28th Jan 2009 07:00
For immediate release 28 January 2009
ALLIED GOLD LIMITED
("ALLIED" OR "THE COMPANY")
QUARTERLY REPORT FOR THE PERIOD ENDED
31 DECEMBER 2008
As required by the rules of the ASX, the Company has announced its quarterly report for the period ended 31 December 2008 along with its cashflows for the same period.
Highlights
Production target achieved with a 19% increase in gold production to 20,989oz for the quarter.
Reduction in cash costs of 4% to A$597 (USD$401)/oz.
The average price/ oz received for the quarter was A$1,160
Increased mining production of 40% to 557,744 tonnes for the quarter.
Increase of 27% in tonnes processed to 426,276 tonnes for the quarter. Production ramp up progressing well.
Further reduction in bank debt facility of A$5.0M during the quarter.
March quarter production forecast of 20,000oz.
Sulphide pre-feasibility study commenced to underpin expanded production profile up to 200,000oz p.a. by 2011.
Resources for the Pigiput deposit increased by 204,000oz and the Sorowar deposit increased by 611,000oz taking the total Resource upgrade during Calendar 2008 to 815,000oz. This now brings the total Simberi gold resources to approximately 3.2 million ounces.
A new Reserve upgrade for Sorowar and Pigiput East is planned in the March 2009 quarter. This will underpin the extension of existing mining operations.
Oxide mineralisation intersected in the area between the Pigiput and Pigibo oxide deposits over a 400 metre strike length.
Barrick completed two diamond cored holes and commenced a third at the Tupinda copper prospect on Big Tabar Island. Encouraging results with copper molybdenum mineralisation intersected in two of the holes.
Simberi Oxide Gold Project, (ALD 100% owned), offshore Papua New Guinea. (ML 136 expires in December 2018. The area size is approximately 25 kmsq.)
SIMBERI OXIDE GOLD PROJECT - OPERATIONS
During the December quarter management was focussed on a number of operational initiatives aimed at generating a more consistent production profile.
Mining volumes increased by 40% during the quarter. The last of the additional CAT740 trucks will arrive on site in January 2009 completing the initial phase of the mining optimisation program. The benefits of the expanded mining fleet continue to translate into higher mining volumes and flexibility to plant utilisation. These benefits have resulted in the Company rescheduling its mining to two 8 hour shifts per day which should further reduce mining costs in future periods.
The Company now has in excess of 70,000 tonnes of ROM ore stockpiled at the Pigiput processing facility to mitigate any loss of production. In addition the Company is well advanced in all pit pre-development works.
During the month of December, there were seasonally high tidal swells which had no direct impact on the gold mining operations with no lost time in the production process as a result. Management consciously allocated considerable mining and other various resources at that time to provide assistance to the local Simberi Island community.
Processing plant performance continues to improve with the plant treating a total of 154,000 dry tonnes for the month of December 2008 which is in line with management's expectations. The plant achieved nameplate production of 6,000 dry tonnes per day on 9 days and a further 11 days at a rate of 5,500 dry tonnes per day.
Grade exceeded budget during the quarter and recovery was down slightly due to a higher level of transitional sulphide ore being treated. Overall grade and recovery has remained consistent and is in line with management's existing mine plan.
|
Previous QTR Sept 2008 |
Oct - Dec 2008 |
Financial Year 2009 |
||
|
Waste Mined |
tonnes |
36,784 |
69,035 |
105,819 |
|
Ore Mined |
tonnes |
361,575 |
488,709 |
850,284 |
|
Total Mined |
tonnes |
398,359 |
557,744 |
956,103 |
|
Ore Processed |
tonnes |
336,420 |
426,276 |
762,696 |
|
Grade |
g/t gold |
1.72 |
1.94 |
1.91 |
|
Recovery |
% |
91.6 |
77.1 |
81.5 |
|
Gold Produced |
oz |
17,642 |
20,989 |
38,631 |
|
Gold Sold |
oz |
13,251 |
17,764 |
31,016 |
|
Average Realised Gold Price /$oz |
A$/oz US$/oz |
900 790 |
1,160 774 |
1,044 779 |
|
Operating Cash Cost $oz |
A$/oz US$/oz |
621 (1) 551 |
597 401 |
608 474 |
(1) The previous September 2008 quarterly release reported a cash cost of A$638 p/oz. In the current quarter this has been amended to exclude royalties to align Allied Gold's reporting format with industry practices.
