Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Quickpicks
Add shares to your
quickpicks to
display them here!

Simberi Exploration Update

24th Apr 2008 12:42

Allied Gold Limited24 April 2008 For immediate release 24 April 2008 Allied Gold Limited ("Allied Gold" or the "Company") Simberi Gold Exploration Update "This press release is not for dissemination in the United States and shall not be disseminated to United States news services." HIGHLIGHTS • Drilling at Sorowar West has intersected a new zone of mineralisation. Best results include: - 6m at 3.52g/t gold from 5m within a broader zone of 9m at 2.50g/t gold from 2m - 13m at 2.20g/t gold from surface - 7m at 2.66g/t gold from 15m within a broader zone of 11m at 1.84g/t gold from 11m - 12m at 2.38g/t gold from 47m • Latest drill assay results from the Sorowar South East drilling confirms a zone of shallow oxide mineralisation outside the current pit edge. Best results include: - 22m at 2.14g/t gold from surface within a broader zone of 30m at 1.75g/t gold from surface - 3m at 3.90g/t gold from surface within a broader zone of 5m at 2.64g/t gold from surface - 5m at 4.81g/t gold from 75m • Drilling at Sorowar South East also included a sulphide intercept consisting of 9m at 6.19g/t gold from 41m including 1m at 17.15g/t gold from 46m Sorowar Exploration Update The latest assays from recent reverse circulation (RC) drilling carried outadjacent to the Sorowar pit continues to define surface and near-surface oxidemineralisation. The Sorowar deposit contains proven and probable reserves of 8.2million tonnes at 1.30 g/t gold and 4.5 million tonnes at 1.41 g/t goldrespectively for a total ore reserve of 547,000 ounces. Commencement of miningat the Sorowar deposit is scheduled for May 2008 and will provide the bulk ofthe mill feed for the stage 1 Simberi Oxide Gold Project which will produce anaverage 84,000 ounces of gold per year over a current 8 year mine life. The orefrom Sorowar will be delivered by the aerial conveyor (Ropecon) which iscurrently undergoing commissioning. Drilling south east of the pit to date has totalled 2,795 metres in 29 holesincluding 5 Monun Creek diamond holes that have been reported previously.Recently drilling commenced in an area west of the current pit and to date 24holes for 2,063 metres have been drilled and some assay results have beenreceived as listed in this update. The drilling has identified a new area ofmineralisation at Sorowar. Testing of this area is continuing and drilling willalso recommence in the south east area now that additional encouraging resultshave been received. The tables at the end of this report give more details on the drill holeintersections and the map below shows the locations of the holes and selectedassay intercepts. The drilling at Sorowar West has identified a new area of mineralisation locatedwithin 300 to 400 meters of the RopeCon load out terminal. The drill holeintersections to date are extremely encouraging given that the mineralisationcomprises oxide material at surface or near-surface. Drilling will continuenorth towards the Sorowar pit limit and south east in the area shown on the mapas "Area Not Drilled". At the south east area the last phase of drilling has confirmed a zone ofsurface and near-surface mineralised oxide material. Further drilling is plannedto define the extents of this zone and provide sufficient drill density to allowa resource estimation to be carried out. Additionally, drilling has commenced to the north west of the Sorowar pit and todate 22 holes for a total length of 2,314 metres has been completed, stillwaiting assay results. A full copy of this announcement is attached as a link and is also availablefrom the Company's website, www.alliedgold.com.au, http://www.rns-pdf.londonstockexchange.com/rns/0500t_-2008-4-24.pdf ENDS For further information, please contact: Mark Caruso Tel: +61 8 93533638Managing Director Roland Cornish Tel: 0207 628 3396Beaumont Cornish Limited Competent Persons The information in this Stock Exchange Announcement that relates to projectfinancial modelling, mining, exploration and metallurgical results, togetherwith any related assessments and interpretations, has been approved for releaseby Mr. C.R. Hastings, MSc, BSc, M.Aus.I.M.M., a qualified geologist andfull-time employee of the Company. Mr Hastings has sufficient experience whichis relevant to the style of mineralisation and type of deposit underconsideration and to the activity which he is undertaking to qualify as aCompetent Person as defined in the 2004 Edition of the "Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves". MrHastings consents to the release of the information in this release in the formand context in which it appears. The information in this Stock Exchange Announcement that relates to Ore Reserveshas been compiled by Mr J Battista of Golder Associates who is a Member of theAustralasian Institute of Mining and Metallurgy. Mr Battista has had