TIDMAGLD
RNS Number : 3068I
Allied Gold Limited
09 March 2010
For immediate release
9 March 2010
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."
2 million ounces in MEasured and INDICATED RESOURCES AT PIGIPUT and PIGIBO
DEPOSITS increased by 170%
HIGHLIGHTS
· New resource estimates for Pigiput and Pigibo deposits give total
Measured and Indicated Resources of 48.1 million tonnes at 1.35 g/t gold, at
0.5g/t gold block cut-off, equivalent to 2.08 million ounces of gold
· 170% increase in estimated contained gold in Measured and Indicated
resources compared to previous estimates
· Pigiput total Measured and Indicated resources estimated as 41.0 million
tonnes at 1.38 g/t gold for 1.82 million ounces of gold
· Pigibo total Measured and Indicated resources estimated as 7.1 million
tonnes at 1.18 g/t gold for 0.27 million ounces of gold
· Total group combined Measured, Indicated and Inferred Resources of 194.4
million tonnes at 1.25 g/t gold for 7.80 million ounces of gold (Simberi, 156.6
million tonnes at 1.13 g/t for 5.69 million ounces of gold and Gold Ridge, 37.8
million tonnes at 1.74 g/t for 2.11 million ounces of gold)
· Reserve estimation to be undertaken on completion of Phase III drilling
at Pigibo, Pigiput and north-east towards SE Sorowar
Allied Gold has received new resource estimates for Pigiput and Pigibo deposits
from consultants, Golder and Associates, totalling 48.1Mt @ 1.38g/t Au in
Measured and Indicated categories for 2.08 million ounces of gold, using a
0.5g/t Au block cut-off. Mineral Resources classified as Inferred are estimated
to be 38.5Mt @ 1.00 g/t Au for 1.24 Moz of gold and 86.6Mt @ 3.70g/t Ag for 10.3
Moz of silver. Compared to the previous estimates, this represents a significant
consolidation, with the equivalent of net 30.4 Mt @ 1.34 g/t Au (1.31 Moz gold)
converted to Measured and Indicated, and net expansion of total resources, by
29.4Mt @ 1.04g/t Au (0.98 Moz gold).
Phase III drilling is on-going with efforts focussed on testing down dip at
Pigipbo and the open north eastern side of Pigiput. A further seventeen (17)
diamond core holes for 4,360 metres, have been completed since the resource
database close-off and two (2) are in progress. The holes are part of a phased
in-fill and step-out program, commenced in May 2009, designed to support the
A$10 million Sulphide and Oxide Expansion Studies based around the Pigiput
Deposit. These studies target increasing total oxide and sulphide production to
in excess of 200,000oz p.a. by 2012.
A particular focus of the Phase III programme is to test the presently open
north-eastern limit of Pigiput, with the aim of establishing a link with known
mineralisation already immediately north at southeast Sorowar.
The new estimates for Pigiput and Pigibo bring Allied Gold's total Measured and
Indicated Resources at the flagship Simberi Gold Mine (PNG) and the Gold Ridge
Project (Solomon Islands) to 4.81 million ounces being:
Simberi(1) 78.4Mt @ 1.27 g/t Au for 3.20 Moz of gold
Gold Ridge(2) 29.5Mt @ 1.72 g/t Au for 1.63 Moz of gold
In addition, estimated Inferred Resources increase to 2.97 million ounces being:
Simberi(1) 78.2Mt @ 0.99 g/t Au for 2.49 Moz of gold
Gold Ridge(2) 8.3Mt @ 1.80 g/t Au for 0.48 Moz of gold
This equates to a total Measured, Indicated and Inferred Resource for Simberi
and Gold Ridge of 194.4 Mt @ 1.25 g/t Au for 7.8 Moz of gold.
NOTES
(1) Simberi Total Gold Resources May 2009 - Above 0.5g/t Au Cut-off Grade as
quoted in ALD Annual Report 08 | 09 with Pigiput and Pigibo resources updated by
this February 2010 estimate
(2) Gold Ridge Total Resources as quoted in ALD Preliminary Short Form
Prospectus November 13, 2009
OVERVIEW
Allied Gold is actively undertaking in-fill and step-out diamond core drilling
of the Pigiput Prospect, in the central part of its 100% owned mining lease
ML136. The Phase II program was completed at end January 2010 and Phase III will
continue through the March '10 Quarter.
The Pigiput Deposit is currently the subject of a Sulphide Development
pre-feasibility study (as outlined in ALD Press Release dated 17th June 2009).
