15th Oct 2009 09:37
For immediate release 15 October 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."
FURTHER SIGNIFICANT GOLD INTERCEPTS
AT PIGIPUT PROSPECT
HIGHLIGHTS
Step Out and Infill drilling continues to underpin confidence in 100,000oz p.a. Sulphide Expansion Study
Update to Pigiput resource statement expected Q1 2010
Allied Gold Limited has received further high-grade gold assays from diamond drill core at the Pigiput and Pigibo gold prospects. The latest drilling and assay results continue to define the continuity of gold grade and width of mineralisation, including gold mineralisation found between the Pigiput and Pigibo prospects.
Pigiput Core Drilling
Gold assays received from seven (7) diamond core holes drilled at the Pigiput Deposit are part of an ongoing in-fill and step-out program which are to be incorporated into the A$10 million Sulphide and Oxide Expansion Studies that targets increasing total oxide and sulphide production to in excess of 200,000oz p.a. by 2012.
The best down-hole intercept in sulphide in each hole was:
SDH037 15.0m @ 5.80g/t Au from 83.0m
SDH038 46.0m @ 1.01g/t Au from 135.0m
SDH040 78.0m @ 2.25g/t Au from 150.0m
SDH041 85.0m @ 3.98g/t Au from 157.0m
SDH042 103.4m @ 2.07g/t Au from 144.6m
SDH043 34.0m @ 2.18g/t Au from 117.0m
SDH044 24.0m @ 1.38g/t Au from 220.0m
Pigiput - Pigibo RC Drilling
Gold assays received from five (5) reverse circulation holes, drilled to define the eastern and western limits of the Pigiput and Pigibo deposits respectively, also located oxide transitional sulphide mineralisation:
Mineralised down-hole intercepts were found in 4 holes including:
RC1802 17m @ 1.07g/t Au from 91m
RC1803 9m @ 1.71g/t Au from 80m
RC1804 14m @ 1.09g/t Au from 46m
RC1806 7m @ 1.69g/t Au from 62m
OVERVIEW
Allied Gold is actively undertaking in-fill diamond core drilling at two prospect areas, Pigiput and Pigibo, centred 800 metres apart in the central part of mining lease ML136. Reverse circulation drilling is also being carried out between the two (2) prospects and at Pigibo itself.
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 September 2009, 21 exploration diamond core holes, totalling 5,930m, have been completed. The current infill and drilling programs is scheduled for completion in early 2010.
The company is confident it will complete and increase the current resource and reserve 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.
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 zone of contorted bedding and shearing. 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 to test the area between the Pigiput and Pigibo Prospects, beyond the western limit of the planned Pigiput pit shell (illustrated Table 1 above) and at the Pigibo Prospect itself.
Assay results were received for five holes, RC1802 to RC1804, RC1806 and RC1807. These holes confirmed the presence of narrow zones of gold mineralization between the two deposits. Hole RC1807, drilled beyond the known northeastern limit of the Pigibo deposit, was barren.
The full versions of the ASX announcement is available from the Company's website, www.alliedgold.com.au and as a link to the announcement:
http://www.rns-pdf.londonstockexchange.com/rns/8209A_-2009-10-15.pdf
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 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 ASX release in the form and context in which it appears.
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
Bottle Roll - An analytical method used to determine amount of gold in a sample that can be extracted by leaching with cyanide solution, also known as "cyanide extractable" gold. This method is typically used in mineral process control and in the metallurgical assessment of exploration samples. In the bottle roll method, the prepared sample is placed in a plastic container with dilute cyanide solution and agitated on a roller for a defined period, typically 24 hours. The gold content of the cyanide solution is then analyzed by AAS. For process control samples, cyanide concentrations and leach times would be similar to those of the operating or proposed plant.
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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