Australian Solomons Gold Limited
TSX : SGA

Australian Solomons Gold Limited

September 10, 2009 08:00 ET

Australian Solomons Gold: Resource Upgrade for Gold Ridge, Potential Continues to Improve

TORONTO, ONTARIO--(Marketwire - Sept. 10, 2009) -

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Australian Solomons Gold Limited ("ASG" or the "Company") (TSX:SGA) today announced an upgrade to its Mineral Resource Estimate (Measured & Indicated) of approximately 82,000 oz. This Resource upgrade is based on an additional 69 holes drilled at Valehaichichi, Namachamata and Kupers. This new Resource Estimate is provided in a report compliant to NI 43-101 standards and is being filed on SEDAR (refer www.sedar.com). A full resource statement can be found in Appendix 1.

Potential for Additional Resources

The Company believes this relatively modest Resource upgrade indicates excellent potential for delineation and upgrade of additional resources once grade control drilling commences (expected late 2010). Most of the approximately 82,000oz is located in the partially mined and most densely drilled Valehaichichi Pit. Additional drilling at Kupers and Dawsons where drilling density is lower has the potential to significantly add to or upgrade the existing resources. The new resources amounts to a measured and indicated category of 1.6 million ounces with an inferred category amounting to a further 0.5 million ounces.

The 2008 Charivunga drill program identified potential for additional resources at Kupers where near surface (less than 80m) mineralisation was intersected west of the current pit boundary over 300m strike. This deep drill program also identified the potential for a southern extension of the Namachamata Pit with near surface mineralisation intersected south of the current pit boundary over 150m strike.

Charivunga Gorge Open Pit Potential - Exploration Program August 2009

A further evaluation of the Charivunga Gorge Open Pit potential has resulted in ASG recommencing its exploration program. This drilling program, which commenced on 27 August is designed to test for updip extensions of the mineralization discovered beneath Charivunga Gorge. The plan below indicates the planned drill hole locations, soil anomalies, and the surface expression of the mineralization defined by previous drill programs.

To view the Planned Drill Holes, please visit the following link: http://media3.marketwire.com/docs/Map0910.pdf.

The first hole in the program (DDH177 on plan above) is down to 66m and has intersected strongly altered, abundant disseminated pyrite, occasional quartz-carbonate-base metal sulphide veining at 10m depth and remains in the mineralised zone. Given it's similarity to earlier holes into the Charivunga Gorge mineralized zone, we would expect this section of the hole to report variable, but often high gold grades.

The 2008 drilling program concentrated on the central 100m strike extent of the Charivunga Mineralised Zone (CMZ), between 40300N and 40400N. The mineralisation in this central portion of the CMZ extends from surface to 360m vertical depth. Mineralisation above the deep, consistently mineralised zone is of variable grade and width however is significant in that it represents a western extension of the Kupers ore body. The deep, consistently mineralised strataform zone commences at 120m vertical depth, is up to 240m thick, dips to the east, and is at least 200m wide. Horizontal style gold mineralisation occurs within pyritic sediments and pyritic, strongly argillic altered, clast supported epiclastics. There is also a vertical component to the mineralisation where higher grades are associated with narrow (less than 1cm) NE trending base metal-quartz-carbonate veins, and fault zones indicated at depth by silica-clay alteration and milled clasts.

The mineralization is open to the west (updip). Any extension of the mineralized zone in this direction could represent a possible open pit target. Scattered moderate to high soil sample values in this area support the notion of near surface mineralization (see above plan).

Qualified Person

The Resource Estimates were prepared under the direction of Neil Schofield, MAusIMM, an employee of Hellman & Schofield Pty Ltd ("H&S"), specialists in resource estimation. Mr. Schofield has more than five years' experience in the field of activity in which he is reporting and consents to this statement being used in the context in which it appears above. He is a Competent Person under the meaning of the CIM Standards on Resources and Reserves.

Comments on the potential definition of additional Resources and the 2009 drill program were prepared by Tony Field, BSc Geology, ASG's Exploration Manager and the Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators responsible for the exploration program.

Methodology

H&S used Multiple Indicator Kriging (MIK) to estimate the tonnage and grade of gold resources in Selective Mining Units from large blocks (panels). The size of the resource model panels reflects the philosophy that accurate estimation of the grade of small blocks from assays in relatively wide spaced drill holes is impossible and that large panels will lead to more robust resource estimates that more closely resemble the resources realised during mining. The application of a block support correction to the MIK estimates was used to enable the estimation of the proportions of each panel above a series of cut-off grades. Two site visits have been completed by H&S.

The resource is divided into Measured, Indicated and Inferred in conformance with the CIM Standards on Resources and Reserves. This classification reflects a degree of confidence assigned to each panel based on how many samples were available to estimate the panel grade and proportions, and the spread of these samples in space around the panel.

For the first two categories, at least 16 and at most 48 samples were found in the search volume. In the third category, at least eight were required. The space around the centre of each panel was divided into eight octants. For the Measured and Indicated categories at least four octants contained samples. In the Inferred category, at least two octants contained samples.

Search distances were also used in the classification. For the Measured category, the three orthogonal radii of the search ellipsoid were set to 30m, 30m and 5m, whereas for the Indicated and Inferred categories they were increased by 50% to a maximum of 45m, 45m and 7.5m. For the Namachamata deposit the search radii were 10m, 30m and 5m for Measured and 15m, 45m and 7.5m for Indicated and Inferred.

