Projects
Simberi ML136
The company owned drills were initially operated by contractors but in March 2008, Allied took over full responsibility for the operation and running of the drill sections. Total control over the drilling has resulted in cost savings and has freed up geological resources to focus more closely on geology as opposed to drill operations support.
Exploration drilling consisted of reverse circulation and diamond drilling, with a strong focus on defining additional oxide resources near known deposits. A total of 227 reverse circulation (RC) holes for 16,731 metres and 17 diamond cored holes (DD ) for 1,817.6 metres were drilled.
Drilling at SE Sorowar has defined a mineralised zone extending approximately 400 metres south east of the currently defined pit edge with shallow mineralisation close to the pit, but with increasing depth of gold mineralised oxide material down to 100 metres depth further away from the pit.
Tabar Island Gold Project
On 15th of November 2004, Allied Gold Limited (Allied) entered into an agreement with Simberi Gold Corporation (“SGC”) to acquire its interests in the Tabar Islands Gold Project in eastern PNG.
Under the terms of the agreement, Allied moved to an 87.5% interest in the Simberi Mining Joint Venture (ML136) on Simberi Island and a 100% interest in EL 609 which covers the remainder of the Tabar Island Group outside of ML 136.
In October 2005, agreement was reached with SGC for Allied to purchase the outstanding 12.5% FCI in the Simberi Oxide Gold Project.
Tatau and Big Tabar EL609
Exploration was carried out mainly on the northern end of Big Tabar Island over the Tupinda and Fotombar calderas. Previous mapping and sampling at Tupinda had identified anomalous gold and gold-coppermolybdenum zones.
In 2007, IP surveys were completed over the Tupinda and Fotombar areas for a total of 30.5 line kilometres. In addition, 1,632 “C” horizon auger samples and 236 other soil and outcrop samples were collected. The IP data is currently being reviewed and results will be available in the second half of 2008. The soil “C” horizon sampling has confirmed anomalous gold, copper and molybdenum within the Tupinda caldera. There has been no history of drilling being carried out at Tupinda. However at Fotombar 6 RC holes for a total of 625 metres were drilled and four of these holes had diamond cored tails drilled in the late 1980s for a total of 830m. Best results were 77m at 1.43g/t gold from 99m (1093RC) and 14m at 1.17g/t gold from 98m (1097RC).
In March 2008, a Letter of Intent was signed between Barrick Gold Corporation and Allied, giving Barrick the option to acquire up to 70% interest in the Exploration Licence 609 on Tatau and Big Tabar Islands, as part of the Tabar Islands Group Project, through a Farm-in and Joint Venture. Barrick is required to sole fund AUD$8M of exploration expenditure within four years to earn a 51% interest, with another AUD$12M required within the next four year period to earn a 70% interest in the exploration licence. Additionally, Barrick subscribed for 17,647,059 shares at AUD$0.85, representing 4.7% of the enlarged share capital of the company.
Barrick commenced field reconnaissance work in June 2008, and is scheduled to commence a drill program later in 2008. The drilling will be undertaken using helicopter transportable diamond drills and will commence at the Tupinda Prospect. There are
currently 19 identified gold and gold-copper prospects on Tatau and Big Tabar Islands that have had no or little drilling applied. Barrick’s second target will be the Banasa gold-copper prospect located in a large extinct volcanic caldera on the southern end of Big Tabar Island. Previous exploration included a single diamond drill hole (BA01) drilled in 1989 that intersected elevated gold and copper values including 38m at 0.88g/t gold, 0.13% copper from 89m, 61m at 0.62g/t gold and 012% copper from 190m.
In 2009, Barrick intends to undertake drilling at the Kupo copper prospect located in north-west Tatau. They will also conduct an airborne geophysical EM survey over the entire Tabar Island Group in the second half of 2008. The survey will be carried out using a helicopter flying at low altitude on 400m spaced north-south lines. It is anticipated the EM technique will locate resistive zones that could represent silicification that can be associated with gold and other mineralisation.
