| Solomon Acquires Eyapamikama Lake VMS Project In NorthWest Ontario |
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Vancouver, Canada, October 3, 2006 Solomon Resources Limited (SRB:TSX-V) is pleased to announce that it has signed a Letter of Intent (LOI) with Energold Minerals Inc. (Energold), a private company based in Toronto, Ontario, and Northern Dynasty Minerals Ltd (NDM:TSX-V; NAK:AMEX) based in Vancouver, British Columbia, whereby Solomon will have the right to earn, subject to TSX Venture Exchange approval and the execution of a formal option agreement, up to a 60% interest in the Eyapamikama Lake polymetallic volcanic massive sulphide (VMS) project. The 32 claim Eyapamikama Lake property (formerly the Arseno Lake Property) is located in the Patricia Mining Division of Northern Ontario, roughly 170 km. north of Pickle Lake. Eyapamikama Lake is a drill-ready VMS project that provides Solomon with an excellent opportunity to discover additional massive sulphide mineralization. Gossanous polymetallic mineralization in the main showing area has reported assays of up to 3.6% zinc, 4.9% lead, 277.7 g/t silver and 1.10 g/t gold across a true width of 1.1 metres. A total of 30 core drill holes totaling 4,139 metres were completed in three phases on the property in 1987-88 and was focused along a 2 kilometre section of the 4 kilometre zone of favourable host geology. Mineralization at Eyapamikama Lake is open in all directions with excellent potential for new discoveries provided in the following three areas:
The Eyapamikama Lake property is located within the northwest portion of the east-west trending Archaean North Caribou greenstone belt. The property is situated along the north rim of an east-west trending synclinorium that is rimmed by steeply north dipping metavolcanic rocks surrounding a metasedimentary core. Within the property, base and precious metals massive to disseminated sulphides are hosted along a 4 kilometre section of a 450 to 700 metre wide ductile shear zone, referred to as the Active Zone. The Active Zone occurs along the contact between mafic volcanic rocks to the north and phyllitic metasedimentary rocks to the south. The Active Zone contains sheared metavolcanic and metasedimentary rocks, including lenses of iron formation, and hosts base and precious metal mineralization. The base metal mineralization generally occurs in close association with grunerite iron formation, composed of several broadly continuous lenses of recrystallized quartz grunerite, magnetite and variable associated sulphides (pyrrhotite, pyrite, sphalerite, galena, arsenopyrite and chalcopyrite). Minor, cross-cutting quartz-tourmaline veins also host gold on the property. A lithogeochemical study undertaken on samples collected from the core in 2000 and 2002, verified a genetic model that recognizes the base metal mineralization and associated alteration are the result of syn-volcanic activity (Tremblay, 2002). Similarities in alteration, host lithology and mineralization identified in this work established the Geco massive sulphide deposit in Manitouwadge, Ontario (~45 million tonnes) as a valid geological model for continued exploration work on the Eyapamikama Lake property. Historic drill results from the Eyapamikama Lake project include:
Results quoted from Northern Dynasty (1987, 1988 & 1989) Massive sulphide mineralization was first discovered on the property in 1984 by Dunlop Exploration, a partnership working as operators to the Ontario Gold Joint Venture (OGJV: Dunlop, Northern Dynasty and Newfields Minerals Inc.). Westfield Minerals Limited joined the OGJV in 1985. Early work, including localized geological mapping, prospecting, rock and soil sampling and EM-16 and magnetometer surveys undertaken in 1985, focusing mainly on iron formation hosted gold mineralization. In 1986, detailed geological mapping, geochemical and Max/Min geophysical surveys helped delineate the massive sulphide target and were followed up with 25 core drill holes in 1987 and 5 additional holes in 1988. In 1989 Newfields surrendered its participation in the OGJV. Energold became involved in 1993, replacing Norwest Mineral Limited (formerly Westfield). Three small programs of lithogeochemical sampling and whole rock analysis were undertaken in 2000, 2002 and 2004 using old drill core to satisfy assessment requirements. The Eyapamikama Lake property is the only remaining asset subject to the OGJV. Solomon is currently completing a small (11 line-kilometre), detailed Max/Min geophysical survey over the Central and West Central Zones in preparation for a major winter drill program planned for early 2007. General Terms of the Solomon-Energold-Northern Dynasty Agreement Solomon, as the operator, has agreed to fund an initial exploration program of at least $25,600 by October 12, 2006 in exchange for an exclusive option to elect to earn a minimum 50% interest in the Property. Prior to January 31, 2007, Solomon can notify Energold and NDM of its intent to exercise the option and Solomon, to earn a 50% interest, must:
At Solomons option exercised before January 31, 2009, it can earn an additional 10% interest in the Property, to a total 60%, by:
The property is subject to a 2 kilometre Area of Interest. The Eyapimikama Lake Project is subject to an underlying bonus payment scheme payable to Dunlop Explorations (Dunlop). Dunlop has accepted an agreement in principle whereby Dunlop will receive retention bonus payments of 1% of the annual project field costs, to a cumulative maximum total of $30,000. Solomon will assume all responsibility for payment of the Dunlop bonus payments. Dunlop also holds a 2.5% Net Profits Interest in the Eypamikama Lake project Qualified Person under National Instrument 43-101 Solomons Vice-President, Exploration, David Tupper, P.Geo., a qualified person for the purposes of National Instrument 43-101, has reviewed the contents and technical information contained in and supervised the preparation of this news release. Mr. Tupper has conducted a detailed review of the historic data, including reviews of the original analytical and drill data. He has not conducted any independent sampling of the property nor, other than working on the site in 1985, he has not visited the site during this recent review period. Forward Looking Statements Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Solomon Resources Ltd. Actual results may differ materially from those currently anticipated in such statements About Solomon Resources Ltd. Solomon Resources Ltd. is a Canadian public company focused on the acquisition, exploration and development of gold properties world wide. The Company is managed by a proven team of exploration geologists credited with the discovery and/or development of a number of significant deposits in the world, including the SNIP, Eskay Creek, and Brewery Creek deposits in Canada, the Segala gold deposit in Mali, the Chimney Creek, Mule Canyon, Ruby Hill, Mesquite, and Ortiz gold deposits in the United States, the Gosowong deposit in Indonesia, and the Cadia East deposit in Australia. Solomon has significant gold exploration projects in Mongolia and Australia. Solomon is a TSX Venture Exchange (TSX-V) tier one company and its shares trade under the banner SRB. For additional information visit Solomons website at www.solomonresources.ca. On Behalf of the Board of Directors of
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