22nd Jun 2006 12:13
Allied Gold Limited22 June 2006 FOR IMMEDIATE RELEASE 22 June 2006 ALLIED GOLD LIMITED SIMBERI OXIDE PROJECT UPDATE As previously announced the Company, in conjunction with its design engineerIntermet Engineering Ltd, has been working to complete an updated capital andoperating cost estimate for the Simberi Oxide Gold Project incorporating anaerial rope conveyor system for ore delivery to the plant and a 2.0Mtpathroughput. Whilst this work is not yet complete the Company is in a position toadvise that it expects there will be an increase in the estimated capital cost.The magnitude of the increase and its effect on the project economics are notyet known. In addition to working on the revised capital and operating cost estimate theCompany and its consultants are also working on a revision to the mine designand mining schedule, taking into account drilling results received since thedatabase was closed off for the 2005 Optimised Feasibility Study, and theprevailing gold prices. The revised cost estimates and mine design/schedule will form the input to arevision of the project financial model. The market will be updated as soon asthis work is completed. Any revision is likely to have an impact on the construction schedule bydelaying the ordering of key equipment items. The Company is continuing early start earthworks and detailed engineering of thetreatment facility and infrastructure. For enquiries in connection with this release please contact: Wayne LoxtonManaging DirectorAllied Gold Limited+61 8 9353 3638 phone+61 8 9353 4894 faxinfo@alliedgold.com.au e-mail Forward-Looking Statements. This press release contains forward-looking statements concerning the projectsowned by Allied. Statements concerning mineral reserves and resources may alsobe deemed to be forward-looking statements in that they involve estimates, basedon certain assumptions, of the mineralisation that will be found if and when adeposit is developed and mined. Forward-looking statements are not statements ofhistorical fact, and actual events or results may differ materially from thosedescribed in the forward-looking statements, as the result of a variety ofrisks, uncertainties and other factors, involved in the mining industrygenerally and the particular properties in which Allied has an interest, such asfluctuation in gold prices; uncertainties involved in interpreting drillingresults and other tests; the uncertainty of financial projections and costestimates; the possibility of cost overruns, accidents, strikes, delays andother problems in development projects, the uncertain availability of financingand uncertainties as to terms of any financings completed; uncertaintiesrelating to environmental risks and government approvals, and possible politicalinstability or changes in government policy in jurisdictions in which propertiesare located. Forward-looking statements are based on management's beliefs, opinions andestimates as of the date they are made, and no obligation is assumed to updateforward-looking statements if these beliefs, opinions or estimates should changeor 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 ofAllied, nor is this communication an offer to purchase nor a solicitation tosell securities. Any offer will be made only through an information circular orproxy statement or similar document. Investors and security holders are stronglyadvised to read such document regarding the proposed business combinationreferred to in this communication, if and when such document is filed andbecomes available, because it will contain important information. Any suchdocument would be filed by Allied with the Australian Securities and InvestmentsCommission, the Australian Stock Exchange and with the U.S. Securities andExchange Commission (SEC). "This press release is not for dissemination in the United States and shall notbe disseminated to United States news services" This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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