Mining at the Sorowar pit at Allied Gold’s Simberi Gold Project in Papua New Guinea will begin this month.

Early mining will provide the bulk of the mill feed for the stage 1 Simberi Oxide Gold Project, which will produce an average 84,000 ounces of gold per year over a current 8 year mine life. Ore from Sorowar will be delivered by the RopeCon aerial conveyor.

The Sorowar deposit contains proven and probable reserves of 8.2 million tonnes @ 1.30 grams/tonne gold and 4.5 million tonnes @ 1.41 grams/tonne gold respectively for a total ore reserve of 547,000 ounces.

The project is on the northern-most island of the Tabar Islands Group, in the New Ireland Province of eastern Papua New Guinea, 60km north-west of the Lihir Gold Project, which hosts a 40 million ounce gold resource.

Assays from reverse circulation (RC) drilling carried out adjacent to the Sorowar pit continue to define surface and near-surface oxide mineralization.

At Sorowar West a new zone of mineralization has been intersected. Best results include: 6 metres @ 3.52 grams/tonne gold from 5 metres within a boarder zone of 9 metres @ 2.50 grams/tonne gold from 2 metres; 13 metres @ 2.20 grams/tonne gold from surface; 7 metres @ 2.66 grams/tonne gold from 15 metres within a broader zone of 1.84 grams/tonne gold from 11 metres; and 12 metres @ 2.38 grams/tonne gold from 47 metres.

The new mineralization is within 300 to 400 metres of the RopeCon load out terminal. Intersections are extremely encouraging given that the mineralization comprises oxide material at surface or near-surface. Drilling will continue north towards the Sorowar pit limit and south east.

Drilling at Sorowar South East has confirmed a zone of shallow oxide mineralization outside the current pit edge. Best results include: 22 metres @ 2.14 grams/tonne gold from surface within a broader zone of 30 metres @ 1.75 grams/tonne gold; 3 metres @ 3.90 grams/tonne golf from surface within a broader zone of 5 metres @ 2.64 grams/tonne gold; and 5 metres @ 4.81 grams/tonne gold from 75 metres.

This also included a sulphide intercept comprising 9m @ 6.19 grams/tonne gold from 41 metres, including 1 metre @ 17.15 grams/tonne gold from 46 metres.

Further drilling is planned to define the extents of this zone and provide sufficient drill density to allow a resource estimation to be carried out.

Drilling has also started to the north west of the Sorowar pit and 22 holes for a total length of 2314 metres has been completed.

Simberi hosts measured, indicated and inferred mineral resources of around 2.4 million ounces of gold and proven and probable ore reserves of 674,000 ounces of gold.

www.alliedgold.com.au