17th Jun 2008 09:26
For immediate release
17 June 2008
Allied Gold Limited
("Allied Gold" or the "Company")
Spectacular Gold Intercept at Pigiput Ridge
"This press release is not for dissemination in the United States and shall not be disseminated to United States news services."
16m at 15.12 g/t gold intercepted from 15m down hole depth in hole 1555 located around 250m east of Pigiput oxide pit
3m at 8.60 g/t gold from 43m intersected in hole 1557, approximately 75m south-west of hole 1555
Assays results pending for an additional 8 RC drill holes
RC drill holes designed as pre-collars for planned diamond drilling targeting deep sulphide mineralisation, encountered shallow gold mineralisation in oxides in all 7 holes drilled to date, including 25m at 3.89 g/t gold from 48m
Allied Gold Limited ("Allied Gold" or "Allied") is pleased to report that recent drilling at Pigiput East targeting oxide mineralisation has intersected a 16m zone grading 15.12 g/t gold from 15m. This drill hole (RC1555) was one of eleven reverse circulation (RC) holes drilled which targeted a gold in soil anomaly that was identified in 2007. This new zone is located approximately 250m north east of the Pigiput oxide pit. The assay results from a second drill hole (RC 1557) intersected a 3m zone grading 8.60 g/t gold from 43m, including 1m at 15.25 g/t gold. Assay results from the remaining drill holes are pending.
Additionally, drilling north of the oxide pit has commenced and these infill and extensional drill holes are targeting deeper sulphide mineralisation. Previous drilling has defined an inferred resource of 1.26Mt at 10.4g/t gold for approximately 420,000 ounces of gold. This phase of drilling involves the installation of RC pre-collars followed up with deeper diamond cored tails. To date results from 7 drill hole pre-collars have been received which have all intersected shallow gold mineralisation in oxides with a best result being 25m at 3.89g/t gold from 48m (RC1550). Refer to the following Drill Hole Location Plan and the attached Table of Significant Intercepts for further details.
These new drill results increase Allied Gold management's confidence of achieving their short-term goal of identifying sufficient additional oxide and sulphide resources to underpin an expansion of gold production at the Simberi Project from the current average rate of 84,000oz to in excess of 120,000oz per annum.
Pigiput Ridge is located approximately mid way between the Samat deposits and the Sorowar deposit at an elevation of about 250 metres above sea level. Oxides at Pigiput Ridge are included in the current mine plan and contain proven and probable reserves of 366kt at 1.31g/t Au, and 165kt at 1.29g/t Au, respectively. Previous exploration drilling at Pigiput (1983 to 2003) comprised 20,531 metres from 116 drill holes.
The newly commenced sulphide drilling program at Pigiput is expected to be high impact. Optimisation study work completed by Independent Consulting firm Golder Associates in May 2007 concluded that there was potential for an economic and relatively large-scale (circa 500,000oz) combined oxide and sulphide open pit operation at Pigiput. Golder Associates designed and recommended the current drill program to improve confidence levels of the resource and determine the geotechnical and metallurgical characteristics of the sulphide mineralisation.
A copy of the full ASX announcement is attached as a link to this announcement:
http://www.rns-pdf.londonstockexchange.com/rns/8676W_-2008-6-17.pdf
For further information, please contact:
|
Mark Caruso Managing Director |
Tel: +61 8 93533638 |
|
Roland Cornish Beaumont Cornish Limited |
Tel: 0207 628 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. C.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 release of the information in this ASX release in the form and context in which it appears.
The information in this Stock Exchange Announcement that relates to Ore Reserves has been compiled by Mr J Battista of Golder Associates who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Battista has had sufficient experience in Ore Reserve 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 Battista consents to the inclusion of the information contained in this ASX release in the form and context in which it appears.
Allied Gold - Company 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 40 million ounce gold resource.
Simberi hosts 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 by defining additional oxide and sulphide resources and converting these and known resources into reserves with a view to expanding gold production from current levels of 84,000 ounces per annum.
Additionally it has a farm-in and joint venture agreement with the world's pre-eminent gold production company whereby Barrick Gold Corporation is funding up to AUD$20m of expenditure to earn a 70% interest in the exploration licence that encompasses the adjacent Tatau and Big Tabar islands.
Related Shares:
ALD.L