10th Jul 2009 07:00
For immediate release 10 July 2009
ALLIED GOLD LIMITED
("ALLIED" OR "THE COMPANY")
SIGNIFICANT GOLD INTERSECTIONS AT THE PIGIBO PROSPECT
HIGHLIGHTS
Assay results received for 18 reverse circulation holes drilled at the Pigibo Prospect. Significant down-hole intercepts includes:
RC1785 22m @ 3.40g/t Au from 98m
RC1790 47m @ 2.84g/t Au from 63m
RC1792 27m @ 4.64g/t Au from 93m
RC1794 28m @ 8.54g/t Au from 30m (incl 2m @ 60.1g/t from 43m)
RC1796 21m @ 3.43g/t Au from 71m
Mineralisation over approximately 600 meters along strike and remains open (undefined at depth or not fully tested at depth)
Pigibo (100% Owned by Allied Gold Limited)
Reverse circulation drilling at the Pigibo Prospect, Simberi Island, continued the on-going testing of the area of the previously published Inferred Resource of 2.1Mt @ 1.1g/t Au for 74Koz Au (see Allied Gold Limited Annual Report 2006). The current drill results confirm that the Pigibo deposit is likely to increase in size from previously stated resource numbers. The intercepts being reported are predominantly in oxide and transitional material types and the results give the company confidence to undertake infill grade control drilling right away with a view to immediately advancing mine planning to allow the commencement of near term mining of the deposit.
The Pigibo Prospect is centred 800 metres west of the Pigiput Deposit which is currently the subject of a sulphide resource drill-out programme and scoping study (as outlined in Allied Gold Ltd press release dated 15 June 2009). Both deposits wholly occur within ML136, the mining lease on Simberi Island, owned 100% by Allied Gold Limited.
To date in 2009, reverse circulation (RC) drilling consisting of 29 holes for 3,289 metres has been completed on 11 north-south sections 50m apart, testing the Pigibo Prospect over approximately 600m of strike length. The results for the first 11 holes, RC1770 to RC1780, were announced in the Allied Gold Ltd March 2009 Quarterly Report and included notable gold intersections of:
36m at 2.28g/t gold from 41m in RC 1770, including 6m at 4.21g/t gold from 68m
11m at 2.22g/t gold from 71m in RC1771, including 3m at 4.66g/t gold from 78m
15m at 2.85g/t gold from 74m in RC1773
36m at 1.41g/t gold from 48m in RC1774
14m at 2.31g/t gold from 68m in RC1776, including 3m at 6.22g/t gold from 71m
15m at 2.68g/t gold from 60m in RC1777
Diamond core drilling is being used with 2 holes completed and one in progress to verify the geological interpretation and to confirm that the intercepts are approximately true width.
Gold mineralization is associated with arsenian pyrite and slightly elevated copper values (average 169ppm) and otherwise low base metals levels, similar to the upper parts of the Pigiput Deposit. Host rocks are predominantly tuffs with minor porphyritic intermediate intrusive. Amongst samples in holes RC1781 to RC1798 with gold assays greater than or equal to 1g/t, approximately 50% occur in oxide, 20% in transition and 30% in sulphide. Bottle roll tests will be undertaken on the RC drill chips to determine the cyanide leacheability of the gold in the transition and sulphide materials.
RC drilling in 2009 at the Pigibo Prospect has improved section-to-section continuity of two main sub-parallel zones of gold mineralization. Drilling is continuing with the objective of defining the extent of the mineralisation by the end of the September 2009 quarter.
The full version 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/4090V_-2009-7-9.pdf
For more information:
|
Mark Caruso Executive Chairman |
T:+61 7 93252 5911 |
|
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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