| Solomon Options Ten Mile Creek Gold Property in Dawson Mining District, Yukon Territory |
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Corporate Developments: Goldcreek and Mongolia
September 22nd, 2009 Trading Symbol: TSX-V.SRB Armstrong, B.C. - Tuesday, September 22nd, 2009. Solomon Resources Limited (TSX-V.SRB) is very pleased toannounce that it has been granted an option by Radius Gold Inc. (TSX-V.RDU) to acquire a 51% interest in the Ten Mile Creek Property in the Dawson Mining District of the Yukon Territory subject to TSX approval. Solomon - Radius Option Terms:
The terms of the option agreement include:
· Issue of 500,000 shares common shares of Solomon upon signing and TSX approval of the transaction. · Cash payment of $100,000 and issue of 100,000 common shares of Solomon on May 21st, 2010, and work commitment of $350,000 during the 2010 exploration season; · Cash payment of $150,000 and issue of 150,000 common shares of Solomon on May 21st, 2011, and work commitment of $650,000 during the 2011 exploration season; · Cash payment of $250,000 and issue of 250,000 common shares of Solomon on May 21st, 2012, and work commitment of $1,500,000 during the 2012 exploration season. Radius holds an option to acquire the Ten Mile Creek Property from a third party subject to a 1.0% net smelter returns royalty in favour of that party and a 1.5% net smelter returns royalty in favour of Teck Resources Limited. The Radius option is exercisable by making payments of $375,000, of which the last $100,000 can be satisfied by issuing 400,000 shares of Radius, and advance royalty payments of $10,000 per year to the optionor. The 1.0% NSR royalty may be reduced to 0.5% by a payment of $500,000 or to 0.25% by a payment of $1,000,000 to the optionor. On completion of the earn-in a 51/49 joint venture will be formed between Solomon Resources Limited and Radius Gold Inc. The joint venture would share all costs related to the project on a pro rated basis. Ten Mile Creek Gold Project: Ten Mile Creek is located 75 kilometers south of Dawson City, Yukon Territory and is an active placer gold mining camp with significant historical production. The Ten Mile Creek Property was staked by Teck Resources Limited in 1998 during the same project in which Teck staked the area now covered by Underworld Resources Ltd.'s White Gold Property to the southeast. Teck worked intermittently on both properties and identified a number of promising targets but in 2000 they changed their exploration focus and dropped all their gold programs in the Dawson area. Teck explored the Ten Mile Creek Property from 1998 to 2000 with geological mapping, soil and rock sampling and limited trenching. Teck's program delineated five distinct mineralized zones each of which appears to occur in Mesozoic quartz monzonite intrusive bodies intruded by dykes of porphyritic rhyolite of probable late Cretaceous age. The gold mineralization appears spatially related to the contact of the intrusive bodies with high grade metamorphic rocks. Two of these zones were subject of preliminary investigation by Teck in 2000, and the remaining three zones remain unexplored. Jual Vein System
The Jual Vein System is characterized by numerous northwesterly trending, flat to moderately dipping quartz veins, stockworks and fault zones with gold values ranging from 8 to 16 grams per tonne (g/t) gold. Strong northwest-trending gold-in-soil geochemical anomalies with values up to 670 parts per billion gold cover an area measuring 1.4 kilometers by 0.6 kilometers. Trenching of peripheral and lower-order gold-in-soil anomalies yielded results of 1.6 g/t gold over 25 meters (including 11.1 g/t gold over three meters) and 1.0 g/t gold over 19 meters (including 8.5 g/t over 1.5 meters). Cupid Zone
This zone is located three kilometers to the west of Jual and contains mineralized float to 3.5 g/t gold. Quartz and altered intrusive boulders, with disseminated sulphide were uncovered over a 600-meter by 500-meter area near Twenty Mile Creek. Galena is the most common sulphide, with minor pyrite. The Jual vein system and the Cupid zone may be connected on the basis of gold-anomalous stream sediment and reconnaissance soil geochemistry with values up to 70 parts per billion gold. Ten Grid
Located 4.5 kilometers southeast of the Cupid Zone, the Ten Grid Zone is an open-ended, 1.6-kilometre-long gold/arsenic soil anomaly with values up to 255 parts per billion gold and 1,280 parts per million arsenic. The anomaly covers the contact between a metasedimentary unit and an intrusion. The strong correlation between gold and arsenic on the anomaly suggests that the style of mineralization here is distinct from that exposed in the Jual vein system. Ten West