OUTLOOK:
Consistent mining and processing throughput rates have continued during the beginning of the March 2009 quarter. As a result production is expected to again exceed 20,000 oz. The Company continues to focus its efforts on achieving a consistent production profile while further optimising the plant performance. Management continues to focus its efforts on reducing operating cash costs as the plant progresses to a steady state operation.
The extent of lower fuel prices were not fully experienced during the December 2008 quarter as there is a traditional time lag in price variations being passed on by regional suppliers. Reagent consumption continues to gradually reduce with further initiatives relating to the introduction of fresh water into the processing cycle. These activities remain one of management's highest priorities for the coming quarter. It is anticipated that the plant performance will continue to improve during January 2009 as fresh water replaces salt water in the plant.
In line with the current mine plans, it is expected that higher levels of sulphide transitional ore will be mined and processed during the March quarter. To ensure an improvement in the projected recovery levels, management is proactively progressing the introduction of additional in-pit crushing capability which will enhance the gold recovery.
Capital expenditure analysis is being undertaken to determine the requirements for these initiatives but it is expected that they will be commenced during the March quarter.
During the March quarter, Allied Gold is required to deliver only 6,778oz of production into the hedge book at USD$700/oz. The remainder of production will be realised at the greater of the spot price or USD$700/oz. Therefore Allied Gold is significantly positioned to participate in any gold price appreciation.
In accordance with the existing farm-in agreement Barrick continues to drill on the neighbouring island of Tabar with assayed results expected during the March quarter. As these results become available, management will ensure the results are communicated accordingly.
Management has begun a number of optimisation studies including a sulphide expansion scoping study. The scoping study is expected to be completed by the end of February 2009 and depending on the outcome, it is likely to evolve into a formal Pre-Feasibility study. Details on the proposed timing and associated capital requirements will be advised as management finalises the process.
Despite the current fuel prices retracting from their recent high levels, management is continuing to assess alternative fuel options with a number of parallel scoping studies having been commenced.
Gold remains a beacon for the investment community with underlying fundamentals in the global financial and investment sectors remaining turbulent. Allied Gold is one of the few producing gold companies that possess significant exploration potential as well as the expertise to develop projects in geographically challenging locations.
Allied Gold continues to assess a number of existing opportunities within the sector that may ultimately complement its existing strong organic growth profile.
As a direct result of Allied Gold's exposure to the gold sector, it is well positioned to capitalise on any further upturn in investor confidence into the sector.
EXPLORATION
SIMBERI ISLAND - ML 136 (Expires December 2018. Area size of 25 kmsq - ALD 100% Owned)
Mine site exploration continued during the quarter with a focus on Sorowar and Pigiput Ridge and Samat North, with 37 holes completed for 4837.2 metres.
SIMBERI GOLD RESOURCES - Increases in Mineral Resources
Recent resource updates were completed for the Sorowar and Pigiput areas that have collectively resulted in an increase in Mineral Resources for Simberi to 3.2 million ounces as indicated in the table below. An additional 611,000 Inferred, Indicated and Measured Resource ounces were defined at Sorowar and an additional 204,000 Inferred and Indicated Resource ounces were defined at Pigiput East.
For further information refer to the relevant sections below.
Simberi Total Resources November 2008 - Above 0.5g/t Au cutoff grade
|
Material All Deposits |
Measured |
Indicated |
Inferred |
All Categories |
||||||||
|
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
|
|
Oxide |
9.64 |
1.36 |
421 |
17.88 |
1.04 |
596 |
8.05 |
1.09 |
282 |
35.56 |
1.14 |
1299 |
|
Transitional |
0.56 |
1.18 |
21 |
1.43 |
1.20 |
55 |
0.68 |
1.07 |
23 |
2.67 |
1.16 |
100 |
|
Sulphide |
1.31 |
0.93 |
39 |
5.67 |
0.90 |
163 |
40.15 |
1.24 |
1602 |
47.12 |
1.19 |
1805 |
|
Total |
11.50 |
1.30 |
482 |
24.98 |
1.01 |
814 |
48.88 |
1.21 |
1908 |
85.36 |
1.17 |
3204 |
SOROWAR RESOURCE
At the Sorowar deposit, 5 DD holes for 759.1 metres were completed during the quarter for metallurgical testing. A further 6 RC holes for 720 metres were drilled to the West of Sorowar at the waste dump site.
