SOURCE: Allied Gold Mining PLC

October 31, 2011 08:06 ET

Allied Gold Mining Third Quarter Results

QUEENSLAND, AUSTRALIA--(Marketwire - Oct 31, 2011) -


THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR
PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR
INTO THE UNITED STATES OR ANY JURISDICTION IN WHICH SUCH RELEASE OR
DISTRIBUTION WOULD BE UNLAWFUL

31 October 2011

Allied Gold Mining Plc

ACTIVITIES REPORT FOR SEPTEMBER QUARTER 2011

* Group production for 3 months (36,085 ounces) and 9 months (77,157
ounces)

* Full year calendar year guidance of 110,000 ounces

* Group production moving to run rate of 200,000 ozpa in 2012



Allied Gold Mining Plc ("Allied Gold" or "the Company") provides the
following summary and overview of its activities for the quarter ended
30 September 2011.



Operational Overview

* Group gold production in Q3 2011 (36,085 oz) compared to Q2 2011
(28,344 oz)

* Average gold sales price of US$1,751 in Q3 2011 compared to
US$1,518 in the Q2 2011.

* At the Simberi mine in Papua New Guinea a 12% decrease in gold
production to 15,899 oz at a gross cash cost of US$1,064/oz compared to
June quarter production of 18,131 oz at a gross cash costs of US$822/
oz.

* Higher than expected cash costs at Simberi a function of lower
gold production and increased diesel and fuel transportation costs
(costs savings of approximately US$50/oz expected by September quarter
2012 as power generation moves from diesel to heavy fuel oil).

* At Gold Ridge in the Solomon Islands, 97% increase in gold
production to 20,186 ounces as mine moves through commissioning and
ramp up. Mill throughput for quarter was 73% of 2.5 Mtpa name plate
capacity and gold grade and recoveries in line with expectations.

* Gross cash costs at Gold Ridge of US$1,135/oz reflect the
commissioning phase with costs to move towards US$850/oz during 2012 as
the mine moves to 100,000 ozpa rate.



Corporate Overview

* Unaudited operating profit after tax of US$3.8 million for the
three months ended 30 September 2011.

* Cash at Bank as at 30 September of US$48.5 million with interest
bearing liabilities of US$55.9 million.

* No gold hedging.

* Inclusion in FTSE 250 Index effective 3rd October 2011.



Outlook and Guidance

* Gold Ridge to continue production ramp up in December quarter
with production between 18,000-23,000 ounces.

* Simberi guidance for December quarter of between 12,000 to 14,000
ounces given 3 week shutdown for repair to ball mill and an additional
3 days of anticipated preventative maintenance that may be undertaken
during the December quarter.

* Heavy Fuel Oil (HFO) generator sets ordered for Simberi and due
for installation by June 2012 with expansion of Simberi mill from 2.5
Mtpa to 3.5 Mtpa by September quarter 2012.

* Ongoing operating expenditure and committed capital expenditure
fully funded through existing cash resources and forecast operating
cash flows.



Frank Terranova, Chief Executive Officer and Managing Director of
Allied Gold, commented:"Gold Ridge is part way through its ramp up phase
and as it moves
through the final stages of this phase, cash costs will begin to fall.



At Simberi it has been a challenging 2011 so far. The September quarter
production was lower than budget due to a number of weeks of prolonged
wet weather which limited mine and ore access. After the quarter end on
2nd October a gear failure in the Ball Mill required significant
repairs. The repairs are now complete, but Simberi has lost
approximately three weeks of production. We anticipate gold production
for the December quarter of between 12,000 and 14,000 ounces and
approximately 58,000 ounces for calendar year 2011.



Group production for 2011 should be approximately 110,000 ounces before
the company moves to a run rate of 200,000 ounces per annum during
2012."





For a full copy of the report including full financials and MD&A please
go to

 http://www.rns-pdf.londonstockexchange.com/rns/1557R_-2011-10-31.pdf 



For further information please contact:

Allied Gold Mining Plc (Investor and Media) -
Simon Jemison,  +61 418 853 922

RBC Capital Markets (Corporate Brokers) - Stephen Foss / Matthew Coakes
/ Daniel Conti +44 (0) 207 653 4000

Oriel Securities (Joint Corporate Broker) - Jonathan Walker / Michael
Shaw/Ashton Clanfield+44 (0) 207 710 7600

Buchanan (Financial PR Advisor) - Bobby Morse / James
Strong  +44 (0) 207 466 5000











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 200,000oz CY 2012.





                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

Contact Information