| Solomon Acquires Five New Mongolian Uranium Properties |
|
Vancouver, Canada, June 15, 2006 Solomon Resources Ltd. (SRB:TSX-V) is pleased to announce it has recently been granted five new mineral exploration licence blocks in Mongolia to cover areas of significant potential for the discovery of uranium. The central Mongolia Airag-1, Airag-2 and Airag-3 properties and the Eastern Mongolia Matad-1 and Matad-2 properties are all 100% Solomon acquisitions, licensed to Solomons new 100% subsidiary SRM XXK Solomon Resources Mongolia (announced in news release January 23, 2006). Solomon has also acquired the Khar Uul copper-gold property in northwest Mongolia through a purchase option agreement. The 2006 exploration budget for Mongolia has also been approved by the Solomon Board of Directors. A total budget of $210,000 will be expended, primarily on detailed geological and lithogeochemical survey work intended to assist in defining drill targets at Bayantsaagan, Chandman and Khar Uul. Work will also focus on detailed auto-gamma spectrometric ground surveys of Solomons five new uranium properties. The budget includes up to $55,000 for work on generative and potential new uranium property acquisitions. The budget will be financed from cash accounts currently held by Solomon. New Property Acquisitions Acquisition of the Airag and Matad uranium properties and the Khar Uul copper-gold property are the initial outcomes of a program of property identification and acquisition begun in February, 2006 that is intended to:
The Airag-1, Airag-2 and Airag-3 and Matad-1 and Matad-2 (11,355 ha; Dornot Province) properties were acquired based on the presence of coincident 1987 Russian airborne radiometric anomalies, prospective regional geological settings and proximity to known uranium occurrences. Field visits made by Solomon geologists in May have identified significant ground radiometric anomalies on the Airag-2 and Matad-1 properties, as described below. Airag-2 Uranium Property The Airag-1, -2, & -3 properties are located in east-central Mongolia near to the town of Airag in the Dornogovi Province, between 335 and 380 km southeast of Ulaanbaatar. The town of Airag has good power supply and is located along the Mongolia-China highway and railroad line. The Airag-2 property totals 6,433 ha bordering just west of the Mongolia-China railroad line within the highly prospective Ulann Nurr sedimentary depression. The property is underlain by Cretaceous sedimentary rocks to the south and Palaeozoic granites to the north. Potential for near-surface sediment-hosted, uranium deposits are indicated based on proximity to known uranium occurrences to the west and significant preliminary auto-gamma-spectrometric anomalies identified by Solomon field crew in May, 2006. Results from a total of seventeen preliminary field stations produced total counts of between 2,000 & 3,000 counts per second (cps) and equivalent uranium grades of up to 4.8 ppm using a GR320 Spectrometer. Matad-1 Uranium (Coal) Property The 7,722 ha Matad-1 property is located 2 km east of the former coal producing town of Matad in Dornod province, roughly 640 km east-southeast of Ulaanbaatar. Located along the northern rim of coal-bearing Mesozoic sedimentary basin, the property is highlighted by a 1972 Russian airborne gamma spectrometry uranium anomaly No.37 where total radioactivity measures between 60-2000 μR/hour. Potential for uranium mineralization has been demonstrated near the contact between Lower Cretaceous intermediate to felsic volcanic rocks of the Bayanhailaast Formation and underlying micaceous Devonian shale. A field visit made to the property by Solomon geologists in May 2006 produced preliminary spectrometric measurements of up to 1900 counts per second from the rhyolite-shale contact using a 0.35 litre Exploranium GR320 spectrometer. The property also has the potential to host coal within sedimentary sequences of the Lower Cretaceous Bayantsogt Formation; from which approximately 240,000 tonnes of lignite coal was produced during the 1940s at the Matad underground mine. Summary details for the Airag-1 & -3, and Matad-2 properties are provided below:
Licences for each of Solomons new Airag-1, -2, -3 & Matad-1, -2 properties have been granted to Solomon by the governors in each of the provinces where they occur, securing Solomons interests and enabling field work to commence. Formal registration of SRM on the title of the licences with Mineral Resource and Petroleum Authority of Mongolia has not been completed due to the governments temporary suspension of the Office of Geological and Mining Cadastre (OGMC), a measure imposed while the government of Mongolia is re-assessing its mining laws. Solomon expects OGMC to reopen before the end of June 2006 based on our understanding that legislation restricts the closure of the OGMC for greater than three months. Khar Uul Copper-Gold Property The Khar Uul property hosts numerous copper-gold occurrences with historic results of up to 1.36% copper and 0.26 g/t gold over 9 metres (weighted average). Samples collected by Solomon geologists returned values of up to 4.18% copper and 0.75 g/t gold (sample HU-1). Mineralization consists of silicified and pyrite altered zones hosted in Cambrian metasediments. Solomon acquired the Khar Uul property through a purchase option agreement signed with owner Regzen Luvsansumya of Ulaanbaatar on February 10, 2006. The terms of the option includes a $10,500 payment to be made on signing, and second payment of US$10,500 to be made upon official documented transfer of the licences to Solomon. Transfer and registration of the licences to SRM will be completed when the OGMC reopens. 2006 Exploration Strategies Solomons Reaction to New Mongolian Tax Law On May 14, 2006, minority factions within the Mongolian parliament succeeded implementing a 68% Windfall Tax on copper concentrate and gold produced in Mongolia to be effective when metal prices exceed US$2,600 a tonne ($1.18 per pound) for copper and US$500 an ounce for gold. Solomon is strongly opposed to the new tax laws and is participating through Mongolia mining associations advocating for the new tax to be repealed and for a redraft of the mining law that will maintain foreign investment in the mining sector. Solomon remains optimistic that this law will be rescinded and is encouraged by reports in the June 5,2006 edition of Mongolias Zuuny Medee daily newspaper reporting that Minister Jargalsaikhan B, the Minister of Industry and Trade, is considering drafting an amendment to the newly enacted tax law. Solomon remains committed to working in Mongolia and its new uranium property acquisitions come at a timely point in Mongolian mining history. However, due to the uncertainty resulting from recent regulatory changes, Solomon has reduced the level of its expenditure commitments. Solomon will continue monitoring the regulatory regime with the intent of resuming full activity levels when a workable pro-development environment is re-established. Qualified Person under National Instrument 43-101 David Tupper, P.Geol. a qualified person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed the data disclosed, including sampling, analytical and test data, contained in and supervised the preparation of this news release. 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. Solomons shares trade under the banner SRB on the TSX Venture Exchange (TSX-V). For additional information visit Solomons website at www.solomonresources.ca.
|
