Australian Solomons Gold drilling expands gold mineralisation at Charivunga Gorge



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

    TORONTO, Oct. 23 /CNW/ - (TSX:SGA) - Australian Solomons Gold Limited
("ASG" or the "Company") today announced new drilling results from its 100%
owned Gold Ridge mine (the Project) located in the Solomon Islands.

    
    SUMMARY;

    -   Ongoing drilling in the Charivunga Gorge continues to confirm the
        potential of this new mineralised zone.

    -   Drilling continues with a goal of at least defining a stand-alone new
        pit in this zone or ultimately to prove up sufficient ore for this
        zone to merge with one or more of the currently planned pits. The
        zone has a strike extent of 300m, is up to 150m wide, and extends to
        at least 250m vertical depth. The zone remains open to the south and
        at depth.

    -   The expectation at Charivunga Gorge is for better average grades and
        for considerably better recovery than evident elsewhere, due to the
        lower levels of arsenic in this new zone.

    -   Fieldwork commences in preparation for a geophysical program to
        define further targets, and significant progress has been made with
        landowners in relation to the planned commencement of fieldwork on
        the Special Prospecting Licence.

    Other highlights of progress generally with the Project include:

    -   Restructuring and addition of resources for Community Relations
        activities, leading to further advancement of the proposed
        construction of the relocation villages required.

    -   The recent decision of the Solomon Islands Government to appoint a
        new Permanent Secretary to be responsible for coordination of
        government assistance to expedite the redevelopment of Gold Ridge.
    

    John Bovard, CEO of Australian Solomons Gold, said, "our recent drilling
results demonstrate extensive mineralisation potential between the pit areas.
An expanded system could significantly alter our mine plan by potentially
allowing the merger of one or more of the proposed pits into a one large pit.
Fieldwork and further testing on the property will continue to test this
possibility."

    Charivunga Gorge Mineralised Zone ("CMZ")

    Following the results of earlier drill holes in the Charivunga Gorge area
(released to the market on June 7, and July 3 2007) and the results of recent
drilling in this newly discovered mineralised zone, the Company has commenced
an extensive review of the total zone and its potential to add substantially
to the resources ounces of the Project and therefore improve the project
economics. Drilling of the zone continues.

    
    Recent drilling results include the following highlights:

    DDH150:

        -  18m @ 1.42 g/t Au from 59m
        -  7m @ 2.49 g/t Au from 274m
        -  6m @ 56.51 g/t Au from 326m

    DDH149:

        -  5m @ 1.54 g/t Au from 245m
        -  12m @ 4.82 g/t Au from 275m

    DDH148:

        -  17m @ 1.17 g/t Au from 0m
        -  11m @ 1.96 g/t Au from 66m

    Previous results (announced on June 7 and July 3, 2007) included the
following highlights

    DDH138:

        -  30m @ 1.62 g/t Au from 16m
        -  22m @ 1.8 g/t Au from 126m
        -  40m @ 2.15 g/t Au from 192m
        -  19m @ 1.31 g/t Au from 239m
        -  48.6m @ 3.04 g/t Au from 268m

    DDH139:

        -  9m @ 3.26 g/t Au from 164m
        -  12m @ 1.26 g/t Au from 242m
        -  11m @ 1.71 g/t Au from 255m
        -  28.9m @ 1.57 g/t Au from 276m

    DDH140

        - 7m @ 21.94 g/t Au from 232m
        - 26m @ 6.25 g/t Au from 314m
        - 39m @ 2.29 g/t Au from 342m
        - 17m @ 1.44 g/t Au from 382m
    

    A full tabulation of all the results from the recently drilled holes
DDH141 - 150 is included in the Appendix.
    In addition to the recent drilling, a series of bottle roll tests were
undertaken on samples from the CMZ. (These "bottle roll" tests are
metallurgical tests involving dissolving all of the recoverable gold over a
period of time on a larger sample than is usually taken for drill hole assay
which demonstrate how much gold can effectively be recovered in practice from
ore grade material) These have not only confirmed the high-grade assays but
have also demonstrated significantly better recoveries than estimated in the
four current pit designs (which varies from a low of 68% to an average of
82%). The CMZ has lower arsenic than the other ore bodies which results in
improved recovery of gold. It is anticipated that recoveries in any ore from
the CMZ would be in excess of 86%.
    Correlation between the grade estimated from the drill hole data and from
that revealed in the much larger samples processed through the bottle roll
procedure have been excellent.

