Widespread's King Solomon issues progress report
New Zealand Exchange Limited
P.O. Box 2959
Wellington
15 June 2011
Dear Sir,
King Solomon Mines issues progress report
China based King Solomon Mines (“KSO”) is one of Widespread’s cornerstone investments, and represents 7.2% of our total assets at its present market value of AUD 7.5 cents a share. We are the largest individual shareholder in KSO with a holding of 6.1%.
KSO today made the announcement below.
For and on behalf of the Board,
Chris D Castle
Mystery Creek, 15 June 2011
King Solomon Mines Limited
Progress report
This report provides an update on drilling progress at King Solomon’s Bu Dun Hua
(BDH) and Sonid North projects in Inner Mongolia.
Bu Dun Hua
At BDH the company now has three diamond drill rigs deployed, one deep-hole rig and
two lighter reconnaissance rigs. This high level of activity reflects the directors’ view
that the porphyry copper-molybdenum style intrusive complex discovered at Whitehorse
through 2009-2010 is but one part of a substantially larger alteration/mineralisation
system.
The first deep hole at BDH has just been completed. It was drilled south-eastward at an
angle of 60o to locate the northern wall of the Whitehorse complex and to investigate the
system at levels deeper than those reached in 2010. It passed through the northern wall at
approximately 510m down-hole, establishing a 750m diameter thumb-like form to the
intrusive complex. Continuing to a depth of 1,022m down-hole, it established the
"complex" nature of the thumb viz. several phases of intrusive activity resulting in moreor-less vertical zones of different structural and geochemical characteristics.
All phases have been strongly hydrothermally altered with sulphide contents varying
from less than 1% to occasionally greater than 5%. Assays received to date are largely
from the volcanic cover rocks encountered in the upper 510m of the hole although they
also include a few tens of metres into the edge of the intrusive complex. They are much
as anticipated with some locally strong lead, zinc and silver anomalies in the volcanic
rocks and with anomalous copper and molybdenum values appearing as the hole passes
into the intrusive body.
Figure 1. BDH showing past and current drill-hole locations on RTP magnetic image
Figure 2. Trace of Whitehorse deep-hole BDH018 on NW-SE magnetic section
The deep-hole rig has now moved to south of the Lao Ping Tong prospect where the first
of the reconnaissance rigs has located encouraging porphyry-style alteration. It will reenter and deepen this hole leaving the two lighter rigs to continue their broader ranging
reconnaissance. One reconnaissance rig has commenced drilling south of the Western
Khan prospect and the other one within the Western Khan prospect (2.8km and 2.3km
southwest and west-southwest respectively from Whitehorse). There are no assay results
yet available for any of this drilling.
An early reconnaissance hole at the Royal Mongol prospect 2.4km south-southwest of
Whitehorse failed to encounter significant porphyry-style alteration or mineralisation but
did intercept a breccia with transported fragments of strongly sulphidic intrusive
porphyry.
Sonid North (Mud-house)
At Sonid North a period of intensive drilling has just been completed. A 3,202m shallow
RC program at the Mud-house prospect has established the existence of an anomalous
gold corridor at least 1.8km long and from 100m to 150m wide. It has also indicated that
prospects for a readily accessible gold resource are likely to be limited to a series of
narrow gold-silver-arsenic mineralised structures within a central zone approximately
500m long.
A nine hole for 1,912m diamond drill program completed within this latter zone has
provided useful geological information. Most assay results remain pending.
The anomalous gold corridor at Mud-house, while appearing to offer limited chances for
near-surface resources, is of interest in that altered intrusive porphyries have been
encountered in some of the diamond drill-holes. This prospect is less than 6km from
Marmot Ridge where porphyry-style molybdenum and copper mineralisation was
previously discovered by KSO.
Figure 3. Showing relative locations of Mud-house, Sandy Ridge and Marmot Ridge prospects.
Drilling was also undertaken on a second recently identified mineralized zone within the
Sonid North tenement. The program consisted of 83 RAB holes in 5 lines across a series
of gold-in-soil anomalies centred approximately 2.3km north of Mud-house and known
as the Sandy Ridge prospect. Assay results remain pending.
KSO has had a very vigorous first three months of its 2011 field season. The activity
continues unabated and a steady stream of results is expected over the next three months.
Stephen McPhail
Managing Director
Enquiries may be directed to Stephen McPhail at phone 1800 061 569 (from Australia),
+6421 897 667 (from elsewhere) or email stephen@kingsolomonmines.com .
