9th Oct 2008 10:25
FOR IMMEDIATE RELEASE 9 October 2008
allied gold limited
("the Company")
FURTHER SIGNIFICANT GOLD INTERSECTIONS AT SOROWAR & PIGIPUT
"This press release is not for dissemination in the United States and shall not be disseminated to United States news services."
HIGHLIGHTS
Allied Gold Limited is pleased to announce further significant results from the Sorowar area, from extensional drill programs located out side the current pit, and infill drilling within specific areas of the pit.
Allied also wishes to announce preliminary results from a deep diamond cored hole drilled at Pigiput, targeting sulphide mineralisation.
Exploration drilling south east of the current Sorowar deposit continues to intersect significant gold mineralisation outside of the current pit design. Notable results from the latest assays received include:
§ 1m at 166 g/t gold from 100m
§ 1m at 18.2g/t gold from 96m
Recent results from infill drilling within the Sorowar pit that are targeting areas currently defined as "inferred resource", has intersected significant gold mineralisation. The best results includes:
1. Drillhole RC1700
§ 24m at 1.61g/t gold from 7m
2. Drillhole RC1702
§ 19m at 7.59g/t gold from 2m, including
§ 5m at 20.6g/t gold from 10m
3. Drillhole RC1704
§ 6m at 1.26g/t gold from 15m
§ 9m at 1.34g/t gold from 25m, including
§ 2m at 4.38g/t gold from 27m
§ 10m at 2.64g/t gold from 70m, including
§ 7m at 3.59g/t gold from 73m, including
§ 1m at 16.0g/t gold from 79m
4. Drillhole RC1707
§ 23m at 2.26g/t gold from 46m
§ 8m at 4.78g/t gold from 92m
5. Drillhole RC1713
§ 15m at 1.13g/t gold from surface
§ 11m at 4.20g/t gold from 19m, including
§ 1m at 14.9g/t gold from 20m
§ 17m at 4.12g/t gold from 41m, including
§ 1m at 12.2g/t gold from 52m, and
§ 1m at 10.1g/t gold from 55m
6. Drillhole RC1715
§ 22m at 1.78g/t gold from 28m, including
§ 2m at 4.04g/t gold from 29m, and
§ 13m at 2.14g/t gold from 36m
7. Drillhole RC1716
§ 25m at 1.88g/t gold from 24m, including
§ 10m at 2.94g/t gold from 37m
A broad zone of gold mineralisation consisting of 95.7m at 1.79g/t gold from 83.3m has been intersected in drillhole SDH011 at Pigiput.
A resource upgrade of the Sorowar area has commenced and results will be available in October, to be followed by a reserve estimate to be completed in late November, early December.
Barrick Gold has advised that diamond core drilling will commence mid October at the Tupinda gold-copper prospect on Big Tabar Island, and an airborne EM survey that will cover the entire Tabar Island Group, will commence in early November.
Exploration at SE Sorowar to-date totals 3,707 metres of drilling across 37 holes covering a distance of approximately 400 metres from the current pit. Extensional drilling in this area has resulted in significant gold intersections which contribute to additional oxide and sulphide resources. Current published, measured, indicated and inferred oxide resources at Sorowar are 17.5 million tonnes of oxide material at an average grade of 1.21 g/t gold for 681,000 contained ounces (using a lower cut off grade of 0.50g/t) over a strike length of approximately 700m.
Recent drilling intercepts define a contiguous high grade zone of gold mineralisation identified by drill holes RC1627, RC1628 and RC1629, as listed in the highlights above. It is important to note that all of these holes ended in mineralisation. Three deep diamond drill holes are planned to test the zone between and below RC1629 and RC1627, and between and below RC1627 and MN002. Note also that drillhole MN002 did not reach planned depth due to poor ground conditions and also ended in mineralisation.
An updated Mineral Resource estimate for the Sorowar deposit is in progress, which will include the SE Sorowar area, and the previously released NW Sorowar and West Sorowar extensions. The updated resource estimate is due to be completed during October 2008.
The current Sorowar pit shell contains approximately 922kt of inferred resource grading 1.50g/t gold. A drill program was initiated in July to drill additional holes in these areas to provide sufficient sample density to qualify for inclusion in the Ore Reserves. The program consists of approximately 3,000 metres of drilling involving 38 holes. To date there are still 6 holes to be drilled but timing to access these remaining sites is dictated by the current mining operations and these remaining holes will be drilled sometime in the future.
To date assays results from 18 of the 36 holes have been received and there have been some significant gold intersections as listed in the highlights. Once all the assay results have been received they will be incorporated into the new Sorowar resource model in early November and will form part of the data set that will be used to carry out an updated reserve estimate for Sorowar. This work is being carried out by Golder Associates in Perth.
Results have been received from a deep diamond hole (SDH011) drilled at Pigiput to a total depth of 301.07m as part of the Pigiput sulphide drill program. The hole was sited north of the current defined Pigiput sulphide zone and south of the SE Sorowar area. Assays indicate a broad zone of gold mineralisation of approximately 96m down hole length, grading 1.79g/t gold from 83.3m and including 7.9m at 8.57g/t gold from 134.1m and within this same intercept 2.9m at 19.3g/t gold from 134.1m. This is a significant thick intersection and is located approximately 320 metres south-west of drillholes RC1627 to 1629, and MN002 as reported above.
Capital Drilling have been contracted by Barrick to carry out helicopter supported diamond drilling within Allied's exploration tenement covering the Tabar Island Group. The drill equipment is now in PNG and will be transported to Tabar Island in early October and will commence drilling initially at the Tupinda gold-copper prospect on Big Tabar Island.
Prior reconnaissance work carried out by Allied included mapping and surface sampling, and ground geophysical surveys (IP). Barrick has completed additional mapping and surface sampling to generate drill target sites.
Barrick will commence an airborne geophysical survey (EM) in November. The survey will cover all the islands in the group including Simberi. The survey transmitter and receiving equipment will be flown over the ground in a north-south direction at low level by helicopter on 400m line spacing. The survey method will indentify electrically resistant zones that may be associated with silicification and gold mineralisation.
Full details of the announcement can be viewed on the Company's Website. www.alliedgold.com.au and as a link to this announcement:
http://www.rns-pdf.londonstockexchange.com/rns/4639F_-2008-10-9.pdf
For enquiries in connection with the above, please contact:
Mark Caruso
Executive Chairman
Allied Gold Limited
+ 61 8 9353 3638
Roland Cornish
Beaumont Cornish Limited
020 7628 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. 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 inclusion of the information contained in this ASX release in the form and context in which it appears
The information in this Stock Exchange Announcement that relates to Mineral Resources estimates has been compiled by Mr S Godfrey of Golder Associates who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Godfrey has had sufficient experience in Mineral Resource 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 Godfrey 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 plus 40 million ounce gold resource.
Simberi contains 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. This will be achieved by defining additional oxide resources and conversion of these and known resources into reserves with a view to expanding annualised gold production from current levels of 84,000 ounces, and to generate and drill test gold and base metals targets identified on the nearby Tatau and Big Tabar islands. As at June 2008, exploration on Tatau and Big Tabar Islands is being undertaken by Barrick Gold as part of a JV arrangement with Allied.
Related Shares:
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