Solomon Gold (LON:SOLG) says it found high grade intercepts from deeper drilling at the Kauffmans-Homestead prospect at its Rannes project in Queensland. The firm is targeting a resource of more than 2 million ounces of gold overall at Rannes and the Kaufmanns-Homestead prospect is an important part of the 3,306 sq km project. The campaign at Kauffmans-Homestead is below the estimated inferred resource of 9.04 million tonnes at 0.85g/t gold equivalent for 247,044 ounces of contained equivalent gold and the deeper drilling aims to expand this current gold equivalent resource for the prospect to 550,000 ounces. This latest deep drilling comprised 14 percussion holes to depths of between 114m and 190m, said Solomon. So far four of these holes have been extended by diamond drilling but no results have yet been received from this type of drilling. Today's assays come from the percussion sections of the first two of holes KAU89 and KAU90, while figures for the other 12 holes are pending. Hole KAU90 (depth 240m) has been assayed to a depth of 144m - the end of the percussion hole section. The results from KAU90 are: 20 metres at 8.44g/t gold and 12.1g/t silver from 88 metres, including 4m with 37.8g/t gold and 27.1g/t silver from 100 metres, including 2m at 60.4g/t gold and 35.9g/t silver. Meanwhile, the other hole - KAU89 - has been assayed to a depth of 114m and recorded broad intervals of low grades - 1.0g/t gold and 25g/t silver - increasing at depth. Solomon Gold believes that the currently defined low grade system at central Rannes gives way to deeper "Cracow style" intersections in these epithermal gold-silver systems. The Cracow Gold Mine, 70 percent owned and operated by Newcrest Mining Limited is some 120km south of the Rannes project and produces around 100,000 ounces per year from a 0.3 million ounce reserve and 0.43 million ounce resource at 7.9g/t gold from an underground mining operation. Solomon said today that gold grades in the central mineralised zone at Kauffmans-Homestead are significantly higher at depth - around 10g/t to 30g/t gold compared to the shallower grades at around 1g/t to 4g/t gold. Short term, the firm says it is targeting up to 550,000 ounces of gold equivalent at the Kauffmans-Homestead prospect. The company's shares were up 0.79 percent on the back of the news in early deals - trading at 16 pence a share.

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