TIDMAGLD
RNS Number : 8738C
Allied Gold Limited
14 March 2011
FOR IMMEDIATE RELEASE 14 March 2011
allied gold limited
("the Company")
"This press release is not for dissemination in the USA and
shall not be disseminated to USA news services"
SIMBERI GOLD MINE, PNG
172% INCREASE AT BOTLU DEPOSIT - TO 429, 000 oz
Allied Gold advises that Resource definition drilling at Allied
Gold's 100% owned Simberi gold mine in Papua New Guinea has led to
a 271,000 ounce increase in Inferred Mineral Resources Botlu
deposit.
The estimated Measured and Indicated resources at Simberi now
stand at 80.4Mt @ 1.26g/t Au, containing 3.26 Moz gold, with
additional Inferred Resources of 91.9 Mt @ 1.00g/t Au containing
2.95 Moz gold (see Appendix 1 below).
A newly updated Mineral Resource of predominantly sulphide
mineralisation has increased the estimated Inferred Resources at
Botlu to 8.4 Mt at a grade of 1.59 g/t Au for 429,000 ounces gold
as at February 2011. This represents an increase of 172% from
previous total Measured, Indicated and Inferred Resources of 3.4 Mt
@ 1.44g/t Au containing 158,000 ounces gold. (ALD - Revised NI
43-101 Technical Report, 9/11/2010).
RESOURCE ESTIMATION METHOD
The table reports resources in Oxide using a 0.5g/t Au block
grade cut-off and in Transition and Sulphide using a 1.0g/t Au
block grade cut-off.
The resource estimate is based on results from 165 drill holes
totaling 14,950m drilled (29 core holes / 6,142m, 96 RC drill holes
/ 5,002m and 40 aircore holes / 3,805m). In addition to previous
work, the database incorporates the results of a 15 hole / 3,174m
core drilling programme, undertaken between June and December
2010.
The holes provide 13,230 analysed samples. Four core holes /
250m, drilled for metallurgical purposes prior to the previous
resource estimate in 2003, were not assayed. Pierce points in the
modelled parts of the 4 wire-framed domains range up to 75 metres
apart down dip and 25 metres along strike. Drill hole sample assays
were composited to 3m, providing 4,977 data values inside the
modelled area. Seventeen composite average grades were cut to 10g/t
Au, prior to block grade interpolation using the Inverse Distance
Squared (ID2) algorithm. Block sizes in the model were 10m x 10m x
10m (parent cell) to 5m x 5m x 5m (sub-cell). The search ellipse
used ellipse was 50m along strike, 50m down dip and 12.5m in the
minor axis.
QUALITY CONTROL
Allied Gold employs a QA/QC protocol on all aspects of the
analytical procedures currently undertaken. Core is logged, cut and
sampled at the secure Simberi core logging facility. Core is
generally sampled on a one metre basis, with half of the core is
crushed, split to approximately 1.5kg and pulverised at the
adjacent Exploration Sample Preparation Facility. The pulverised
sample is sent for analysis by fire assay/AAS finish at ALS
Laboratory in Townsville or Aqua Regia Digest/AAS finish at the
dedicated Exploration Analytical Laboratory on-site. One half of
the generally HQ core (PQ and limited NQ core sized core is also
used) is restored to the core box for future reference. A blank
sample is inserted every 40th sample and CRM standard samples,
representing a range of grades, are also inserted at intervals of 1
in 40 samples. At least 5% duplicates, both splits of crushed core
(Field Duplicates) and pulps (Pulp Duplicates) are included in each
batch sent for analysis. A second split of the duplicates is
retained for re-analysis at Genalysis Laboratory Services in
Townsville, Australia. The current QA/QC data is rejected unless
within acceptable parameters. The Quality Control for the project
is supervised by Allied Gold Chief Geologist, Philip Davies who is
a Qualified Person as defined under The JORC Code, 2004
Edition.