    
    -------------------------------------------------------------------------
                                                                  Calculated
                                                        CN & tail  Composite
     Hole   Location   Interval m   As ppm  % recovery    g/t Au     g/t Au
    -------------------------------------------------------------------------
    DDH138   GORGE      214 - 219      32       89         6.37       4.28
    -------------------------------------------------------------------------
    DDH138   GORGE      297 - 302       3       87         4.07       5.10
    -------------------------------------------------------------------------
    DDH138   GORGE      304 - 309       3       90         8.27       5.55
    -------------------------------------------------------------------------
    DDH138   GORGE      312 - 313       6       93        32.85      45.10
    -------------------------------------------------------------------------
    DDH139   GORGE      164 - 165     156       80        20.76      22.70
    -------------------------------------------------------------------------
    DDH139   GORGE      218 - 223      99       80         4.39       5.13
    -------------------------------------------------------------------------
    DDH139   GORGE      243 - 248       3       91         2.64       1.94
    -------------------------------------------------------------------------
    DDH139   GORGE      255 - 260      18       93         7.35       2.59
    -------------------------------------------------------------------------
    DDH139   GORGE      261 - 266     625       97        11.37       1.06
    -------------------------------------------------------------------------
    DDH140   GORGE      318 - 323       7       89         3.58       2.77
    -------------------------------------------------------------------------
    DDH140   GORGE      324 - 325      46       89       119.75     104.00
    -------------------------------------------------------------------------
    DDH140   GORGE      330 - 335       2       91         8.81       3.09
    -------------------------------------------------------------------------
    DDH140   GORGE      335 - 340       6       89         2.39       3.17
    -------------------------------------------------------------------------
    DDH140   GORGE      318 - 323       7       89         3.58       2.77
    -------------------------------------------------------------------------
    DDH140   GORGE      324 - 325      46       89       119.75     104.00
    -------------------------------------------------------------------------
    DDH140   GORGE      330 - 335       2       91         8.81       3.09
    -------------------------------------------------------------------------
    DDH140   GORGE      335 - 340       6       89         2.39       3.17
    -------------------------------------------------------------------------
    DDH140   GORGE      348 - 353       7       93         2.87       3.04
    -------------------------------------------------------------------------
    DDH140   GORGE      356 - 361       8       94         3.09       3.02
    -------------------------------------------------------------------------
    (A full tabulation of these results is included in the Appendix)

    Further work is needed to prove up resources and potential reserves in the
CMZ and a review of this work is underway. An internationally recognized
epithermal gold consultant has been retained to review the data and to
recommend further exploration work.

    -   The location of drill holes in the CMZ are shown on the attached
        figure 1 together with a surface projection of the resulting gold
        grades.

    -   The CMZ is shown in relation to the four current pit designs in
        figure 2.

    -   Completed and planned drill holes are shown in figure 3.

    -   An aerial photo view of the project area with the CMZ in relation to
        the 4 current pit designs is shown in figure 4.
    

    Although further drilling is to be undertaken to better define the CMZ,
the comparison between the gold assay results undertaken so far and the
existing design pits can be seen in figure 2.
    Based on the drilling results to date the CMZ has the potential to add a
number of years of life to the project or possibly to justify a significant
upgrade of the existing plant with higher production of gold. The preferred
outcome will depend upon not only the results of future drilling in the CMZ
but also on other exploration activities being undertaken around the four
current pits designs. Significant increases in ore adjacent to the four pits
would increase the likelihood of an increase in production.
    At the present time the Company is continuing with its plans to refurbish
the existing plant with an increase of the throughput to 2.5 million tonnes
per annum producing on average 135,000 ounces per year of gold. A review of a
possible increase in throughput is anticipated to be some months off as the
exploration data progressively becomes available and confirms the Company's
expectations.

    
    Existing pits

    Drilling has continued in and around the existing pits although
necessarily as a lower priority than for the Gorge.

