Allied Gold Limited
ASX : ALD
AIM : AGLD
TSX : ALG

Allied Gold Limited

December 23, 2009 09:16 ET

Media Release: Allied Gold Announces Cease Work Order

TORONTO, ONTARIO--(Marketwire - Dec. 23, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Allied Gold Limited ("Allied Gold" or the "Company") (TSX:ALG)(ASX:ALD)(AIM:AGLD) announces that its wholly-owned subsidiary Simberi Gold Company Ltd. is in receipt of a Cease Work Order (the "Order") from the Mineral Resources Association (the "MRA") of Papua New Guinea.

The Company has received legal advice which indicates the Order is invalid and void and has lodged an Appeal accordingly. In addition, The MRA has acknowledged that actions resulting from the Order by the Simberi Mining Area Association, which prohibit the entry to certain facilities on site, are illegal. Since the commencement of operation of the Simberi Gold Mine, the Company has not been advised by any Government department that it is in breach of any of its operating permits and conditions.

Processing and mining operations at the Simberi Gold Mine have temporarily been suspended. The Company is optimistic that the operations will recommence shortly with representatives of the MRA attending site today to resolve all outstanding issues.

The Company will keep the market updated, however it is confident that through normal due process and negotiation the matter will be resolved satisfactorily and expediently.

ACN 104855067

The TSX has not reviewed, and does not accept responsibility for, the adequacy or accuracy of this release.

Contact Information

  • Allied Gold Limited
    Mark Caruso
    Executive Chairman
    +61 8 93533638
    or
    Allied Gold Limited
    Frank Terranova
    Chief Financial Officer
    +61 7 3252 5911 or M: +61 448 187 557
    fterranova@alliedgold.com.au
    or
    Allied Gold Limited
    Peter Torre
    Company Secretary
    +61 8 9287 4604
    peter@torrecorporate.com.au