11th Sep 2009 09:11
For immediate release 11 September 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."
EXTENSIVE & SIGNIFICANT GOLD INTERCEPTS
AT PIGIPUT PROSPECT
HIGHLIGHTS
Pigiput infill drilling underpins confidence in 100,000oz p.a. Sulphide Expansion Study
Update to Pigiput resource statement expected Q1 2010
Pigibo drilling confirms continuation of mineralisation
Allied Gold Limited (ASX: ALD) has received high-grade gold assays from core holes drilled at the Pigiput & Pigibo gold prospects. The latest drilling and assay results continue to define and confirm the gold grades and extent of the Pigiput & Pigibo mineralisation.
Pigiput:
Gold assays received from 8 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 & Oxide Expansion Studies which are aimed at increasing total oxide and sulphide production to in excess of 200,000oz p.a. by 2012.
Significant & extensive down-hole intercepts include:
SDH029 31.5m @ 5.63g/t Au from 93.0m
SDH030 6.3m @ 4.57g/t Au from 126.7m
SDH032 43.0m @ 1.26 g/t Au from 38.0m
SDH033 60.0m @ 3.79g/t Au from 118.0m
SDH034 12.4m @ 4.15g/t Au from 151.0m
SDH035 43.0m @ 1.42g/t Au from 125.0m
SDH036 60.0m @ 1.62g/t Au from 119.0m
SDH039 25.0m @ 2.59g/t Au from 188.0m
Pigibo:
Gold assays received from 3 cored holes continued to define and confirm mineralisation at the Pigibo deposit located approximately 300metres west of Pigiput.
Notable down hole intercepts include:
SDH025 13.9m @ 2.32g/t Au from 11.0m
SDH028 8.9m @ 1.85g/t Au from 34.2m
SDH031 55.0m @ 3.30g/t Au from 78.0m
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.
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 drill rigs are dedicated to the task.
PIGIPUT
At Pigiput, core drilling is being used to in-fill the current drilling density and extend drilling coverage with the objective of increasing the resources in sulphide classified as Indicated and Inferred to a higher level of confidence. Since start-up in mid May 2009 to date (2/09/2009), 15 exploration diamond core holes, totalling 4,361m, have been completed.
To maximise drilling time 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 may vary from hole to hole depending on the angle of intersection.
The drilling to date and results as reported in this release has confirmed the grade and extent of the mineralisation in those areas that have been under drilled. Sections illustrating the relationship of vertical core holes SDH029 and SDH033, SDH035 & SDH036 with respect to the previous resource block model are presented below. SDH033, 035, & 036 are also illustrated with interpreted 0.5g/t and 1.0g/t cut-off mineralised zones. The true width of mineralisation in both the vertical holes (SDH029 & SDH033) are estimated to be approximately 90% and 97% respectively of the intercepts' down hole length, and inclined holes (SDH035 & SDH036) are estimated to be approximately 99% and 79% respectively of the intercepts' down hole length .
At Pigiput, gold mineralisation is associated with a moderately north dipping, east-west striking surface that can be interpreted across the entire extent of the deposit. 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 structure, 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.
A complete listing of down hole intercepts, calculated using a 0.5g/t Au minimum assay cut-off, is presented in the announcement likes to this release.
Notes relating to Tables 1 and 2 in the linked announcement.
Down hole intercepts are determined using a cut-off of 0.5 g/t Au and minimum 2m length. Such intercepts may include material below cut-off but no more than 2 sequential meters of such material and except where the average drops below the cutoff. Selvage is only included where its average grade exceeds 0.5/t. Using the same criteria for included sub-grade, supplementary cutoffs of 2.5g/t, 5.0g/t and 10g/t are used to highlight higher grade zones and spikes. Single assays intervals are reported only where >5.0g/t and >=1m down hole.
The limit of detection for gold by fire assay using a 50g charge at ALS is
Where reported, Ag grade is its weighted average over the same intervals as those defined by the Au intercepts. The Ag detection limit is 0.2g/t and is determined by Aqua Regia digest of a 0.5g charge followed by ICP AES analysis. Tables show rounded estimates. This rounding may cause some apparent computational discrepancies.
PIGIBO
Assay results were received for 3 diamond core holes, totalling 572m, drilled to supplement and validate reverse circulation (RC) drilling done in the first half of 2009. The results for 29 RC holes, RC1770 to RC1798, that tested the Pigiput Prospect over approximately 600m of strike length, were announced in Allied Gold Ltd's March 2009 and June 2009 Quarterly Reports.
The main intersection in core hole SDH031, twin and extension of RC1792, compared well with that in the RC hole (27m @ 4.64g/t from 93m). Two more twin core holes and additional infill RC drilling is planned to allow a new resource to be estimated during the 4th Quarter 2009.
Gold mineralization at Pigibo is associated with arsenian pyrite, slightly elevated copper values (average 170ppm) and otherwise low base metals levels, similar to the upper parts of the Pigiput Deposit. Host rocks are predominantly tuffs and porphyritic intermediate intrusive. Amongst samples in holes RC1770 to RC1798 with gold assays greater than or equal to 0.5g/t, approximately 45% occur in oxide, 24% in transition and 31% in sulphide. Bottle roll tests are being undertaken on the RC drill chips to determine the cyanide leachability of the gold in the transition and sulphide materials.
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/9080Y_-2009-9-11.pdf
For more information:
|
Mark Caruso Executive Chairman |
T:+61 7 93252 5911 |
|
Roland Cornish Beaumont Cornish Limited |
T: +44 (0) 20 7628 3396 |
Media Enquiries:
Simon Jemison c/- Collins St Media
+61 3 9224 5319
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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