    Highlights include

    Valehaichichi

    DDH142:

        -  10m @ 3.38 g/t Au from 35m

    DDH143:

        -  18m @ 1.76 g/t Au from 10m
        -  9m @ 1.42 g/t Au from 74m

    DDH144:

        -  8m @ 1.02 g/t Au from 0m
        -  6m @ 1.34 g/t Au from 69m

    Namachamata

    DDH147:

        - 2m @ 4.2 g/t Au from 0m
        - 2m @ 4.25 g/t Au from 60m
        - 2m @ 3.92 g/t Au from 65m
    

    A number of the holes were targeted to infill the previous data in
anticipation of the mining. One of the holes (DDH146) was designed to
sterilise the area which will be covered by the haul road to be constructed to
access the early pits.
    Previously identified soil anomalies outside of the current pit
boundaries are being targeted and a program of geophysics is being mobilised
to seek out further potential targets. A program of clearing of lines across
the site is well advanced in anticipation of IP survey work. A number of
alternative contractors are being considered for this IP survey (given how
busy the industry is at the present time) in a bid to schedule the work and
acknowledging the impending wet season on site.
    A helicopter magnetic survey is also being considered in association with
other resource companies exploring tenements in the Solomon Islands.
    A specialist mapping consultant is also being brought to site to assist
with the definition of targets near the existing pits.
    The Company has allowed a budget for a second drill rig to be mobilised
to speed up some of the fieldwork but there is an industry wide shortage of
rigs and it is anticipated that the second rig will not be mobilised until a
number of targets are defined by the current fieldwork.
    The existing reserves base has been calculated on the basis of
US$550 gold. At current gold prices of around US$750 per ounce, preliminary
review of the modelling suggests that there could be a substantial increase in
the reserves resulting from this higher price. To rerun the computer models is
anticipated to take several months. Given that additional ore may be
discovered outside the periphery of the currently design pits as a result of
the ongoing drilling program, ASG has decided to defer the rerun of the
modelling until the additional potential beyond the existing pit peripheries
may be included.

    Special Prospecting Lease (SPL)

    The Company controls this SPL, covering some 130 square kilometres,
surrounding the Mining Lease. This area is considered highly prospective, but
historically has virtually no work undertaken on it. Under Solomon Islands law
a formal agreement of the landowners is required prior to fieldwork commencing
and significant progress was made in the past month towards finalising this
agreement.

    Community and Government Relations

    The on-site management team undertaking this work has recently been
restructured and additional resources provided. This has resulted in major
progress in commencement of the relocation village. This village will house
the people who have moved back into the mine lease area in the recent years.
    Most significantly the Solomon Island Government has recently advised
that they are appointing a Permanent Secretary with a fulltime responsibility
to expedite the re-opening of the Gold Ridge mine.

    To view figures/images please visit:
http://files.newswire.ca/351/ASGMaps.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 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

    
                                   APPENDIX
                                   --------

    Valehaichichi

        -  DDH141 was drilled in the Valehaichichi Pit to test for additional
           mineralisation beneath the highwall. The results are a little
           disappointing given the good intersections obtained to the N and S
           of this hole.

        -  DDH142 was drilled to test for extensions of mineralisation below
           the west Pit boundary but was abandoned at 96.2m due to hole
           caving and did not therefore adequately test an anticipated
           mineralised zone at depth. Within the Pit however grades were
           better than expected. A further hole to test this area is not
           justified as ground conditions are likely to result in down-hole
           problems.

        -  DDH143 and DDH144 were drilled about 30m apart at the southern
           limit of the VAL Pit. DDH143 intersected a better than expected
           broad mineralised zone within Pit limits but was a little
           disappointing below the planned Pit Floor. DDH144 further to the
           south intersected sporadic mineralisation in line with
           expectations.

    Namachamata

    Namachamata is the smallest of the four deposits discovered at Gold Ridge
to date, however it also contains the highest grade mineralisation.

        -  DDH145 was drilled to the west of the Namachamata planned Pit to
           test a high grade pod encountered in an old hole 25m to the south.
           No significant mineralisation was found.

        -  DDH146 is a sterilisation hole on the proposed haul road at North
           Namachamata. As expected the hole was barren apart from a small
           intersection of weakly mineralised material as noted below:

        -  DDH147 was drilled on the central eastern flank of Namachamata to
           test a high grade zone at the base of the planned Pit. The
           mineralisation encountered was of a lower tenor than expected.

    Charivunga Gorge

    Assays have been received for holes 5 - 7 in the current series of deep
holes drilled to test for continuity of mineralisation below the Charivunga
Gorge (DDH148, 149 & 150). Four holes have been previously drilled in this
area (DDH120, 138, 139 & 140).

