ASX Announcement Dated 31/10/06
ACTIVITY REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2006
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“This press release is not for dissemination in the United States and shall not be disseminated to United States news services.”
HIGHLIGHTS
- Memorandum of Understanding entered into with one of the largest gold mining companies in China, Zijin Mining Group Co. Ltd (“Zijin”), whereby Zijin has agreed to subscribe for 30,213,471 fully paid shares at an issue price not less than A$0.60 per share, subject to certain conditions. Due diligence investigations including a site visit to Allied Gold’s Simberi gold project are underway.
- First gold production remains on track for September / October 2007. Significant progress has been made on the construction of the company’s 100% owned Simberi Oxide Project. Allied Gold has committed AUD$28.4m to the project thus far, representing 35.5% of the total capital expenditure budget.
- Additional drilling results from resource extension drilling at the Pigicow and Samat deposits and exploration drilling at the Adora prospect point to enhanced project economics. Best results included:
- 56m at 2.71 g/t gold from surface (hole ended in mineralisation)
- 45m at 2.34 g/t gold from surface (hole ended in mineralisation)
- 30m at 2.82 g/t gold from surface, including 19m from surface at 3.93 g/t gold
- 30m at 1.69 g/t gold from surface, including 19m at 2.20 g/t gold from 11m (hole ended in mineralisation)
- 13m at 2.29 g/t gold from 37m, including 5m at 5.03 g/t gold from 43m
- 30m at 3.48 g/t gold from surface, including 18m at 5.28 g/t gold from 12m and 1m at 23.70 g/t gold from 28m
- Revised resource estimates are being compiled for the Pigicow, Bekou Creek (exploration results outlined in the June Quarter report) and Samat deposits.
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