19th Mar 2008 09:41
Allied Gold Limited19 March 2008 For immediate release 19 March 2008 Allied Gold Limited ("Allied Gold" or the "Company") Simberi Gold Project Update Today, Allied Gold announced an update on its wholly owned Simberi Gold Projectin Papua New Guinea. Extracts from the announcement are set out below and thefull text of the announcement is available as a link to this announcement andalso from the Company's website, www.alliedgold.com.au. http://www.rns-pdf.londonstockexchange.com/rns/4413q_-2008-3-19.pdf HIGHLIGHTS • Approximately 13,140 ounces of gold has been produced at Allied Gold's 100% owned Simberi Oxide Project, located in the Tabar Island Group Papua New Guinea, from February 1 to March 14. Mill throughput has reached 70% of nameplate capacity, metallurgical recoveries are according to plan and head grades are showing positive reconciliations to the ore reserve model • Exploration activities on target areas located outside the current mining at Samat indicate extensions of the South Samat deposit. Best results include; - 8m at 5.51g/t gold from 1m, within a broader 20m at 2.27g/t gold intercept from surface - 7m at 4.49g/t gold from 1m, within a broader 20m at 1.47g/t gold intercept from surface • Exploration drilling south east of the current Sorowar deposit continues to define oxide mineralisation outside of the current pit design. Best results include: - 22m at 1.06 g/t gold from 28m - 7m at 1.21 g/t gold from 20m - 24m at 1.41 g/t gold from 24m PRODUCTION UPDATE Allied Gold Limited ("Allied Gold" or "Allied") is pleased to report that theproduction ramp up through its newly constructed process plant at Simberi isprogressing well. To date (14th March 2008) some 120,000 dry tonnes of ore havebeen processed at an average head grade of 3.93 g/t Au. An average throughputrate of 174 dry tonnes per hour (70% of nameplate capacity) is being achievedand gold recoveries are meeting expectations. Gold production to date is 13,140ounces with 6,162 ounces being poured. Mining is taking place at the Samat South and Samat East ore bodies and ore isbeing trucked to the plant. Ore mined to date is 171,640 wet tonnes. Gradecontrol drilling within the pits has resulted in improved ore grades in someareas, notably South Samat where sampling resulted in an intercept of 4m at 131g/t gold including 1m at 214g/t gold. At East Samat grade control drilling hasdefined an additional 10,000 tonnes of ore at a grade of 1.76g/t gold that waspreviously outside the pit limit. 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. R. Hastings, MSc, BSc., M.Aus.I.M.M., a qualified geologist and full-timeemployee of the Company. Mr Hastings has sufficient experience which is relevantto the style of mineralisation and type of deposit under consideration and tothe activity which he is undertaking to qualify as a Competent Person as definedin the 2004 Edition of the "Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves". 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 total mineral resources of approximately 2.4 million ounces ofgold and ore reserves of 674,000 ounces of gold. Allied's strategy is to add to the gold inventory on Simberi Island by definingadditional oxide resources and conversion of these and known resources intoreserves with a view to expanding annualised gold production from current levelsof 84,000 ounces, and to generate and drill test gold and base metals targetsidentified on the nearby Tatau and Big Tabar islands. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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