Allied finds more gold at Simberi’s Botlu deposit

Allied finds more gold at Simberi’s Botlu deposit 
PERTH ( − Gold-miner Allied Gold has declared a 172% inferred mineral resource increase at the Botlu deposit, which forms part of its Simberi gold mine, in Papua New Guinea.

The Botlu deposit is now estimated to host 8,4-million tons, grading 1,59% gold, for 429 000 oz of gold. This was a 271 000 oz increase on the previous inferred mineral resource.

“Botlu provides another opportunity and source of additional material for our sulphide study which has, until recently, focused predominantly on the Sorowar and Pigiput deposits,” said chairperson Mark Caruso.

The drilling at the Botlu deposit tested gold in surface sample anomalies for potential resource extensions, as part of definition drilling work for a bankable feasibility study into processing 2,5-million tons of sulphide ore, to produce 130 000 oz/y of gold.

The study was due in early 2012.

“We are confident of converting sulphide inferred resources to mineable reserves for the sulphide feasibility study,” Caruso added.

The Simberi project started gold production in 2008, and produced 64 000 oz during 2009/10. The plant was currently undergoing a $32-million expansion to increase the throughput to 3,5-million tons a year, to produce 100 000 oz/y by late 2011.