| Solomon Options Goldcreek Archean Lode Gold / Volcanogenic Massive Sulphide Project in Ontario |
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Can Earn 50% Interest with $ 5,400,000 in Exploration Expenditures over Three Years
Armstrong, BC - Tuesday, September 30th, 2008. Solomon Resources Limited (SRB: TSX-V) is pleased to report that it has signed a Letter of Intent (LOI) with Mengold Resources Inc. (MNI: TSX.V) whereby Solomon will have the right to earn, subject to TSX Venture Exchange approval, up to a 50% interest in the Goldcreek Archean Lode Gold / Volcanogenic Massive Sulphide Project. The Goldcreek Property is located approximately 70 kilometres west of Thunder Bay, in the Shebandowan area of Northwestern Ontario, and is readily accessible by all-weather highways and secondary gravel roads. The 90 contiguous claims cover 17,248 hectares in Conacher, Duckworth, Horne, Laurie and Sackville Townships. The Property is subject to a 3% net smelter return royalty in favour of third parties. Solomon can earn up to a 50% interest in the Property by (i) conducting an exploration program over three years totalling $ 5,400,000, which will include 24,000 meters of diamond drilling;
(ii) making a $100,000 cash payment to Mengold Resources Inc.; (iii) issuing common shares of Solomon to Mengold worth $ 375,000 over three years with the initial $ 50,000 tranche satisfied by the issuance of 385,000 shares at a deemed value of $ 0.13 per share. If Solomon chooses to earn less than a 50% interest, Mengold will have a 120 day option to repurchase the interest earned. Solomon will be the Operator of the Project for the three years of the earn-in period throughout which Mengold will be retained as Project Manager. At the conclusion of the earn-in period, a joint venture for the future development of the property will be formed with Mengold as the Operator and consideration will be given to forming a new company with proportionate ownership by Solomon and Mengold to advance the project.  Solomons President Randy Rogers observed: the Goldcreek property is highly prospective for both lode gold in Neo-Archean quartz-carbonate veins and volcanogenic massive sulphides. Bonanza grade gold mineralization has been confirmed by our due diligence examination and the volcanogenic massive sulphide potential is there. Mengold has expended approximately $ 4,200,000 to date and has identified three discrete mineralized zones with drill ready targets. Rogers also noted: recent work suggests that magmatic hydrothermal processes related to late stage mantle-derived plutons play a role in the genesis of lode gold deposits in the Shebandowan Belt. Mineralization is associated with these intrusions and easterly trending regional deformation structures up to ten kilometres distant. Segments or splays of the regional faults that depart from the regional strike of these zones by 20° to 40° as seen on the Mengold property as well as upright anticlines or domes related to the folding appear to be especially favourable structures. What is very intriguing about Goldcreek is the volcanogenic massive sulphide potential: Mengold has found strong gold, copper, and zinc soil geochemical anomalies across a 5 kilometer by 1.5 kilometer grid over felsic metavolcanic rocks in the Center Zone of the property. In 2000 Thunder Bay prospector Dan Calvert discovered a 15 tonne boulder of felsic metavolcanics which yielded 18.6% zinc, 1.76 grams per tonne gold and 93 grams per tonne silver in Aldina Township approximately 10 kilometers south of the Goldcreek Property. The angularity and size suggest that the boulder has not travelled far, and given the direction of ice flow the Calvert Boulder may well have come from Goldcreeks Center Zone. As part of the terms of the Letter of Intent, Mengold has commissioned a NI 43-101 Technical Report by Caracle Creek International Consulting Inc. to be issued jointly to Solomon and Mengold. Solomon and Mengold geological staff are compiling exploration data from previous work and a drill program is planned this autumn. Qualified Person: Randy Rogers, M.Sc., P.Geol. a Qualified Person for the purposes of National Instrument 43-101, Standards for Disclosure for Mineral Projects of the Canadian Securities Administrators, and the President and Chief Operating Officer of Solomon, has verified the data disclosed herein including sampling, analytical and test data and supervised the preparation of the information that forms the basis of the disclosure contained in this news release. QA/QC: Solomon has implemented quality assurance and quality control measures in its exploration programs, including the following:
Forward Looking Statements: Some of the statements in this news release may contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Solomon. 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 quality mineral properties world wide. Solomon is managed by a proven team of exploration geologists involved 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 is currently focused on the exploration of copper-gold projects in British Columbia and Ontario, a coal project in British Columbia, a tin project in Alaska and uranium projects in Mongolia. Solomons shares trade under the banner SRB on the TSX Venture Exchange (TSX-V). For additional information visit Solomons website at www.solomonresources.ca or contact either: Lawrence J. Nagy, Chairman and Chief Executive Officer Randall S. Rogers, President and Chief Operating Officer The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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