Exploration drilling has resumed at Allied Gold"s Simberi Island gold prospects following the arrival of new drilling rigs.

A DFM400 diamond-only rig has been commissioned at the Monun Valley prospect, where previously reported channel sampling results indicate a potential 300m south-easterly strike extension to the Sorowar Deposit.

A UDR650 drilling rig recently arrived from Ghana is being assembled and the two new South African Rockdrill 3000 drilling rigs are being mobilized to site.

All personnel required to operate this equipment have been sourced and drill pads have been prepared for intensive exploration drilling.

Additional 5-metre composite channel sample results have been received and these continue to reveal significant new intercepts along bulldozed tracks, including 45m at 3.42 grams/tonne gold, 55m at 1.66 grams/tonne gold, located 250m south of RopeCon Pylon 2, as well as 120m at 0.95 grams/tonne gold in Monun Valley.

Allied has awarded the open pit mining contract to Mine Site Construction Services after a competitive bidding process.

The Simberi gold project remains on track for commissioning and first production in the December quarter. Simberi is expected to produce an average of 84,000 ounces of gold per year for at least eight years.