As Phase II core drilling at the Simberi Gold Project nears completion, Allied Gold has received additional high-grade gold assays from diamond holes at the Pigiput deposit.
The latest drilling and assay results further define the extent of gold mineralization, which is still open to the north-east and support the Pigiput 100,000 ounces/year Sulphide Development Study.
Gold assays were received for sulphide samples from 11 diamond core holes, with the best down hole intercepts including 44 metres @ 1.12 grams/tonne gold from 254 metres, 27 metres @ 1.65 grams/tonne from 94 metres, 61 metres @ 1.81 grams/tonne from 158 metres, 7 metres @ 4.95 grams/tonne from 128 metres, 53 metres @ 3.38 grams/tonne from 128 metres, 5 metres @ 6.02 grams/tonne from 298 metres, 18 metres @ 2.58 grams/tonne from 134 metres and 33 metres @ 15.0 grams/tonne from 78 metres.
The holes are part of an ongoing three phase in-fill and step-out program, which began in May 2009, designed to support the Aus$10 million Sulphide and Oxide Expansion Studies based around the Pigiput deposit. These studies target increasing annual total oxide and sulphide production to in excess of 200,000 ounces by 2012.
Allied Gold is actively undertaking in-fill and step-out diamond core drilling at the Pigiput prospect, in the central part of its Simberi mining lease, with three diamond core drill rigs dedicated to the task.
The drilling is being used to in-fill and extend the drilling coverage, aiming to increase resources in sulphide, which are currently classified as indicated and inferred, to a higher category.
Both resources and reserves for the Pigiput and adjacent Pigibo deposits are scheduled for re-estimation by the end of the first quarter in 2010. Further drill testing of the extents of gold mineralization at both prospects is set to continue as Phase III.
At Pigiput, gold mineralization is generally associated with a moderately north dipping, east-west striking structural surface that can be interpreted across the entire extent of the deposit.
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