28th Nov 2008 13:26
For immediate release 28 November 2008
ALLIED GOLD LIMITED
("ALLIED" OR "THE COMPANY")
ALLIED INCREASES SIMBERI OXIDE GOLD RESOURCE BY A FURTHER 204,000 OUNCES
HIGHLIGHTS
Allied Gold Limited is pleased to announce further continued exploration success at the Simberi Gold Project.
The mineralisation remains open.
Simberi Resource Upgrade
Pigiput East
Assay results from exploration drilling carried out at Pigiput East have been used to prepare a new resource estimate for the Pigiput Ridge area. The Pigiput East mineralisation was discovered in late 2007 from surface bench sampling that was carried out approximately 200 metres to the north east of the existing Pigiput Oxide deposit. The sampling defined anomalous gold mineralisation in surface soils that included 55m at 1.66g/t gold and 45m at 3.42g/t gold from channel sampling.
Drilling at Pigiput East commenced in late March this year and a total of 56 combined reverse circulation (RC) and diamond cored holes for 6,182 meters was completed and used in the new resource estimate. This consisted of 48 RC holes for a total of 5,107m, and 8 diamond cored holes for a total of 1,075m. Note however, that sulphide material was excluded from the resource estimate and only gold mineralisation in oxide material has been estimated. The sulphide mineralisation is currently the subject of additional infill and extensional drilling that will be completed mid 2009 and followed by a new resource estimate.
Historical drilling at Pigiput carried out by previous JV partners Kennecott-Niugini Mining-Nord Pacific, commenced in 1985 and the first hole, P001 intersected 5m at 146g/t gold from 191m in sulphide material. Subsequent drilling by the JV totalled 23,992m from 176 RC and diamond cored holes and defined a total Inferred, Indicated and Measured resource of 530 ounces of gold in 6.2Mt of combined oxide and sulphide material types at a grade of 2.7g/t. Gold mineralisation in oxide material type made up the minor part of the estimate and the oxide component of that resource estimate was approximately 89,000 ounces of Inferred, Indicated and Measured, in 3.0Mt at 0.93g/t gold. The current Simberi mining operations are scheduled to mine approximately 22,000 reserve ounces (proved 15Kozs and Probable 7Kozs) from 0.530Mt of ore grading 1.30g/t gold.
This current resource estimate has resulted in an additional 204,000 Inferred and, indicated gold ounces. With the resource increase at Pigiput, the total Simberi resource estimate now stands at approximately 3.2 million ounces of gold in combined Inferred, Indicated and Measured material, an increase of 0.2 million ounces over the previous October 2008 estimate.
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.
This current increase in oxide resources at Pigiput in conjunction with recent additional oxide resources at Sorowar (73Kozs Inferred, Indicated and Measured) that were released to the market on 24th October, and pending reserve estimations to be carried out will add to the current project oxide mine life.
The announcement as released on the ASX can be viewed on the Company's website www.alliedgold.com.au or as a link to this announcement:
http://www.rns-pdf.londonstockexchange.com/rns/1839J_-2008-11-28.pdf
For more information:
|
Mark Caruso Executive Chairman |
T:+61 8 93533638 |
|
Roland Cornish Beaumont Cornish Limited |
T: +44 (0) 20 7628 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. 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 Mineral Resources estimates for Sorowar, Pigiput Bekou and Pigicow has been compiled by Mr S Godfrey of Golder Associates who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Godfrey has had sufficient experience in Mineral Resource 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 Godfrey consents to the inclusion of the information contained in this ASX release in the form and context in which it appears.
Related Shares:
ALD.L