Tabar Project | Mapimi Project | Monakoff Project | Mandilla Project | Red Dam Project
RED DAM PROJECT
The Red Dam gold project is located near Coolgardie, Western Australia and is comprised of P16/1577 and P16/1578, and applications for M16/344 and P16/2078. The tenements cover a contiguous area of approximately 300ha. The project is located in a structural corridor containing current gold resources exceeding 5Moz. Deposits in this zone include Kundana, White Foil, Frogs Leg, the ABC Line, Mungari East and Carbine.
On 27 July 2004 Allied entered into an Option Agreement with Siberia Mining Corporation Ltd for the sale of the Red Dam gold project for a consideration of between $950,000 and $1,000,000. At the Option expiry date of 26 July 2005 the Option had not been exercised.
Reverse Circulation Drilling
During the period from 19 April to 3 May 2004, a total of 2,229 metres of inclined RC drilling was completed in 16 drillholes ranging in depth from 100 metres to 176 metres at the Petrus gold prospect.
Petrus forms part of the Company’s Red Dam gold project which is located approximately 50km north-west of Kalgoorlie in Western Australia in a structural corridor containing gold resources exceeding 5 million ounces. Deposits in this zone which lie within 30 km of Red Dam include Kundana, White Foil, Frogs Legs, the ABC line, Mungari East and Carbine.
The aim of the drilling programme was to provide further information on the continuity and grade of gold mineralisation over the 500 metre long NNW-SSE trending Petrus prospect.
As a result of the interpretation of assay results and geological information gained from the drilling programme, four parallel zones of gold mineralisation within a corridor approximately 100 metres in width were confirmed.
The Central Dolerite Lode has been shown to extend over a strike length of at least 350 metres and the Hangingwall Lode extends for at least 500 metres along strike. The Hangingwall Lode has been demonstrated by previous drilling to extend to a depth of at least 300 metres.
The most significant drilling results are tabulated below.
| Section | Hole | Northing (mN local grid) | Easting (mE local grid) | Dip/azimuth (mag) | Interval (m) | Intersection (m @ g/t Au) |
| 25,650 | RDRC55 | 25,650 | 6,295 | -60°/225° | 50-55 80-81 | 5 @ 14.8 1 @ 1.65 |
| 25,650 | RDRC56 | 25,650 | 6,325 | -60°/225° | 34-39 58-59 141-145 | 5 @ 5.98 1 @ 1.90 4 @ 1.30 |
| 25,700 | RDRC57 RDRC58 | 25,700 25,700 | 6,290 6,315 | -60°/225° inlcuding including -60°/225° | 73-103 75-79 87-92 71-72 107-113 128-130 | 30 @ 1.98 4 @ 4.17 5 @ 3.36 1 @ 4.14 6 @ 2.95 2 @ 1.30 |
| 25,750 | RDRC59 | 25,750 | 6,340 | -60°/225° | 46-51 64-65 | 5 @ 5.27 1 @ 1.98 |
| 25,850 | RDRC60 | 25,850 | 6,338 | -60°/225° | 60-63 127-129 130-132 134-137 140-142 | 3 @ 14.6 2 @ 1.17 2 @ 2.88 3 @ 4.14 2 @ 1.58 |
| 25,900 | RDRC45 RDRC46 | 25,902 25,900 | 6,294 6,345 | -60°/225° -60°/225° | 48-53 55-56 59-61 83-84 108-110 127-129 74-76 102-107 123-125 127-133 137-138 | 5 @ 4.64 1 @ 6.14 2 @ 1.46 1 @ 1.08 2 @ 1.54 2 @ 12.3 2 @ 1.45 5 @ 3.10 2 @ 15.4 6 @ 2.64 1 @ 24.6 |
NB: Samples assayed by aqua regia digest with an AAS finish. Intervals based on norminal 1 glt Au cut-off.
