D'Aguilar Gold Limited (ASX:DGR)
Brisbane, May 29, 2009 AEST (ABN Newswire) - The Directors of D'Aguilar Gold Limited (ASX:DGR) are mindful that many D'Aguilar shareholders are also shareholders of Solomon Gold plc, and therefore advise of research prepared for Solomon Gold plc by its appointed Broker Hanson Westhouse in London, UK.
D'Aguilar holds 3,055,557 shares or approximately 4.53% of Solomon Gold. D'Aguilar originally acquired its Solomons interests via Australian Resource Management Pty Ltd for a nominal consideration in 2001. ARM held extensive exploration assets on the island of Guadalcanal in Solomon Islands. The areas were taken up by ARM to explore for giant porphyry copper gold systems similar to the Panguna mine on Bougainville in neighbouring Papua New Guinea to the north. The tenements covered ground of similar geological characteristics with a number of key targets already outlined.
In February 2006 D'Aguilar floated its Solomon Islands exploration interests by transferring ARM to Solomon Gold plc which was newly incorporated and funded in a GBP5m raising accompanying admission to the AIM board of the London Stock Exchange. D'Aguilar distributed 10 million shares in Solomon Gold to its shareholders and has since acquired additional equity to bring its holding to the current levels. Solomon Gold completed several other raisings up to November 2008 and has expended approximately A$17m on the project, defining numerous promising targets and exploring several previously known targets, including 14,000 metres drilling at Sutakiki, (30 kms south east of the capital Honiara) the location of a promising intersection in a porphyry related skarn of 32m @ 9.45 g/t gold at the Valehailala Creek.
In March 2009 Solomon Gold farmed out the project area to Newmont Ventures, a wholly owned subsidiary of Newmont Mining Corporation Inc, in an agreement which could see Newmont earn a 70% interest by spending US$12 million on the project within 5 years.
Field work commenced within 3 weeks on a program and budget which will see expenditure of US$2m in the first year, on mapping, sampling, geophysics and drilling of approximately 2800metres of core. As well as the provision of funding, the Guadalcanal joint venture is drawing on the expertise of Newmont in porphyry exploration in the south west Pacific.
Solomon Gold is the Operator and Manager of the Project.
The work program is focusing on the Koloula Valley at the Chikora - Vurakara and Mbina prospect areas, and will also investigate the Vatuchichi, (Mbetilonga), Kuma and Chupukama prospects. Each of these target areas has considerable potential for the discovery of significant copper and gold resources.
Since the commencement of the field activities, the venture has outlined promising mineralization at Chupukama in Central Guadalcanal, where intrusive systems over 1km2 host core copper and peripheral gold mineralization and at Chikora - Vurakara where visually promising copper mineralization has been located over a broad area of 400 metres diameter. The area is currently the subject of detailed mapping and trenching activities.
Solomon Gold continues to hold a 100% interest in the gold project exploration licence on Fauro Island near Bougainville, and nickel exploration tenements on Ngella Island in the Florida's Group north of Honiara and on eastern Guadalcanal.
Details of the project and prospects including announcements, photos of field activities and recent discoveries of mineralization are located on the Solomon Gold website:
http://www.solomongold.com
Full copies of the releases made by Solomon gold may also be viewed at:
http://www.londonstockexchange.com/en-gb/pricesnews/prices/aimIndex.htm
Recently the Broker to Solomon Gold, Hanson Westhouse plc, visited the project in the Solomons and produced a comprehensive research report which rated the company as a "buy". The report will be available today on the D'Aguilar Gold website (http://www.daguilar.com.au) under Projects and then Solomon Gold. Solomon Gold currently has a market capitalization of approximately GBP4m (A$8M) at 6p per share.
D'Aguilar regards its holding in Solomon Gold as a core investment. The Managing Director of D'Aguilar, Mr Nicholas Mather is also a Director of Samuel Capital Pty Ltd the underwriter of the current D'Aguilar Share Purchase Plan which closes on 5th June 2009. Details of the SPP have been previously announced and are set out in the table below. Mr Mather is also the CEO and a substantial shareholder of Solomon Gold plc.
Key Dates for the D'Aguilar Gold Limited Share Purchase Plan
-----------------------------------------------Shares commence trading onASX on an ex basis Tue 7 April 2009Record Date of the Plan Wed 15 April 2009Opening Date of the Plan Wed 22 April 2009(Revised) Closing Dateof the Plan Fri 5 June 2009Shortfall Applications andfunds received from theunderwriters of the Plan Mon 15 June 2009Issue and Allotment of newshares under the Plan Fri 19 June 2009-----------------------------------------------
Contact
Mr Nicholas Mather
Managing Director
Tel: +61-7-3303-0680
Mob: +61-417-880-448
Mr Greg Runge
General Manager
Tel: +61-7-3303-0680
Mob: +61-418-546-739
or at info@daguilar.com.au
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