Guadalcanal Joint Venture Update
2nd August 2012
GUADALCANAL JOINT VENTURE UPDATE
The Board of SolGold plc (AIM code: SOLG) has been advised by Newmont Ventures Limited (“NVL”), a subsidiary of Newmont Mining Corporation (NYSE:NEM) that it is resigning as manager, and will cease funding, the Guadalcanal Joint Venture (“GJV”) in the Solomon Islands. SolGold is in discussions with NVL regarding the exploration tenements which comprise the GJV, and will update the market in due course.
The GJV comprises 5 Prospecting Licences on the island of Guadalcanal, Solomon Islands. NVL has earned a 70% interest in the GJV under the terms of the JV agreement having expended some US$19 million to date since the Joint Venture commenced in April 2009.
The Board would like to reaffirm to shareholders the Board’s previously stated strategy of identifying and securing potential Tier 1 gold-copper assets in gold-copper belts of the world. Following the change of the Company’s name from Solomon Gold plc to SolGold plc in April 2012, the Board announced a definitive option agreement signed with Cornerstone for the Cascabel gold-copper-silver property, Ecuador, and agreed to an aggressive first year exploration program totalling US$2.8M. SolGold has also recently announced that further significant mineralisation has been discovered at the 100% owned Rannes gold-silver project in southeast Queensland, Australia.
Malcolm Norris, CEO of SolGold commented, "Despite the prospectivity of the region, this development does not come as a surprise and offers potential opportunities to SolGold. The Board will consider its options and continue to focus exploration expenditure on its most prospective opportunities.”
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