Allied Gold lifts resources to 7.8 million ounces

Allied Gold Ltd is building up to a major gold producer in the Pacific region with an annual target output by 2011 of 200,000 ounces.

PERTH - - 

The resource inventory for Allied Gold (ASX: ALD, TSX: ALG & AIM: AGLD) has been lifted significantly with added measured to indicated resources on Simberi Island, part of the Tabar Island group north of the Papua New Guinea mainland.

Executive chairman Mark Caruso said that the objective this year was to have 3 million oz of reserves and 10 million oz of resources on the Tabar Islands and at Gold Ridge in the Solomon Islands.

Simberi Island has a measured to inferred resource of 156 million tonnes grading 1.13 grams/tonne for 5.89 million oz - representing a 170% increase in resources.

Gold Ridge has resources of 37.8 million t @ 1.74 g/t for 2.11 million oz gold.

Caruso said the recent upgrade of resources on the Pigibo and Pigiput deposits on Simberi had helped lift resources there by about 1.3 million oz.

He described the significant resources lift as "testament to the enormous upside of the geological address that we operate in."

"Hence, the position and rationale for the company's buyback of the Tabar and Tatau island (projects) from Barrick was based on regaining control of 100% of the highly prospective 270 square kilometres exploration tenure in the Tabar Islands.

The company also had 130 sq km of "largely unexplored ground" at Gold Ridge in the Solomon Islands which has not been actively explored since 1996, other than limited drilling at the mine site.

A new drilling programme will be undertaken on Gold Ridge in the first half of this year.

An updated reserve statement on company deposits is expected by the end of June.

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