A new resource estimate for the Sorowar deposit area was completed by Golder Associates and reported in the September 2008 Quarterly Report.
This revised resource estimate has resulted in an additional 611,000 ounces of gold. The new Inferred, Indicated and Measured Resource estimate above 0.5g/t gold is 59.3Mt at 0.98g/t for a total of 1.869 million ounces as shown in the table below.
Sorowar Resources October 2009 - Above 0.5g/t Au cutoff (Golder Associates)
|
Sorowar |
Measured |
Indicated |
Inferred |
All categories |
||||||||
|
Material |
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
|
Oxide |
7.91 |
1.30 |
330 |
8.27 |
1.04 |
276 |
4.15 |
1.10 |
147 |
20.32 |
1.15 |
754 |
|
Transitional |
0.56 |
1.18 |
21 |
1.43 |
1.20 |
55 |
0.53 |
1.02 |
17 |
2.51 |
1.16 |
94 |
|
Sulphide |
1.31 |
0.93 |
39 |
5.65 |
0.89 |
162 |
29.51 |
0.87 |
821 |
36.46 |
0.87 |
1021 |
|
Total |
9.77 |
1.24 |
391 |
15.34 |
1.00 |
493 |
34.19 |
0.90 |
985 |
59.30 |
0.98 |
1869 |
As initially reported in June 2006, the Sorowar Inferred Resource totalled approximately 500,000 ounces. Based on the revised estimate this Resource category is now (Oct 2009) estimated to be about 985,000 ounces of which approximately 100,000 ounces lie within the current Sorowar pit shell. Drilling was initiated during the previous quarter to potentially upgrade this mineralisation from the Inferred category to a higher JORC category.
Results for these remaining holes were received during the quarter are being incorporated into the revised resource estimate currently being undertaken by Golder Associates. This revised estimate will be used to generate a new reserve estimate and pit shells for the Sorowar deposit.
The results to date have been extremely encouraging. Some of the better intercepts are shown in the table below:
Sorowar Pit Significant Gold Intersections - Above 0.5g/t Au cutoff grade
|
RC1717 |
7m at 4.55g/t (From 42m, OX) |
|
RC1719 |
19m at 1.83g/t (From 0m, OX ) |
|
27m at 5.77g/t (From 53m, OX) |
|
|
RC1720 |
16m at 0.88g/t (From 7m, OX,TR,SU) |
|
RC1721 |
13m at 2.9g/t (From 15m, OX) |
|
RC1722 |
12m at 1.46g/t (From 0m, OX,SU) |
|
19m at 0.78g/t (From 103m, OX,TR,SU) |
|
|
RC1723 |
11m at 0.91g/t (From 33m, OX,TR,SU) |
|
RC1724 |
31m at 0.86g/t (From 21m, OX) |
|
23m at 1.65g/t (From 57m, OX,TR,SU) |
|
|
RC1725 |
18m at 2.72g/t (From 58m, OX,SU) |
|
RC1726 |
5m at 3.96g/t (From 0m, OX ) |
|
RC1727 |
19m at 2.4g/t (From 6m, OX, TR) |
Simberi mineralization types are: OX = oxide material - extremely weathered (average cyanide recovery >90%) TR = transitional material - distinctly weathered (average cyanide leach recovery 50 - 90%) SU = sulphide material - slightly weathered to fresh (average cyanide leach recovery
SE SOROWAR
Two diamond holes for 240 metres were drilled as part of a program to obtain samples for bulk density and gold recovery determinations, and to test the underlying sulphides.
Results from both of these holes have been received with best intercepts including:
SE Sorowar Significant Gold Intersections - Above 0.5g/t Au cutoff grade
|
SDH012 |
9m at 3.50g/t (From 93m TR, SU) |
|
12m at 1.23g/t (From 164.8m TR, SU) |
|
|
82m at 1.23g/t (From 183m SU) |
|
|
SDH013 |
4m at 14.8g/t (From 76m TR,SU) |
|
31m at 1.16g/t (From 135m SU) |
NW SOROWAR
Two diamond holes for 424.6 metres were drilled as part of a program to obtain samples for bulk density and gold recovery determinations, and to test the underlying sulphides.
No results for these holes have been received to date.
SOROWAR WEST
One diamond hole for 94.5 metres was drilled to obtain samples for bulk density and gold leach recovery determinations.