ML136, the mining lease on Simberi Island, is owned 100% by Allied Gold Limited.
The new mineral resource estimate, along with the results of the Phase III
drilling, is to be used to determine mining reserves to be included in the
study.
In this new estimate, Measured and Indicated resources in sulphides for the two
deposits now total 33.8Mt @ 1.49 g/t Au for 1.62 Moz gold at a 0.5g/t Au block
assay cut-off.
Table 1 Pigiput and Pigibo Minerals Resources - February 2010
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Deposit | Measured | Indicated | Total MEAS + IND | Inferred |
| / | | | | |
| Prospect | | | | |
+ +--------------------------+--------------------------+--------------------------+--------------------------+
| | Mt | g/t Au | koz | Mt | g/t Au | koz | Mt | g/t Au | koz | Mt | g/t Au | koz |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Pigiput | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| oxide | 3.4 | 0.96 | 106 | 5.0 | 0.97 | 154 | 8.4 | 0.96 | 260 | 1.6 | 0.79 | 40 |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| transitional | | | | 1.9 | 0.90 | 54 | 1.9 | 0.90 | 54 | 0.6 | 0.85 | 17 |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| sulphide | | | | 30.7 | 1.52 | 1501 | 30.7 | 1.52 | 1501 | 27.3 | 0.98 | 861 |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| PIG-Total | 3.4 | 0.96 | 106 | 37.5 | 1.42 | 1709 | 41.0 | 1.38 | 1815 | 29.5 | 0.97 | 920 |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Pigibo | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| oxide | | | | 2.6 | 1.14 | 97 | 2.6 | 1.14 | 97 | 1.6 | 1.03 | 53 |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| transitional | | | | 1.4 | 1.19 | 52 | 1.4 | 1.19 | 52 | 0.3 | 1.08 | 11 |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| sulphide | | | | 3.1 | 1.20 | 120 | 3.1 | 1.20 | 120 | 7.1 | 1.12 | 256 |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| PBO-Total | | | | 7.1 | 1.18 | 269 | 7.1 | 1.18 | 269 | 9.0 | 1.10 | 320 |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| TOTAL | 3.4 | 0.96 | 106 | 44.6 | 1.38 | 1,978 | 48.1 | 1.35 | 2,084 | 38.5 | 1.00 | 1,239 |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
Note: Total pre-mine Mineral Resources. Table shows rounded estimates. This
rounding may cause some apparent computational discrepancies
PIGIPUT RESOURCE ESTIMATE
Using additional geological and assay information gained from the intensive 2009
drilling campaign, a new resource estimate was undertaken by consultants, Golder
Associates. At Pigiput, estimated Measured and Indicated resources now total
41.0Mt @ 1.38 g/t gold for 1.82 million ounces, with a further 29.5Mt @ 0.97 g/t
(0.92 Moz) classified as Inferred. Inferred silver resources at Pigiput total
70.4 Mt @ 4.09 g/t silver for 9.3 million ounces. The bulk of these Measured and
Indicated resources, 30.7 Mt @ 1.52g/t for 1.50 Moz, are in sulphides.
Previously, estimated Measured and Indicated resources totalled 17.7 Mt @ 1.36
g/t for 0.77 Moz, with a further 36.0 Mt @ 1.24 g/t gold for 1.43 Moz gold
classified as Inferred, (ALD Media Release 20th May 2009).
Phases I and II Pigiput Sulphide Project core drilling programmes completed in
2009 were designed as sets of multiple radiating holes, drilled from 4 principal
drill site. The holes were 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 significantly,
depending on the angle the hole intersects the mineralised structures.
These results from the two drilling programs have now been consolidated into an
expanded drill hole database allowing an improved 3D model to be developed for
the February 2010 resource estimate. The new resource estimate used 336 holes
totalling 51,856 m compared to 290 holes for 37,445 m that comprised the
database for the May '09 estimate.
At Pigiput, gold mineralisation is generally 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
discrete structurally deformed zone. Steep dipping structures, particularly
those striking NNW can also be mineralised. 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.
The planned Phase III drilling will test for a north eastern extension of the
Pigiput deposit into SE Sorowar, an area already known to be mineralised. The
drilling will seek to better define and link the two mineralised bodies.
PIGIBO RESOURCE ESTIMATE
At Pigibo, newly estimated Indicated mineral resources total 7.1Mt @ 1.18 g/t
gold for 0.27 million ounces, with a further 9.0Mt @ 1.10 g/t (0.32 Moz)
classified as Inferred resources. No resources are classified as Measured.
