New assay results from exploration drilling at Allied Gold"s 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: 13 metres at 4.20 grams/tonne gold from surface, including 1 metre at 11.35 grams/tonne from 8 metres; 6 metres at 4.78 grams/tonne gold from 143 metres; 9 metres at 6.52 grams/tonne gold from 104 metres; 14 metres at 1.28 grams/tonne gold from 8 metres; 13 metres at 1.21 grams/tonne gold from surface.

Furthermore, routine continuous channel sampling of the bulldozed access road returned an intercept length of 90 metres of 1.79 grams/tonne gold.

Allied Gold said in a statement: "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 16 metres at 2.35 grams/tonne gold from surface, including 11 metres at 3.21 grams/tonne from surface; 12 metres at 2.67 grams/tonne gold from 14 metres, as part of a broader 61 metres at 1.24 grams/tonne from surface; 18 metres at 1.91 grams/tonne gold from 34 metres.

"The results at Pigicow point to additional oxide and sulfide resources at this prospect."

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 channel sample intercept of 90 metres at 1.79 grams/tonne, coupled with the 13 metre oxide drill intercept 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.

A substantial deep, horizontally tabular IP chargeability anomaly (indicative of disseminated sulfides) is currently being defined in this area.

Allied Gold is 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 adds further weight to Allied's recent decision to invest more capital into buying 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 this year.