20th Jan 2010 13:51
FOR IMMEDIATE RELEASE 20 January 2010
allied gold limited
("Allied", "Allied Gold" or "the Company")
EXPLORATION DRILLING AT PIGIPUT PROSPECT includes DOWN HOLE intercept IN SDH065 OF 53m @ 3.38g/t Au from 128m
HIGHLIGHTS
Phase II Pigiput Resource Drill-Out Programme, supporting the Pigiput 100,000oz p.a. Sulphide Development Study, nears completion.
Significant gold intercepts from diamond core drilling further expand data available for resource update, scheduled for Feb '10.
Phase III drilling to continue testing open extensions at both Pigiput and Pigibo Deposits.
As Phase II core drilling nears completion, Allied Gold Limited (ASX:ALD) has received additional high-grade gold assays from diamond core holes drilled at the Pigiput Deposit. The latest drilling and assay results further define the extent of gold mineralisation, still open to the north east.
Gold assays were received for samples from eleven (11) diamond core holes, with the best down hole intercepts including:
SDH061 44m @ 1.12g/t Au from 254m in SU
SDH062 27m @ 1.65g/t Au from 94m in SU
SDH063 61m @ 1.81g/t Au from 158m in SU
SDH064 7m @ 4.95g/t Au from 128m in SU
SDH065 53m @ 3.38g/t Au from 128m in SU
SDH066 5m @ 6.02g/t Au from 298m in SU
SDH067 18m @ 2.58g/t Au from 134m in SU
SDH068 33m @ 15.0g/t Au from 78m in SU
A further seven (7) holes were completed and two (2) are in progress. The holes are part of a ongoing three phase in-fill and step-out program, commenced in May 2009, designed to support the A$10 million Sulphide and Oxide Expansion Studies based around the Pigiput Deposit. These studies target increasing total oxide and sulphide production to in excess of 200,000oz p.a. by 2012.
OVERVIEW
Allied Gold is actively undertaking in-fill and step-out diamond core drilling the Pigiput Prospect, in the central part of mining lease ML136 with three (3) diamond core drill rigs dedicated to the task. The Phase II program will be completed by end January 2010 and Phase III will continue through the March '10 Quarter.
The Pigiput Deposit is currently the subject of a Sulphide Development PFS (as outlined in ALD Press Release dated 17th June 2009). ML136, the mining lease on Simberi Island, is owned 100% by Allied Gold Limited.
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. From start-up in mid May to end December 2009, 45 exploration diamond core holes, totalling 12,656m, were completed. The current drilling program, Phase II, will be completed at end January 2010. Both resources and reserves, for the Pigiput and adjacent Pigibo Deposits, are scheduled for re-estimation by the end of the first quarter in 2010. Further drill testing of the extents of gold mineralistion at both prospects, is set to continue as Phase III.
To facilitate drilling in steep terrain, the Phase I and II Pigiput Sulphide Project core drilling programmes were 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 significantly, depending on the angle the hole intersects the mineralised structures.
Drilling to date and assays results, including those reported in this release, affirm the grades and extent of the mineralisation at Pigiput.
The true width of the 33m @ 15.0g/t Au from 78m intercept in SDH063 is estimated to be approximately 25% of the reported down hole length. The true width of mineralisation lower in SDH063 and in SDH065 are estimated to be approximately 90% of the respective reported down hole length.
The best down hole intercept in SDH063, 20m @ 3.04g/t Au from 197m, is illustrated on a level plan at 0mRL, approximately 120m below surface at that point. The true width of the down hole intercepts in SDH063 are estimated to be approximately 90% of the respective reported down hole lengths.
At Pigiput, gold mineralisation is generally 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. Steep dipping structures, particularly those striking NNW can also be mineralised. 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.
The full version of the ASX announcement is available from the Company's website, www.alliedgold.com.au.
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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