No results for this hole have been received to date
A further 6 RC holes for 720 metres were drilled at the Sorowar Waste Dump as part of a sterilization program. Results were patchy and of low grade for the majority of these holes, however some mineralisation was encountered at depth including -
Sorowar Waste Dump Significant Gold Intersections - Above 0.5g/t Au cutoff grade
|
RC1657 |
8m at 1.43 g/t (From 44m, TR, SU) |
|
including |
2m at 3.37g/t (From 44m, SU) |
|
RC1750 |
6m at 0.90/t g/t (From 29m OX) |
PIGIPUT RESOURCE
Drilling at Pigiput East commenced in late March this year and a total of 48 RC holes for 5,107m, and 8 diamond cored holes for 1,075m were completed and used in the new resource estimate. . Note however, that sulphide material was excluded from the resource estimate and only gold mineralisation in oxide material has been estimated.
A new resource estimate for the Pigiput East oxides area has resulted in an additional 204,000 Inferred and, Indicated gold ounces, and this new estimate is compared with the previous results in the table below.
Pigiput Resource Estimate November 2008 - Above 0.5g/t Au cutoff
|
Domain |
2003 |
November 2008 |
||||
|
Mt |
Au g/t |
Koz |
Mt |
Au g/t |
Koz |
|
|
Measured |
0.47 |
1.21 |
18 |
|||
|
Indicated |
1.00 |
0.87 |
28 |
8.38 |
1.00 |
268 |
|
Inferred |
1.49 |
0.90 |
43 |
0.89 |
0.86 |
25 |
|
Total |
2.96 |
0.94 |
89 |
9.27 |
0.98 |
293 |
The Pigiput East drilling program did not extend to some areas due to access restrictions associated with steep topography. Mineralisation in these areas is still untested. However, as the Pigiput pit is developed, access to these steep areas will become available and further oxide and sulphide definition drilling will be carried out.
PIGIPUT EAST
Drilling at Pigiput East continues to extend the limits of mineralisation. Some 14 holes for 1,685 metres were completed during the quarter).
The RC program continued to define gold mineralisation in oxide material, which based on the results to date, has been extended.
Assay results were received from 26 holes. Some of the significant intercepts are shown below:
Pigiput East Significant Intersections - Above 0.5g/t Au cutoff
|
RC1645 |
8m at 2.27g/t(From 17m, OX) |
|
5m at 2.05g/t (From 100m, OX) |
|
|
RC1648 |
34m at 1.43g/t (From 18m, OX) |
|
RC1649 |
6m at 2.13g/t (From 0m, OX) |
|
RC1650 |
11m at 0.99g/t (From 3m, OX) |
|
RC1651 |
19m at 1.14g/t (From 9m, OX) |
|
RC1652 |
16m at 0.8g/t (From 0m, OX) |
|
7m at 1.81g/t (From 72m, OX TR) |
|
|
8m at 2.05g/t (From 101m, OX) |
|
|
RC1653 |
20m at 1.69g/t (From 0m, OX) |
|
16m at 2.51g/t (From 27m, OX) |
|
|
4m at 18.3g/t (From 60m, OX) |
|
|
RC1654 |
6m at 2.04g/t (From 0m, OX ) |
|
RC1740 |
15m at 2.57g/t (From 58m, OX ) |
|
RC1741 |
11m at 1.39g/t (From 22m, OX, TR) |
|
SDH009 |
33m at 1.96g/t (From 0m, OX ) |
|
13m at 0.86g/t (From 153m, OX,TR,SU) |
|
|
SDH010 |
17m at 9.04g/t (From 8m, OX) |
|
1.3m at 26g/t (From 10.3m, OX) |
|
|
RC1743 |
10m @ 3.35g/t (From 74m OX) |
|
RC1756 |
15m @ 3.77g/t (From 101m OX) |
|
RC1757 |
17m @ 1.29g/t (From 84m OX,SU) |
|
RC1761 |
23m @ 1.67g/t (From 23m OX) |
PIGIPUT SULPHIDES
One diamond cored hole of 364.1m was completed near the end of the quarter to test the mineralogy and lithology of the Pigiput sulphide.
