King Solomon mines upgrades gold prospect
/New Zealand Exchange Limited
P.O. Box 2959
Wellington
17 June 2012
Dear Sir,
King Solomon Mines upgrades Mud-house gold prospect
China based King Solomon Mines (“KSO”) is Widespread’s fourth largest investment, and represents 2% of our total assets at its present market value of AUD 2 cents a share. We are the largest individual shareholder in KSO with a holding of 5.1%.
KSO made the announcement below in Australia on Friday 14 June.
For and on behalf of the Board,
Chris D Castle
Onekaka, 17 June 2012
MUD-HOUSE GOLD PROSPECT UPGRADED
The company has just completed a technical review of the first stage pattern drilling of its Mud-house gold prospect at Sonid North. The review included research into Chinese underground mining costs and resource valuations in China. It has been concluded that potential exists at Mud-house for a narrow vein 100,000 oz to 200,000 oz gold resource with additional exploration upside. This clearly merits more intensive follow up drilling.
The gold mineralisation (>1.0g/t Au) at Mud-house occurs in a series of narrow veins for at least 600m of strike length of an open-ended 1.8km surface gold anomaly. Thirteen intercepts of >1.0g/t Au from ten drill holes in this section average 1.9m in width and have a weighted average grade of 3.35g/t Au (these results have been reported individually in company quarterly reports). Best values include 0.7m @ 8.0g/t Au and 4.0m @ 11.3g/t Au. The thirteen intercepts are accompanied by numerous others in the 0.10 to 0.99g/t Au range and by occasional significant silver values.
The 600m zone has been tested on a coarse grid spacing to a depth of approximately 200m below surface. In-fill drilling, comprising 24 diamond drill-holes for approximately 6,000m, is now proposed to reduce hole spacing to 50m intervals along section lines 100m apart. This is necessary to better demonstrate the continuity of mineralisation required for a preliminary resource assessment. As the zone is open down-dip, some provision will also need to be made for testing anticipated continuity and thereby additional resource potential at deeper levels.
Repetitions of the Mud-house discovery may exist along geological trend. Recent prospecting results of 4.22g/t Au and 1.48g/t Au from chip sampling of isolated outcrops in KSO's adjoining Marmot tenement, demonstrate potential for further gold occurrences up to 6km eastward along geological trend from Mud-house. Further prospecting along this trend will be undertaken.
Bu Dun Hua Update
Meanwhile, drilling has been continuing at the Bu Dun Hua porphyry copper project. The first two diamond holes at the Nomad and Ghenghis prospects have been completed. The drilling rig is being moved to the third drilling site at the Northern Deeps prospect. Assays are expected to be available by the end of July.
Stephen McPhail
Managing Director
King Solomon Mines Limite