        -  DDH148 was intended to test the Charivunga mineralised zone
           however was abandoned due to down hole issues at 85.3m. The hole
           was collared 40m east of the planned Namachamata pit and
           encountered 17m (9m true width) of near surface mineralisation,
           not surprising in light of the intense illegal mining activity
           taking place around the drill pad. There is some scope to expand
           the pit boundary in this location and to the south and further
           drilling will be required. It should be noted that extreme slope
           angles could make this difficult.

        -  DDH149 is located 100m N of DDH140 and was drilled from the
           western (opposite) side of the gorge. Mineralisation in this hole
           is reasonable with one very significant 12m intersection @
           4.82 g/t Au from a downhole depth of 275m.

        -  DDH150 is located 50m N of DDH 140 and was also drilled from the
           western side of the gorge. A number of broad mineralised zones
           occur but grades are relatively modest except for rare higher
           grade material associated with polymetallic veins. One such vein
           at 328m has resulted in a 1m assay @ 326 g/t Au.

    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.

    Assays

    Assays have been received for holes DDH 141 - 150:

    Table 1 Drill Hole Location
    -------------------------------------------------------------------------
     Hole No.   Location      Easting   Northing     RL    Azi   Dip   Depth
      (DDH)                                                          (Actual)
    -------------------------------------------------------------------------
       141    Valehaichichi   23974.7    41007.7   318.9   270   -60    85m
    -------------------------------------------------------------------------
       142    Valehaichichi  24021.49   40955.24  323.14   270   -60   96.2
    -------------------------------------------------------------------------
       143    Valehaichichi     24092   40805.01   316.9   270   -60   85.1
    -------------------------------------------------------------------------
       144    Valehaichichi  24077.95   40775.77  317.06   270   -60    111
    -------------------------------------------------------------------------
       145     Namachamata   23444.41   40720.71  488.86   270   -50  170.6
    -------------------------------------------------------------------------
       146     Namachamata   23666.45   40867.45  443.98   270   -60   66.2
    -------------------------------------------------------------------------
       147     Namachamata   23650.54   40717.27  421.14   269 -49.3  106.3
    -------------------------------------------------------------------------
       148  Charivunga Gorge 23625.44   40519.25  429.51    90   -50   85.3
    -------------------------------------------------------------------------
       149  Charivunga Gorge 23665.39   40562.31  430.26    91   -55  358.2
    -------------------------------------------------------------------------
       150  Charivunga Gorge 23624.06   40510.55  427.98    91   -50  356.3
    -------------------------------------------------------------------------

    Intersections include:

    Table 2 Assays
    -------------------------------------------------------------------------
    HoleID   From   To  Interval     Au     As    Comment
              (m)  (m)              g/t    ppm
    -------------------------------------------------------------------------
    DDH141      5    9         4    1.77   110    Minor quartz-carbonate
                                                  +/- sphalerite
                                                  + arsenopyrite vein
    -------------------------------------------------------------------------
               19   23         4    0.53   502    Disseminated pyrite
                                                  + marcasite? Along bedding
                                                  structures. Recovery 93.5%
    -------------------------------------------------------------------------
               25   26         1    1.45  2510    15cm fracture zone
    -------------------------------------------------------------------------
               30   34         4    0.75    31    Fg pyrite disseminated
                                                  along bedding
    -------------------------------------------------------------------------
               36   38         2    1.06   994
    -------------------------------------------------------------------------
               42   43         1    1.35  3560    Fg pyrite disseminated
                                                  along bedding. Recovery 93%
    -------------------------------------------------------------------------
               46   49         3    1.03  2647    Strong argillic alteration
    -------------------------------------------------------------------------
               53   55         2    0.94   230
    -------------------------------------------------------------------------
               68   69         1    3.63   380    Fg pyrite disseminated
                                                  along bedding
    -------------------------------------------------------------------------
               96   98         2    1.05  1172
    -------------------------------------------------------------------------
    DDH142      9   14         5    1.17   324    Puggy hbx. Fault Zone?
                                                  Minor arsenopyrite
                                                  Shattered quartz-calcite
                                                  veins
    -------------------------------------------------------------------------
               27   31         4    0.72   239    Fault Zone. Minor
                                                  arsenopyrite
    -------------------------------------------------------------------------
               35   45        10    3.38   155    Includes few fault zones
                                                  and 1m @10.75g/t Au from
                                                  40m. Recovery 91%
    -------------------------------------------------------------------------
               69   71         2    0.74   601
    -------------------------------------------------------------------------
               81   82         1    4.62   280    Fault zone. Recovery 91%
    -------------------------------------------------------------------------

