27th Sep 2007 10:25
Allied Gold Limited27 September 2007 FOR IMMEDIATE RELEASE 27 September 2007 ALLIED GOLD LIMITED SIMBERI GOLD PROJECT UPDATE •Exploration drilling re-commences •Open pit mining contract awarded •Commissioning scheduled to commence in October with first gold pour due in November 2007 The Directors of Allied Gold Limited ("Allied") are pleased to report thearrival on Simberi Island of two of the four drilling rigs purchased in the Junequarter of 2007. Exploration drilling has subsequently resumed with thecommissioning of the DFM400 diamond-only rig at the Monun Valley prospect, wherepreviously reported channel sampling results indicate a potential 300msoutheasterly strike extension to the Sorowar Deposit. The UDR650 drilling rig recently arrived from Ghana is presently being assembledand the two new South African Rockdrill 3000 drilling rigs are currently beingmobilized to site. All personnel required to operate this equipment have beensourced and drill pads have been prepared for intensive exploration drilling. Additional 5-metre composite channel sample results have been received and thesecontinue to reveal significant new intercepts along bulldozed tracks: €45m at 3.42 g/t gold plus €55m at 1.66 g/t gold, located 250m south of RopeCon Pylon 2, as well as €120m at 0.95 g/t gold in Monun Valley. The former two intercepts are only around 40m apart and their weighted averageis 2.45 g/t gold. They appear to comprise a single zone of mineralization thatis open to the east and west. This mineralization is located approximately 1 kmfrom the processing plant and is a new discovery with no prior drilling in theimmediate vicinity. C-horizon geochemical soil sampling is being routinely undertaken along IP linesat 50-metre intervals. One IP unit is presently being run on ML136 on Simberiand another on the overlapping Tupinda and Fotombar calderas on EL609 on BigTabar Island. The combined monthly reading rate of the two units is 15 line km. Geochemical samples of decomposed bedrock are collected with bucket-type augers,typically from depths ranging down to 5 metres. This sampling is primarily todelineate geochemical pathfinder element dispersion haloes and secondly todetermine gold concentration. There is very strong evidence of a significant (approximately 300 metre)northwesterly extension of the Sorowar deposit, based on the following soilauger geochemistry: SAMPLE TIG Co-ordinates Au -------- ------------ ------- mE mN g/t ------- -------- ------- -------- 214036 44000 210150 0.48 214037 44000 210200 0.65 -------- ------- -------- ------- 214041 44000 210400 4.68 214042 44000 210450 0.22 -------- ------- -------- ------- 214722 43800 210500 3.03 214723 43800 210550 0.24 214724 43800 210600 1.19 -------- ------- -------- ------- This apparent northwesterly strike extension of the Sorowar mineralization isalong the pronounced linear magnetic 'low' that hosts the Sorowar deposit, the'low' being a manifestation of magnetite destruction by hydrothermal fluids. A new zone of strong C-horizon soil gold values has also recently beendiscovered on ML136, located between the RopeCon Pylon #2 and the plant site: SAMPLE TIG Co-ordinates Au -------- -------------- ------- mE mN g/t -------- -------- ------- -------- 205880 44800 209200 5.78 205881 44800 209250 1.29 -------- -------- -------- ------- A second significant zone of strong C-horizon soil gold values has also beendiscovered immediately south of the Patan prospect: SAMPLE TIG Co-ordinates Au -------- -------------- ------- mE mN g/t -------- -------- ------- -------- 212006 45400 209850 4.46 212007 45400 209900 2.85 212008 45400 209950 1.31 212009 45400 210000 0.67 -------- -------- -------- ------- Kennecott drilled 10 holes into this prospect in 1990, with the best oxideintercepts recorded being: RC433: 0-18m = 18m x 2.64 g/t gold RC436: 0 - 7m = 7m x 1.30 g/t gold RC441: 4 - 6m = 2m x 21.85 g/t gold Channel sampling of benches cut for access to these drillpads included a 5 metreintercept that returned a grade of 204.17 g/t gold. The re-establishment of theKennecott benches has been completed and this has revealed presence of anextensive hydrothermally altered intrusive breccia. Additional benching iscurrently in progress. Mining Contract Awarded Allied has awarded the open pit mining contract to Mine Site ConstructionServices Pty Ltd, after a competitive bidding process. The contractor isexpected to be fully mobilized to site by November. In the meantime Allied has commenced mining activities itself, utilizingcompany-owned heavy earthmoving equipment. As part of the mining contract, MineSite Construction has agreed to purchase this equipment from Allied. Project Status The Simberi gold project remains on track for commissioning and first productionin the December quarter. The latest schedule points to commissioning of theprocessing plant in October 2007 (next month) with the first gold pour inNovember 2007. The information in this Stock Exchange Announcement that relates to explorationresults, together with any related assessments and interpretations, has beenapproved for release by Mr Bohdan (Bob) Burban, Dip.App.Geol., F.Aus.I.M.M., aqualified geologist and full-time employee of the Company. Mr Burban s hassufficient experience which is relevant to the style of mineralisation and typeof deposit under consideration and to the activity which he is undertaking toqualify as a Competent Person as defined in the 2004 Edition of the"Australasian Code for Reporting of Exploration Results, Mineral Resources andOre Reserves." Contact: Mark Caruso, Executive Chairman, Allied Gold Limited + 61 8 9353 3638 Roland Cornish, Beaumont Cornish Limited + 44 207 628 3396 A copy of this announcement as released on the ASX can be viewed or downloaded as a link to this announcement. http://www.rns-pdf.londonstockexchange.com/rns/6079e_-2007-9-27.pdf This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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