09 December 2010

Gold up-grade at Mud-house prospect (Inner Mongolia)

King Solomon announced the discovery of widespread low-grade gold mineralisation at the Mud-house prospect in the Sonid North tenement in the June 2010 Quarterly Report. Assay results from a series of scout RC drill-holes were reported in the September Quarterly Report. Subsequently check assays were run on the RC drillhole cuttings using larger sample sizes.

These check assay results indicate that the mineralisation is stronger than first reported. Results just to hand from the check assays on a representative suite of 33 larger samples show an 11% overall upgrade in gold content when assaying 500g subsamples compared with the original 50g sub-samples.

The most significant single upgrade came from drill-hole SNRC007 where an original assay of 1.55g/t (from 42m to 44m) re-assayed at 2.28g/t Au. The indicated up-grades also enhance the significance of the tens-of-metres wide broad haloes of lower grade gold mineralization enveloping the better-than 1g/t Au lenses.

The broad zones of gold mineralisation encountered in the drilling to date may represent the edge of a potentially large and relatively near surface gold system within open-pittable depths.

Planning for an extensive follow-up program using drilling, sampling and assay techniques appropriate for the local conditions (nuggety gold, thick sand cover and variably wet and dry sub-surface conditions) is well under way.