15th Jun 2007 15:11
Allied Gold Limited15 June 2007 FOR IMMEDIATE RELEASE 15 June 2007 ALLIED GOLD LIMITED ("ALLIED" OR "THE COMPANY") CHANNEL SAMPLING YIELDS SIGNIFICANT GOLD MINERALISATION OUTSIDE OF CURRENT RESOURCES The following was announced on the ASX today: "The Directors of Allied Gold Limited ("Allied") are pleased to report thatrecent channel sampling results continue to validate the theory that the MonunCreek prospect represents a significant strike extension to the Sorowar deposit,Simberi's most extensive open pit resource. The Simberi Oxide Gold Project forms part of the Company's 100%-owned TabarIslands Project, located 60 kilometres north-west of the +40 million ounce goldresource at Lihir Island in PNG. Routine continuous channel sampling (5-metre composites) of two access roadsthat were constructed by bulldozer into the MN001 drill pad on ML136 returnedseparate intercept lengths of: • 295m at 1.17 g/t gold including 30m at 2.87 g/t gold and 20m at 3.06 g/t gold • 30m at 1.19 g/t gold These road channel sample intercepts are distinct from, and in addition to, thatreported on 12 April 2007 (see Figure 1), namely: • 90m at 1.79 g/t gold When combined with the results of recently completed geophysical surveys in thearea, these channel sample results indicate that Monun Creek most likelyrepresents a south-eastern extension of the Sorowar deposit, Simberi Island'ssingle largest gold deposit. Gold resources at Sorowar total 1.248 million ounces including oxide gold (aswell as minor entrained transitional and sulphide material) ore reserves of546,000 ounces. The strike extension is in the order of 300 metres, which issignificant in the context that Sorowar has a strike length of approximately 700metres. This apparent strike extension remains open to the south-east. Background to Monun Creek Results The Monun Creek prospect is located off the main topographic ridge and its spurlines, which have been the subject of previous concentrated drilling. It lies ona large radiometric (potassium channel) geophysical anomaly to the south-eastof, and contiguous with, the Sorowar deposit. The channel sample intercepts the 13 metres at 4.20 g/t gold oxide drillintercept in MN001 and the significant anomalies identified from recentgeophysical surveys in the area provide strong evidence that the Sorowar oxidedeposit may extend at least 300 metres further to the south-east at Monun Creek. EXPLORATION UPDATE The Company is also pleased to advise that the four drilling rigs that werepurchased in April 2007 are currently being mobilized to site. All personnelrequired to operate this equipment have been sourced and drill pads have beenprepared to commence intensive exploration drilling. The assay results from the recent channel sampling clearly vindicate Allied'sdecision to purchase its own drilling rigs and to accelerate its explorationactivities throughout the Tabar Islands Group. As a priority the Company intends to conduct a significant drilling programbetween the proposed Sorowar pit and Monun Creek and to explore other highpriority targets. The Company remains on time and within budget to commission the 84,000 ounce perannum Simberi Oxide Gold Project within the next six months. The information in this Stock Exchange Announcement that relates to explorationresults, together with any related assessments and interpretations, has beenapproved for release by Mr Bohdan (Bob) Burban, Dip.App.Geol., F.Aus.I.M.M., aqualified geologist and full-time employee of the Company. Mr Burban s hassufficient experience which is relevant to the style of mineralisation and typeof deposit under consideration and to the activity which he is undertaking toqualify as a Competent Person as defined in the 2004 Edition of the"Australasian Code for Reporting of Exploration Results, Mineral Resources andOre Reserves."" For further information: Marc Caruso, Managing Director, Allied Gold on +61 8 93533638 Roland Cornish, Beaumont Cornish Limited on +44 (0) 20 7628 3396 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ALD.L