Simberi Gold Production - March Quarter Guidance (4399C)
07 March 2011 - 9:19PM
UK Regulatory
TIDMAGLD
RNS Number : 4399C
Allied Gold Limited
07 March 2011
FOR IMMEDIATE RELEASE 7 March 2011
allied gold limited
("the Company")
"This press release is not for dissemination in the USA and
shall not be disseminated to USA news services"
SIMBERI (PNG) GOLD PRODUCTION
MARCH QUARTER GUIDANCE
Gold production in the March quarter from Allied Gold Limited's
100%-owned Simberi gold mine in Papua New Guinea is expected to be
at the lower end of a 15,000 ounce to 18,000 ounce per quarter
guidance range, however gold sales maybe towards the upper end of
the guidance range.
The company's March quarter results will be released in
mid-April and its full year (2010-11) production guidance for
Simberi currently remains unchanged at 72,000 ounces.
Milling and processing at Simberi was suspended late last week
to repair a valve and some onshore piping to the tailings mixing
tank. Though not considered major, the repair work is below the
water table and requires continuous de-watering to provide access.
The repair programme is underway and expected to take up to 7 days
to complete.
Gold production for the months of January and February was a
combined 10,700 ounces and gold sales were 11,700 ounces. Gold
sales in the March quarter maybe higher than the ounces
produced.
Notwithstanding the current maintenance repair, the Simberi
processing plant continues to perform above its name plate capacity
of 2 million tonnes per annum (mtpa).
Construction activities including pouring concrete footings for
a lime slaker and civil works for additional leach tanks as part of
a previously approved $32 million expansion to lift throughput from
2.5mtpa (approx 70,000 ozpa) to 3.5mtpa (approx 100,000 ozpa)
commenced in February.
This work is expected to be completed in the December
quarter.
Comment by Executive Chairman Mark Caruso: "Simberi had a great
December quarter, and while we are aiming to repeat it the reality
is we will fall short. The good thing is work on the expansion to
100,000 ounce per annum is moving ahead and exploration results
from Simberi at Botlu pit continue to show the potential for oxide
and sulphide resource extensions."
Commissioning of Allied Gold's 100%-owned fully-funded 120,000
ozpa Gold Ridge mine in the Solomon Islands is progressing well
with first gold imminent.
For more details, please contact:
Simon Jemison Investor Relations & Media +61 418 853 922
Rebecca Greco Investor Relations, North America +1 416 839
8610
David Simonson c/. Merlin PR +44 20 7726 8400
Beaumont Cornish Limited
Roland Cornish
Beaumont Cornish Limited
T: +44 (0) 20 7628 3396
ABOUT ALLIED GOLD
Allied Gold is an emerging 200,000 ounce per annum gold producer
with production and exploration assets in Papua New Guinea and the
Solomon Islands approximately 3 hours by plane from Brisbane,
Australia. The company's 100%-owned Simberi gold mine is 85
kilometres from Lihir Island in the Tabar Islands group in Papua
New Guinea. Simberi commenced gold production in 2008, produced
64,000 ounces in 2009-10 and its process plant is being expanded to
a throughput of 3.5 Mtpa to produce 100,000 ounces per annum by
late 2011. Allied Gold acquired Gold Ridge in the Solomon Islands
in late 2009 when it acquired Toronto-listed Australian Solomons
Gold. Allied has invested $150 million to refurbish and redevelop
Gold Ridge which is expected to produce an average 120,000 ounces
per annum for a minimum ten years. Allied Gold Limited is listed on
the ASX, TSX and the London AIM exchanges.
Forward-Looking Statements
This press release contains forward-looking statements
concerning the projects owned by Allied Gold. Statements concerning
mineral reserves and resources may also be deemed to be
forward-looking statements in that they involve estimates, based on
certain assumptions, of the mineralisation that will be found if
and when a deposit is developed and mined. Forward-looking
statements are not statements of historical fact, and actual events
or results may differ materially from those described in the
forward-looking statements, as the result of a variety of risks,
uncertainties and other factors, involved in the mining industry
generally and the particular properties in which Allied has an
interest, such as fluctuation in gold prices; uncertainties
involved in interpreting drilling results and other tests; the
uncertainty of financial projections and cost estimates; the
possibility of cost overruns, accidents, strikes, delays and other
problems in development projects, the uncertain availability of
financing and uncertainties as to terms of any financings
completed; uncertainties relating to environmental risks and
government approvals, and possible political instability or changes
in government policy in jurisdictions in which properties are
located. Forward-looking statements are based on management's
beliefs, opinions and estimates as of the date they are made, and
no obligation is assumed to update forward-looking statements if
these beliefs, opinions or estimates should change or to reflect
other future developments.
Not an offer of securities or solicitation of a proxy
This communication is not a solicitation of a proxy from any
security holder of Allied Gold, nor is this communication an offer
to purchase or a solicitation to sell securities. Any offer will be
made only through an information circular or proxy statement or
similar document. Investors and security holders are strongly
advised to read such document regarding the proposed business
combination referred to in this communication, if and when such
document is filed and becomes available, because it will contain
important information. Any such document would be filed by Allied
Gold with the Australian Securities and Investments Commission, the
Australian Stock Exchange and with the U.S. Securities and Exchange
Commission (SEC)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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