27th Nov 2009 09:36
For immediate release 27 November 2009
ALLIED GOLD LIMITED
("ALLIED" OR "THE COMPANY")
"This press release is not for dissemination in the United States and shall not be disseminated to United States news services."
CONTINUING EXPLORATION DRILLING SUCCESS AT PIGIPUT AND PIGIBO PROSPECTS
HIGHLIGHTS
Significant gold intercepts from diamond core drilling continue to support the Pigiput 100,000oz p.a. Sulphide Development Study
Down dip extension of adjacent Pigibo Deposit identified
Allied Gold Limited (ASX:ALD) has received further high-grade gold assays from diamond core and reverse circulation holes drilled at the Pigiput and Pigibo gold prospects. The latest drilling and assay results continue to affirm the continuity of gold grade and width of mineralisation, at both the Pigiput and Pigibo prospects.
The full announcement is available from the Company's website, www.alliedgold.com.au and as a link to the announcement whilst extracts are set out below:
http://www.rns-pdf.londonstockexchange.com/rns/1930D_-2009-11-27.pdf
Pigiput Prospect - Best down-hole intercepts in diamond core holes were:
SDH045 119m @ 2.15g/t Au from 158m in SU
SDH047 35m @ 1.65g/t Au from 211m in SU
SDH048 49m @ 2.88g/t Au from 129m in SU
SDH049 6m @ 5.11g/t Au from 136m in SU
SDH050 17m @ 1.54g/t Au from 130m in SU
SDH052 31m @ 6.03g/t Au from 151m in OX, TR, SU
SDH053 39m @ 2.29g/t Au from 125m in SU
SDH055 35m @ 1.63g/t Au from 111m in SU
SDH056 16m @ 13.6g/t Au from 142m in SU
SDH057 27m @ 1.70g/t Au from 149m in SU
SDH058 35m @ 3.75g/t Au from 150m in SU
SDH059 12m @ 6.55g/t Au from 168m in SU
SDH060 47m @ 4.46g/t Au from 119m in SU
Pigiput Core Drilling
Gold assays were received for samples from fourteen (14) diamond core holes, drilled at the Pigiput Deposit as part of an ongoing in-fill and step-out program. The holes are part of a drilling programme, commenced in May 2009, designed to support the A$10 million Sulphide and Oxide Expansion Studies. These studies target increasing total oxide and sulphide production to in excess of 200,000oz p.a. by 2012.
Pigibo RC and Core Drilling
Gold assays received from two (2) diamond core and six (6) reverse circulation holes, defined the down dip extension of the Pigibo deposit.
Mineralised down-hole intercepts were found in 3 holes including:
SDH051 28m @ 3.82g/t Au from 108m in OX, TR, SU
RC1808 42m @ 3.64g/t Au from 37m in TR
RC1810 42m @ 2.82g/t Au from 78m in TR, SU
OVERVIEW
Allied Gold is actively undertaking in-fill and step-out reverse circulation and diamond core drilling at two prospect areas, Pigiput and Pigibo, centred 800 metres apart in the central part of mining lease ML136
The Pigiput Deposit is currently the subject of a sulphide resource drill-out programme and PFS (as outlined in Allied Gold Ltd press release dated 15 June 2009). ML136, the mining lease on Simberi Island, is owned 100% by Allied Gold Limited. Three (3) diamond core drill rigs are dedicated to the task.
PIGIPUT RESOURCE UPGRADE
At Pigiput, core drilling is being used to in-fill and extend the drilling coverage, aiming to increase resources in sulphide, currently classified as Indicated and Inferred, to a higher category. Since start-up in mid May to end October 2009, 32 exploration diamond core holes, totalling 8,820m, were completed. The current infill and drilling programs is scheduled for completion in early 2010.
The company plans to undertake a re-estimation for both resources and reserves for the Pigiput Prospect by the end of the first quarter in 2010.
To facilitate drilling in steep terrain, the current Pigiput Sulphide Project core drilling programme is designed as sets of multiple radiating holes, drilled from 4 principal drill sites. The holes are designed to increase the drill hole density in areas already known to be mineralised and include drilling directions that pierce the mineralised envelopes at oblique angles to the dip and strike of the mineralised formations. The true width of a down hole intercept varies depending on the angle the hole intersects the mineralised structures.
Drilling to date and assays results, including those reported in this release, continue to confirm the grade and extent of the mineralisation at Pigiput. Sections illustrating the relationship of core holes SDH045, SDH047, SDH053, SDH055 to SDH057 and SDH059 with respect to the previous resource block model are presented below. Holes SDH045, SDH047, SDH053, SDH055 to SDH057 and SDH059 are also illustrated with interpreted 0.5g/t and 1.0g/t cut-off mineralised zones. The true width of mineralisation in SDH053 is estimated to approximately the same as the respective down hole length. In SDH045, the true width is estimated to be approximately 50% of the reported down hole length.
