Allied Gold Limited (AGLD) - Additional Gold Mineralisation Encountered Outside Sorowar Pit
Allied Gold Limited is pleased to report further gold intercepts from drilling at North West Sorowar, immediately adjacent to the Sorowar deposit at its 100%-owned and recently commissioned Simberi Gold Project.
10m at 12.31 g/t gold from 104m
42m at 2.10 g/t gold from 23m
35m at 1.24 g/t gold from 2m
17m at 2.52 g/t gold from 16m
16m at 1.24 g/t gold from surface
14m at 1.40 g/t gold from 43m
24m at 1.36 g/t gold from 58m
6m at 3.03 g/t gold from 77m
All these drill intercepts lie outside of the current pit outline of Sorowar, which contains proven and probable reserves of 8.2 million tonnes at 1.30 g/t gold and 4.5 million tonnes at 1.41 g/t gold respectively for a total ore reserve of 547,000 ounces. As such they represent newly identified zones of mineralisation.
A total of 17 recent drill holes and 7 previous reported drill holes covering an area approximately 400m long and 150m wide directly North West of the current Sorowar pit limit has confirmed continuation of gold mineralisation in oxides and under lying sulphides. The area tested is still open to the west, north, and east and additional step out holes are planned.
The drilling at NW Sorowar has revealed the occurrence of elevated silver mineralisation ranging from less than 1g/t up to 401g/t with a significant intercept of 3,610 g/t associated with the 114g/t gold intercept in drill hole RC1542.
The occurrence of quartz at NW Sorowar in drill hole samples is more frequent than that observed in other areas at Sorowar and this coupled with the higher silver mineralisation is indicating a move into a different part of an epithermal system as exploration progresses further to NW of the Sorowar deposit.
This recent phase of drilling at North West Sorowar, coupled with other successful drilling that has been recently reported at West Sorowar and South East Sorowar strongly indicates potential for increased mineral resources. Allied's focus is to prove up additional oxide resources that will justify a plant upgrade to accommodate a higher throughput from the current design of 2.2Mtpa to realise annual gold production exceeding 100,000 ounces per year.
"This press release is not for dissemination in the United States and shall not be disseminated to United States news services."
A full version of this announcement as released on the ASX is attached as a link to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/3327V_-2008-5-27.pdf
For further information please go to www.alliedgold.com.au