               95 96.2       1.2    1.08    13    Recovery 94%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH143     10   28        18    1.76  1525    Intense argillic alt with
                                                  diss aspy. Recovery 93%
    -------------------------------------------------------------------------
               41   45         4     1.2   487    Intense argillic altered
                                                  fault zone. Recovery 94%
    -------------------------------------------------------------------------
               55   57         2    1.01   179
    -------------------------------------------------------------------------
               74   83         9    1.42  1811    variable alteration and
                                                  sporadic veining.
                                                  Recovery 92%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH144      0    8         8    1.02   579    Intense argillic
                                                  alteration. Recovery 48%
    -------------------------------------------------------------------------
               21   24         3    1.94  4550    Pyritic intensely clay
                                                  altered fault zone with
                                                  aspy
    -------------------------------------------------------------------------
               46   51         5    1.13   332    qtz-py-clay vein within
                                                  fault zone with
                                                  arsenopyrite
    -------------------------------------------------------------------------
               63   66         3    2.55  3102    qtz-carb open vuggy vein
    -------------------------------------------------------------------------
               69   75         6    1.34   500    Includes 1m @
                                                  4.56 g/t Au from 70m in
                                                  fault zone
    -------------------------------------------------------------------------
               79   82         3    0.92  1361    intense argillic alt with
                                                  fine grained diss py and
                                                  aspy
    -------------------------------------------------------------------------
               99  104         5    0.93    35    variable alteration and
                                                  lithology includes bedded
                                                  tuff
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    DDH145     62   64         2     0.7   435
    -------------------------------------------------------------------------
              152  153         1    1.33  5960    silicified, pyritised vein
                                                  with arsenopyrite
    -------------------------------------------------------------------------
    DDH146     22   29         7    1.04    56    Recovery 75%
    -------------------------------------------------------------------------
    DDH147      0    2         2     4.2  1036
    -------------------------------------------------------------------------
               60   62         2    4.25  4247
    -------------------------------------------------------------------------
               65   67         2    3.92    58
    -------------------------------------------------------------------------
               73   78         5    0.91    29
    -------------------------------------------------------------------------
               81   83         2    0.91   515
    -------------------------------------------------------------------------
               90   92         2    1.94     3
    -------------------------------------------------------------------------
              101  104         3    0.69     6
    -------------------------------------------------------------------------
    DDH148      0   17        17    1.17   793    0 - 10m fractured with
                                                  minor vein material,
                                                  14 - 16 fault zone with
                                                  sulphidic quartz infill
                                                  veining
    -------------------------------------------------------------------------
               49   53         4    1.56 18.25    Minor quartz veining
    -------------------------------------------------------------------------
               58   63         5    1.05  26.6    Minor polymetallic quartz
                                                  veining
    -------------------------------------------------------------------------
               66   77        11    1.97   301    Minor polymetallic quartz
                                                  veining
    -------------------------------------------------------------------------
    DDH149      0    1         1     1.2    73    Oxidised. Recovery 75%
    -------------------------------------------------------------------------
               74   81         7     0.9    17    Moderate clay alteration
    -------------------------------------------------------------------------
              127  131         4    0.66    14    Qtz-carb-py veining.
                                                  Recovery 86%
    -------------------------------------------------------------------------
              176  180         4    0.77    86    3-5cm wide carb-py-clay
                                                  zone with strong argillic
                                                  alteration
    -------------------------------------------------------------------------
              208  213         5    1.05   214    Qtz-py vuggy vein with
                                                  minor arsenopyrite at
                                                  208m & 3cm qtz-carb-py vein
                                                  at 212m
    -------------------------------------------------------------------------
              245  250         5    1.54   572    qtz-carb-py veins almost
                                                  parallel to bedding at
                                                  245-248m & shattered
                                                  qtz-py-aspy colloform bnded
                                                  vein at 248m. Recovery 94%
    -------------------------------------------------------------------------
              267  274         7    0.59   139    sporadic polymetallic
                                                  veining throughout.
    -------------------------------------------------------------------------
              275  287        12    4.82   335    Visible gold noted at 276m.
                                                  Includes 1m @
                                                  27.1 g/t Au from 279m
    -------------------------------------------------------------------------
              303  312         9    0.77    65    Minor qtz-carb-py veining
    -------------------------------------------------------------------------
              320  328         8    0.81    14    Moderate clay alteration,
                                                  sporadic qtz-py veining
    -------------------------------------------------------------------------
              346  350         4    1.15     5    Partly shattered pyritic
                                                  core, moderate propylitic
                                                  alteration. Recovery 94%
    -------------------------------------------------------------------------
    DDH150      0    5         5    0.92   515    0.5cm vein at 40 degrees to
                                                  core axis with quartz and
                                                  FeO fill. Recovery 75%
    -------------------------------------------------------------------------
               10   18         8    0.65    44    1cm polymetallic vein with
                                                  Sph,Gal at 70 degrees to
                                                  core axis. Recovery 90%
    -------------------------------------------------------------------------
               24   25         1     1.1   305    Polymetallic vein with
                                                  trace sph,gal. at
                                                  50 degrees to core axis.
                                                  Recovery 54%
    -------------------------------------------------------------------------
               31   33         2    2.84    41    Minor Qtz-Py veining
    -------------------------------------------------------------------------
               43   48         5    0.56     9    Minor Qtz-Py veining
    -------------------------------------------------------------------------
               55   56         1    1.36    24    Qtz-Carb vein @
                                                  60 degrees ACA.
                                                  Recovery 93%
    -------------------------------------------------------------------------
               59   77        18    1.42   853    Sporadic Qtz-Py veining
    -------------------------------------------------------------------------
               82   83         1    7.19    28    1cm polymetallic vein with
                                                  significant gal,sph, and
                                                  minor cpy with 10cm pyrite
                                                  rich clay envelope at
                                                  40 degrees to core axis.
    -------------------------------------------------------------------------
               88   90         2    1.34     2    1cm polymetallic Vein with
                                                  sph and gal at 60 degrees
                                                  to core axis.
    -------------------------------------------------------------------------
               93   98         5    0.78    23    Minor Qtz-Carb and Qtz-Py
                                                  veining
    -------------------------------------------------------------------------
              127  128         1    3.43  2990
    -------------------------------------------------------------------------
              135  141         6     0.9    13
    -------------------------------------------------------------------------
              143  152         9    0.92   131    Recovery 93%
    -------------------------------------------------------------------------
              153  163        10    0.73    69
    -------------------------------------------------------------------------
              169  171         2    1.02     4    Recovery 89%
    -------------------------------------------------------------------------
              187  189         2    1.16    22    Recovery 94%
    -------------------------------------------------------------------------
              211  212         1    1.04   300
    -------------------------------------------------------------------------
              274  281         7    2.49    10    Includes
                                                  1m @ 12.2 g/t Au from
                                                  274m
    -------------------------------------------------------------------------
              283  294        11    1.09   119    Recovery 94%
    -------------------------------------------------------------------------
              296  303         7    0.77    43
    -------------------------------------------------------------------------
              304  318        14    0.63    40
    -------------------------------------------------------------------------
              326  332         6   56.51    86    4cm polymetallic vein with
                                                  trace sph,gal and visible
                                                  gold at 20 degrees to core
                                                  axis. Includes
                                                  1m @ 336 g/t Au from
                                                  328m, recovery 92%
    -------------------------------------------------------------------------
              336  343         7    0.77     2
    -------------------------------------------------------------------------

