12th Apr 2007 11:58
Allied Gold Limited12 April 2007 For immediate release 12 April 2007 ALLIED GOLD LIMITED ("ALLIED" OR "THE COMPANY") SIGNIFICANT GOLD INTERCEPTS INDICATE MAJOR NEW RESOURCES The Directors of Allied Gold Limited (ASX code "ALD") are pleased to report thatnewly received assay results from exploration drilling at its 100% owned SimberiGold Project in Papua New Guinea have recorded highly encouraging intercepts. The most significant results have been received from drilling on the Monum Creekprospect, in the valley approximately midway between the Sorowar deposit and thePigiput deposits to the south. Best results from the Monum drilling include: €13m at 4.20 g/t gold from surface, including 1m at 11.35 g/t from 8m, in drill hole MN001 €6m at 4.78 g/t gold from 143m, also in MN001 €9m at 6.52 g/t gold from 104m, in RC1391DD €14m at 1.28 g/t gold from 8m, in RC1383 €13m at 1.21 g/t gold from surface, in RC1388 Furthermore, routine continuous channel sampling of the bulldozed access roadinto the MN001 drill pad returned an intercept length of: • 90m of 1.79 g/t gold When combined with the recently interpreted geophysical surveys in the region,these drill results indicate that Monum Creek most likely represents a southernextension of the Sorowar deposit, Simberi's largest single deposit with aresource of 1.248 million ounces and oxide (as well as minor entrainedtransitional and sulfide) material ore reserves of 546,000 ounces of gold. Thestrike extension is in the order of 250 metres, which is significant in thecontext that Sorowar has a strike length of approximately 700 metres. Additionally, Allied is also in receipt of some significant drill results fromfollow up drilling of the Pigicow prospect. Best results from this programinclude: €16m at 2.35 g/t gold from surface, including 11m at 3.21 g/t from surface, in PC004 €12m at 2.67 g/t gold from 14m, as part of a broader 61m at 1.24 g/t from surface, in PC005 €18m at 1.91 g/t gold from 34m, in PC003 The results at Pigicow point to additional oxide and sulfide resources at thisprospect. Background to Monum Creek Results The Monum Creek prospect is located off the main topographic ridge and its spurlines, which have been the subject of previous concentrated drilling. It lies ona large geophysical anomaly to the south-east of the Sorowar deposit. Sorowar isSimberi's largest single deposit with a resource of 1.248 million ouncescontaining oxide material ore reserves of 546,000 ounces of gold over itspresent measured strike length of approximately 700 metres. The above mentioned channel sample intercept of 90m at 1.79 g/t, coupled withthe 13m oxide drill intercept in MN001 and the interpretation of the results ofthe current ongoing geophysical surveys in the area, indicates that the Sorowaroxide deposit is likely to extend an additional strike length of 250 metres tothe south-east to Monum Creek. The following sketches depict the location of the Sorowar deposit relative toaerial magnetic and potassium channel radiometric anomalism. The magnetic 'lows'are the result of magnetite destruction caused by hydrothermal processes thatare, in turn, also manifested as potassic alteration. A substantial deep, horizontally tabular IP chargeability anomaly (indicative ofdisseminated sulfides) is currently being defined in this area. The generallocation of this feature is likewise depicted in these sketches, as are thegeneral locations of drillhole MN001 and the road channel sample intercept. The Directors of Allied Gold are highly encouraged by the current round of drillresults from the Simberi Gold Project in offshore Papua New Guinea, some 60kmnorth-west of Lihir Island host of a 40 million ounce gold resource. It vindicates Allied's recent decision to invest further capital into thepurchase of its own drill rigs and the reinvigoration of its exploration plans. The company remains on time and within budget to commission the 80,000 ounce perannum Simberi Oxide Gold Project in the second half of calendar year 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 Ross Hastings, MSc., BSc., M.Aus.I.M.M., a qualifiedgeologist and full-time employee of the Company. Mr Hastings has sufficientexperience which is relevant to the style of mineralisation and type of depositunder consideration 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." For more information:Mark Caruso T:+61 8 93533638Managing DirectorRoland Cornish T: +44 (0) 20 7628 3396Beamont Cornish Limited Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/7511u_-2007-4-12.pdf This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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