TIDMAGLD
RNS Number : 8209A
Allied Gold Limited
15 October 2009
?
For immediate release 15 October 2009
ALLIED GOLD LIMITED
("ALLIED" OR "THE COMPANY")
"This press release is not for dissemination in the United States and
shall
not be disseminated to United States news services."
FURTHER SIGNIFICANT GOLD INTERCEPTS
AT PIGIPUT PROSPECT
HIGHLIGHTS
* Step Out and Infill drilling continues to underpin confidence in 100,000oz p.a.
Sulphide Expansion Study
* Update to Pigiput resource statement expected Q1 2010
Allied Gold Limited has received further high-grade gold assays from diamond
drill core at the Pigiput and Pigibo gold prospects. The latest drilling and
assay results continue to define the continuity of gold grade and width of
mineralisation, including gold mineralisation found between the Pigiput and
Pigibo prospects.
Pigiput Core Drilling
Gold assays received from seven (7) diamond core holes drilled at the Pigiput
Deposit are part of an ongoing in-fill and step-out program which are to be
incorporated into the A$10 million Sulphide and Oxide Expansion Studies that
targets increasing total oxide and sulphide production to in excess of 200,000oz
p.a. by 2012.
The best down-hole intercept in sulphide in each hole was:
* SDH037 15.0m @ 5.80g/t Au from 83.0m
* SDH038 46.0m @ 1.01g/t Au from 135.0m
* SDH040 78.0m @ 2.25g/t Au from 150.0m
* SDH041 85.0m @ 3.98g/t Au from 157.0m
* SDH042 103.4m @ 2.07g/t Au from 144.6m
* SDH043 34.0m @ 2.18g/t Au from 117.0m
* SDH044 24.0m @ 1.38g/t Au from 220.0m
Pigiput - Pigibo RC Drilling
Gold assays received from five (5) reverse circulation holes, drilled to define
the eastern and western limits of the Pigiput and Pigibo deposits respectively,
also located oxide transitional sulphide mineralisation:
Mineralised down-hole intercepts were found in 4 holes including:
* RC1802 17m @ 1.07g/t Au from 91m
* RC1803 9m @ 1.71g/t Au from 80m
* RC1804 14m @ 1.09g/t Au from 46m
* RC1806 7m @ 1.69g/t Au from 62m
OVERVIEW
Allied Gold is actively undertaking in-fill diamond core drilling at two
prospect areas, Pigiput and Pigibo, centred 800 metres apart in the central part
of mining lease ML136. Reverse circulation drilling is also being carried out
between the two (2) prospects and at Pigibo itself.
The Pigiput Deposit is currently the subject of a sulphide resource drill-out
programme and PFS (as outlined in Allied Gold Ltd press release dated 15 June
2009). ML136, the mining lease on Simberi Island, is owned 100% by Allied Gold
Limited. Three (3) diamond core drill rigs are dedicated to the task.
PIGIPUT RESOURCE UPGRADE
At Pigiput, core drilling is being used to in-fill and extend the drilling
coverage, aiming to increase resources in sulphide, currently classified as
Indicated and Inferred, to a higher category. Since start-up in mid May to end
September 2009, 21 exploration diamond core holes, totalling 5,930m, have been
completed. The current infill and drilling programs is scheduled for completion
in early 2010.
The company is confident it will complete and increase the current resource and
reserve by the end of the first quarter in 2010.
To facilitate drilling in steep terrain, the current Pigiput Sulphide Project
core drilling programme is designed as sets of multiple radiating holes, drilled
from 4 principal drill sites. The holes are designed to increase the drill hole
density in areas already known to be mineralised and include drilling directions
that pierce the mineralised envelopes at oblique angles to the dip and strike of
the mineralised formations. The true width of a down hole intercept varies
depending on the angle the hole intersects the mineralised structures.
Drilling to date and assays results, including those reported in this release,
continue to confirm the grade and extent of the mineralisation at Pigiput.
At Pigiput, gold mineralisation is associated with a moderately north dipping,
east-west striking structural surface that can be interpreted across the entire
extent of the deposit. The surface is recognised in core holes as a zone of
contorted bedding and shearing. Gold grades are generally highest at the main
surface and significant mineralisation may occur in subsidiary structures above
and to a lesser extent below it. The main surface, interpreted as a fault zone,
also marks a change from clay-pyrite and silica-carbonate-pyrite alteration
zones in the brecciated tuff and porphyry host rocks at and above it to chlorite
dominated alteration below.
PIGIPUT - PIGIBO
RC and diamond core drilling was undertaken to test the area between the Pigiput
and Pigibo Prospects, beyond the western limit of the planned Pigiput pit shell
(illustrated Table 1 above) and at the Pigibo Prospect itself.
Assay results were received for five holes, RC1802 to RC1804, RC1806 and RC1807.
These holes confirmed the presence of narrow zones of gold mineralization
between the two deposits. Hole RC1807, drilled beyond the known northeastern
limit of the Pigibo deposit, was barren.
The full versions of the ASX announcement is available from the Company's
website, www.alliedgold.com.au and as a link to the announcement:
http://www.rns-pdf.londonstockexchange.com/rns/8209A_-2009-10-15.pdf
For more information:
+----------------------------------------+-------------------------------+
| Mark Caruso | T:+61 8 93533638 |
| Executive Chairman | |
| | |
+----------------------------------------+-------------------------------+
| Roland Cornish | T: +44 (0) 20 7628 3396 |
| Beaumont Cornish Limited | |
+----------------------------------------+-------------------------------+
Competent Persons
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 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.
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).
The technical information in the Announcement was prepared under the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (JORC).
Glossary of terms used in the Announcement:
19. 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.
20. 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.
21. 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.
22. 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
Others
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.
Bottle Roll - An analytical method used to determine amount of gold in a sample
that can be extracted by leaching with cyanide solution, also known as "cyanide
extractable" gold. This method is typically used in mineral process control and
in the metallurgical assessment of exploration samples. In the bottle roll
method, the prepared sample is placed in a plastic container with dilute cyanide
solution and agitated on a roller for a defined period, typically 24 hours. The
gold content of the cyanide solution is then analyzed by AAS. For process
control samples, cyanide concentrations and leach times would be similar to
those of the operating or proposed plant.
Simberi 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.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCCKPKBFBDKAKD
Allied Gold (LSE:AGLD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Allied Gold (LSE:AGLD)
Historical Stock Chart
From Jul 2023 to Jul 2024
