Allied delivers on guidance

PAPUA New Guinea gold producer Allied Gold has delivered on its September quarter guidance, producing 18,000 ounces of the precious metal at a cash margin of $US550 an ounce ($A566/oz) from its Simberi operation.
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Cash costs for the quarter came in at $US660/oz, with 560,000 tonnes of ore processed during the latest three-month period at a grade of 1.09 grams per tonne gold.

The 2.2 million tonne per annum mill also achieved a recovery rate of 91.3% for the quarter.

A similar performance is expected in the December quarter before an expansion of the oxide processing circuit towards 100,000ozpa from mid-2011.

Meanwhile, refurbishment and construction activities at the fully funded 120,000ozpa Gold Ridge mine in the Solomon Islands continues to progress.

The $135 million development remains on time and budget for first gold by March next year and will take annual production for Allied to 200,000oz.

At the start of the month the company had $64 million in the bank.

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