AGLD Allied Gold

RNS Number:7511U
Allied Gold Limited
12 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 that
newly received assay results from exploration drilling at its 100% owned Simberi
Gold Project in Papua New Guinea have recorded highly encouraging intercepts.


The most significant results have been received from drilling on the Monum Creek
prospect, in the valley approximately midway between the Sorowar deposit and the
Pigiput 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 road
into 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 southern
extension of the Sorowar deposit, Simberi's largest single deposit with a
resource of 1.248 million ounces and oxide (as well as minor entrained
transitional and sulfide) material ore reserves of 546,000 ounces of gold. The
strike extension is in the order of 250 metres, which is significant in the
context that Sorowar has a strike length of approximately 700 metres.


Additionally, Allied is also in receipt of some significant drill results from
follow up drilling of the Pigicow prospect. Best results from this program
include:


   *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 this
prospect.


Background to Monum Creek Results


The Monum Creek prospect is located off the main topographic ridge and its spur
lines, which have been the subject of previous concentrated drilling. It lies on
a large geophysical anomaly to the south-east of the Sorowar deposit. Sorowar is
Simberi's largest single deposit with a resource of 1.248 million ounces
containing oxide material ore reserves of 546,000 ounces of gold over its
present measured strike length of approximately 700 metres.


The above mentioned channel sample intercept of 90m at 1.79 g/t, coupled with
the 13m oxide drill intercept in MN001 and the interpretation of the results of
the current ongoing geophysical surveys in the area, indicates that the Sorowar
oxide deposit is likely to extend an additional strike length of 250 metres to
the south-east to Monum Creek.


The following sketches depict the location of the Sorowar deposit relative to
aerial magnetic and potassium channel radiometric anomalism. The magnetic 'lows'
are the result of magnetite destruction caused by hydrothermal processes that
are, in turn, also manifested as potassic alteration.


A substantial deep, horizontally tabular IP chargeability anomaly (indicative of
disseminated sulfides) is currently being defined in this area. The general
location of this feature is likewise depicted in these sketches, as are the
general locations of drillhole MN001 and the road channel sample intercept.


The Directors of Allied Gold are highly encouraged by the current round of drill
results from the Simberi Gold Project in offshore Papua New Guinea, some 60km
north-west of Lihir Island host of a 40 million ounce gold resource.


It vindicates Allied's recent decision to invest further capital into the
purchase 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 per
annum Simberi Oxide Gold Project in the second half of calendar year 2007.



The information in this Stock Exchange Announcement that relates to exploration
results, together with any related assessments and interpretations, has been
approved for release by Mr Ross Hastings, MSc., BSc., M.Aus.I.M.M., a qualified
geologist and full-time employee of the Company. Mr Hastings 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."


For more information:
Mark Caruso                             T:+61 8 93533638
Managing Director
Roland Cornish                          T: +44 (0) 20 7628 3396
Beamont Cornish Limited

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related to this announcement: 

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                      This information is provided by RNS
            The company news service from the London Stock Exchange

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