SolGold has announced positive gold assay results from the nine hole reverse circulation drilling programme undertaken at the Nicko’s Reward prospect at the Mt. Perry project in Queensland, Australia.

The prospect, located 20km from the 2 million ounce Mt. Rawdon gold mine, underwent a nine hold drilling programme in May and June 2012 in order to clarify the geometry of the mineralised system.

SolGold said in a statement that ‘very encouraging’ gold assay results have been returned and a working model of the mineralised system has been developed.

During the 1,169m programme, hole NIC 012 delivered 50m at 0.68g/t gold, including 2m at 5.46g/t gold; hole NIC 014 delivered 56m at 1g/t gold, including 4m at 4.82g/t gold; and hole NIC 016 delivered 26m at 1.41g/t gold, including 6m at 2.19g/t gold.

The company believes that there is scope for further drilling to the south and at depth, beyond the limits of the current and historical drilling, and said that the geological interpretation suggests the presence of several intrusive bodies with the identification of a granodiorite that is associated with mineralisation.

It is expected that further mapping and a broader soil geochemical program will define future drill targets.

SolGold CEO Malcolm Norris commented, "Nicko’s Reward prospect represents another opportunity for SolGold to work towards the definition of gold resources at Mt. Perry. The location close to the Mt. Rawdon mine, and the comparable geology, is encouraging. Follow-up work will be undertaken in line with other project priorities."