Australian Solomons Gold Limited

Australian Solomons Gold Limited

September 14, 2009 09:00 ET

Australian Solomons Gold: Charivunga Gorge Drilling

First hole Increases confidence of Charivunga Gorge Open Cut Potential

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2009) -


Australian Solomons Gold Limited ("ASG" or the "Company") (TSX:SGA)

Chaurivunga Gorge Program August 2009

The drilling program, which commenced on 27 August, was designed to test for updip extensions of the mineralization discovered beneath Charivunga Gorge. Hole locations were based on interpretation of earlier deep drilling, along with soil sampling results which indicated strong gold anomalism at surface.

The first hole in the program (DDH177) is complete and has intersected strongly altered, abundant disseminated pyrite, occasional quartz-carbonate-base metal sulfide veining at 10m depth with this style of mineralization continuing until 75m depth. This is characteristic of Gold Ridge mineralogy and given that within this intercept visible gold was evident at 36m (see photo below), it is expected to report variable, often high gold grades.

To view the gold visible at 36m, please visit the following link:

From 75-203m the hole showed moderate to strong propylitic alteration throughout, except in the vicinity of a fault zone at 121-122m which hosts moderate (1-2%) qtz-clay-py mineralization. The sulfide mineralization, occurring generally as fine grained disseminated pyrite, increased to above 1% from 130-203m. The section from 203-217m showed strong argillic alteration and between 217 and-290m weak to moderate argillic alteration and moderate propylitic alteration was encountered which was weakly mineralized, with total sulfides less than 1%. The hole was terminated, as planned, at 300m.

Assays are expected early in October.

The success of this early hole is indicative of our increased understanding of the geology of the precinct and further increases our confidence in proving additional open cut resources in this area. Given the close proximity to the existing pit resources and reserves, this, in turn, gives further confidence that there will be significant extensions to the existing 7 year mine life. Please see the diagram below for a location of this mineralisation, relative to the other planned open pits.

Given the recent historically high gold price, and the propinquity of the known mineralisation, ASG has recently committed to an internal study aimed at seeing whether a "Super Pit" concept could be applied at Gold Ridge. The pit would include some or all of the current open cut resources but would be specifically designed to include the deeper, higher grade, Charivunga Gorge mineralisation.

To view the Gold Ridge Exploration Update Map, please visit the following link:

Other Recent Highlights

ASG continues to move forward on the development of Gold Ridge with milestones continuing to be achieved, including:

- Political Risk Insurance approval recently received, (Press Release September 4, 2009)

- IFC Board Approval, (Press Release September 8, 2009)

- N43-101 Resource update amounting to an increased resource in the measured and indicated category of 1.6 million ounces with an inferred category amounting to a further 0.5 million ounces. (Press Release September 10, 2009)

These successes bode well for the re-development of Gold Ridge. The mine operated from August 1998 to June 2000 and produced approximately 210,000oz gold during this period. ASG acquired the project in May 2005 and has completed a Feasibility Study to redevelop the Gold Ridge Project. ASG is currently working on finalising the financing plan in preparation for this redevelopment task and expects to be fully operational during Q1 2011.

Cautionary Statement Regarding Forward-Looking Information

All statements, trend analysis and other information contained in this press release relative to markets for ASG's trends in resources, recoveries, production and anticipated expense levels, as well as other statements about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. Some of these risks, uncertainties and other factors are described under the heading "Risk Factors" in the Company's annual information form available on ASG does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.

Please note that the Head Office of ASG is located in Queensland, Australia and is 14 hours ahead of Toronto time.

ABN 96 109 492 373

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

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