SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
Commission File Number: 000-19182
For the month of: January 2005
| ALLIED GOLD LIMITED |
| (Translation of registrant’s name into English) |
| Unit 15, Level 1, 51-53 Kewdale Road, Welshpool, W.A. 6106 Australia |
| (Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F
| Form 20-F | X | Form 40-F |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
| Yes | No | X |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
| Yes | No | X |
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.
| Yes | No | X |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b) 82 —
-1-
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ALLIED GOLD LIMITED (Registrant) |
| Date: January 31, 2005 | By: /s/ David Lymburn David Lymburn Corporate Secretary |
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[GRAPHIC OMITTED] ALLIED GOLD LTD Unit 15, Level 1, 51-53 Kewdale Road
ACN 104 855 067 Welshpool, Western Australia 6106
ABN 86 104 855 067 PO Box 235, Welshpool DC 6986
Telephone: 61 8 9353 3638
Facsimile: 61 8 9353 4894
Email: info@alliedgold.com.au Web:
www.alliedgold.com.au
31 January 2005
Australian Stock Exchange
Company Announcements
"This press release is not for dissemination in the United States or Canada and
shall not be disseminated to United States or Canadian news services."
QUARTERLY REPORT FOR THE PERIOD ENDING 31 DECEMBER 2004
-------------------------------------------------------
HIGHLIGHTS
----------
o ACQUISITION OF ADDITIONAL 37.5% INTEREST IN SIMBERI MINING JOINT VENTURE -
TABAR ISLANDS, PNG
o RIGHT TO PROCEED TO 100% OWNERSHIP BY THE ISSUE OF ALLIED SHARES AT MINIMUM
PRICE OF A$0.50
o SOROWAR OXIDE GOLD DEPOSIT GLOBAL RESOURCE INCREASED BY 42% TO 545,000 OZ
AS A RESULT OF RE-INTERPRETATION AND MODELLING USING RESULTS FROM
JULY/AUGUST 2004 RC DRILLING
o FINAL SOROWAR RESERVE DEFINITION AND EXTENSION RC DRILLING PROGRAMME
UNDERWAY FOR COMPLETION DURING QUARTER 1/2005
o DETAILED AEROMAGNETIC/RADIOMETRIC SURVEY OVER ENTIRE TABAR ISLAND GROUP
COMMENCED IN JANUARY 2005
o CONSECUTIVE SOIL SAMPLES COLLECTED DURING ACCESS CLEARING FOR GROUND
GEOPHYSICS SURVEYS ON TATAU ISLAND RETURNED 0.84 G/T GOLD AND 3.3 G/T
SILVER OVER A LENGTH OF 125 METRES
1
REPORT FOR THE QUARTER ENDED 31 DECEMBER 2004
- ---------------------------------------------
OWNERSHIP AGREEMENT - TABAR ISLANDS GOLD PROJECT
- ------------------------------------------------
Allied Gold Limited has entered into an agreement ("the Agreement") and
completed formal documentation with Simberi Gold Corporation ("SGC") to acquire
its interests in the Tabar Islands Gold Project in the New Ireland Archipelago
of eastern PNG.
Satisfaction of the commercial terms of the Agreement will result in Allied
holding a 87.5% interest in the Simberi Mining Joint Venture (ML136) on Simberi
Island and a 100% interest in EL 609 which covers the remainder of the Tabar
Island Group.
Exploration completed to date on Simberi Island has identified total gold
resources of 1.59 million ounces and pursuant to the Agreement, Allied will
directly control (through its 87.5% interest) gold resources totalling 1.4
million ounces in this highly prospective, mineralised island group.
The key commercial terms of the Agreement are;
o Heads of Agreement signed on 15 November 2004 with full formal
documentation signed on 31 January 2005.
o Allied will purchase 37.5% of SGC's current 50% interest in the
Simberi Mining Joint Venture and SGC's 1% interest in the Tabar
Exploration Joint Venture (EL 609) for a total cash consideration of
C$4.0 million (less C$250,000 which has been paid as a refundable
deposit by Allied).
o Completion of the transaction will occur on 1 April 2005 following
approval by a Meeting of Shareholders of SGC to be held on 7 February
2005.
o SGC will retain a 12.5% free carried interest in the Simberi Mining
Joint Venture through to the earlier of a decision to mine or 31
December 2009, at which point the FCI will be converted into Allied
shares at a minimum price of A$0.50 per share.