GEOLOGY
The Botlu Deposit gold mineralisation is associated with
volcanic breccias that cut, at steep angles, through the largely
latite andesite and minor volcanic tuff host rocks. The four
modelled domains strike generally east-west and dip both north and
south around an unmineralised andesite core. The gold
mineralisation occurs with fine grained disseminated sulphides.
Abundant very fined grained in the matrix of volcanic breccia
typically hosts the highest grade gold. Pervasive silica, carbonate
and potassic alteration, typically 5 to 10%, is common recorded
however quartz or carbonate veining was uncommon in the latest
diamond drilling that tested deeper parts of the deposit.
The full announcement and appendices can be viewed on the
Company's Website www.alliedgold.com.au.
For more details, please contact:
Simon Jemison Investor Relations & Media +61 418 853 922
Rebecca Greco Investor Relations, North America +1 416 839
8610
David Simonson c/. Merlin PR +44 20 7726 8400
Beaumont Cornish Limited
Roland Cornish
Beaumont Cornish Limited
T: +44 (0) 20 7628 3396
APPENDIX 1 - Simberi Estimated Resources with updated Botlu
Resource (highlighted in GREY) as at February 2011. Original
Source: ALD - November 2010 REVISED TECHNICAL REPORT, Simberi Gold
Project, Simberi Island, Papua New Guinea (Golder Associates Report
Number: 1097641039-005-R01).3.7 Resource Simberi Resource (0.5 g/t
Au cut off - depleted to eom October 2010)
Deposit Material Measured Indicated Inferred
--------- ------------ ------------------- --------------------- ---------------------
Au Au Au
Mt g/t Mt g/t koz Mt g/t koz
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Bekou Oxide 0.04 1.74 2 0.06 1.14 2
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 0.01 1.17 0 0.05 1.16 2
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 0.02 1.93 2 0.92 1.38 41
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Bekou Total 0.07 1.76 4 1.02 1.36 45
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Botlu Oxide 2.10 1.21 81
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 0.15 1.83 9
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 6.13 1.72 339
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Botlu Total 8.39 1.59 429
Pigibo Oxide 2.96 1.11 106 0.60 0.89 17
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 2.19 1.19 84 0.51 0.92 15
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 3.86 1.11 137 6.22 0.94 188
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Pigibo Total 9.00 1.13 327 7.33 0.93 220
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Pigicow Oxide 0.15 1.65 8 0.29 1.30 12
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 0.11 1.29 4
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 2.00 1.26 81
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Pigicow Total 0.15 1.65 8 2.39 1.26 97
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Pigiput Oxide 3.02 0.87 85 4.60 0.92 137 2.01 0.79 51
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 1.95 0.89 56 0.77 0.83 21
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 32.56 1.51 1,583 32.25 1.00 1,042
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Pigiput Total 3.02 0.87 85 39.12 1.41 1,775 35.03 0.99 1,114
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Samat
East Oxide 0.40 1.13 14
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 0.08 0.78 2
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 3.50 0.78 88
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Samat East Total 3.98 0.82 105
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Samat
north
A Oxide 0.16 0.75 4 0.11 0.84 3
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 0.04 1.29 2 0.01 1.26 0
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 0.36 0.81 9 1.08 0.86 30
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Samat North
A Total 0.56 0.83 15 1.20 0.86 33
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Samat
North
B Oxide 0.12 0.86 3 0.12 0.75 3
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 0.05 2.86 5 0.02 0.78 1
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 1.90 1.22 74 1.05 0.73 25
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Samat North
B Total 2.06 1.24 82 1.19 0.73 28
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Samat
South
A Oxide 0.02 2.11 1 0.16 1.28 7
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 0.01 0.98 0 0.01 0.77 0
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 0.02 1.01 1 1.73 0.97 54
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Samat South
A Total 0.05 1.53 2 1.90 0.99 61
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Samat
South
B Oxide 0.05 2.94 5 0.17 1.51 8
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 0.05 2.03 3 0.02 0.99 1
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 1.70 1.76 96 3.36 1.07 115
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Samat South
B Total 1.80 1.80 104 3.54 1.09 124
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sorowar Oxide 5.81 1.30 243 8.56 1.08 298 2.40 1.09 84
