Sydney, Nov 28, 2005 (ABN Newswire) - Allied Gold (ASX: ALD) reports that further high grade mineralisation has been encountered from drilling outside of the proposed Sorowar oxide gold pit on Simberi Island. Including;

- 5m at 10.8g/t gold from 71m in RC1161 (ended in mineralisation, results from
remainder of hole yet to come).
- 15m at 3.15g/t gold from surface in RC1162. 

Phase 4 Drilling - Sorowar Area
RC1161 was designed to sterilise ground to the west of the proposed pit and recorded 5m at 10.8g/t gold from 71m. The hole ended in mineralisation and results from the remainder of the hole are expected shortly. The high-grade oxide gold mineralisation intercepted in this hole confirms the potential for further oxide mineralisation to be discovered outside of the proposed Sorowar pit.

Presently, less than 10% of the drill holes completed in the Sorowar area lie outside of the planned open-pit, resulting in the limits of the mineralised body being unconstrained by drilling. The strongly mineralised structure intersected in RC1161 shows good potential to extend the Sorowar deposit and this area will be further drilled to determine the extent and tenor of the gold mineralised zone. At Sorowar East, a 12 hole, 1200 metre drilling programme is underway. The first drill hole RC 1162 has encountered 15m at 3.15g/t gold from surface.

These high grade intercepts indicate that the dimensions of the Sorowar gold deposit remain open in all directions and at depth. Results are tabulated below;

PHASE 4 DRILLING - SOROWAR REGION

Drillhole  Northing   Easting    Dip/Azimuth  From  To  Interval Grade  Mineral
            (mN)        (mN)        (deg)     (m)   (m)    (m)   (g/t)   Type
           Simb grid  Simb grid  Simb grid
RC1159                                         22    23     1     1.39    SU
RC1159DD                                      125   126     1     1.10    SU 
                                              129   130     1    10.80    SU 
                                              206   207     1     1.06    SU
                                              216   218     2     1.39    SU
                                              269   273     4     1.34    SU
RC1160                                       106.5  107.2  0.7    2.07    SU
                                             120.2  120.6  0.4    1.31    SU
                                             124    129    5.0    1.81    SU
RC1161                                        48     49    1      1.07    OX
                                              59     60    1      2.83    OX
                                              64     65    1      1.06    OX
                                              71     76    5     10.80    OX
Ended in mineralisation, further results pending
RC1162                                         0     15    15     3.15  Ox,Tr,Su

Note:
Assaying for gold by fire assay (50gm) with AAS finish (ALS Chemex Laboratories -Townsville)
Simberi mineralisation types are:
Ox = oxide material - extremely weathered (cyanide leach recovery >90%)
Tr = transitional material - distinctly weathered (cyanide leach recovery 50-90%)
Su = sulphide material - slightly weathered to fresh (Cyanide recovery <50%)
Results reported with 1.0g/t Au cutoff.

At Sorowar, the largest pit scheduled for mining, currently defined reserves and
resources within the designed pit total;
13,523,000 tonnes at 1.22 g/t gold for 530,000 ounces.