27th Jun 2006 07:00
Allied Gold Limited27 June 2006 FOR IMMEDIATE RELEASE 27 June 2006 ALLIED GOLD LIMITED FIRST DRILLING COMMENCES ON TATAU ISLAND AS SOROWAR GOLD RESOURCE UPGRADED SIMBERI GOLD PROJECT - OFFSHORE PNG Highlights • The Mineral Resource at the Sorowar deposit has been increased by 33,000 ounces for a total Measured, Indicated and Inferred inventory of 1.255 million ounces of gold. • Significant gold intercepts from latest infill drilling at Bekou on Simberi Island. • Mineralisation at Sorowar continues to be open in all directions. • Maiden exploration drilling commences on Tatau Island, immediately south of Simberi, with an initial 10-hole reconnaissance diamond and RC drill program at the Talik Prospect. Bekou gold intercepts • Additional gold intercepts returned from shallow RC infill drilling at Bekou on Simberi Island, include; o 2m at 3.99g/t gold from 17m in RC1210. o 20m at 2.53g/t gold from surface, including 13m at 3.39g/t gold from 7m in RC1219. o 21m at 1.93g/t gold from surface in RC1220. o 9m at 4.19g/t gold from surface in RC1221. o 8m at 1.19g/t gold from 4m in RC1226. o 11m at 2.57g/t gold from 1m in RC1229. o 5m at 5.10g/t gold from 4m in RC1230. o 24m at 1.88g/t gold from surface, including 12m at 2.41g/t gold from 12m, in RC1240. Sorowar Mineral Resource Update Golder Associates updated the Sorowar deposit Resource model during May 2006.The previous Resource model, reported in the Optimised Feasibility Study ofOctober 2005, used the May 2005 database that contained 395 Sorowar holes(33,300 metres of drilling). The update contained in this announcement uses data from an additional 42 drillholes (4,124 metres of drilling) that focussed on testing oxide goldmineralisation at Sorowar Camp to the immediate west of the proposed Sorowarpit, at East Sorowar several hundred metres to the east of the proposed pit, andat Induced Polarisation geophysical anomalies at various locations peripheral tothe pit. The location of areas drilled are shown on Figure 1. As in the October2005 estimate, geological domains representing oxide, transition and sulphidematerial types were modelled, with separate 'floating' pods of transition andsulphide material within the oxide domains. Grade estimation was by ordinarykriging within the geological domains. In the Measured, Indicated and Inferred Oxide Resource inventory, at a 0.5g/t Aucutoff, the update has added 0.25Mt of Resource for an additional 9,000 ouncesof gold but importantly has moved 0.76Mt of Inferred Resource into the higherconfidence level Indicated category. In addition, 24,000 ounces of gold havebeen added to the Sulphide Resource. The Sorowar drilling campaign is ongoingand has proved very successful to date. Drilling programs over the past 12months have identified approximately 8 ounces of gold mineralisation per metredrilled. The additional oxide mineralisation is located on the east and west margins ofthe Resource model, as shown in Figure 1. The red line encloses the 2005estimation envelope, and the green line encloses the 2006 updated envelope. Theproposed pit design currently encloses almost all of the existing Sorowardrillholes, so step-out drilling will be required in all directions prior to afinal pit design. Excellent potential exists for the discovery of additionaloxide Resources to the northeast, north and northwest where drill testing ofridges that extend away from the deposit is incomplete. The updated Sorowar Mineral Resource inventory is tabulated below. SOROWAR RESOURCE 0.5G/T AU CUTOFF May-06-------------------------------------------------------------------------------- Domain Class Mt g/t Au Koz--------------------------------------------------------------------------------Oxide Measured 7.96 1.28 327 Indicated 4.97 1.20 191 Inferred 4.52 1.11 161--------------------------------------------------------------------------------Oxide Total 17.44 1.21 679--------------------------------------------------------------------------------Transition Measured 0.63 1.23 25 Indicated 1.34 1.31 56 Inferred 0.60 1.22 24-------------------------------------------------------------------------------- Transition Total 2.57 1.27 105--------------------------------------------------------------------------------Sulphide Measured 1.27 0.88 36 Indicated 3.57 0.93 107 Inferred 12.20 0.84 329--------------------------------------------------------------------------------Sulphide Total 17.04 0.86 471--------------------------------------------------------------------------------Grand Total 37 1.05 1,255-------------------------------------------------------------------------------- Source: Golder Associates, 13 June 2006 Sorowar mineralisation types are: Ox = oxide material - extremely weathered (average cyanide leach recovery 92%) Tr = transitional material - distinctly weathered (average cyanide leach recovery 72%) Su = sulphide material - slightly weathered to fresh (average cyanide leach recovery 66%) The updated total Oxide Mineral Resource inventory is tabulated below, and therelationship between the Sorowar deposit and the other deposits is shown onFigure 2. SIMBERI OXIDE PROJECT MINERAL RESOURCE ESTIMATES (at 0.5g/t gold cutoff)--------------------------------------------------------------------------------PROSPECT RESOURCE MILLION GRADE Au COMMENTS CATEGORY TONNES Au G/T OUNCES ('000)--------------------------------------------------------------------------------Sorowar Measured 9.86 1.22 388 Estimated in 2006 by ordinary kriging. Includes transition Indicated 9.88 1.11 354 and sulphide pods floating within the oxidised Inferred 17.31 0.92 513 mineralisation. Meas+Ind 19.74 1.16 742 Meas+Ind+Inf 37.05 1.05 