King Solomon Mines Quarterly Report

 

New Zealand Exchange Limited
P.O. Box 2959
Wellington

 

30 July 2010

Dear Sir,

King Solomon Mines Quarterly Report 

 

China based King Solomon Mines (“KSO”) is one of Widespread’s cornerstone investments, and represents 6.3% of our total assets at its present market value of AUD 5.9 cents a share. We are the largest individual shareholder in KSO with a holding of 11%.    

 

KSO yesterday released its quarterly report to the ASX. This report included for the first time a “strategic summary”, in effect an interpretative section easier for shareholders to follow.

 

This summary is included below and should be read in the context of the entire quarterly report which is filed with ASX and also available at www.kingsolomonmines.com 

 

For and on behalf of the Board,

 

Chris D Castle

 

Sydney, 30 July 2010

 

 

King Solomon Mines Limited

 

29 July 2010

 

Strategic Summary

 

The company was focused through the quarter on completion of first stage drilling of its Sonid Zuoqi gold projects while at the same time continuing the investigation of its large scale longer-term Bu Dun Hua porphyry copper project.

 

Early encouragement from drilling has been provided by the discovery of gold at the Mud-house prospect at Sonid North.

 

Encouragement has also come from identification of a gold-silver prospect adjacent to the Bu Dun Hua porphyry copper prospect. A sample result at surface yielded 481 g/t silver with significant other minerals present. Drilling of this prospect is expected to start on 30 July.

 

Further encouragement is provided by the veining identified in the drilling at South Ridge (Naogaoshandu) and Round Hill (Beyinhar North). Assays for these prospects are expected in the near future.

 

Drilling continued on the large scale porphyry copper-molybdenum prospect at Bu Dun Hua. Assays are awaited from 5 diamond holes for 1,422m.

 

Exploration for the next quarter will focus on following up success in the assay results. An immediate drill target has been identified through the Mud-house results.

NTA 55¢

Key stats as at 18 May

Security

Number on issue

Market price (cents)

Market Value ($M)

Net assets ($M)

Ordinary shares

23,490,449

16.0

3.758

12.8*

Market value discount    (ords only)  

 70.7%

 

Listed warrants

8,505,123

0.8

.068

 

* Our ASN shareholding is now held for NTA disclosure purposes at a valuation of CAD 1.914 million based on our share of net assetsNTA per WID share valuing ASN at the current spot market price is 46.8 cents. NTA per share valuing all listed assets at spot market prices is 22.7 cents.

 

 

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