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 0.54 1.17 20 1.46 1.14 53 0.29 0.83 8
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 1.30 0.93 39 6.93 0.92 205 19.03 0.90 549
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sorowar Total 7.64 1.23 302 16.95 1.02 556 21.72 0.92 641
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sorowar
South Oxide 0.68 0.82 18
--------- ------------ ------ ----- ---- ------ ----- ------ ------ ----- ------
Transition 0.28 0.68 6
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sulphide 5.39 0.66 114
---------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Sorowar South
Total 6.35 0.67 138
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
Grand Total 10.66 1.13 387 69.76 1.28 2,874 91.95 1.00 2,953
----------------------- ------ ----- ---- ------ ----- ------ ------ ----- ------
About Allied Gold
Allied Gold is an emerging 200,000 ounce per annum gold producer
with production and exploration assets in Papua New Guinea and the
Solomon Islands approximately 3 hours by plane from Brisbane,
Australia. The company's 100%-owned Simberi gold mine is 80
kilometres from Lihir Island in the New Ireland province of Papua
New Guinea. Simberi commenced gold production in 2008, produced
64,000 ounces in 2009-10 and its process plant is being expanded to
a throughput of 3.5 Mtpa to produce 100,000 ounces per annum by
late 2011. Allied Gold acquired Gold Ridge in the Solomon Islands
in late 2009 when it acquired Toronto-listed Australian Solomons
Gold. Allied has invested $150 million to refurbish and redevelop
Gold Ridge which is expected to produce an average 120,000 ounces
per annum for a minimum ten years.
Allied Gold Limited is listed on the ASX, TSX and the London AIM
exchanges.
Competent Persons
The information in this Stock Exchange Announcement that relates
to Mineral Exploration results, together with any related
assessments and interpretations, have been verified by and approved
for release by Mr P R Davies, MSc, BSc, M.Aus.I.M.M., a qualified
geologist and full-time employee of the Company. Mr Davies 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 Davies 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 report that relates to Mineral Resources
is based on a resource estimate prepared by Allied Gold Resource
Geologist Mrs Carmel Grant, under the supervision of Chief
Geologist Mr Philip Davies. Both are registered members of the
AusIMM. Mrs Grant has more than five years experience relevant to
gold resource estimation and qualifies as a Competent Person as
defined in the 2004 edition of the "Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves" Both
Mrs Grant and Mr Davies consent to the inclusion in this report of
the matters based on the information in the form and context in
which it appears.
Forward-Looking Statements
This press release contains forward-looking statements
concerning the projects owned by Allied Gold. Statements concerning
mineral reserves and resources may also be deemed to be
forward-looking statements in that they involve estimates, based on
certain assumptions, of the mineralisation that will be found if
and when a deposit is developed and mined. Forward-looking
statements are not statements of historical fact, and actual events
or results may differ materially from those described in the
forward-looking statements, as the result of a variety of risks,
uncertainties and other factors, involved in the mining industry
generally and the particular properties in which Allied has an
interest, such as fluctuation in gold prices; uncertainties
involved in interpreting drilling results and other tests; the
uncertainty of financial projections and cost estimates; the
possibility of cost overruns, accidents, strikes, delays and other
problems in development projects, the uncertain availability of
financing and uncertainties as to terms of any financings
completed; uncertainties relating to environmental risks and
government approvals, and possible political instability or changes
in government policy in jurisdictions in which properties are
located. Forward-looking statements are based on management's
beliefs, opinions and estimates as of the date they are made, and
no obligation is assumed to update forward-looking statements if
these beliefs, opinions or estimates should change or 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 of Allied Gold, nor is this communication an offer
to purchase or a solicitation to sell securities. Any offer will be
made only through an information circular or proxy statement or
similar document. Investors and security holders are strongly
advised to read such document regarding the proposed business
combination referred to in this communication, if and when such
document is filed and becomes available, because it will contain
important information. Any such document would be filed by Allied
Gold with the Australian Securities and Investments Commission, the
Australian Stock Exchange and with the U.S. Securities and Exchange
Commission (SEC).
