Australian Solomons Gold Limited announces feasibility study results on the Gold Ridge Project



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

    BRISBANE, Australia, April 18 /CNW/ - Australian Solomons Gold Limited
(TSX:SGA) ("ASG" or "the Company") announced on April 16 2007 the results from
the Feasibility Study ("Study") on the Company's 100% owned Gold Ridge Project
located on Guadalcanal in the Solomon Islands.
    It has come to the Company's attention that there was an over-statement
of taxation payable in relation to project results which caused some errors in
the announcement of Study results. The affected tables are repeated herein and
the updated data highlighted to indicate where the errors occurred previously.

    
    On page 1 of the Announcement dated April 16, 2007:

    Highlights of the Feasibility Study

        Table 1 - Gold Ridge Feasibility Study - Base Case Highlights

        ---------------------------------------------------------------
        Mineral Reserve (Probable)       1.15 million ounces
        ---------------------------------------------------------------
        Metallurgical Recovery           82%
        ---------------------------------------------------------------
        Mine Throughput                  2.5Mtpa
        ---------------------------------------------------------------
        Mine Life                        7 years
        ---------------------------------------------------------------
        Production Schedule              2.5 Mtpa at 1.9g/t average
                                         870,000 ounces recovered
        ---------------------------------------------------------------
        Average Annual Production:
        -  Years 1 to 3                  136,000 ounces gold
        -  Life of Mine                  124,000 ounces gold
        ---------------------------------------------------------------
        Cash operating costs (*):
        -  Years 1 to 3                  US$344 per ounce
        -  Life of Mine                  US$388 per ounce
        ---------------------------------------------------------------
        Internal Rate of Return:
        -  Pre-tax                       27.6%
        -  After-tax                     23.9% (was 20.7%)
        ---------------------------------------------------------------
        Payback Period:
        - Pre-tax                        3.3 years
        - After-tax                      3.9 years (was 4.3 years)
        ---------------------------------------------------------------
        Pre-production capital(xx)       US$72.0 million
        ---------------------------------------------------------------
        (*) Cash operating costs include all mining, processing and
        administration costs, but exclude royalties (3% of gross revenue),
        sustaining capital, leasing of mine equipment, and mine closure
        costs.

        (xx) Pre-production capital includes allowances of US$5.3 million for
        price and scope accuracy provisions and US$3 million for project
        contingencies.


    On page 3 of the Announcement dated April 16, 2007:

    Financial Evaluation

        Table 4 - Gold Ridge - Base Case Financial Analysis Summary

        ---------------------------------------------------------------
        Project Data                     Study Outcomes
        ---------------------------------------------------------------
        Life of Mine                     7 Years
        ---------------------------------------------------------------
        Total Gold produced              870,000
        ---------------------------------------------------------------
        Total Ore mined                  17.3Mt
        ---------------------------------------------------------------
        Total Waste mined                27.5Mt
        ---------------------------------------------------------------
        Waste to Ore strip ratio         1.55:1
        ---------------------------------------------------------------
        Average gold grade to the mill   1.90g/t
        ---------------------------------------------------------------
        Average plant gold recovery      82%
        ---------------------------------------------------------------
        Base Case Gold price             US$650
        ---------------------------------------------------------------
        Average cash operating cost
         (per ounce)(*)                  $388
        ---------------------------------------------------------------
        Pre-production capital costs
         (including contingency)         US$72.0M
        ---------------------------------------------------------------
        Sustaining capital costs
         (including TSF expansion)       US$13.2M
        ---------------------------------------------------------------
        Pre-tax Cashflow (undiscounted)  US$102.3M
        ---------------------------------------------------------------
        After-tax net cashflow
         discounted at 0%                US$72.8M (was US$57.9M)
        After-tax net cashflow
         discounted at 3%                US$57.3M (was US$44.7M)
        ---------------------------------------------------------------
        Pre-tax Internal Rate of Return  27.7%
        After-tax Internal Rate
         of Return                       23.9% (was 20.7%)
        ---------------------------------------------------------------
        Payback Period (pre-tax)         3.3 years
        Payback Period (after tax)       3.9 years (was 4.3 years)
        ---------------------------------------------------------------
        (*) Cash operating costs include all mining, processing and
        administration costs, but exclude royalties (3% of gross revenue),
        sustaining capital, leasing of mine equipment, and mine closure
        costs.



    On page 4 of the Announcement dated April 16, 2007:

    Sensitivity Analysis

        Table 5 - Gold Ridge Sensitivity Analysis Summary

    ------------------------------------------------------------------------
    Project Data  Variation  Pre-Tax  After-Tax  After-tax NPV After-tax NPV
                   (US$)      IRR%       IRR%       @ 0%       @ 3%
                                                    (US$M's)      (US$M's)
    ------------------------------------------------------------------------
    Gold Price
    + 10%          $715      39.8%      34.6%        $108.4        $89.0
                                     (was 30.4%)  (was $87.9)   (was $71.4)
    Base Case      $650      27.7%      23.9%        $72.8         $57.3
                                     (was 20.7%)  (was $57.9)   (was $44.7)
    ------------------------------------------------------------------------
    Cash Operating
    Costs (US$/oz.)
    Base Case      $388      27.7%      23.9%        $72.8         $57.3
                                     (was 20.7%)  (was $57.9)   (was $44.7)
    - 10%          $349      34.9%      30.2%        $94.7         $76.6
                                     (was 26.6%)  (was $77.1)   (was $61.6)
    ------------------------------------------------------------------------
    Pre-production
    Capital
    Base Case      $72M      27.7%      23.9%        $72.8         $57.3
                                     (was 20.7%)  (was $57.9)   (was $44.7)
    - 10%          $65M      31.4%      27.2%        $77.1         $61.7
                                     (was 23.4%)  (was $60.4)   (was $47.5)
    ------------------------------------------------------------------------
    

    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

    Additional information is available on www.sedar.com and at the Company
website at www.solomonsgold.com.au

    %SEDAR: 00023730E




For further information:

For further information: ASG: David Roach, CFO, (617) 3624 9004 (office)
or cell (61) 416 153 788, david.roach@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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