sufficientexperience in Ore Reserve estimation relevant to the style of mineralisation andtype of deposit under consideration to qualify as a Competent Person as definedin the 2004 Edition of the "Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves". Mr Battista consents to theinclusion of the information contained in this release in the form and contextin which it appears. Background Allied Gold is a gold production company having commissioned its 100 percentowned Simberi Oxide Gold Project in February 2008. The project is situated onthe northern most island of the Tabar Islands Group, located in the New IrelandProvince of eastern Papua New Guinea some 60 kilometres north-west of the LihirGold Project, which hosts a 40 million ounce gold resource. Simberi hosts measured, indicated and inferred mineral resources ofapproximately 2.4 million ounces of gold and proven and probable ore reserves of674,000 ounces of gold. Allied's strategy is to add to the gold inventory on Simberi Island by definingadditional oxide and sulphide resources and converting these and known resourcesinto reserves with a view to expanding gold production from current levels of84,000 ounces per annum. Additionally it has a farm-in and joint venture agreement with the world'spre-eminent gold production company whereby Barrick Gold Corporation is fundingup to AUD$20m of expenditure to earn a 70% interest in the exploration licencethat encompasses the adjacent Tatau and Big Tabar islands. Sorowar West Drill Hole Intercepts Hole TIG North TIG East RLm Dip/Azio From m To m Intercept m Au Grade g/t Oxidation RC1459 209905.8 43841.1 210.0 -90/000 30 34 4 0.91 SUSorowar West including 30 32 2 1.14 SU 47 59 12 2.38 SU 66 67 1 1.09 SU RC1463 210019.4 43962.5 212.9 -90/000 32 36 4 1.02 SUSorowar West 19 39 20 1.00 SU 44 64 20 1.23 SU including 45 60 15 1.34 SU and 62 64 2 1.32 SU 76 94 18 0.72 SU including 91 93 2 1.05 SU RC1526 209884.8 43883.7 191.2 -90/000 0 13 13 2.20 OX SUSorowar West including 0 11 11 2.48 OX RC1527 209911.0 43929.3 192.1 -90/000 NSA S West RC1528 209886.9 43966.8 194.9 -90/000 0 4 4 1.36 OXSorowar West including 0 3 3 1.59 OX 44 49 5 0.82 SU including 47 48 1 1.78 SU 55 67 12 0.75 SU including 59 60 1 2.00 SU and 66 67 1 1.06 SU 100 104 4 1.36 SU RC1529 209913.2 43974.3 195.9 -90/000 0 9 9 0.99 OX, TR, SUSorowar West including 2 5 3 1.57 OX 64 68 4 1.37 SU including 65 68 3 1.59 SU RC1530 209948.7 43984.4 195.6 -90/000 2 11 9 2.50 OX Sorowar West including 5 11 6 3.52 OX SU 27 33 6 1.14 SU including 27 29 2 2.03 SU 61 67 6 0.78 SU including 64 66 2 1.03 SU 85 88 3 0.96 SU 108 110 2 1.02 SU RC1531 210018.1 44068.5 202.8 -90/000 11 22 11 1.84 SU Sorowar West including 15 22 7 2.66 SU SE Sorowar Drill Hole Intercepts Hole TIG North TIG East RLm Dip/Azio From m To m Intercept m Au Grade g/t Oxidation RC1509 209514.1 44603.4 171.1 -55/129 0 11 11 1.27 OXSE Sorowar including 1 7 6 1.71 OXSample not received at lab (11-12m) 12 14 2 1.31 OX including 12 13 1 1.88 OX RC1510 209529.6 44594.1 172.2 -90/000 42 69 27 1.42 OX SE Sorowar including 47 66 19 1.73 OX 74 80 6 4.09 OX SU including 75 80 5 4.81 OX SU RC1511 209529.5 44597.3 171.8 -60/045 0 10 10 0.94 OX SE Sorowar including 2 6 4 1.46 OX 73 79 6 1.28 OX including 73 77 4 1.60 OX RC1513 209571.8 44557.6 178.1 -60/045 27 50 23 1.44 OXSE Sorowar including 27 44 17 1.60 OX and 47 50 3 1.44 OX 101 102 1 1.85 TR SU 113 116 3 1.02 SU RC1515 209650.4 44529.6 196.4 -60/045 NSASE Sorowar RC1516 209669.4 44507.3 191.9 -60/045 NSASE Sorowar RC1517 209697.2 44540.3 204.3 -60/045 NSASE Sorowar RC1525 209780.4 44434.9 195.3 -60/045 15 26 11 0.91 SU SE Sorowar including 23 25 2 2.34 SU RC1533 44486.5 209559.5 171.4 0 30 30 1.75 OX SU SE Sorowar including 0 22 22 2.14 OX SU RC1534 209610.9 44470.0 176.9 -60/045 30 37 7 1.32 TRSE Sorowar including 30 35 5 1.66 TR 63 75 12 0.71 SU including 70 71 1 1.26 SU 92 100 8 1.20 SU including 95 100 5 1.49 SU RC1535 209433.7 44576.9 119.8 -60/045 41 50 9 6.19 SU SE Sorowar including 46 47 1 17.15 SU Top of hole assays received, awaiting results for 63 - 120m RC1537 209446.2 44466.9 125.3 -60/045 91 92 1 2.68 SUSE Sorowar 137 142 5 0.82 SU including 141 142 1 2.15 SU RC1538 209512.9 44421.2 131.6 -90/000 0 5 5 2.64 OXSE Sorowar including 0 3 3 3.90 OX 13 23 10 1.41 SU including 14 23 9 1.51 SU 81 88 7 1.08 SU RC1539 209599.7 44415.6 145.8 -60/045 0 5 5 1.01 OX, TR SE Sorowar including 0 2 2 1.30 OX 8 11 3 0.93 OX 18 28 10 0.97 TR including 21 27 6 1.14 TR 64 75 11 0.72 SU including 64 66 2 1.20 SU and 69 70 1 1.07 SU 137 142 5 0.82 SU including 141 142 1 2.15 SU Assaying for gold by fire assay (50gm) with AAS finish Simberi mineralization types are: Ox = oxide material - extremely weathered (average cyanide recovery >90%) Tr = transitional material - distinctly weathered (average cyanide leachrecovery 50 - 90%) Su = sulphide material - slightly weathered to fresh (average cyanide leachrecovery

Related Shares:

ALD.L
FTSE 100 Latest
Value8,760.13
Change-0.83