        -  Minimum cut-off 0.50g/t Au
        -  Maximum of 2m internal waste
        -  No maximum cut-off applied
        -  Intersections 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.
        -  Holes 141 - 144, 146 - 148 were diamond core drilled in PQ from
           the surface to total depth. Holes DDH145, 149 & 150 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
    

    Bottle Roll Recoveries

    Samples were selected from three Charivunga Gorge holes where it had been
observed that As values were generally much lower than in the neighbouring
Namachamata deposit. For comparison purposes, a number of samples from
Namachamata displaying high As values were also selected.
    The variability in the two head grade assays is unusual. The correlation
between the original and duplicate assays is extremely poor. ALS reports
duplicate assays for our routine samples and the correlation is usually quite
good. Our conclusion is that the samples were not homogenous when the 50g Fire
Assay sample aliquots were taken for analysis. The correlation between total
gold for the cyanide leach samples (CNL + Tail) and the composite gold grades
(calculated from the original sample results) is far better than for the head
grade assays. ALS have used the entire 800 - 1000g sample for the CN assays
and thus variability of gold content within the sample has no affect on the
final assay.
    The recovery levels broadly indicate that the higher As values have a
depressing affect on recovery but some interesting anomalies exist. High gold
grade samples exhibit good recovery regardless of the As content. The reason
for this is that in high grade samples with high As content the majority of
the gold is free-milling (vein style mineralistion) while the arsenic is only
affecting a minor amount of the total gold. Two styles of mineralisation
obviously occur in such samples. Where As has a big affect is in the low to
medium grade material where the majority of the gold is associated with
disseminated pyrite and arsenopyrite.