The company owned drills were initially operated by contractors but in March 2008, Allied took over full responsibility for the operation and running of the drill sections. Total control over the drilling has resulted in cost savings and has freed up geological resources to focus more closely on geology as opposed to drill operations support.
Exploration drilling consisted of reverse circulation and diamond drilling, with a strong focus on defining additional oxide resources near known deposits. A total of 227 reverse circulation (RC) holes for 16,731 metres and 17 diamond cored holes (DD ) for 1,817.6 metres were drilled.
Drilling at SE Sorowar has defined a mineralised zone extending approximately 400 metres south east of the currently defined pit edge with shallow mineralisation close to the pit, but with increasing depth of gold mineralised oxide material down to 100 metres depth further away from the pit.
Tabar Island Gold Project
On 15th of November 2004, Allied Gold Limited (Allied) entered into an agreement with Simberi Gold Corporation (“SGC”) to acquire its interests in the Tabar Islands Gold Project in eastern PNG.
Under the terms of the agreement, Allied moved to an 87.5% interest in the Simberi Mining Joint Venture (ML136) on Simberi Island and a 100% interest in EL 609 which covers the remainder of the Tabar Island Group outside of ML 136.
In October 2005, agreement was reached with SGC for Allied to purchase the outstanding 12.5% FCI in the Simberi Oxide Gold Project.
Tatau and Big Tabar EL609
Exploration was carried out mainly on the northern end of Big Tabar Island over the Tupinda and Fotombar calderas. Previous mapping and sampling at Tupinda had identified anomalous gold and gold-coppermolybdenum zones.
In 2007, IP surveys were completed over the Tupinda and Fotombar areas for a total of 30.5 line kilometres. In addition, 1,632 “C” horizon auger samples and 236 other soil and outcrop samples were collected. The IP data is currently being reviewed and results will be available in the second half of 2008. The soil “C” horizon sampling has confirmed anomalous gold, copper and molybdenum within the Tupinda caldera. There has been no history of drilling being carried out at Tupinda. However at Fotombar 6 RC holes for a total of 625 metres were drilled and four of these holes had diamond cored tails drilled in the late 1980s for a total of 830m. Best results were 77m at 1.43g/t gold from 99m (1093RC) and 14m at 1.17g/t gold from 98m (1097RC).
In March 2008, a Letter of Intent was signed between Barrick Gold Corporation and Allied, giving Barrick the option to acquire up to 70% interest in the Exploration Licence 609 on Tatau and Big Tabar Islands, as part of the Tabar Islands Group Project, through a Farm-in and Joint Venture. Barrick is required to sole fund AUD$8M of exploration expenditure within four years to earn a 51% interest, with another AUD$12M required within the next four year period to earn a 70% interest in the exploration licence. Additionally, Barrick subscribed for 17,647,059 shares at AUD$0.85, representing 4.7% of the enlarged share capital of the company.
Barrick commenced field reconnaissance work in June 2008, and is scheduled to commence a drill program later in 2008. The drilling will be undertaken using helicopter transportable diamond drills and will commence at the Tupinda Prospect. There are
currently 19 identified gold and gold-copper prospects on Tatau and Big Tabar Islands that have had no or little drilling applied. Barrick’s second target will be the Banasa gold-copper prospect located in a large extinct volcanic caldera on the southern end of Big Tabar Island. Previous exploration included a single diamond drill hole (BA01) drilled in 1989 that intersected elevated gold and copper values including 38m at 0.88g/t gold, 0.13% copper from 89m, 61m at 0.62g/t gold and 012% copper from 190m.
In 2009, Barrick intends to undertake drilling at the Kupo copper prospect located in north-west Tatau. They will also conduct an airborne geophysical EM survey over the entire Tabar Island Group in the second half of 2008. The survey will be carried out using a helicopter flying at low altitude on 400m spaced north-south lines. It is anticipated the EM technique will locate resistive zones that could represent silicification that can be associated with gold and other mineralisation.