The value of the conversion will be based upon NPV derived from the
bankable feasibility study at the time of making the decision to mine.
o Allied will transfer the 14% interest (held by Nord Pacific Limited)
in the Young Shannon project in Canada to SGC.
SIMBERI MINING PROJECT - ML 136
- -------------------------------
SOROWAR DRILLING PROGRAMME
On 25 November 2004, the second phase ("Phase 2") of extension and reserve
definition RC drilling commenced at the southern end of the Sorowar deposit.
The drilling programme consists of 44 drillholes (3,560 metres) and is designed
to further define and test mineralisation proximal to the southern portion of
the currently designed pit. After completion of the current drilling programme,
2
the third and final phase of RC drilling at Sorowar will be carried out to
upgrade the resource status of mineralised extensions on the north and east
sides of the Sorowar deposit.
To best achieve this outcome in the most expedient timeframe, the drilling
equipment is undergoing modifications which will enable double-shift production
rates to be achieved during February/March 2005. These drilling rates should
allow the company to receive all of the requisite assay data by the end of the
first quarter of 2005, thus enabling the company to determine final oxide pit
dimensions for project development.
SOROWAR OXIDE GOLD RESOURCE UPGRADE
As previously reported, RC drilling completed during July-August 2004 ("Phase
1") intersected wide thicknesses of surface and near-surface oxide gold
mineralisation outside of the proposed Sorowar pit. The Company considers it
likely that the width and depth of the Sorowar pit can be substantially
increased with further drilling to delineate the lateral and depth extents of
the oxide mineralisation. This stepout and definition drilling is currently
underway as described above.
To best assess the significance of the Phase 1 drilling programme, Allied
engaged Golder Associates to construct a resource model and perform an open-pit
optimisation study for the Sorowar deposit by upgrading the existing Sorowar
drilling database with the results of the Phase 1 programme.
Results from the kriged block model are tabulated below:
Sorowar Oxide Gold Resources (at 0.5 g/t Au cutoff)
Category Million Tonnes Gold Grade (g/t) Ounces
Measured 6.2 1.34 268,000
Indicated 3.2 1.26 128,000
Inferred 4.0 1.15 149,000
TOTAL 13.4 1.26 545,000
(Source: Golder Associates Block Model - January 2005)
As a result of the Phase 1 drilling programme a resource upgrade of 42%,
representing an additional 161,000 ounces of gold, has been achieved when
compared with the previous Sorowar resource estimate of 10.9 Mt at 1.10g/t Au
for 384,000 ounces (at 0.5 g/t Au cutoff).
It is expected that the current Phase 2 extension and infill drilling programme
will further increase the dimensions of the Sorowar gold resource, ultimately
resulting in increased reserves and gold production.
SOROWAR "TRANSITIONAL" RESOURCES
In addition to the thick oxide horizon at Sorowar, the deposit also has
transitional-type mineralisation below the oxide profile.
Previous testwork indicates that gold recoveries of up to 70% can be achieved
from conventional cyanide-based processing of transitional material and
metallurgical testwork to accurately determine recovery rates will be carried
out on samples from the deposit during Quarter 1/2005.
3
The Company considers it likely that significant portions of the Sorowar
transitional material will be suitable for mining and processing through the
proposed CIL treatment plant to be located at Pigiput Bay on Simberi Island.
Although the Phase 1 RC drilling programme was primarily designed to assess the
distribution of oxide mineralisation, sufficient transitional mineralisation was
identified in block modelling to add an additional 100,000 oz to the Sorowar
resource base.
Total oxide and transitional gold resources from the kriged block model are
tabulated below:
Sorowar Oxide/Transitional Gold Resources (at 0.5 g/t Au cutoff)
Category Million Tonnes Gold Grade (g/t) Ounces
Measured 7.2 1.29 300,000
Indicated 4.3 1.27 175,000
Inferred 4.6 1.15 170,000
TOTAL 16.1 1.24 645,000
(Source: Golder Associates Block Model - January 2005)
SOROWAR RESERVE STUDIES
Further to the Golder Associates resource study, open-pit optimisations were
carried out during December 2004/January 2005 on the Sorowar deposit using the
new block model, current gold prices/exchange rates and other inputs from the
August 2003 Feasibility Study.