At Pigiput, gold mineralisation is associated with a moderately north dipping, east-west striking structural surface that can be interpreted across the entire extent of the deposit. The surface is recognised in core holes as a discrete structurally deformed zone. Gold grades are generally highest at the main surface and significant mineralisation may occur in subsidiary structures above and to a lesser extent below it. The main surface, interpreted as a fault zone, also marks a change from clay-pyrite and silica-carbonate-pyrite alteration zones in the brecciated tuff and porphyry host rocks at and above it to chlorite dominated alteration below.
PIGIPUT - PIGIBO
RC and diamond core drilling was undertaken at the Pigibo Prospect, testing its down dip extension.
Assay results, received for six reverse circulation holes RC1807 to RC1812, confirmed moderate northerly dip of the western half of the Pigibo Prospect.
Diamond core hole, SDH051 was drilled to twin and extend previously drilled reverse circulation hole RC1785 (34.0m @ 2.60g/t Au from 86m, open down hole). Over the equivalent interval, SDH051 achieved a similar (46.0m @ 1.99g/t Au from 86m (OX, TR, SU), including 3.25m of core loss assigned zero grade.
In the east, several barren holes, along with well mineralized RC1808 (42m @ 3.64g/t Au from 42m, in oxide (OX), transition (TR) and sulphide (SU) and (19m @ 1.65g/t Au from 157m (TR, SU) suggest the mineralization strikes at an acute angle to the drilling direction (N to S). A series of ENE oriented holes are planned to test the interpretation and better define the mineralized zones.
For more information:
|
Mark Caruso Executive Chairman |
T:+61 8 93533638 |
|
Roland Cornish Beaumont Cornish Limited |
T: +44 (0) 20 7628 3396 |
Competent Persons
The information in this Stock Exchange Announcement that relates to Mineral Exploration results, together with any related assessments and interpretations, has been approved for release by Mr P R Davies, MSc, BSc, M.Aus.I.M.M., a qualified geologist and full-time employee of the Company. Mr Davies has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Davies consents to the inclusion of the information contained in this release.
Forward-Looking Statements
This press release contains forward-looking statements concerning the projects owned by Allied Gold. Statements concerning mineral reserves and resources may also be deemed to be forward-looking statements in that they involve estimates, based on certain assumptions, of the mineralisation that will be found if and when a deposit is developed and mined. Forward-looking statements are not statements of historical fact, and actual events or results may differ materially from those described in the forward-looking statements, as the result of a variety of risks, uncertainties and other factors, involved in the mining industry generally and the particular properties in which Allied has an interest, such as fluctuation in gold prices; uncertainties involved in interpreting drilling results and other tests; the uncertainty of financial projections and cost estimates; the possibility of cost overruns, accidents, strikes, delays and other problems in development projects, the uncertain availability of financing and uncertainties as to terms of any financings completed; uncertainties relating to environmental risks and government approvals, and possible political instability or changes in government policy in jurisdictions in which properties are located.
Forward-looking statements are based on management's beliefs, opinions and estimates as of the date they are made, and no obligation is assumed to update forward-looking statements if these beliefs, opinions or estimates should change or to reflect other future developments.
Not an offer of securities or solicitation of a proxy
This communication is not a solicitation of a proxy from any security holder of Allied Gold, nor is this communication an offer to purchase or a solicitation to sell securities. Any offer will be made only through an information circular or proxy statement or similar document. Investors and security holders are strongly advised to read such document regarding the proposed business combination referred to in this communication, if and when such document is filed and becomes available, because it will contain important information. Any such document would be filed by Allied Gold with the Australian Securities and Investments Commission, the Australian Stock Exchange and with the U.S. Securities and Exchange Commission (SEC).
The technical information in the Announcement was prepared under the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC).
Glossary of terms used in the Announcement:
19. A 'Mineral Resource' is a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.
20. An 'Inferred Mineral Resource' is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.
21. An 'Indicated Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
22. A 'Measured Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity.
Tonnage - An expression of the amount of material of interest irrespective of the units of measurement (which should be stated when figures are reported)
Grade - Any physical or chemical measurement of the characteristics of the
Analysis (Value) material of interest in samples or product
Cut off grade - The lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. May be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification
Mineralisation - Any single mineral or combination of minerals occurring in a mass, or deposit, of economic interest
Others
Assay - The proportion of a particular metal (eg Au and Ag) in a sample derived by laboratory analytical techniques.
Analysis limits of detection for Au is
Simberi mineralisation types are:
Oxide - extremely weathered material (cyanide leach recoveries > 90%), 0.5 g/t Au cutoff
Transitional - distinctly weathered material (cyanide leach recoveries 50-90%), 0.5 g/t Au cutoff
Sulphide - Slightly weathered to fresh material (cyanide leach recoveries generally
Ounce - 1 troy ounce = 31.10348 grams
Tonnes - Are estimated on a dry basis and defined as a measurement of mass equal to 1000kg which is equivalent to 2204.622 pounds.
Mineral Resource estimate - An estimate of tonnage and grade (mineral content) of a deposit by a variety of techniques including geometrical classical methods and or geostatistical methods.
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