Allied Gold reports strong strike at Papua New Guinea project

Allied Gold, the Australian and London listed miner, has reported a strong gold strike at Pigiput East, which forms part of its 100% owned Simberi gold project in eastern Papua New Guinea.

Recent drilling at the site has intersected a 16m zone grading 15.12 g/t gold from 15m in a zone located approximately 250m north east of the Pigiput oxide pit.

The drill hole (RC1555) is one of eleven reverse circulation (RC) holes drilled to target a gold in soil anomaly that was identified in 2007.

A second drill hole (RC 1557) intersected a 3m zone grading 8.60 g/t gold from 43m, including 1m at 15.25 g/t gold. The hole is approximately 75m south-west of hole 1555.

Further assay results are awaited but RC drill holes have encountered shallow gold mineralisation in oxides in all 7 holes drilled to date, including 25m at 3.89 g/t gold from 48m.

The company expects the Pigiput East resources to increase gold production at the Somberi project to over 120,000 ounces per annum from the current yearly output of 84,000 ounces.