The main objective of the study was to;
o Provide updated resources within optimal pit shells for the updated
orebody model (using current metal prices)
o Establish the quantum and nature of potential increases to ore
reserves by upgrading resources currently in the Inferred category to
Measured and Indicated status and to provide a guide for location of
future drilling for this purpose; and
o Test the response of the pit shells to the inclusion of Transitional
ore at varying mill recoveries.
The results of these studies indicate that a substantial portion of the Sorowar
resource base is likely to convert to reserves, resulting in a significant
upgrade to the reserves and resources identified in the previous Sorowar pit
design. A revised pit design will be completed at the end of the drilling
programme.
TABAR EXPLORATION PROJECT - EL 609
- ----------------------------------
AIRBORNE GEOPHYSICAL SURVEYS
Low level, detailed helicopter-borne geophysical surveys commenced on 3 January
2005. A total of 4,485 line kilometres of aerial surveys recording magnetic and
radiometric data will be flown at 75 metre line spacing over the entire Tabar
Island Group.
Preliminary results indicate that high quality data is being returned and the
survey should be completed by the end of January, with processed and interpreted
data following.
Existing, previous generation quality aeromagnetic and radiometric geophysical
data has proven to be useful in mapping structures and geology associated with
gold mineralisation and the company expects the newly acquired detailed data to
4
greatly assist with the targeting of further gold and gold/copper deposits in
the Tabar Island Group.
GROUND BASED GEOPHYSICAL SURVEYS
Ground based induced polarization ("IP") geophysical surveys are scheduled to be
carried out on Simberi and Tatau Islands during Quarters 1-2/2005. These surveys
will be designed to test for the sub-surface signatures indicative of
sulphide-hosted gold and gold/copper type deposits.
Approximately 27 km of lines (approximately 90% complete) have been cut so far
on Tatau Island to provide access for the geophysics crews and clearing is
expected to be completed by the start of February. A further 21 km of gridding
and line cutting will be carried out on Simberi Island during February.
The IP surveys will commence in late March with the work at Tabar being
scheduled for completion in May and at Simberi during June.
Previous IP surveys carried out in 1992 within ML 136 proved that IP is an
effective tool in locating sulphide mineralisation and in generating high
priority drill targets.
SURFACE SAMPLING ON CUT LINES
As part of the access clearing process, hand auger soil samples are collected at
25 to 50 metre intervals along the grid lines. Results received to date from
Tatau Island have highlighted gold anomalies in the Mt Siro area and in an area
to the west of Mt Tiro.
At Mt Siro, six consecutive soil samples 25m apart on a single line returned an
average value of 0.84g/t Au and 3.3 g/t Ag. To the west of Mt Tiro in Dalengo
Creek, 24 samples from a total of 28 consecutive samples returned surface soil
values >0.1g/t Au.
These encouraging results will be further assessed in conjunction with the
forthcoming ground geophysical work programme.
PLACEMENT OF SECURITIES
During the quarter the Company issued the following securities;
o 11 October 2004 - 23,570,178 shares in relation to the acquisition of
Nord Pacific Ltd
o 30 November 2004 - placement of 8,400,000 shares and 2,800,000 options
to raise $1.68 million.
o 30 November 2004 - issue of 4,805,446 shares and 861,420 options on
conversion of convertible notes.
At 31 December 2004 the Company had the following securities on issue;
o 69,550,625 ordinary shares
o 23,586,411 options expiring 30 June 2007, exercisable at $0.20.