    

    Table 3 Bottle Roll Recovery Testing
    -------------------------------------------------------------------------
                                                               Calculated
                                    As              CN & tail  Composite g/t
     Hole  Location   Interval m   ppm  % recovery    g/t Au         Au
    -------------------------------------------------------------------------
    DDH100   NAM       27 - 31    3463      72         34.81       42.79
    ------------------------------------------------------------------------
    DDH130   NAM       59 - 61    3620      45         10.07        8.19
    ------------------------------------------------------------------------
    DDH130   NAM       61 - 62    3010      88        102.10       63.00
    ------------------------------------------------------------------------
    DDH130   NAM       69 - 72    1719      24          3.68        2.98
    ------------------------------------------------------------------------
    DDH131   NAM       62 - 64      91      96         73.23       59.20
    ------------------------------------------------------------------------
    DDH131   NAM      99 - 103      47      87          3.26        3.63
    ------------------------------------------------------------------------
    DDH133   NAM       92 - 93      69      85         44.05       47.00
    ------------------------------------------------------------------------
    DDH133   NAM       93 - 98     686      58          1.79        1.76
    ------------------------------------------------------------------------
    DDH135   NAM       51 - 56      15      88          1.76        1.83
    ------------------------------------------------------------------------
    DDH135   NAM       75 - 80      20      91          1.50        1.80
    ------------------------------------------------------------------------
    DDH135   NAM     154 - 159       3      87          2.98        2.74
    ------------------------------------------------------------------------
    DDH138  GORGE      23 - 28     105      85          2.46        2.10
    ------------------------------------------------------------------------
    DDH138  GORGE    131 - 136    1423      31          3.37        2.86
    ------------------------------------------------------------------------
    DDH138  GORGE    136 - 141     690      64          2.91        1.78
    ------------------------------------------------------------------------
    DDH138  GORGE    153 - 158       8      88          1.92        1.84
    ------------------------------------------------------------------------
    DDH138  GORGE    175 - 180       1      92          2.46        1.77
    ------------------------------------------------------------------------
    DDH138  GORGE    204 - 209      11      88          2.16        2.41
    ------------------------------------------------------------------------
    DDH138  GORGE    214 - 219      32      89          6.37        4.28
    ------------------------------------------------------------------------
    DDH138  GORGE    252 - 257       6      89          2.55        1.70
    ------------------------------------------------------------------------
    DDH138  GORGE    274 - 279       3      88          2.12        1.73
    ------------------------------------------------------------------------
    DDH138  GORGE    297 - 302       3      87          4.07        5.10
    ------------------------------------------------------------------------
    DDH138  GORGE    304 - 309       3      90          8.27        5.55
    ------------------------------------------------------------------------
    DDH138  GORGE    312 - 313       6      93         32.85       45.10
    ------------------------------------------------------------------------
    DDH139  GORGE    164 - 165     156      80         20.76       22.70
    ------------------------------------------------------------------------
    DDH139  GORGE    166 - 171      13      87          1.37        1.42
    ------------------------------------------------------------------------
    DDH139  GORGE    218 - 223      99      80          4.39        5.13
    ------------------------------------------------------------------------
    DDH139  GORGE    227 - 232      29      83          1.62        1.66
    ------------------------------------------------------------------------
    DDH139  GORGE    243 - 248       3      91          2.64        1.94
    ------------------------------------------------------------------------
    DDH139  GORGE    255 - 260      18      93          7.35        2.59
    ------------------------------------------------------------------------
    DDH139  GORGE    261 - 266     625      97         11.37        1.06
    ------------------------------------------------------------------------
    DDH139  GORGE    270 - 272      22      36          1.38        5.28
    ------------------------------------------------------------------------
    DDH139  GORGE    277 - 282      55      68          1.84        1.67
    ------------------------------------------------------------------------
    DDH139  GORGE    286 - 291       3      77          2.28        2.28
    ------------------------------------------------------------------------
    DDH139  GORGE    293 - 298       3      91          2.04        1.91
    ------------------------------------------------------------------------
    DDH140  GORGE    238 - 239      22      89          0.72    148.00(xx)
    ------------------------------------------------------------------------
    DDH140  GORGE    318 - 323       7      89          3.58        2.77
    ------------------------------------------------------------------------
    DDH140  GORGE    324 - 325      46      89        119.75      104.00
    ------------------------------------------------------------------------
    DDH140  GORGE    330 - 335       2      91          8.81        3.09
    ------------------------------------------------------------------------
    DDH140  GORGE    335 - 340       6      89          2.39        3.17
    ------------------------------------------------------------------------
    DDH140  GORGE    342 - 347      21      86          1.77        2.85
    ------------------------------------------------------------------------
    DDH140  GORGE    348 - 353       7      93          2.87        3.04
    ------------------------------------------------------------------------
    DDH140  GORGE    356 - 361       8      94          3.09        3.02
    ------------------------------------------------------------------------
    DDH140  GORGE    361 - 366      17      88          1.50        2.24
    ------------------------------------------------------------------------
    DDH140  GORGE    373 - 378       8      91          1.96        2.43
    ------------------------------------------------------------------------
    DDH140  GORGE    387 - 392       5      92          2.39        2.19
    ------------------------------------------------------------------------
    DDH140  GORGE    393 - 398       4      93          2.65        1.91
    ------------------------------------------------------------------------