Previously, all resource were classified as Inferred and totalled 3.5 Mt @ 1.26
g/t gold for 0.14 Moz gold (summarised in ALD Annual Report 08 | 09). This
represents a net expansion of total resources at Pigibo of 12.7 Mt @ 1.10 g/t,
equivalent to 0.45 Moz of gold. Indicated resources in sulphides at Pigibo are
estimated to total 3.1 Mt @ 1.20 g/t Au, 0.12 Moz of gold.
The current resource estimate used 97 holes totalling 11,208 m compared to 40
holes for 3,745 m that comprised the database for the previous (1998) estimate.
At Pigibo, gold mineralisation largely occurs in a crackle-brecciated porphytic
andesite that intrudes a sequence of volcanic tuffs. Gold mineralization at
Pigibo is associated with arsenian pyrite, slightly elevated copper values
(average 170ppm) and otherwise low base metals levels, similar to the upper
parts of the Pigiput Deposit.
PIGIPUT and PIGIBO 2010 MINERAL RESOURCE STATEMENT - Comments
Allied Gold Limited (Allied) commissioned Golder Associates Pty Ltd (Golder) to
combine and update the Pigiput and Pigibo deposit resource models on Simberi
Island in February 2010. The combined model is based on the geological database
as at 28 January 2010. The database includes RC and Diamond drill holes and
some Diamond Core 'tails'.
Geological modelling of the deposit was undertaken by Carmel Grant (Resource
Geologist) and Phil Davies (Chief Geologist) from Allied. Construction of the
block model and grade estimation was undertaken by Stephen Godfrey (Associate,
Senior Resource Geologist) and reviewed by Richard Gaze (Principal). For this
update, the oxide, transition and sulphide resource was modelled and estimated
for gold (Au), silver (Ag) and sulphur (S).
Drill sample data was composited to five metres and flagged using oxide,
transition and sulphide wireframes. The composites were also flagged as being
in Tuff or Andesite. The flagged composites were used to estimate their
corresponding geological/weathering domains in the block model.
Grade estimations were done using Ordinary Kriging. High grade restraining was
applied to restrict the influence of high grade composites.
Dry Bulk Density values were applied to the model based on depth below surface.
Independent regression equations were developed for the Oxide, Transition and
Sulphide zones in Pigibo and Pigiput.
The Au estimation has been classified as Measured, Indicated and Inferred based
on data quality and density. The Measured Resource is confined to the oxide
material at Pigiput. The Indicated Resource has a nominal data density of 50m by
50m and the Inferred Resource100m by 100m. All resource west of 43400mE is
Inferred. Material south of the interpreted mineralisation footwall and outside
the Inferred Resource boundary is not classified due to insufficient data
density. Due to the under sampling of the historical drilling, Ag and S are
classified as Inferred.
The model has been reported as Pigibo from 43210mE to 44000mE and as Pigiput
from 44000mE to 44900mE. Both areas extended from 208600mN to 209350mN.
This Mineral Resource statement has been compiled in accordance with the
guidelines defined in the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (The JORC Code - 2004 Edition).
Stephen Godfrey is a member of the Australasian Institute of Mining and
Metallurgy and 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 (The JORC Code - 2004 Edition).
The full announcement can be viewed on the Company's website or as a link to
this announcement.
http://www.rns-pdf.londonstockexchange.com/rns/3068I_1-2010-3-9.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 Mineral
Exploration results and Mineral Resources, together with any related assessments
and interpretations, have been verified by and 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.
The information in this Stock Exchange Announcement that relates to Mineral
Resources has been compiled by Mr S Godfrey of Golder Associates who is a Member
of the Australasian Institute of Mining and Metallurgy. Mr Godfrey has had
sufficient experience in Ore Resource estimation relevant to the style of
mineralisation and type of deposit under consideration 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 Godfrey 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.
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.
Tuff - A rock composed of pyroclastic materials that have been ejected from a
volcano. In many instances these fragments are still hot when they land,
producing a "welded" rock mass.
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.
Mt - Million Tonnes
Moz - Million Ounces
Andesite - A fine-grained, extrusive igneous rock composed mainly of plagioclase
with other minerals such as hornblende, pyroxene and biotite.
Ordinary kriging (OK) - is a geostatistical approach to modeling. Instead of
weighting nearby data points by some power of their inverted distance, OK relies
on the spatial correlation structure of the data to determine the weighting
values. This is a more rigorous approach to modeling, as correlation between
data points determines the estimated value at an unsampled point.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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