Assays were received from 1 diamond core hole with best results including:
Pigiput Sulphide Significant Intersections - Above 0.5g/t Au cutoff
|
SDH011 |
95.7m at 1.79g/t (From 83.3m, OX,TR,SU) |
|
18.5m at 1.31g/t (From 193.5m, TR,SU) |
PIGIPUT WEST
During in the quarter reconnaissance drilling commenced at Pigiput West, which is the area between the known Pigiput Pit and the Pigibo Pit.
A total of 11 RC drill holes for 1,308m were completed.
Assays were received from 11 holes with best results including:
Pigiput West Significant Intersections - Above 0.5g/t Au cutoff
|
RC1745 |
39m at 0.90 g/t (From 56m, OX, TR, SU) |
|
7m at 1.52g/t (From 88m, OX) |
|
|
RC1748 |
18m at 1.12g/t (From 63m OX,TR ,SU) |
|
11m at 1.76g/t (From 93m OX) |
|
|
RC1749 |
11m at 0.84g/t (From 58m,OX, TR,SU) |
|
RC1750 |
6m at 0.90g/t (From 29m, OX) |
|
RC1752 |
7m at 1.00g/t (From 39m, OX) |
|
7m at 1.68g/t (From 59m, OX ) |
|
|
RC1753 |
9m at 1.21g/t (From 21m, OX, SU) |
|
RC1754 |
11m at 1.06g/t (From 52m, OX) |
|
6m at 1.29g/t (From 92m, OX ) |
Drilling so far has indicated relatively deep scattered gold mineralised oxides to depths exceeding 100 metres along the ridge top between the Pigiput and Pigibo deposits, a distance of 400m.
Based on the information to date and reasonable projections therefrom the Pigiput-Pigibo ridge area is shaping up as a major future potential oxide/sulphide development for the Company.
SAMAT NORTH
No holes were drilled at Samat North this quarter however results for 14 RC holes drilled in the previous quarter were received.
Best results include:
Samat North Significant Intersections - Above 0.5g/t Au cutoff
|
RC1730 |
11m at 1.07g/t (From 17m, OX,TR,SU) |
|
RC1731 |
6m at 2.83g/t (From 3m, OX,TR ) |
|
7m at 2.03g/t (From 38m, TR,SU) |
|
|
40m at 1.39g/t (From 53m, OX,TR,SU) |
|
|
RC1733 |
14m at 0.97g/t (From 21m, TR,SU) |
|
6m at 1.92g/t (From 47m, TR,SU) |
|
|
RC1734 |
60m at 0.39g/t (From 0m, OX,TR,SU) |
|
including |
9m at 1.23g/t (From 48m, TR, SU) |
|
RC1735 |
9m at 1.6g/t (From 7m, OX ) |
|
RC1736 |
9m at 1.4g/t (From 2m, OX) |
|
RC1737 |
27m at 1.2g/t (From 1m, OX ) |
|
RC1739 |
5m at 15.1g/t (From 33m, OX) |
TATAU AND BIG TABAR ISLANDS - EL609 (Expires May 2009. The Company is in the process of applying for a 2 year extension. Area of approximate 260kmsq - ALD 100% Owned with Barrick Gold Limited currently farming into the project to earn up to a 70% interest)
Barrick commenced drilling at the Tupinda copper prospect and completed two diamond cored holes and commenced a third for 945.0 metres.
Barrick also commenced an airborne Electromagnetic Survey over the Tabar Islands Group.
In accordance with its $20 million farm-in to Allied Gold's exploration licence over Big Tabar and Tatau Island, Barrick Gold commenced exploration on 1st August 2008. Initial work comprised reconnaissance mapping and sampling on Big Tabar Island at the Tupinda gold, and copper-molybdenum prospect, and the Banesa gold-copper prospect (see figure 5). Barrick has also expanded the Tomalabat base camp and the Tupinda fly camp. Construction of a fly camp at Banesa has also been completed.
Barrick's drill contractor commenced mobilisation to site and the first helicopter transportable diamond drill rig has commenced drilling at the Tupinda copper-molybdenum prospect in November.
Two diamond cored drill holes were completed in the quarter for a total of 771m and a third was at 174m depth drilling towards a target depth of 500m. No assays have been received to date however core inspection has indicated the first hole intersected weak to moderate copper (chalcopyrite-molybdenite) mineralisation and that second hole has no visual sulphide content, but the rocks are highly altered (propylitic). The third hole has weak to moderate copper (chalcopyrite-bornite) mineralisation.
