gorge cross-section diagram and the map of ASG
    Drillholes with four 2007 drilled Gorge holes, please, consult:

    http://files.newswire.ca/351/Charivunga_Gorge.doc

                                   APPENDIX
    

    Further Drilling

    A 4 hole, 400m follow-up drilling program is currently under way in the
Valehaichichi Pit, testing high grade zones encountered in the recently
completed program. Four additional holes have been planned for the north and
west of Namachamata to test for extensions of mineralisation encountered in
previous drilling. Once the assay results become available for the final hole
of the recent program (DDH140), planning of additional holes at south
Namachamata and the adjacent Charivunga Gorge will be undertaken.

    Namachamata

    Namachamata is the smallest of the four deposits discovered at Gold Ridge
to date, however it also contains the highest grade mineralisation. The
recently completed drilling at Namachamata was designed to test for strike and
down dip extensions of the mineralisation beyond the current pit design.
    All six holes encountered gold mineralisation and the steeply dipping
vein mineralisation is likely to represent narrow feeder structures and
becomes more intense towards the deeply incised Charivunga Gorge area to the
south west of Namachamata. A transition from the existing mineralisation style
is evident, consisting of disseminated, sub-horizontal mineralisation
associated with argillic alteration and steeply dipping vein mineralisation
accounting for higher gold grades.

    Charivunga Gorge

    Assays have been received for the second and third deep holes drilled in
the Charivunga Gorge (DDH138 & 139). Four holes have been drilled in this area
(DDH120, 138, 139 & 140) to test the central 400m section for continuity of
mineralisation.

    As noted earlier DDH138 is the most consistently mineralised deep diamond
drill hole so far completed at Gold Ridge. It was drilled from a ridge on the
Kupers side of the Charivunga Gorge towards the west at a 60 degrees dip.
Previous drilling in this area is sparse due to the difficulty of access which
in turn resulted in little previous geological investigation. Two holes were
drilled by ASG during 2005 (DDH032 & 033) which both returned significant
mineralised intersections. DDH033 was drilled from the same site as DDH138 but
in a north-westerly direction while DDH032 was drilled from a site 150m due
west of DDH138 towards the south-east. Local miners have carried out sporadic
small-scale mining of oxidised outcrops at a number of sites in the immediate
area and panning of river gravels along the Charivunga River.

    Geology: The upper part of the hole is a fairly uniform banded fine
grained tuff or tuffaceous sandstone. Fine carbon fragments, though not
abundant, are evident as thin laminations and indicate consistent near
horizontal bedding. From 40m depth the lithology is mainly pebble to cobble
conglomerate with sporadic thin units of banded tuff to the end of the hole at
316.6m. Some of the conglomerates are matrix supported units with a fine mud
matrix which are generally unmineralised. Some narrow fracture zones are
probably indicative of faulting but are not common and movement is likely to
be minor.

    Mineralisation: Gold mineralisation is present throughout the hole from
surface to total depth at 316.6m. Approximately two thirds of the hole is
mineralised above the cut-off used (0.5g/t Au) and the hole terminates in
mineralised volcanoclastic conglomerate. The average grade of the entire hole
is 1.45g/t Au and the highest 1m gold grade is 45.1g/t.
    The broad mineralised zones are associated with disseminated fine pyrite
in argillic altered lithologies. The argillic alteration is only rarely
intense while pyrite concentrations are in the 3 to 5% range. Only one zone of
elevated arsenic levels occurs from 131m to 138m depth associated with
disseminated mineralisation. Elsewhere all mineralisation exhibits low
arsenic, thus gold recovery should be high for all intersections apart from
this one minor interval. Some mineralised zones are associated with propylitic
altered material with a very weak argillic overprint but pyrite is more
abundant than in adjacent barren propylitic altered conglomerates. The
disseminated style of mineralisation is interpreted to have occurred in
lithologies with higher primary porosity and is therefore likely to be near
horizontal throughout the entire hole.

    Mineralisation Model: Data from drill holes at the southern end of
Namachamata, the previous deep drill holes in the Charivunga Gorge and the
northern end of Kupers, suggest a mineralised corridor about 150m wide
trending toward the North-East below the Charivunga Gorge. Mineralisation is
persistent to a depth from surface of at least 250m and is of a bulk near
horizontal disseminated style associated with fine pyrite in argillic altered
material. Higher grades are mainly restricted to steep westerly dipping thin
pyritic and polymetallic quartz-carbonate veins. These veins can be present in
all lithologies and alteration styles and intensity.
    DDH139 was drilled from a site about 120m East-North East of DDH138
towards the West at a 60 degree dip (same as DDH138). The upper portion of the
hole contains sparse mineralisation but from 218m depth to the end of the hole
at 304.8m encounters very similar mineralisation and average grades to DDH138.
This final 86.8m section of DDH139 averages 1.55g/t Au and helps confirm the
North-Easterly trend of the mineralized zone seen in DDH139.

