28th May 2008 07:00
For immediate release
28 May 2008
Allied Gold Limited
("Allied Gold" or the "Company")
Additional Gold Mineralisation Encountered Outside Sorowar Pit
"This press release is not for dissemination in the United States and shall not be disseminated to United States news services."
Allied Gold Limited (Allied Gold) is pleased to report further gold intercepts from drilling at North West Sorowar, immediately adjacent to the Sorowar deposit at its 100%-owned and recently commissioned Simberi Gold Project. Best results include:
10m at 12.31 g/t gold from 104m
42m at 2.10 g/t gold from 23m
35m at 1.24 g/t gold from 2m
17m at 2.52 g/t gold from 16m
16m at 1.24 g/t gold from surface
14m at 1.40 g/t gold from 43m
24m at 1.36 g/t gold from 58m
6m at 3.03 g/t gold from 77m
All these drill intercepts lie outside of the current pit outline of Sorowar, which contains proven and probable reserves of 8.2 million tonnes at 1.30 g/t gold and 4.5 million tonnes at 1.41 g/t gold respectively for a total ore reserve of 547,000 ounces. As such they represent newly identified zones of mineralisation.
A total of 17 recent drill holes and 7 previous reported drill holes covering an area approximately 400m long and 150m wide directly North West of the current Sorowar pit limit has confirmed continuation of gold mineralisation in oxides and under lying sulphides. The area tested is still open to the west, north, and east and additional step out holes are planned.
The drilling at NW Sorowar has revealed the occurrence of elevated silver mineralisation ranging from less than 1g/t up to 401g/t with a significant intercept of 3,610 g/t associated with the 114g/t gold intercept in drill hole RC1542.
The occurrence of quartz at NW Sorowar in drill hole samples is more frequent than that observed in other areas at Sorowar and this coupled with the higher silver mineralisation is indicating a move into a different part of an epithermal system as exploration progresses further to NW of the Sorowar deposit.
This recent phase of drilling at North West Sorowar, coupled with other successful drilling that has been recently reported at West Sorowar and South East Sorowar strongly indicates potential for increased mineral resources. Allied's focus is to prove up additional oxide resources that will justify a plant upgrade to accommodate a higher throughput from the current design of 2.2Mtpa to realise annual gold production exceeding 100,000 ounces per year.
Sorowar Exploration Update
The latest assays from recent reverse circulation (RC) drilling carried out adjacent to the Sorowar pit continues to define surface and near-surface oxide mineralisation, as well as underlying sulphide mineralisation. The Sorowar deposit contains proven and probable reserves of 8.2 million tonnes at 1.30 g/t gold and 4.5 million tonnes at 1.41 g/t gold respectively for a total ore reserve of 547,000 ounces. Mining at the Sorowar deposit commenced this month (May 2008) and ore is being delivered by the aerial conveyor (Ropecon) to the processing plant.
Drilling North West of the Sorowar pit to date has totalled 2,611 metres in 24 holes including 1,899 metres in 17 holes in the current program. The drilling continues to identify gold mineralisation outside of the current mine plan. Testing of the North West Sorowar area is continuing and drilling is also ongoing in the West and South East areas following up previously announced encouraging results (refer market release of 24 April 2008).
The drilling has intercepted elevated silver values below 50 to 70m in these drill holes resulting in average silver to gold ratios of approximately 20:1 which is significant given that the average silver to gold ratios within the current Sorowar mine area is approximately 1:1. Previous exploration on Simberi Island has confirmed association between higher grade gold mineralisation and vuggy and chalcedonic quartz.
A revised mineral resource estimate is currently being planned to incorporate the encouraging exploration results adjacent to existing resources and ore reserves, especially proximal to the Sorowar deposit.
A full version of this announcement as released on the ASX is attached as a link to this announcement:
http://www.rns-pdf.londonstockexchange.com/rns/3327V_-2008-5-27.pdf
For further information, please contact:
|
Mark Caruso Managing Director |
Tel: +61 8 93533638 |
|
Roland Cornish Beaumont Cornish Limited |
Tel: 0207 628 3396 |
Competent Persons
The information in this Stock Exchange Announcement that relates to project financial modelling, mining, exploration and metallurgical results, together with any related assessments and interpretations, has been approved for release by Mr. C.R. Hastings, MSc, BSc, M.Aus.I.M.M., a qualified geologist and full-time employee of the Company. Mr Hastings 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 Hastings consents to the release of the information in this ASX release in the form and context in which it appears.
The information in this Stock Exchange Announcement that relates to Ore Reserves has been compiled by Mr J Battista of Golder Associates who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Battista has had sufficient experience in Ore Reserve estimation relevant to the style of mineralisation and type of deposit under consideration 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 Battista consents to the inclusion of the information contained in this ASX release in the form and context in which it appears.
Background
Allied Gold is a gold production company having commissioned its 100 percent owned Simberi Oxide Gold Project in February 2008. The project is situated on the northern most island of the Tabar Islands Group, located in the New Ireland Province of eastern Papua New Guinea some 60 kilometres north-west of the Lihir Gold Project, which hosts a 40 million ounce gold resource.
Simberi hosts measured, indicated and inferred mineral resources of approximately 2.4 million ounces of gold and proven and probable ore reserves of 674,000 ounces of gold.
Allied's strategy is to add to the gold inventory on Simberi Island by defining additional oxide and sulphide resources and converting these and known resources into reserves with a view to expanding gold production from current levels of 84,000 ounces per annum.
Additionally it has a farm-in and joint venture agreement with the world's pre-eminent gold production company whereby Barrick Gold Corporation is funding up to AUD$20m of expenditure to earn a 70% interest in the exploration licence that encompasses the adjacent Tatau and Big Tabar islands.
Related Shares:
ALD.L