Barrick has organised a second diamond drill machine which will arrive in Tabar in January 2009 and will commence drilling at the Banasa copper-gold prospect located at the southern end of Big Tabar Island.
An aerial geophysical electromagnetic (EM) survey commenced in December and will be completed in January will be undertaken in November that will cover the entire Tabar Island group, including Simberi Island. As previously reported, this technique will assist in identifying electrically anomalous zones that may be associated with gold or other mineralisation.
CORPORATE
GOLD HEDGING
Allied currently has committed gold sales contracts over 70,532oz production. Allied gold has an additional 81,582oz of hedging in the form of put options. The structure of Allied Gold hedge book is as follows:
|
Year Ending 30 June |
Estimated Annualized Production |
FIXED US$ 700 |
Production With Price Participation |
Price Participation |
||
|
Bought Put Options $700 |
Ounces Deliverable At Spot Price |
TOTAL |
||||
|
Remaining FY 20091 |
45,586 |
13,010 |
32,576 |
21,680 |
10,896 |
32,576 |
|
FY 2010 |
84,000 |
23,850 |
60,150 |
39,748 |
20,402 |
60,150 |
|
FY 2011 |
84,000 |
22,764 |
61,236 |
20,154 |
41,082 |
61,236 |
|
FY 2012 |
84,000 |
10,908 |
73,092 |
- |
73,092 |
73,092 |
|
Total |
297,586 |
70,532 |
227,054 |
81,582 |
145,472 |
227,054 |
Notes:
Remaining estimated production for the 2009 financial year of 45,369 is calculated as estimated total production of 84,000 ounces less year to date production of 38,631.
Current Reserves indicate annualized production over 8 years.
At 31 December 2008 the mark to market value of the hedge book was approximately (US$18.5m)
CASH AND DEBT
Allied Gold retired a further A$5.0m of debt during the December quarter, reducing the outstanding debt position to A$5.0M at the end of the period. The next formally scheduled loan repayment is not due until June 2009. As of 31 December 2008 Allied Gold Limited had cash at bank of A$1.67m.
Allied Gold will continue to assess its ongoing hedge book requirements to ensure ongoing gold price participation.
Management's primary focus remains on achieving steady-state operation at the Simberi Island gold project and continuing to monitor operating costs with a view to reducing the bottom line cash costs per ounce of gold.
Management is also currently assessing the incremental scoping studies that are taking place regarding organic expansion and optimisation initiatives. In parallel management continues to monitor the sector for value accretive growth opportunities which may complement the existing organic growth initiatives.
SECURITIES ON ISSUE
As at 31 December 2008 issued securities comprised:
|
410,994,276 fully paid ordinary shares listed on the Australian Stock Exchange (ASX) and on the AIM Market in London. |
|||
|
No. Of Options |
Class of option |
Exercise Price A$ |
Maturity Date |
|
713,261 |
Unlisted options |
$0.72 |
30 June 2009 |
|
370,000 |
Unlisted options |
$0.50 |
30 October 2009 |
|
3,400,000 |
Unlisted options |
$0.45 |
31 December 2010 |
|
1,000,000 |
Unlisted options |
$0.80 |
31 December 2010 |
|
1,000,000 |
Unlisted options |
$1.00 |
31 December 2010 |
|
1,000,000 |
Unlisted options |
$1.25 |
31 December 2010 |
|
1,000,000 |
Unlisted options |
$1.50 |
31 December 2010 |
|
1,000,000 |
Unlisted options |
$2.00 |
31 December 2010 |
|
1,699,427 |
Unlisted options |
$0.31 |
31 December 2010 |
|
37,650,0001 |
Unlisted options |
$0.35 |
31 October 2011 |
1 Note: Of the 37,650,000 options expiring 31 October 2011:
10,000,000 vest upon Allied Gold producing 100,000oz of gold between the period of
1/10/08 - 31/12/09. 50% of this amount may vest if only 75,000oz ounces are produced; and
10,350,000 vest upon the Company's share price trading at greater than A$0.70 for five consecutive days.
Copies of the full announcement along with the Quarterly Cash flow Report will be uploaded to the Companies website - www.alliedgold.com.au and can be viewed in due course. They are also available as a link to this announcement:
●
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 Mineral Resources, 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 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 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.
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
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.
http://www.rns-pdf.londonstockexchange.com/rns/3243M_-2009-1-27.pdf
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