    
    Assays

    Assays have been received for holes DDH 132 - 138:

    -------------------------------------------------------------------------
    Hole ID    Location           Easting    Northing      RL      Depth (m)
    -------------------------------------------------------------------------
    DDH132     Namachamata        23600.83   40477.67    438.76      69.2
    -------------------------------------------------------------------------
    DDH133     Namachamata        23601.67   40478.06    438.53     153.2
    -------------------------------------------------------------------------
    DDH134     Namachamata        23572.47   40459.76    431.23      89.8
    -------------------------------------------------------------------------
    DDH135     Namachamata        23656.20   40351.27    418.10     176.8
    -------------------------------------------------------------------------
    DDH136     Namachamata        23619.33   40392.30    420.78      84.1
    -------------------------------------------------------------------------
    DDH137     Namachamata        23600.95   40499.03    439.15      84.1
    -------------------------------------------------------------------------
    DDH138     Charivunga Gorge   23817.30   40324.63    400.40     316.6
    -------------------------------------------------------------------------
    DDH139     Charivunga Gorge   23909.56   40370.19    386.83     304.8
    -------------------------------------------------------------------------

    Intersections include:

    -------------------------------------------------------------------------
             From    To           Au
    Hole ID   (m)    (m)  Width   g/t     Comment
    -------------------------------------------------------------------------
    DDH132     0      2     2    1.16   Recovery 80%
    -------------------------------------------------------------------------
               9     12     3    1.20   Flat diffuse aspy vein also seen in
                                        DDH133 at 9-10m. Recovery 60%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH133     6     11     5    1.66   Recovery 39%
    -------------------------------------------------------------------------
              22     26     4    0.77   Recovery 80%
    -------------------------------------------------------------------------
              30     32     2    1.22
    -------------------------------------------------------------------------
              49     56     7    1.43   1cm qtz-carb-spl-aspy vein 20deg dip
                                        at 49m, 1cm qtz-carb minor spl-gal
                                        vein 15deg dip at 55m
    -------------------------------------------------------------------------
              82     86     4    1.70   1.5cm polymetallic qtz-carb vn 20deg
                                        dip associated with strong clay
                                        alteration at 85m
    -------------------------------------------------------------------------
              92    106    14    4.72   includes 1m @ 47.0g/t Au from
                                        92-93m, few 1cm base metal veins with
                                        15-20deg dips
    -------------------------------------------------------------------------
             111    116      5   0.65
    -------------------------------------------------------------------------
             135    139      4   1.12   1cm aspy-qtz vein at 136m, 2mm
                                        qtz-carb vein 15deg dip at 138m
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH134     0      4      4   1.13   Recovery 41%
    -------------------------------------------------------------------------
              13     14      1   6.46   1-3mm qtz-py stockwork style veins
    -------------------------------------------------------------------------
              18     30     12   1.83   includes 1m @ 15.45g/t Au from
                                        27-28m, numerous fault zones with
                                        aspy-qtz-py vein fragments.
                                        Recovery 92%
    -------------------------------------------------------------------------
              65     68      3   0.96
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH135    17     19      2   0.81   Minor calcite veining
    -------------------------------------------------------------------------
              23     24      1   1.55   2cm qtz-carb-pyrite vein
    -------------------------------------------------------------------------
              29     32      3   1.17   Qtz-calcite-pyrite + trace sphalerite
                                        vein at low angle to core axis,
                                        less than 2cm
    -------------------------------------------------------------------------
              45     58     13   1.41   Qtz-pyrite +/- sphalerite veining at
                                        43-44m, 49-50m, 51-52m, 55-56m,
                                        (less than) 2cm
    -------------------------------------------------------------------------
              59     62      3   0.58   Quartz-carb +/- trace sphalerite,
                                        +/- visible Au veining,
                                        (less than) 2cm
    -------------------------------------------------------------------------
              75     82      7   1.44   Quartz-pyrite +/- sphalerite veining,
                                        trace visible Au, recovery 93%
    -------------------------------------------------------------------------
              94     95      1  13.35   Quartz-pyrite +/- sphalerite veining,
                                        visible Au
    -------------------------------------------------------------------------
             117    126      9   1.42
    -------------------------------------------------------------------------
             130    131      1   0.93
    -------------------------------------------------------------------------
             150    164     14   1.43   Includes 1m @ 8.88g/t Au at 158m,
                                        minor qtz-pyrite +/- sphalerite
                                        veining, visible Au, low angle to
                                        core axis
    -------------------------------------------------------------------------
             166    167      1   0.60
    -------------------------------------------------------------------------
             171  176.1    5.1   0.56   Clay altered fault zone
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH136    23     25      2   0.83   Minor quartz veining
    -------------------------------------------------------------------------
              30     32      2   1.26
    -------------------------------------------------------------------------
              55     58      3   0.70   Clay altered fault zone
    -------------------------------------------------------------------------
              65     66      1   2.98
    -------------------------------------------------------------------------
              76     79      3   0.84   Clay altered pyritic fault zone
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH137     0      2      2   2.03