Yours faithfully,
J.J. Moore
Managing Director
5The information in this Stock Exchange Announcement that relates to the Sorowar Oxide Gold Resources and Sorowar Oxide/Transitional Gold Resources is based on information compiled by Mr S Godfrey who is employed by Golder Associates and who is a fellow/member of the Australasian Institute of Mining and Metallurgy. Mr Godfrey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Godfrey consents to the inclusion in this Announcement of the material based on this information in the form and context in which it appears. The information in this Stock Exchange Announcement that relates to exploration results, mineral resources or ore reserves, together with any related assessments and interpretations, has been approved for release by Mr. R. Hastings, MSc, BSc., M.Aus.I.M.M., a qualified geologist and full-time employee of the Company Mr Hastings has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". "This press release is not for dissemination in the United States or Canada and shall not be disseminated to United States or Canadian news services." For enquiries in connection with this release please contact: - ------------------------------------------------------------- Allied Gold Limited +61 8 9353 3638 phone +61 8 9353 4894 fax info@alliedgold.com.au e-mail Forward-Looking Statements. - --------------------------- This press release contains forward-looking statements concerning the projects owned by Allied. Statements concerning mineral reserves and resources may also be deemed to be forward-looking statements in that they involve estimates, based on certain assumptions, of the mineralisation that will be found if and when a deposit is developed and mined. Forward-looking statements are not statements of historical fact, and actual events or results may differ materially from those described in the forward-looking statements, as the result of a variety of risks, uncertainties and other factors, involved in the mining industry generally and the particular properties in which Allied has an interest, such as fluctuation in gold prices; uncertainties involved in interpreting drilling results and other tests; the uncertainty of financial projections and cost estimates; the possibility of cost overruns, accidents, strikes, delays and other problems in development projects, the uncertain availability of financing and uncertainties as to terms of any financings completed; uncertainties relating to environmental risks and government approvals, and possible political instability or changes in government policy in jurisdictions in which properties are located. Forward-looking statements are based on management's beliefs, opinions and estimates as of the date they are made, and no obligation is assumed to update forward-looking statements if these beliefs, opinions or estimates should change or to reflect other future developments. Not an offer of securities or solicitation of a proxy. - ------------------------------------------------------ This communication is not a solicitation of a proxy from any security holder of Allied, nor is this communication an offer to purchase nor a solicitation to sell securities. Any offer will be made only through an information circular or proxy statement or similar document. Investors and security holders are strongly advised to read such document regarding the proposed business combination referred to in this communication, if and when such document is filed and becomes available, because it will contain important information. Any such document would be filed by Allied with the Australian Securities and Investments Commission, the Australian Stock Exchange and with the U.S. Securities and Exchange Commission (SEC).6
Appendix 5B
Mining exploration entity quarterly report
- --------------------------------------------------------------------------------
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
ALLIED GOLD LIMITED
ABN Quarter ended ("current quarter")
86 104 855 067 31 Dec 2004
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities $A'000 (6 months)
$A'000
---------------------------------
1.1 Receipts from product sales and
related debtors
1.2 Payments for
(a) exploration and evaluation (751) (803)
(b) development
(c) production
(d) administration (151) (591)
(e) other
1.3 Dividends received
1.4 Interest and other items of a
similar nature received 6 12
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other - option fees re sale of MMPEU, and
sale of Red Dam Project - 80
---------------------------------
Net Operating Cash Flows (896) (1,302)
- --------------------------------------------------------------------------------
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects
(b) equity investments
(c) shares in listed companies (48) (48)
(d) Nord acquisition transaction costs (191) (782)
1.9 Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets - (7)
1.10 Loans to other entities - Nord Pacific Ltd
1.11 Loans repaid by other entities
1.12 Funds paid into deposit pending acquisition
of interests (271) (271)
---------------------------------
Net investing cash flows (510) (1,108)
---------------------------------
1.13 Total operating and investing cash
flows (carried forward) (1,406) (2,410)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 1
Appendix 5B
Mining exploration entity quarterly report
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1.13 Total operating and investing cash flows (1,406) (2,410)
(brought forward)
- --------------------------------------------------------------------------------
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 1,680 1,680
1.15 Refund of oversubscriptions in share issues (15)
1.16 Proceeds from borrowings 100 300
1.17 Repayment of borrowings
1.18 Dividends paid
1.19 Other - costs of capital raising (62) (77)
---------------------------------
Net financing cash flows 1,718 1,888
- --------------------------------------------------------------------------------
Net increase (decrease) in cash held 312 (522)
1.20 Cash at beginning of quarter/year to date 147 981
1.21 Exchange rate adjustments to item 1.20
---------------------------------
1.22 Cash at end of quarter 459 459
- --------------------------------------------------------------------------------
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
Current quarter
$A'000
----------------
1.23 Aggregate amount of payments to the parties includes in
item 1.2 $48
----------------
1.24 Aggregate amount of loans to the parties included in
item 1.10 Nil.
