ALLIED GOLD LIMITED (AGLD)

ALLIED GOLD LIMITED (AGLD)

ALLIED GOLD LIMITED (AGLD) – Spectacular Gold Intercept at Pigiput

Highlights
• 16m at 15.11 g/t gold intercepted from 15m down hole depth in hole 1555 located around 250m east of Pigiput oxide pit
• 3m at 8.60 g/t gold from 43m intersected in hole 1557, approximately 75m south-west of hole 1555
• Assays results pending for an additional 8 RC drill holes
• RC drill holes designed as pre-collars for planned diamond drilling targeting deep sulphide mineralisation, encountered shallow gold mineralisation in oxides in all 7 holes drilled to date, including 25m at 3.89 g/t gold from 48m
 
Allied Gold Limited is pleased to report that recent drilling at Pigiput East targeting oxide mineralisation has intersected a 16m zone grading 15.11 g/t gold from 15m. This drill hole was one of eleven reverse circulation holes drilled which targeted a gold in soil anomaly that was identified in 2007. This new zone is located approximately 250m north east of the Pigiput oxide pit. The assay results from a second drill hole intersected a 3m zone grading 8.60 g/t gold from 43m, including 1m at 15.25 g/t gold. Assay results from the remaining drill holes are pending.

Additionally, drilling north of the oxide pit has commenced and these infill and extensional drill holes are targeting deeper sulphide mineralisation. Previous drilling has defined an inferred resource of 1.26Mt at 10.4g/t gold for approximately 420,000 ounces of gold. This phase of drilling involves the installation of an RC pre-collar followed up with deeper diamond cored tails. To date results from 7 drill hole pre-collars have been received which have all intersected shallow gold mineralisation in oxides with a best result being 25m at 3.89g/t gold from 48m. Refer to the following Drill Hole Location Plan and the attached Table of Significant Intercepts for further details.

These new drill results increase Allied Gold management’s confidence of achieving their short-term goal of identifying sufficient additional oxide and sulphide resources to underpin an expansion of gold production at the Simberi Project from the current average rate of 84,000oz to in excess of 120,000oz per annum.

The newly commenced sulphide drilling program at Pigiput is expected to be high impact. Optimisation study work completed by Independent Consulting firm Golder Associates in May 2007 concluded that there was potential for an economic and relatively large-scale (circa 500,000oz) combined oxide and sulphide open pit operation at Pigiput. Golder Associates designed and recommended the current drill program to improve confidence levels of the resource and determine the geotechnical and metallurgical characteristics of the sulphide mineralisation.    

For more information please visit: www.alliedgold.com.au

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