Australian Solomons Gold Limited
TSX : SGA

Australian Solomons Gold Limited

June 23, 2008 09:16 ET

Australian Solomons Gold: Charivunga Gorge Mineralised Zone Strike Length now Over 400 Metres + Encouraging Near Mine Drilling Results

TORONTO, ONTARIO--(Marketwire - June 23, 2008) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Australian Solomons Gold Limited ("ASG" or the "Company")(TSX:SGA) today announced results from three recent drill holes at its Gold Ridge Project in the Solomon Islands.

Summary

DDH161:These intersections expand on the previously reported results from the Charivunga Mineralised Zone (CMZ). The results from DDH161 indicate the mineralised zone extends further south and further drilling will be required to test this area. This is the most southern hole drilled so far to test the CMZ and the results received are encouraging. The CMZ now extends over a strike distance of 400m.

In addition DDH 162 & DDH163 were targeted for near mine exploration adjacent to the Kupers pit on the results from geological mapping in the region.



Charivunga Mineralised Zone ("CMZ") Drilling Highlights

-----------------------------------------------------
Hole From To Width (m) Au g/t
-----------------------------------------------------
DDH161 80 89 9 1.39
-----------------------------------------------------
105 115 10 1.03
-----------------------------------------------------
118 131 13 0.94
-----------------------------------------------------
151 163 12 1.44
-----------------------------------------------------
175 188 13 1.22
-----------------------------------------------------
215 226 11 1.10
-----------------------------------------------------
256 264 8 2.43
-----------------------------------------------------
268 276 8 3.53
-----------------------------------------------------
281 294 13 1.97
-----------------------------------------------------
393 398 5 2.51
-----------------------------------------------------
DDH162 31 34 3 25.52
-----------------------------------------------------
38 42 4 2.01
-----------------------------------------------------
DDH163 24 31 7 1.00
-----------------------------------------------------
32 34 2 1.38
-----------------------------------------------------

- Note these intersections represent approximate true width


DETAIL

DDH161

Mineralisation occurs in this hole over an interval of 214m between 80 and 294m (see above for the best intersections). The width and orientation of the mineralisation is consistent with results from earlier drilling in the central portion of the CMZ (figure 3). More drilling to the south will determine the full strike extent of the CMZ.

DDH162 & 163:

These two short holes are not part of the CMZ exploration and were completed to test a collapse breccia identified during a recent mapping program (figure 4). The targeted breccia unit was, in this instance, barren. However the holes did encounter both sub-vertical high grade and disseminated low - medium grade gold mineralisation. Significantly these holes are approximately 60m west of the planned Kupers pit and the mineralisation encountered is at shallow depth, indicating the potential to extend the pit in this direction. These results and near surface mineralisation intersected in nearby holes provide a priority target area 300m x 140m for further drilling. Near surface intersections from recent drilling (primarily targeted at the deeper CMZ mineralisation) within this zone are tabulated below. See figure 5 for location of these holes in relation to the adjacent Kupers pit.



--------------------------------------------------
Hole From To Width (m) Au g/t
--------------------------------------------------
DDH032 19 26 7 1.42
--------------------------------------------------
32 39 7 1.26
--------------------------------------------------
47 48 1 1.87
--------------------------------------------------
62 67 5 2.56
--------------------------------------------------
69 76 7 0.92
--------------------------------------------------
DDH131 20 26 6 0.88
--------------------------------------------------
33 44 11 0.80
--------------------------------------------------
54 59 5 0.94
--------------------------------------------------
62 67 5 24.65
--------------------------------------------------
78 80 2 0.89
--------------------------------------------------
DDH138 0 3 3 2.87
--------------------------------------------------
6 10 4 2.04
--------------------------------------------------
16 46 30 1.62
--------------------------------------------------
58 67 9 2.14
--------------------------------------------------
DDH159 0 3 3 0.87
--------------------------------------------------
9 31 22 2.02
--------------------------------------------------
43 44 1 1.51
--------------------------------------------------
48 57 9 1.49
--------------------------------------------------
62 64 2 0.89
--------------------------------------------------
70 71 1 17.05
--------------------------------------------------
79 83 4 1.03
--------------------------------------------------
DDH160 0 18 18 1.10
--------------------------------------------------
58 65 7 1.28
--------------------------------------------------
69 74 5 0.75
--------------------------------------------------
76 82 6 0.74
--------------------------------------------------

- Note: All results previously reported
- This table only includes intersections from depths less than 83m
- Intersections represent approximate true width


Previous drilling from the Charivunga Mineralised Zone ("CMZ") has delivered some outstanding results as released on December 18 2007 including DDH 155, 37m @ 4.05 g/t Au and DDH 156, 50m @ 7.77 g/t Au, and 44m @ 3.52 g/t Au.

