ALLIED Gold has announced that drilling has uncovered a new zone of mineralisation and confirmed another zone at the Sorowar deposit on Simberi Island, part of the Tabar Group, Papua New Guinea.
Reverse Circulation Drilling at Sorowar West identified a new area of mineralisation some 300-400m from the aerial conveyor RopeCon load-out terminal.
More exploration will continue as numerous intersections have been made on or close to the surface.
Results from Sorowar West included a 6m intersection at 3.52 grams per tonne gold, from within a broader zone of 9m at 2.5gpt gold at a depth of 2m from the surface along with a 13m intersection at 2.2gpt gold directly from the surface.
Deeper results included a 7m intersection at 2.66gpt gold, from 15m within a broader zone of 11m at 1.84gpt gold from a depth of 11m, along with a 12m intersection at 2.38gpt gold from a 47m depth.
The last phase of drilling at Sorowar South East confirmed a zone of surface and near-surface oxide material, and further drilling will determine its size and allow for sufficient drill density to make a resource estimation.
Best drill assay results from the surface at Sorowar South East included a 22m intersection at 2.14gpt gold, within a broader 30m zone at 1.75gpt gold and a 3m intersection at 3.90gpt gold inside a broader zone of 5m at 2.64gpt gold.
At a 75m depth from the surface there was an intersection of 5m at 4.81gpt gold.
Assay results are yet to be released from a new round of drilling in the northwest of the Sorowar pit where 22 holes were completed for a total length of 2314m.
Perth-based Allied Gold said the Sorowar deposit has proven and probable reserves of 8.2 million tonnes at 1.30gpt gold and 4.5Mt at 1.41gpt gold respectively for a total ore reserve of 547,000oz.
Mining at Sorowar is planned to start in May and is expected to provide most of the mill feed for stage one of Allied Gold’s Simberi Oxide Gold Project.
Some 84,000oz of gold per year is anticipated over the mine’s eight-year lifespan.
The ore from Sorowar will be delivered via the Ropecon which is undergoing commissioning.
Shares in Allied were up 2.5c to 74c by close of trade yesterday.
ALD Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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