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

Allied Gold Limited

February 01, 2010 09:23 ET

Allied Gold Files Quarterly Report to the Australian Securities Exchange for the Period Ending December 31, 2009

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2010) -

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) is pleased to announce that it has filed its quarterly report to the Australian Securities Exchange ("ASX") for the period ended December 31, 2009. The quarter's highlights include:

SUMMARY

  • December 2009 quarter production increased 24% to 17,456oz despite nine days of lost production.

  • Cash costs reduced by 11% to A$810p/oz.

  • Mitigation initiatives to counter 9.2m annual rain fall nearing completion.

  • Successful A$159M capital raising and TSX listing.

  • Acquired 96.6% ownership of Australian Solomons Gold Limited (ASG).

  • Papua New Guinea ("PNG") exploration program continues to be accelerated.

  • Prioritisation of Solomon Islands' exploration targets imminent.

PRODUCTION

Papua New Guinea Operations

  • Record mining volumes with quarterly mining volumes increased by 23% to 653,205 tonnes

  • Plant throughput in line with last quarter at 482,865 tonnes sustaining nameplate capacity of around 2.0M tpa annualised.

  • Oxide expansion study completed and project fully funded. Final investment decision due in March 2010 quarter.

  • Sulphide PFS progressing with exploration results supporting initiative.

Solomon Islands Operations

  • Management integration commenced.

  • Constructive meetings with Government and Land Owners undertaken.

  • Construction contract renegotiation and review of BFS expected to be completed by March 2010.

EXPLORATION

Papua New Guinea Exploration

  • Exceptional results released (21 January 2010) detailing the diamond core drilling at the Pigiput and Pigibo deposits.

  • Mineralisation remains open with expected resource upgrade in March 2010 quarter.

  • Results underpin a minimum 100,000oz p.a. PFS sulphide expansion study being finalised.

Solomon Islands Exploration

  • Existing geological workings being evaluated and targets further optimised. Aggressive exploration campaign being designed and expected to commence in June quarter 2010.

CORPORATE

  • Quarterly gold sales increase by 17% to 17,971oz with realised gold price of A$953/oz (US$866/oz).

  • Compulsory acquisition and integration of ASG in progress.

  • Hedge book declines with net position less than 38,000 oz as at 31 December 2009 and further reducing to less than 30,000oz in January 2010.

OUTLOOK

  • Forecast March 2010 quarter production of around 17,500oz due to five days lost production in January regarding the illegal cease work order and around four days of planned shut down for debottlenecking works.

  • Objective of completing 200,000oz annual production capacity by March quarter 2011 remains on track.

  • Exploration update and revised group resource due March 2010 quarter.

A full complete version of the Company's quarterly report to the ASX for the period ending December 31, 2009 is available on the Company's website (www.alliedgold.com.au), ASX (www.asx.com.au), and SEDAR (www.sedar.com).

Qualified Person

The Technical and scientific information contained in this news release was reviewed by Mr Colin Ross Hastings, MSc, BSc, M.Aus.I.M.M.,MSc Geology, Allied's General Manager Resource Development and the Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators responsible for the development programs. Additionally Mr Hastings has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves"

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.

ACN 104855067

None of the ASX, TSX or London Stock Exchange plc has reviewed, and do not accept responsibility for, the adequacy or accuracy of this release.

Contact Information

  • Allied Gold Limited
    Mark Caruso
    Executive Chairman
    +61 8 9356 2776
    or
    Allied Gold Limited
    Frank Terranova
    Chief Financial Officer
    +61 7 3252 5911
    fterranova@alliedgold.com.au