Resource estimation was constrained by soft domain boundaries. Oxidation type (oxide, transitional and fresh material) formed the basis of sub-domains used to categorise resource panels. Bulk density values were determined for each sub-domain for each deposit.

QA/QC (e.g. check assays and routine certified standard and duplicate insertions), core recoveries (e.g. effect of low recoveries on grade) and information from closely situated holes have all been evaluated. The use of certified standards and duplicates prior to the current drill programs was inconsistent but lack of useable data has been mitigated by the availability of mine and mill production data (acquired during the 22 months of active mining operations from 1998-2000). These data show that the drill hole assay database reasonably reflects both the grade and distribution of gold at Gold Ridge. Analysis of close paired assay data from core holes and reverse circulation (RC) holes showed that RC assay data from drill programs prior to 1996 were biased. These assay data were not used in the current resource estimates.

About ASG

ASG is developing the Gold Ridge Project, a former producing mine, located on Guadalcanal in the Solomon Islands. 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. ASG is expected to commence operations 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 www.sedar.com. 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.

Appendix 1 - Resource Statement

Resource estimates for the four deposits that comprise the Gold Ridge Project were originally completed in 2006 and updated in 2008. The Resource estimates comply with CIM Standards on Mineral Resources and Reserves. Measured and Indicated Resources over a range of cut-off grades are:



Measured and Indicated Resource Estimates


Valehaichichi
---------------------------------------
Measured Indicated M & I Total
------------------------------------------
cog Mt g/t Mt g/t Mt g/t
------------------------------------------
0.5 2.04 1.38 10.56 1.14 12.60 1.18
0.6 1.78 1.50 8.62 1.28 10.41 1.32
0.7 1.59 1.60 7.13 1.41 8.72 1.45
0.8 1.42 1.70 5.97 1.54 7.39 1.57
-----------------------------------------


Namachamata
---------------------------------------
Measured Indicated M & I Total
------------------------------------------
cog Mt g/t Mt g/t Mt g/t
------------------------------------------
0.5 1.15 1.92 1.46 1.43 2.61 1.64
0.6 1.05 2.05 1.21 1.60 2.26 1.81
0.7 0.98 2.15 1.02 1.78 2.00 1.96
0.8 0.90 2.26 0.88 1.95 1.78 2.11
------------------------------------------

Kupers
---------------------------------------
Measured Indicated M & I Total
------------------------------------------
cog Mt g/t Mt g/t Mt g/t
------------------------------------------
0.5 3.95 1.54 10.97 1.23 14.92 1.31
0.6 3.60 1.64 9.17 1.36 12.77 1.44
0.7 3.22 1.76 7.71 1.50 10.93 1.57
0.8 2.87 1.88 6.50 1.64 9.38 1.71
------------------------------------------

Dawsons
---------------------------------------
Measured Indicated M & I Total
------------------------------------------
cog Mt g/t Mt g/t Mt g/t
------------------------------------------
0.5 1.09 1.40 17.91 1.27 19.00 1.28
0.6 0.96 1.52 14.91 1.42 15.87 1.43
0.7 0.82 1.67 12.36 1.58 13.18 1.58
0.8 0.69 1.84 10.26 1.75 10.95 1.75
------------------------------------------

Total Resource Estimates
---------------------------------------
Measured Indicated M & I Total
------------------------------------------
cog Mt g/t Mt g/t Mt g/t
------------------------------------------
0.5 8.24 1.53 40.89 1.23 49.13 1.28
0.6 7.39 1.65 33.92 1.37 41.31 1.42
0.7 6.60 1.77 28.22 1.52 34.82 1.57
0.8 5.88 1.89 23.61 1.67 29.49 1.72
------------------------------------------


In addition to the resources quoted above the following Inferred resources have also been estimated:



Inferred Resource estimates

------------------------------------------------------------------
Valehaichichi Namachamata Kupers Dawsons Total Inferred
---------------------------------------------------------------------
cog Mt g/t Mt g/t Mt g/t Mt g/t Mt g/t
---------------------------------------------------------------------
0.5 4.83 1.21 0.43 1.28 4.30 1.26 5.47 1.34 15.04 1.27
0.6 3.85 1.38 0.34 1.49 3.47 1.43 4.45 1.52 12.12 1.45
0.7 3.14 1.54 0.27 1.75 2.87 1.60 3.66 1.71 9.94 1.62
0.8 2.60 1.71 0.22 1.96 2.42 1.76 3.06 1.90 8.30 1.80
---------------------------------------------------------------------


Metallurgy

Metallurgical recoveries have been re-evaluated. A total of 74 composites have been tested for gravity and cyanide leach recovery. A strong relationship between arsenic grade and gold recovery has been identified. Base on these results and the grade and distribution of arsenic overall recoveries for each pit have been determined as:



Metallurgical Recoveries
--------------------------------------------
Pit Oxide Transitional Fresh
--------------------------------------------
Valehaichichi 90% 73% 73%
--------------------------------------------
Namachamata 91% 68% 68%
--------------------------------------------
Kupers 89% 81% 81%
--------------------------------------------
Dawsons 95% 85% 85%
--------------------------------------------


ABN 96 109 492 373

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