Based on the drilling results to date this mineralised CMZ has the potential to add to the project or to justify a significant upgrade of the existing plant with a higher production of gold. The preferred outcome will depend upon the results of future drilling but also on other exploration activities being undertaken around the four current pit designs. Significant increases in ore adjacent to the four pits would increase the likelihood of an increase in production.

The Company is continuing with its plans to refurbish the existing plant with an increase of throughput to 2.5 million tonnes per annum producing on average 135,000 ounces per year of gold for the first three years of operation. A review of a possible further increase in throughput will be ongoing as exploration data progressively becomes available and confirms the Company's expectations.

Exploration work

- The LY44 rig will continue drilling deep exploration holes along the CMZ trend.

A full tabulation of all the results from the recently drilled holes DDH161 - 163 is included in the Appendix to this release.

- The location of the CMZ in relation to the other deposits and mine infrastructure is shown in figure 1

- The location of completed and planned drill holes in the CMZ are shown on the attached figure 2

To view the Figure 1: CMZ Location map, please visit the following link: http://media3.marketwire.com/docs/sgafig1.pdf

To view the Figure 2:CMX Drill Hole Locations map, please visit the following link: http://media3.marketwire.com/docs/sgafig2.pdf

To view the Figure 3: Section 40210N map, please visit the following link: http://media3.marketwire.com/docs/sgafig3.pdf

To view the Figure 4: Section 40180N map, please visit the following link: http://media3.marketwire.com/docs/sgafig4.pdf

To view the Figure 5 map, please visit the following link: http://media3.marketwire.com/docs/sgafig5.pdf

Quality Assurance Program

Strict sampling and QA/QC protocols are followed including the insertion of blanks and standards on a regular basis. Half core samples are pulverised on site using an LM5 ring pulveriser. One split is sent to ALS Chemex in Brisbane, Australia, for analysis where it is subject to a 50g fire assay with atomic absorption finish. The second split and coarse rejects are stored in secure facilities at the Gold Ridge plant site or Honiara Exploration Office.

Qualified Person

The Gold Ridge drilling program is being carried out under the direction of 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 and the technical aspects of this news release.

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 which is expected to commence operations by Q1 of 2010.

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

Charivunga Gorge

Assays have been received for holes 18 - 20 in the current series of deep holes drilled to test for continuity of mineralisation below the Charivunga Gorge (DDH161 - 163).

DDH161: This hole was drilled towards the west from a location 115 metres south of DDH138. This is the most southern hole drilled so far to test the CMZ and the results received are encouraging.

Significant intersections in DDH161 are tabulated below.

Kupers

Assays have been received for 2 holes drilled adjacent to the western margin of the Kupers pit. These 2 short holes were drilled to test a collapse breccia identified during a recent detailed mapping project. The mapping indicates these structures may be more numerous than previously thought.

DDH162: Was targeted to intersect an outcropping breccia located 30m to the west of the planned Kupers pit. The unit was intersected over the interval 23 to 35m and two narrow high grade veins returned assay values up to 74 g/t Au.

DDH163: Was drilled from the same collar location at a steeper dip to test the breccia down-dip, and help delineate its structure. The breccia was intersected at from 13 to 22m indicating a much shallower dip than expected. Disseminated gold mineralisation was intersected in the underlying matrix supported epiclastic, not the breccia unit which was barren.



Assays
Table 1 Drill Hole Location
----------------------------------------------------------------------------
Hole No.
(DDH) Location Easting Northing Azi RL Dip Depth
----------------------------------------------------------------------------
161 Charivunga Gorge 23867.82 40213.74 270.5 460.93 -50.5 403.6
----------------------------------------------------------------------------
162 Kupers 23596.58 40183.11 90 438.32 -45 48.9
----------------------------------------------------------------------------
163 Kupers 23596.00 40183.11 90.5 438.32 -65 52.6
----------------------------------------------------------------------------



Intersections include:

Table 2 Assays
----------------------------------------------------------------------------
HoleID From (m) To (m) Width (m) Au g/t As ppm Comment
----------------------------------------------------------------------------
DDH161 5 7 2 0.90 115 Recovery 68%
----------------------------------------------------------------------------
Quartz - carbonate vein
cutting through collapse
14 16 2 3.29 107 breccia. Recovery 54%
----------------------------------------------------------------------------
Fault gouge, strong argillic
47 48 1 1.18 53 alteration
----------------------------------------------------------------------------
69 73 4 0.79 31
----------------------------------------------------------------------------
75 77 2 1.14 39
----------------------------------------------------------------------------
Tuff, strongly clay altered,
80 89 9 1.39 41 pyritic
----------------------------------------------------------------------------
105 115 10 1.03 4 Disseminated mineralisation
----------------------------------------------------------------------------
Disseminated mineralisation
throughout plus moderately
abundant quartz - pyrite
118 131 13 0.94 3 veining
----------------------------------------------------------------------------
carbonates precipitating at
134 135 1 1.07 1 clast margins
----------------------------------------------------------------------------
Moderately abundant, thin,
quartz - carbonate - pyrite
142 148 6 1.31 113 veins
----------------------------------------------------------------------------
Silicified zone, 40-50cm
wide, with disseminated
151 163 12 1.44 138 pyrite, arsenopyrite at 160m
----------------------------------------------------------------------------
Disseminated mineralisation
throughout plus moderately
abundant quartz - pyrite
175 188 13 1.22 63 veining
----------------------------------------------------------------------------
Disseminated mineralisation
throughout plus moderately
abundant quartz - pyrite
215 226 11 1.10 2 veining
----------------------------------------------------------------------------
232 237 5 1.19 9 Strong argillic alteration
----------------------------------------------------------------------------
Quartz - carbonate veins
responsible for better
250 255 5 1.11 10 Au grades
----------------------------------------------------------------------------
Vuggy quartz - pyrite
vein, 3 cm wide, with
256 264 8 2.43 24 minor arsenopyrite
----------------------------------------------------------------------------
includes 1m @
268 276 8 3.53 29 14.9g/t Au at 268m
----------------------------------------------------------------------------
Disseminated mineralisation
throughout plus moderately
abundant quartz - pyrite
281 294 13 1.97 24 veining
----------------------------------------------------------------------------
Clast, 20cm, with
abundant visible
296 302 6 0.59 18 hornblende phenocrysts
----------------------------------------------------------------------------
Strong argillic altered
band, 5cm wide,
317 321 4 0.61 3 pyritised. Recovery 94%.
----------------------------------------------------------------------------
Stockwork veining, 30-35cm
silicified, pyritised with
fine grained pyrite,
347 352 5 0.75 940 arsenopyrite mineralisation
----------------------------------------------------------------------------
Quartz - pyrite vein
within 10cm moderately
argillic altered, pyritised
372 377 5 0.66 2 zone
----------------------------------------------------------------------------
Quartz - pyrite veining
with minor base metal
393 398 5 2.51 146 sulphides
----------------------------------------------------------------------------
402 403.6 1.6 1.04 3
----------------------------------------------------------------------------
Base metal sulphide vein
within puggy fault
DDH162 14 15 1 23.00 6890 zone at 14.4m
----------------------------------------------------------------------------
Quartz - pyrite vein within
clay altered clast supported
volcaniclastic, includes 1m @
31 34 3 25.52 24 74.2g/t from 31m
----------------------------------------------------------------------------
38 42 4 2.01 17 Pyritic tuff
----------------------------------------------------------------------------
45 46 1 2.50 12
----------------------------------------------------------------------------
Strong clay alteration with
DDH163 16 23 7 0.64 310 fine pyrite, puggy in part
----------------------------------------------------------------------------
24 31 7 1.00 98
----------------------------------------------------------------------------
32 34 2 1.38 136
----------------------------------------------------------------------------
38 43 5 0.67 82
----------------------------------------------------------------------------


- Minimum cut-off 0.50g/t Au

- Maximum of 2m internal waste

- No maximum cut-off applied

- Intersections represent approximate true width, except for narrow (less than 1cm) polymettalic quartz veins. The orientation of these veins to the core axis is noted in the comments.

- Holes DDH161, was drilled in PQ from surface to approximately 100m depth and thence in HQ. Holes DDH162, 163 were drilled in PQ to EOH.

- Drilling was carried out by Radial Drilling with a Longyear 44 rig

- Core recovery was greater than 95% except as noted

- Gold assays are by 50g Fire Assay carried out at ALS Chemex Brisbane

ABN 96 109 492 373

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

Contact Information