1,255--------------------------------------------------------------------------------Samat Measured 0.18 4.20 24 Estimated in 1996 by indicatorSouth Indicated 0.02 2.96 2 kriging. Oxidised Inferred 0.02 2.19 2 mineralisation only. Meas+Ind 0.20 4.09 26 Meas+Ind+Inf 0.22 3.88 28--------------------------------------------------------------------------------Samat Measured 0.33 2.05 22 Estimated in 1996 by indicatorNorth Indicated 0.07 0.87 2 kriging. Oxidised Inferred 0.17 1.07 6 mineralisation only. Meas+Ind 0.41 1.84 24 Meas+Ind+Inf 0.58 1.61 30-------------------------------------------------------------------------------- --------------------------------------------------------------------------------PROSPECT RESOURCE MILLION GRADE Au COMMENTS CATEGORY TONNES Au G/T OUNCES ('000)--------------------------------------------------------------------------------Samat Measured Estimated in 1996 byEast Indicated 0.50 1.31 21 indicator kriging. Oxidised Inferred 0.07 1.49 3 mineralisation only. Meas+Ind 0.50 1.31 21 Meas+Ind+Inf 0.56 1.33 24--------------------------------------------------------------------------------Pigiput Measured 0.47 1.21 18 Estimated in 1996 by Indicated 1.00 0.87 28 indicator kriging. Oxidised Inferred 1.49 0.89 43 mineralisation only. Meas+Ind 1.48 0.98 46 Meas+Ind+Inf 2.97 0.93 89--------------------------------------------------------------------------------Pigibo Inferred 2.10 1.10 74 Estimated in 1998 using inverse distance weighting. Oxidised mineralisation only.-------------------------------------------------------------------------------- Botlu Measured 1.22 1.14 45 Estimated in 1998 bySouth Indicated 0.45 1.23 18 indicator kriging. Oxidised Inferred 0.31 1.16 11 mineralisation only. Meas+Ind 1.67 1.16 62 Meas+Ind+Inf 1.97 1.16 74--------------------------------------------------------------------------------Pigicow Inferred 0.27 1.70 15 Estimated in 1998 using cross sectional area method. Oxidised mineralisation only.-------------------------------------------------------------------------------- Bekou Inferred 0.06 4.00 8 Estimated in 1998 using cross sectional area method. Oxidised mineralisation only.-------------------------------------------------------------------------------- TOTAL Measured 12.06 1.28 497 TOTAL Indicated 11.92 1.10 424 TOTAL Meas+Ind 23.98 1.19 921 TOTAL Inferred 21.81 0.96 675--------------------------------------------------- TOTAL Meas+Ind+Inf 45.78 1.08 1,596-------------------------------------------------------------------------------- Oxide Exploration - Bekou Area At Bekou, to the immediate west of Samat South, results have been received forthe remaining 40 shallow RC holes drilled to further test known oxide (andunderlying sulphide) gold mineralization. The occurrence and depth extent ofoxide material, and both oxide and sulphide gold grades, suggest goldmineralisation is focussed along a structure followed by Botlu Creek in an areaabout 100m by 150m. A follow-up drilling and channel sampling programme will bedesigned to further delineate the near-surface oxide mineralisation. A Bekougold mineralisation resource is likely to be intermediate in grade between thehigher-grade Samat deposits and Sorowar, and can utilise the Samat haul road tothe plant. The location of Bekou is shown on Figure 3. Significant results are tabulated below: BEKOU AREA - OXIDE/SULPHIDE TARGETS ----------------------------------------------------------------------------------------Drillhole Northing Easting Dip/Azimuth From To (m) Interval Grade Mineralisation (m) (m) (g/t Type Au) (mN) (mN) (degrees) Simb Simb Simb grid grid grid ---------------------------------------------------------------------------------------- RC1210 7,093 9,182 -90o/000o 17 19 2 3.99 Tr, SuRC1214 7,170 9,162 -90o/000o 9 17 8 1.14 Ox, Tr, Su----------------------------------------------------------------------------------------RC1219 7,140 9,115 -90o/000o 0 20 20 2.53 Ox, Su incl: 0 2 2 1.31 Ox incl: 7 20 13 3.39 Su with: 14 15 1 20.7 Su----------------------------------------------------------------------------------------RC1220 7,128 9,140 -90o/000o 0 21 21 1.93 Ox, Su----------------------------------------------------------------------------------------RC1221 7,104 9,152 -90o/000o 0 9 9 4.19 Ox, Tr, Su with: 5 6 1 10.45 Su----------------------------------------------------------------------------------------RC1229 7,105 9,132 -90o/000o 1 12 11 2.57 Ox, Tr, Su with: 9 10 1 11.0 Su----------------------------------------------------------------------------------------RC1230 7,080 9,141 -90o/000o 4 9 5 5.10 Su with: 7 8 1 10.4 Su----------------------------------------------------------------------------------------RC1238 7,003 8,835 -90o/000o 0 9 9 1.60 Ox----------------------------------------------------------------------------------------RC1240 7,034 8,860 -90o/000o 0 24 24 1.88 Ox, Tr, Su incl: 0 9 9 1.53 Ox, Tr, Su incl: 12 24 12 2.41 Su with: 21 22 1 11.9 Su----------------------------------------------------------------------------------------RC1244 7,115 8,973 -90o/000o 2 8 6 1.43 Ox---------------------------------------------------------------------------------------- Note: Assaying for gold by fire assay (50gm) with AAS finish (ALS Chemex Laboratories- Townsville) Simberi mineralisation types are: Oxide material (free milling-type) - extremely weathered (cyanide leach recovery>90%, Sorowar average 92%) Transitional material - distinctly weathered (cyanide leach recovery 50-90%,Sorowar average 72%) Sulphide material (refractory-type) - slightly weathered to fresh (cyanide leachrecovery generallyRelated Shares:
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