ALLIED GOLD – SIGNIFICANT GOLD PROSPECT

ALLIED GOLD – SIGNIFICANT GOLD PROSPECT

HIGHLIGHTS

  • Assay results received for 18 reverse circulation holes drilled at the Pigibo Prospect. Significant down-hole intercepts includes:
  • RC1785    22m @ 3.40g/t Au from 98m
  • RC1790    47m @ 2.84g/t Au from 63m
  • RC1792    27m @ 4.64g/t Au from 93m
  • RC1794    28m @ 8.54g/t Au from 30m (incl 2m @ 60.1g/t from 43m)
  • RC1796    21m @ 3.43g/t Au from 71m


 Mineralisation over approximately 600 meters along strike and remains open (undefined at depth or not fully tested at depth)

Pigibo (100% Owned by Allied Gold Limited)

Reverse circulation drilling at the Pigibo Prospect, Simberi Island, continued the on-going testing of the area of the previously published Inferred Resource of 2.1Mt @ 1.1g/t Au for 74Koz Au (see Allied Gold Limited Annual Report 2006). The current drill results confirm that the Pigibo deposit is likely to increase in size from previously stated resource numbers. The intercepts being reported are predominantly in oxide and transitional material types and the results give the company confidence to undertake infill grade control drilling right away with a view to immediately advancing mine planning to allow the commencement of near term mining of the deposit.

The Pigibo Prospect is centred 800 metres west of the Pigiput Deposit which is currently the subject of a sulphide resource drill-out programme and scoping study (as outlined in Allied Gold Ltd press release dated 15 June 2009). Both deposits wholly occur within ML136, the mining lease on Simberi Island, owned 100% by Allied Gold Limited.

To date in 2009, reverse circulation (RC) drilling consisting of 29 holes for 3,289 metres has been completed on 11 north-south sections 50m apart, testing the Pigibo Prospect over approximately 600m of strike length. The results for the first 11 holes, RC1770 to RC1780, were announced in the Allied Gold Ltd March 2009 Quarterly Report and included notable gold intersections of:

  • 36m at 2.28g/t gold from 41m in RC 1770, including 6m at 4.21g/t gold from 68m
  • 11m at 2.22g/t gold from 71m in RC1771, including 3m at 4.66g/t gold from 78m
  • 15m at 2.85g/t gold from 74m in RC1773
  • 36m at 1.41g/t gold from 48m in RC1774
  • 14m at 2.31g/t gold from 68m in RC1776, including 3m at 6.22g/t gold from 71m
  • 15m at 2.68g/t gold from 60m in RC1777


Diamond core drilling is being used with 2 holes completed and one in progress to verify the geological interpretation and to confirm that the intercepts are approximately true width.

Gold mineralization is associated with arsenian pyrite and slightly elevated copper values (average 169ppm) and otherwise low base metals levels, similar to the upper parts of the Pigiput Deposit. Host rocks are predominantly tuffs with minor porphyritic intermediate intrusive. Amongst samples in holes RC1781 to RC1798 with gold assays greater than or equal to 1g/t, approximately 50% occur in oxide, 20% in transition and 30% in sulphide. Bottle roll tests will be undertaken on the RC drill chips to determine the cyanide leacheability of the gold in the transition and sulphide materials.

RC drilling in 2009 at the Pigibo Prospect has improved section-to-section continuity of two main sub-parallel zones of gold mineralization.  Drilling is continuing with the objective of defining the extent of the mineralisation by the end of the September 2009 quarter.

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