Located 2 kilometers southwest of the Ten Grid Zone, the Ten West Zone is characterized by quartz vein float with values up to 3.76 g/t gold. Preliminary soil geochemical surveys have identified anomalies up 150 parts per billion gold and 220 parts per million arsenic; the gold/arsenic signature and presence of arsenopyrite suggest a similarity and possible continuity between the Ten grid and Ten West zones. Galena Creek-Five Mile
Located at the south end of the property this zone comprises sheeted quartz veins with values up to 3.98 g/t gold, quartz stringers carrying 5.36 g/t gold, anomalous reconnaissance soil and stream sediments geochemical values. The property subject of the Solomon - Radius option agreement includes the Dime 1- 48 Claims, the RDU 1-258 Claims, nine Jual Claims, thirty-two Ten Claims and thirteen Val Claims all located under the Yukon Quartz Mining Act. Solomon's President and CEO Randy Rogers has just returned from a due diligence and property evaluation tour of the Yukon Territory and notes: "Ten Mile Creek is a very attractive gold target in an area of the Dawson Range that has received considerable attention over the past year. The staking rush generated in the summer of 2009 by drilling results at Underworld Resources Ltd.'s White Gold Property has seen an influx of exploration capital into this camp, and recent work by the Yukon Geological Survey will likely encourage that trend to continue into 2010. Solomon's Ten Mile Creek option is uniquely situated in an area with a known placer gold provenance and has already undergone preliminary exploration with five mineralized zones identified to date." "Solomon continues to evaluate a number of gold property submissions in Northern British Columbia and the Yukon Territory, and our diamond drill program will commence this week at the Cry Lake Gold Project east of Dease Lake, British Columbia." Corporate Developments: Goldcreek and Mongolia
As reported in Solomon's Management Discussion and Analysis (January 31st, 2009 and April 30th, 2009) the Company has continued efforts to amend the agreement between Solomon and Mengold Resources Inc. with regard to the Goldcreek Project in the Shebandowan area of Ontario. It was reported that further work on the property was contingent on the Company reaching an agreement with Mengold that contemplated more favourable terms commensurate with the results of the 2008 field program and depressed market conditions. No field work was completed in the 2009 field season and as we have not been able to engage Mengold in any meaningful discussion regarding amendment of the current agreement Solomon reports that it is concluding its involvement in the Goldcreek Project as of this date. As reported in an earlier news release (June 12th, 2009) Solomon continues to seek a purchaser or joint venture partner for our Mongolian assets. We are actively engaged in discussions with a potential purchaser of our Mongolian subsidiary and pursuing a claim in Ulaanbaatar Administrative Court for the expropriation of certain of our Baruunbaayan Uranium Project licences by the Mongolian Cadastral Office. Solomon has abandoned a number of our Mongolian exploration licences: most notably the Zamtiin Gol Uranium Project and certain of the less prospective Airag and Aimag licences to focus on the core asset being the Baruunbaayan licences adjacent to Areva subsidiary Cogegobi's Dulaan Uul rollfront uranium deposit. A resolution to the court case is expected in the next few months. Mongolia remains a democracy in transition and the challenges to obtaining secure tenure and permitting remain a significant obstacle to junior exploration companies.
Rogers notes: "We will be focussing our efforts in the near term on gold projects in Western Canada and other stable jurisdictions. British Columbia and the Yukon Territory offer tremendous opportunity for exploration and acquisition. As the Company evolves following our recent corporate restructuring we recognize that Solomon's greatest resource remains its people and we will continue to build a world-class team of explorers and a cost-effective management environment within which to pursue new opportunities." 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 10 Mile Creek 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:
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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