    -------------------------------------------------------------------------
               8     11      3   3.88   includes 1m @ 10.0g/t Au from
                                        10 - 11m in clay altered fracture
                                        zone. Recovery 56%
    -------------------------------------------------------------------------
              16     18      2   0.90   Recovery 91%
    -------------------------------------------------------------------------
              31     35      4   1.41   thin base metal sulphide veins in
                                        clay altered fracture zone.
                                        Recovery 94%
    -------------------------------------------------------------------------
              46     52      6   1.04   clay altered part fractured zone,
                                        restricted minor silicification and
                                        bedding conformable pyritic zones
    -------------------------------------------------------------------------
              66     69      3   0.93   minor qtz-carb veining
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH138     0      3      3   2.87   Oxide tuffaceous sandstone
    -------------------------------------------------------------------------
               6     10      4   2.04   Oxide tuffaceous sandstone.
                                        Recovery 94%
    -------------------------------------------------------------------------
              16     46     30   1.62   Argillic altered pyritised laminated
                                        tuff, rare thin veining, 2cm
                                        polymetallic banded qtz vein at
                                        36-37m @ 13.6g/t Au
    -------------------------------------------------------------------------
              58     67      9   2.14   Argillic altered pyritic tuff and
                                        pebble conglomerate, fault zone at
                                        65m coincides with 1m @
                                        12.95g/t Au
    -------------------------------------------------------------------------
              79     96     17   1.08   Argillic altered pyritic tuff, very
                                        minor veining
    -------------------------------------------------------------------------
             111    114      3   2.02   Argillic altered pebble conglomerate
                                        with moderate to steep dipping 1cm
                                        qtz-carb-pyrite vein at 112m.
                                        Recovery 94%
    -------------------------------------------------------------------------
             126    148     22   1.80   Argillic altered, moderate
                                        disseminated pyrite, 2cm qtz-pyrite
                                        vein moderate to steep dip.
                                        Recovery 84%
    -------------------------------------------------------------------------
             151    159      8   1.75   As above, rare flat veins
    -------------------------------------------------------------------------
             175    183      8   1.43   Propylitic altered with weak argillic
                                        overprint
    -------------------------------------------------------------------------
             192    232     40   2.15   Variable alteration in interbedded
                                        conglomerate and tuff, sporadic thin
                                        veins
    -------------------------------------------------------------------------
             239    258     19   1.31   Argillic altered pyritic
                                        pebble-cobble conglomerate, minor
                                        tuff band, 2mm quartz pyrite vein
                                        parallel to bedding
    -------------------------------------------------------------------------
             268  316.6   48.6   3.04   Propylitic to weak clay altered,
                                        pyritic conglomerate and tuff, high
                                        grades related to sporadic moderate
                                        to steep dipping polymetallic veins
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH139    14     17      3   1.54
    -------------------------------------------------------------------------
              43     46      3   1.41
    -------------------------------------------------------------------------
             147    148      1   3.65   Intense argillic alteration
    -------------------------------------------------------------------------
             157    161      4   0.86   Recovery 93%
    -------------------------------------------------------------------------
             164    173      9   3.62   Includes 1m @ 22.7g/t Au from 164m
                                        in polymetallic vein
    -------------------------------------------------------------------------
             218    224      6   4.37   Includes 1m @ 15.75g/t Au from
                                        221m in 2cm polymetallic vein
    -------------------------------------------------------------------------
             227    240     13   1.05
    -------------------------------------------------------------------------
             242    254     12   1.26
    -------------------------------------------------------------------------
             255    266     11   1.71   Visible gold at 255m. Recovery 92%
    -------------------------------------------------------------------------
             270    272      2   5.28   Visible gold in 3cm polymetallic vein
    -------------------------------------------------------------------------
             276  304.8   28.8   1.57   Sporadic thin veins with sphalerite
                                        and galena
    -------------------------------------------------------------------------

    -  Minimum cut-off 0.50g/t Au
    -  Maximum of 2m internal waste
    -  No maximum cut-off applied
    -  Intersections represent approximate true width, with the exceptions of
       DDH133, 135 & 138 where some of the mineralisation may be confined to
       steeply dipping veins
    -  All holes were diamond core drilled in PQ from the surface to total
       depth except for DDH138 & 139 which 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
    

    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 2008.

    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





For further information:

For further information: ASG: John Bovard, CEO, +617 3624 9003 (office),
or cell +61 (0)423 607290, john.bovard@solomonsgold.com.au; Please note that
the Head Office of ASG is located in Queensland, Australia and is 14 hours
ahead of Toronto time; Investor Relations: Martti Kangas, (416) 815-0700 x 243
mkangas@equicomgroup.com; Michael Joyner, (416) 815-0700 x 275,
mjoyner@equicomgroup.com, The Equicom Group, Toronto, Canada

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AUSTRALIAN SOLOMONS GOLD LIMITED

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