28th Sep 2007 15:33
Allied Gold Limited28 September 2007 FOR IMMEDIATE RELEASE 28 September 2007 Allied Gold Limited ("the Company") ANNUAL REPORT 2007 Allied Gold Limited has posted the Annual Report 2007 (the "Report") toshareholders. Directors' report (extracts as summarised below) REVIEW OF OPERATIONS The principal focus of the company over the year was the design and constructionof the Simberi Oxide Gold project and to explore the islands of Simberi, Tatauand Big Tabar for new gold resources. A review of the capital cost and designparameters of the Oxide gold project was completed in July following whichdetailed design of the project commenced followed by onsite construction. Theestimated capital cost of the project was $80 million and the project would becompleted in the second half of 2007. Civil contractors were mobilised to site in July and commenced construction inAugust on infrastructure projects. Simultaneously work commenced on theestablishment of the Simberi Island ring road and airstrip. The process plantconstruction commenced in November with the building of the leach tankfoundations. Project design work was essentially completed by the end on May andall equipment was specified and ordered by year end. Plant construction hadprogressed satisfactorily by year end with CIL tank erection well under way,installation of the ball mill and scrubber commenced and the installation ofstructural steelwork beginning. Permanent motel style accommodation for longterm operating employees has been completed and occupied. The shipment of materials and equipment was identified as a major obstacle tocompleting the project on time so a 61metre multi purpose cargo / roro vessel,The MV Lady Geraldine was purchased and put into service shipping freight fromLae to Simberi Island. With the establishment of a 1200metre airstrip on Simberiisland regular aircraft charter flights commenced from Rabaul to Simberi totransport construction personnel. Long term contracts for the generation of power to the project have beencompleted and arrangements for the supply of fuel were being finalised. Longterm reliable communications have been established to Simberi for voice and datatransmissions to enable effective control and communications to be put in place.The employment of operating personnel has commenced and all senior positionshave been filled with very experienced expatriate personnel. While project activities have been progressing exploration of Simberi, Tatau andBig Tabar Islands continued to take place with very successful results. Themajority of work was done on Simberi Island where 3,878 metres of drilling werecompleted, and with 1,334 metres drilled on Tatau, IP surveys were completed inthe Sorowar area, soil sampling for geochemical analysis were carried out andextensive geological mapping completed. This has resulted in a significantlybetter understanding of the geology of the island and has generated a number ofvery significant targets which will be drilled in the coming year. Ore reserveswere increased by 43,000 ounces as a result of drilling. As a result of a shareplacement $12 million was raised for exploration in the Tabar Islands some ofwhich was to be used for the purchase of capital equipment in particularexploration drill rigs. These rigs were purchased towards the end of the yearand will be put into service early in the new financial year. The Mapimi poly-metallic project in Mexico had minor activities associated withit completed which involved technical assessments of the property with a view toinviting other parties into the project to proceed with its development. The Red Dam project located in Western Australia was sold to Carbine Resourcesfor 4,020,000 shares and $5,000 in cash. Financial Position The net assets of the economic entity have increased by $84,991,269 from 30 June2006 to $101,995,798 in 2007. An additional capital raising was made in March2007 to further progress the exploration capabilities on the Simberi islandgroup SIGNIFICANT CHANGES IN STATE OF AFFAIRS Capital Raisings In March 2007 the Company completed a placement of 42.0 million shares at $0.32each, raising A$13.4 million. The placement was issued to institutional investorclients of UK based broker Mirabaud Securities Limited. In addition, the following options were exercised during the year and convertedinto fully paid ordinary shares: - 19,826,582 Listed options converted at $0.20- 3,000,000 Unlisted options converted at $0.30- 2,000,000 Unlisted options converted at $0.40 SUBSEQUENT EVENTS Subsequent to year end and as part of the US$25.0m financing facility, thecompany entered into gold hedging arrangements as a condition to this facility.This facility has commenced to be drawn down after period end. Except for the above, no other matter or circumstance has arisen since 30 June2007 that has significantly affected, or may significantly affect: (a) the Group's operations in future financial years, or(b) the results of those operations in future financial years, or(c) the Group's state of affairs in future financial years. FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES The company is proceeding with the full development of the Simberi Oxide GoldProject with a 2.0 mtpa plant currently being constructed with the associatedinfrastructure underway. Mine production is scheduled at 84,000 ounces of goldper annum. Scheduled gold production is due to commence in the fourth calendarquarter 2007. It is anticipated that an accelerated exploration programme willbe undertaken to convert known resource ounces into reserve ounces. In the opinion of the Directors it may prejudice the interests of the Company toprovide additional information in relation to likely developments in theoperations of the Company and the expected results of those operations insubsequent financial periods. NOTE A copy of the Report and attached audit opinion is available for a period of onemonth, free of charge, from Unit 15, Level 1, 51-53 Kewdale Road, Welshpool,Western Australia 6106. A copy can be viewed and downloaded on the Company's website -www.alliedgold.com.au or as a link to this announcement. http://www.rns-pdf.londonstockexchange.com/rns/7762e_-2007-9-28.pdf For enquiries in connection with the above, please contact: Mark CarusoChairman and Managing DirectorAllied Gold Limited+ 61 8 9353 [email protected] Roland CornishBeaumont Cornish Limited020 7628 3396 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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