Total production from Allied's Simberi project in Papua New Guinea and its Gold Ridge operation in the Solomon Islands was at 36,085 ounces of gold for the September quarter this year.

This compares to the 28,344oz recorded in the June quarter.

Allied said the Simberi project produced 15,899oz in the September quarter, compared to the 18,131oz produced in the previous quarter.

The grade for the quarter was at 10.7 grams per tonne, with gold recovery at 87%.

The expansion of the oxide process plant expansion from 2 million tonnes per annum to 3.5Mtpa is continuing, Allied says, with heavy fuel initiatives progressing.

As part of the plant expansion, the company has spent $US1.75 million ($A1.84 million) on Simberi capital and refurbishment activities in the quarter.

Looking ahead, it expects the production guidance for Simberi to be at the lower end of the 14,000-18,000oz range while repairs are made to the ball mill.

Allied said fixing the damage to the ball mill's pinion gear shaft and air clutch would take about 14 days.

Simberi has produced 44,897oz for the 2011 calendar year to date.

Meanwhile, the Gold Ridge mine in the Solomon Islands produced 20,186oz in the September quarter, up from 10,213oz in the previous quarter.

"Mill throughput for the quarter was about 459,990 tonnes, grade was 1.96 grams per tonne and recovery was 69%," Allied said.

"This is in line with management expectations of continual improvement in operational metrics throughout the remainder of 2011."

Allied says Gold Ridge is expected to produce between 18,000oz and 23,000oz in the December quarter, thanks to additional access to the higher-grade Namachamatta pit .

The Gold Ridge project has produced 32,260oz since its first gold pour in March this year.

Allied reports that it has completed its capital expenditure on Gold Ridge.

Gold sales for the September quarter, Allied said, were at 31,035oz at $1751 per ounce, unhedged.

As at the end of September, Allied had $48 million cash in the bank, with interest bearing liabilities of $53 million.

Allied's debt includes $18 million of fleet leasing and a $35 million loan with the International Finance Corporation.

More information about its quarterly activities will be released by Allied later this month.