    -------------------------------
                 Head       Head
              Assay g/t  Assay g/t
     Hole          Au         Au
    -------------------------------
    DDH100       32.7       37.4
    -------------------------------
    DDH130       14.1      15.45
    -------------------------------
    DDH130       95.6        122
    -------------------------------
    DDH130       2.27       1.12
    -------------------------------
    DDH131        151        126
    -------------------------------
    DDH131       2.86       1.79
    -------------------------------
    DDH133       39.5       31.4
    -------------------------------
    DDH133       1.11       2.22
    -------------------------------
    DDH135       2.66       0.97
    -------------------------------
    DDH135       0.88       0.45
    -------------------------------
    DDH135       3.25       1.38
    -------------------------------
    DDH138       1.43       2.65
    -------------------------------
    DDH138       2.72       2.74
    -------------------------------
    DDH138       1.81       1.07
    -------------------------------
    DDH138       3.11       2.95
    -------------------------------
    DDH138       2.25       1.72
    -------------------------------
    DDH138       2.16       2.58
    -------------------------------
    DDH138       1.41       3.09
    -------------------------------
    DDH138       2.01       4.14
    -------------------------------
    DDH138       2.39          2
    -------------------------------
    DDH138        7.2       8.57
    -------------------------------
    DDH138       2.73       6.45
    -------------------------------
    DDH138        2.5         68
    -------------------------------
    DDH139       2.21       13.4
    -------------------------------
    DDH139       1.39       1.33
    -------------------------------
    DDH139       4.53       3.67
    -------------------------------
    DDH139       1.65       2.51
    -------------------------------
    DDH139       2.66       2.51
    -------------------------------
    DDH139        1.3       0.64
    -------------------------------
    DDH139       0.96       1.07
    -------------------------------
    DDH139       1.86       1.18
    -------------------------------
    DDH139       1.13       1.01
    -------------------------------
    DDH139       2.93       3.03
    -------------------------------
    DDH139       2.33       1.06
    -------------------------------
    DDH140       0.98        0.7
    -------------------------------
    DDH140          2       1.58
    -------------------------------
    DDH140        138        110
    -------------------------------
    DDH140       2.06       2.88
    -------------------------------
    DDH140       1.67       1.42
    -------------------------------
    DDH140        1.7       0.55
    -------------------------------
    DDH140       1.04       1.54
    -------------------------------
    DDH140       2.62       2.62
    -------------------------------
    DDH140       1.13       0.76
    -------------------------------
    DDH140       2.02       2.82
    -------------------------------
    DDH140       7.08       2.53
    -------------------------------
    DDH140       1.83       1.88
    -------------------------------

    - (xx) Appears the incorrect sample was submitted.
    -  625 As (greater than) 500ppm
    - 36 Recovery (less than) 85%
    

    %SEDAR: 00023730E




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: Rebecca Greco, (416) 839-8610,
rebecca.greco@solomonsgold.com.au, (ASG's Investor Relations Manager -
Toronto); 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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