| Exploration & Financing Update |
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Preliminary Results from Bonanza - Sitka Gold Project
Drill Program Proposed for Cry Lake Gold Project First Tranche of $ 0.25 Unit Placement Closed
The first batch of assay results from the trenching program has been received. Significant grades were found along the upper contact, with up to 37.0 grams per tonne gold and 60 grams per tonne silver over one 30 centimeter width. The average width of mineralization in Trench D was 2.10 meters and in samples assayed to date the average grade was observed to be 4.34 grams per tonne gold and 11.28 grams per tonne silver, including one interval of 12.7 grams per tonne gold and 31.37 grams per tonne silver over 60 centimeters.
Solomon awaits the remainder of the trench assay results as well as soil geochemical results. The soil geochemical program will assist in the identification of mineralization along strike, and facilitate the delineation of drill targets for the fall of 2009. Diamond Drill Program Proposed for Cry Lake Gold Project. Solomon will undertake a diamond drill program on the Cry Lake Gold Project in northeastern British Columbia commencing in September of 2009, and staff geologists are compiling exploration data from previous operators to assist in target prioritization. The Cry Lake Property is located 80 kilometers northeast of Dease Lake within the Sylvester Allochthon, a set of thrust-bounded terranes which host gold-bearing epithermal type veins associated with felsic volcanic rocks. Gold mineralization on the Cry Lake Property is associated with shears, faults and fractures within the poorly understood and highly metamorphosed Rapid River tectonite. The seven mineralized zones identified to date extending over a northwesterly-elongated area two kilometers long and one kilometer wide, are the Zinc Lake Zone, Discovery Vein / Surprise Vein, Grizzly Ridge Vein, H Zone, Gully A Zone and B Zone. A new mineralized zone known as the Hill Zone was identified by British Columbia Geological Survey Branch in 1997. Channel samples of the Discovery Vein by earlier operators returned the following selected high-grade values: 27.09 grams per tonne (g/t) gold and 1220.6 g/t per tonne silver over 2.0 meters; 15.09 g/t gold and 1073.2 g/t silver over 3.5 meters and 8.91 g/t gold and 596.6 g/t silver over 1.0 meter (British Columbia Geological Branch Assessment Report 22840). Limited shallow drilling by earlier operators, including Madrona Mining Limited in the mid 1990's, intersected gold mineralization similar in tenor to that seen on the surface but to date no deeper drilling has been conducted. A program of geological and structural mapping and petrographic studies conducted in 2007 by Romios Gold Resources Inc. and limited followup by Avasca Inc. in 2008 suggest that the known stockwork mineralization may represent the upper portion of a larger vein system at depth, and a series of diamond drill targets was proposed but never tested. The Discovery Vein represents the best exploration target to date identified on the Cry Lake Property, with samples returning 1.5 to 30.0 grams per tonne gold and 190 to 1200 grams per tonne silver over widths of 1.0 to 2.0 meters. Grab samples from the Discovery Vein reported by earlier operators have returned assay values up to 41.0 grams per tonne gold. Solomon's President Randy Rogers observed: "The Bonanza- Sitka and Cry Lake Properties are an excellent addition to our exploration portfolio. We are focussing our efforts in the near term on gold projects in Western Canada and recent advances in the understanding of the geological and tectonic setting of these properties combined with the gold mineralization discovered to date make these very attractive projects." Completion of Acquisition of Avasca Inc. and First Tranche of Private Placement Solomon reports that it has completed its acquisition of Avasca Inc., a private British Columbia corporation, for $154,000 and the first tranche of its private placement for proceeds of $179,000, both of which were announced on July 7th, 2009. Avasca's holds an option to acquire a 51% interest in the Cry Lake Property in the Liard Mining Division, British Columbia from Kaminak Gold Corporation of Vancouver, British Columbia. The property is subject to a 2% underlying net smelter return royalty in favour of a third party. The option is exercisable by Solomon issuing 400,000 units to Kaminak in four tranches of 100,000 each (of which 100,000 units have been issued) over a period of three years and carrying out exploration of $2,000,000 (of which the first $50,000 is a firm commitment) by December 31, 2011. The units issued to dated consisted, and each unit to be issued shall consist, of one common share of Solomon and one share purchase warrant to purchase a further common share for one year. The exercise price for the first 100,000 warrants that Solomon has issued is $0.30 per share and for the second, third and fourth tranches the exercise price of the warrants will be the higher of $0.30 per share and the market price of the time of issuance. To finance its obligations under the purchase, Solomon has completed the first tranche of a private placement by issuing 716,000 units at $0.25 per unit. Each unit consisted of one common share and one-half of one transferable share purchase warrant. Each whole warrant is exercisable to purchase a further common share for $0.50 for one year. Two of the vendors of Avasca subscribed for $154,000 of the financing. The shares issued, and any shares issuable upon exercise of the warrants, are subject to restrictions on transfer until December 18, 2009. 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. He has also reviewed the data disclosed herein from records of previous owners and operators of the Cry Lake Property. While the historical data is believed to be accurate, Solomon's exploration program will be designed to test the accuracy of the historical information. QA/QC: Solomon has implemented quality assurance and quality control measures in its exploration programs, including the following: All field and data analysis work is carried out under the supervision of qualified Solomon geologists and geophysicists in accordance with procedures developed to conform to current best practices' in mineral exploration. Analytical work has been conducted by Acme - Global Discovery Labs of Vancouver, British Columbia, a certified analytical laboratory. In addition to internal checks and standards provided by the labs, Solomon includes blind duplicate and blank samples. All analytical sample checks and standards are within reasonable limits of error. 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 worldwide. 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 gold projects in British Columbia, a tin project in Alaska and uranium projects in Mongolia. Solomon's shares trade under the banner SRB on the TSX Venture Exchange (TSX-V). For additional information visit Solomon's website at www.solomonresources.ca or contact: Randall S. Rogers, President and Chief Executive Officer Phone: 250-546-4772
Tollfree: 1-866-831-6666
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accept responsibility for the adequacy or accuracy of this release.
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