QUEENSLAND, AUSTRALIA--(Marketwire - Oct 3, 2011) -
THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR
PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR
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Immediate Release 3 October 2011
ALLIED GOLD MINING - PRODUCTION UPDATE
36,085 ounces produced in September quarter
Simberi (PNG) 15,899 ounces, Gold Ridge (Guadalcanal) 20,186 ounces.
Allied Gold Mining PLC ("Allied Gold" or the "Company") provides the
following overview of its production performance for the September
quarter with 36,085 ounces produced in the quarter and 77,157 ounces
for the nine months to 30 September 2011.
The Company will release more detail regarding its operations as part
of a Management Discussion and Analysis (MD&A) on or about Tuesday 25th
of October 2011.
Simberi (Papua New Guinea) - Simberi produced 15,899 ounces in the
September quarter, and produced 44,897 ounces for the nine months to 30
September 2011. Production during the quarter was slightly below
budget due to a higher number of high rainfall days than expected.
Grade for the quarter was 1.07g/t and recovery at 87%. Expansion of the
oxide process plant expansion from 2.0 mtpa to 3.5 mtpa is continuing
and heavy fuel oil initiatives are progressing.
Production guidance for December quarter for Simberi is expected to be
at lower end of the 14,000-18,000 range, while repairs are made to the
ball mill due to failure of the pinion gear shaft and damage to the air
clutch over the weekend of 1st and 2nd October 2011. Mill repairs are
expected to take 10-14 days over the quarter as replacement parts are
delivered and progressively installed. Although a full technical
assessment has yet to be completed, the initial cost of repairs is
estimated to be approximately US$500,000.
Gold Ridge (Guadalcanal) - Gold Ridge produced 20,186 ounces in the
September quarter in line with the commissioning and ramp up plans
since the first gold was poured in March. Gold production to date for
calendar 2011 is 32,260 ounces. Mill throughput for the quarter was
approximately 459,990 tonnes, grade was 1.96g/t and recovery 69%. This
is in line with management expectations of continual improvement in
operational metrics throughout the remainder of 2011. For the current
December quarter, Gold Ridge is expected to produce between 18,000 and
23,000 ounces as additional access to the higher-grade Namachamatta pit
occurs.
Capital Expenditure - Capital expenditure on Gold Ridge is complete.
The Company spent US$1.75m on Simberi capital and refurbishment
activities in the September quarter as part of expansion of the plant
to 3.5 mtpa.
Gold Sales - For the September quarter Allied Gold sold 31,035 ounces
for an average realized price of US$1751/oz. The Company does not hedge
its gold production.
Corporate - Cash at Bank (unaudited) as at 30 September 2011was US$48m
(not including 4,095oz of gold at refinery) with interest bearing
liabilities of US$53m. The debt incorporates US$18m of fleet leasing
and US$35m loan with the IFC. Although the IFC debt facilities do not
expire until 2015 the Company continues to assess its optimal working
capital structures for the group. During the September quarter the
company was admitted to the FTSE All Share Index with the potential to
be included in the FTSE 250 index at the next FTSE quarterly review in
December 2011 .
Allied Gold will provide a further update on all activities including
repairs, current optimization projects, cash costs as part of its
detailed September quarter MD&A to be released on or about Tuesday 25th
of October 2011.
For further information please contact:
Allied Gold Mining PLC (Investor and Media) - Simon Jemison,
+61 418 853 922
Buchanan (Financial PR Advisor) - Bobby Morse /James Strong
+44 (0) 207 466 500
RBC Capital Markets(Joint Corporate Brokers)-Stephen Foss/
Matthew Coakes / Daniel Conti
+44 (0) 207 653 4000
Oriel Securities (Joint Corporate Brokers) - Jonathan Walker/
Michael Shaw/Simon Edwards
+44(0) 207 710 7600
ABOUT ALLIED GOLD MINING PLC
Allied Gold is a Pacific Rim gold producer, developer and exploration
company listed on the London Stock Exchange's Main Market (ALD),
Toronto Stock Exchange (ALD) and the Australian Securities Exchange
(ALD).
It owns 100% of the Simberi gold project, located on Simberi Island,
the northernmost island of the Tabar Islands Group, in the New Ireland
Province of eastern PNG, and has a 100% interest Gold Ridge gold
project, located on Guadalcanal Island in the Solomon Islands.
Allied Gold has resources of 8.6Moz inclusive of 3.4Moz of reserves and
an extensive exploration programme is underway. The Company is rapidly
ramping up production and targeting a run rate of 200,000ozpa in CY
2012.
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).
Competent Person
The information in this announcement that relates to Mineral Resources,
Project Financial modelling, Mining, Exploration and Metallurgical
results, together with any related assessments and interpretations, has
been approved for release by Mr C R Hastings, MSc, BSc, M.Aus.I.M.M., a
qualified geologist and full-time employee of the Company. 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". Mr Hastings
consents to the inclusion of the information contained in this ASX
release in the form and context in which it appears.
This information is provided by RNS
The company news service from the London Stock Exchange
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