Glossary of terms used in the Announcement:
A 'Mineral Resource' is a concentration or occurrence of
material of intrinsic economic interest in or on the Earth's crust
in such form, quality and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade, geological characteristics and continuity of a Mineral
Resource are known, estimated or interpreted from specific
geological evidence and knowledge. Mineral Resources are
sub-divided, in order of increasing geological confidence, into
Inferred, Indicated and Measured categories.
An 'Inferred Mineral Resource' is that part of a Mineral
Resource for which tonnage, grade and mineral content can be
estimated with a low level of confidence. It is inferred from
geological evidence and assumed but not verified geological and/or
grade continuity. It is based on information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes which may be limited or of uncertain
quality and reliability.
An 'Indicated Mineral Resource' is that part of a Mineral
Resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated with a
reasonable level of confidence. It is based on exploration,
sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are too widely or
inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be
assumed.
A 'Measured Mineral Resource' is that part of a Mineral Resource
for which tonnage, densities, shape, physical characteristics,
grade and mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable exploration,
sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are spaced closely enough
to confirm geological and grade continuity.
Tonnage - An expression of the amount of material of interest
irrespective of the units of measurement (which should be stated
when figures are reported)
Grade - Any physical or chemical measurement of the
characteristics of the Analysis (Value) material of interest in
samples or product
Cut off grade - The lowest grade, or quality, of mineralised
material that qualifies as economically mineable and available in a
given deposit. May be defined on the basis of economic evaluation,
or on physical or chemical attributes that define an acceptable
product specification.
Mineralisation - Any single mineral or combination of minerals
occurring in a mass, or deposit, of economic interest.
Assay - The proportion of a particular metal (eg Au and Ag) in a
sample derived by laboratory analytical techniques.
Analysis limits of detection for Au is <0.01 g/t. Au assays
are determined by a 50gm fire assay and an AAS (Atomic Adsorption
Spectrometry) finish. Any interval recorded as being below
detection has been recorded in the database as having a grade of
half the detection limit, which in this case is 0.005 g/t. The Ag
detection limit is 0.2g/t, and is derived from a 0.5g charge
Aquaregia digest, with assay via ICP (Induced Coupled Plasma)
AES.
Mineralisation types are:
Oxide - extremely weathered material (cyanide leach recoveries
> 90%), 0.5 g/t Au cutoff
Transitional - distinctly weathered material (cyanide leach
recoveries 50-90%), 0.5 g/t Au cutoff
Sulphide - Slightly weathered to fresh material (cyanide leach
recoveries generally <50%), 0.5 or 1.0 g/t Au cutoff
Ounce - 1 troy ounce = 31.10348 grams
Tonnes - Are estimated on a dry basis and defined as a
measurement of mass equal to 1000kg which is equivalent to 2204.622
pounds.
Tuff - A rock composed of pyroclastic materials that have been
ejected from a volcano. In many instances these fragments are still
hot when they land, producing a "welded" rock mass.
Mineral Resource estimate - An estimate of tonnage and grade
(mineral content) of a deposit by a variety of techniques including
geometrical classical methods and or geostatistical methods.
Mt- Million Tonnes
Moz - Million Ounces
Andesite - A fine-grained, extrusive igneous rock composed
mainly of plagioclase with other minerals such as hornblende,
pyroxene and biotite.
Ordinary kriging (OK) - is a geostatistical approach to
modeling. Instead of weighting nearby data points by some power of
their inverted distance, OK relies on the spatial correlation
structure of the data to determine the weighting values. This is a
more rigorous approach to modeling, as correlation between data
points determines the estimated value at an unsampled point.
Authorised for release
14 March 2011
Peter Torre
Company Secretary
This information is provided by RNS
The company news service from the London Stock Exchange
END
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