Monday, 27th October 2008 (263 views)

Allied Gold has announced that it has increased gold resources in eastern Papua New Guinea by 611,000 ounces.

The mining company has stated that estimated resources at its Simberi project now stand at three million ounces and the mineralisation remains open.

Listed in the Australian AIM exchange, Allied Gold reported that the increase was linked to exploration drilling at the Sorowar deposit.

Potential yield within the Simberi project at the Sorowar deposit is now placed at around 1.9 million ounces of gold at a grade of 0.98 grammes of gold per tonne of ore.

The company, based in Western Australia, also has a new joint venture in Papua New Guinea with Toronto-based Barrick Gold for the exploration of prospects at Tatau and Big Tabar Islands and drilling is expected to commence on the project very soon.

Allied Gold has also reported that a thick mineralised oxide zone has been defined by drilling at Pigiput East that will form part of a resource estimate due this December.

Australian firm Lihir Gold also has a significant mine operation on Lihir Island in Papua New Guinea.

 

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