VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2012) - Solomon Resources Limited (TSX VENTURE:SRB) reports that it has signed a letter of intent to be granted an option to acquire 100% of a prospecting licence covering approximately 1,000 square kilometers in the Republic of Rwanda known as the Rurembo Property.
Geology of the Rurembo Property:
The property is located in the Kibaran Belt of Central Africa, a belt of Mesoproterozoic supracrustal metasediments and minor metavolcanics intruded by Mesoproterozoic S-type granitic massifs and subordinate mafic bodies. The Kibaran Belt trends generally northeast over 1300 kilometers from the Katanga Region in the DRC to the Ankole Region of SW Uganda. The belt hosts a large metallogenic province which contains numerous granite-related ore deposits primarily of tin-tungsten-tantalum which occur as primary mineralization in quartz veins, griesens and pegmatites as well as secondary alluvial or elluvial deposits.
The Rurembo licence area includes highly prospective pegmatite swarms immediately peripheral to the cassiterite-columbite-tantalite mineralisation of Gatumba and unexplored strike extensions of that metallogenic district to the north.
The licence area is situated on the western flank of the N-S trending Ndiza Syncline, whose core lies generally along the eastern margin of the licence area. Secondary folding (e.g. the Gasumu Syncline and the Janja Anticline) appear to be continuous from the Gatumba area up to Ruhengeri and is regionally complicated by multiple fault systems.
The licence area is situated between three granitic massifs: the Gitarama Granite forms the southeastern flank and Kabaya and Gisenyi Granites the west. The area between the massifs comprises metapelites and quartzites which are in turn intruded by mafic dolerites and pegmatites. The mineralogical composition of the dolerites is constant and mainly consists of feldspar (andesine to labradorite), hornblende, biotite, sphene and opaque minerals. The emplacement of the dolerites is interpreted to be pre-tectonic since they are crosscut by the S2 cleavage and folded together with the metasediments. The mafic rocks are locally crosscut by pegmatitic bodies that have intruded along these cleavage planes.
Targets identified in the licence area include an alteration zone identified by aeromagnetics on the northern flank of the Gitarama granitic massif where strong fault deformation is seen in the ENE-WSW striking Satinsyi-Rutongo Shear Zone and an area on the eastern edge of the voluminous Gisenyi granitic massif underlain by Satinsyi metasediments and amphibolites structurally complicated by the Kabaye-Kivuye Shear Zone and North Satinsyi Shear Zone. The North Satinsyi Shear Zone includes a highly altered sequence of Satinsyi Complex metasediments and amphibolites intruded by younger Tertiary volcanics along the length of the shear zone which extends from the northern boundary of the licence area to the Gatumba pegmatite field.
Some authors have proposed the existence of a NNW-SSE striking tungsten mineralization belt located between the Kabaye-Kivuye Shear Zone and the Satinsyi-Rutongo Shear Zone.
The pegmatites at Gatumba are interpreted to have formed in a syn- to post-tectonic regime. Geologists from Belgian colonial mining companies (unpublished mining archives of the MRAC) described different generations of quartz veins in the pegmatites, some of which are themselves crosscut by pegmatites. The exact paragenetic sequence of the quartz veins remains largely unknown. Some of these quartz veins may carry cassiterite and/or wolframite mineralisation.
At Gatumba the pegmatites are variably mineralized with columbite-tantalite and/or cassiterite. Beryl, ambygonite, spodumene, apatite and Li-phosphates are the most prevalent accessory minerals. More than 130 large pegmatites have been mapped, but this encompasses only a small portion of the inter-massif area of the Rurembo licence area in which a far greater number of pegmatites are thought to exist.
The pegmatites, dated at 968 Ma, occur in four parallel networks between the granites, with each individual network traceable up to 5 kilometers in extent. Thickness can vary from several centimeters to 30 meters, and lengths of tens of meters up to 2400 meters. The vertical extent of the pegmatites is not known as only the uppermost weathered portions have been investigated by artisanal mining and in one case by sporadic commercial mining at Gatumba.
The niobium-tantalum mineralization appears to be largely distributed evenly throughout the pegmatites, with some local gross mineral zoning along selvage edges in contact with dioritic host rocks. Cassiterite is typically hosted in bonanza grade "poches-de-griesen" where the pegmatites are cut by regional linear structures. Not all the pegmatites carry columbite, but all carry cassiterite. Local quartz veins may carry economic concentrations of wolframite.
Between 1929 and 1985, the Gatumba area produced 17,600 tonnes of mixed cassiterite and columbite-tantalite concentrate (locally: "coltan") primarily from the exploitation of eluvial and alluvial deposits and from deeply weathered pegmatites. Only limited exploitation of primary pegmatites has been attempted, since mechanical crushing and mineral concentration has to date proven uneconomic. At present, there is mainly sporadic artisanal production including one adit which has been driven into the Gatumba South deposit at Cyemo. Very selective high-grade extraction of enriched "poches-de-griesen" is currently taking place at the Gatumba Mining Concession.
To view Figures One and Two please click on the following link: http://media3.marketwire.com/docs/SRB0713.pdf
Terms of the Option Agreement on the Rurembo Property:
To exercise the option, Solomon must issue 12,000,000 common shares to the optionors, of which 6,000,000 shares will be issued on execution of a formal option agreement and receipt of Exchange approval. The remaining 6,000,000 common shares will be issued to the optionors upon the prospecting licence being converted to an exploration or production licence prior to its expiry on February 21, 2014. Provided a loan from the optionors to a company holding the Property of approximately $200,000 is forgiven or satisfied other than by payment to them, the optionors will also receive, on the conversion of the prospecting licence into an exploration or production permit, a cash payment of the same amount or an equivalent amount of common shares of Solomon at a deemed value of $0.05 each.
On execution of the formal option agreement, the optionors may appoint one representative to Solomon's Board of Directors and Solomon may nominate a second representative of the optionors for election at its 2012 annual general meeting of shareholders. Following such meeting, which has not been called, Solomon will have a total of six directors, including two nominated by the optionors.
The option is subject to completion of due diligence by Solomon within five days, TSX Venture Exchange approval, execution of a formal option agreement within 45 days of the completion of the due diligence and completion of a private placement raising $500,000.
Proposal to raise $500,000 by way of a private placement:
To fund exploration on the Rurembo property, Solomon proposes to raise $500,000 through a private placement of 10,000,000 units at $0.05 per unit.
Each unit will consist of one common share and one non-transferable share purchase warrant to purchase a further common share at $0.10 for two years. The expiry date of all warrants may be reduced to 25 trading days from notice thereof if the closing price of Solomon's shares equals or exceeds $0.25 for 20 consecutive trading days after the expiry of the four month restricted resale period.
The private placement is subject to TSX Venture Exchange approval.
Randy Rogers, M.Sc., P.Geo. 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 Executive Officer of Solomon, has verified the data disclosed herein by conducting a field examination of the Rurembo Licence Area and review of historical reports and has approved the written disclosure contained in this news release.
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 development of a number of significant mineral deposits including the Snip and Eskay Creek deposits in British Columbia and the Brewery Creek deposit in the Yukon Territory.
Solomon's business model is that of a Project Generator. To build shareholder value, the Company intends to acquire highly prospective mineral tenures in stable jurisdictions with the objective of adding value through grassroots exploration and target refinement and then seeking option or joint venture partners through to production.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accept responsibility for the adequacy or accuracy of this release.