- --------------------------------------------------------------------------------
1.25 Explanation necessary for an understanding of the
transactions
Remuneration paid to Mr Jeff Moore $36,222.
Consulting fees paid to Mr David Lymburn $12,000.
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material
effect on consolidated assets and liabilities but did not involve cash
flows
N/A
2.2 Details of outlays made by other entities to establish or increase their
share in projects in which the reporting entity has an interest
N/A
- --------------------------------------------------------------------------------
+ See chapter 19 for defined terms.
Appendix 5B Page 2 30/9/2001
Appendix 5B
Mining exploration entity quarterly report
- --------------------------------------------------------------------------------
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A'000 $A'000
--------------------------------
3.1 Loan facilities - -
--------------------------------
3.2 Credit standby arrangements
- --------------------------------------------------------------------------------
Estimated cash outflows for next quarter
$A'000
--------------------------------
4.1 Exploration and evaluation 1,000
--------------------------------
4.2 Development
- --------------------------------------------------------------------------------
Total 1,000
- --------------------------------------------------------------------------------
Reconciliation of cash
Reconciliation of cash at the end of the Current quarter Previous quarter
quarter (as shown in the consolidated $A'000 $A'000
statement of cash flows) to the related
items in the accounts is as follows.
- --------------------------------------------------------------------------------
5.1 Cash on hand and at bank 459 148
----------------------------------
5.2 Deposits at call
----------------------------------
5.3 Bank overdraft
----------------------------------
5.4 Other (provide details)
- --------------------------------------------------------------------------------
Total: cash at end of quarter (item 1.22) 459 148
- --------------------------------------------------------------------------------
Changes in interests in mining tenements
Tenement Nature of interest Interest at Interest at
reference (note (2)) beginning end of
of quarter quarter
------------------------------------------------------
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
------------------------------------------------------
6.2 Interests in mining
tenements acquired or
increased
------------------------------------------------------
- --------------------------------------------------------------------------------
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 3
Appendix 5B
Mining exploration entity quarterly report
- --------------------------------------------------------------------------------
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
Total number Number quoted Issue price per Amount paid up per
security (see note security (see note 3)
3) (cents) (cents)
- -------------------------------------------------------------------------------------------------------------
7.1 Preference
+securities
(description)
----------------------------------------------------------------------------------
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buy
backs,
redemptions
- -------------------------------------------------------------------------------------------------------------
7.3 +Ordinary
securities 69,550,625 67,395,484 $0.20 $0.20
----------------------------------------------------------------------------------
7.4 Changes during
quarter
(a) Increases 31,970,178 31,970,178 $0.20 $0.20
through issues 4,805,446 4,805,446 $0.15 $0.15
(b) Decreases
through returns
of capital, buy
backs
- -------------------------------------------------------------------------------------------------------------
7.5 +Convertible
debt securities
(description)
----------------------------------------------------------------------------------
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
- -------------------------------------------------------------------------------------------------------------
7.7 Options Exercise price Expiry date
(description and 23,586,411 21,036,411 $0.20 30 June 2007
conversion
factor)
----------------------------------------------------------------------------------
7.8 Issued during
quarter 3,661,420 3,661,420 $0.20 30 June 2007
----------------------------------------------------------------------------------
7.9 Exercised during
quarter
----------------------------------------------------------------------------------
7.10 Expired during
quarter
- -------------------------------------------------------------------------------------------------------------
7.11 Debentures
(totals only)
- -------------------------------------------------------------
7.12 Unsecured
notes (totals
only)
- -------------------------------------------------------------
- --------------------------------------------------------------------------------
+ See chapter 19 for defined terms.
Appendix 5B Page 4 30/9/2001
Appendix 5B
Mining exploration entity quarterly report
- --------------------------------------------------------------------------------
Compliance statement
1 This statement has been prepared under accounting policies which comply
with accounting standards as defined in the Corporations Act or other
standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
/s/ David Lymburn
31 January 2005
Sign here: ------------------------------------- Date: ---------------
(Director/Company secretary)
Print name: DAVID LYMBURN
-------------
Notes
1 The quarterly report provides a basis for informing the market how the
entity's activities have been financed for the past quarter and the effect
on its cash position. An entity wanting to disclose additional information
is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the
reporting period. If the entity is involved in a joint venture agreement
and there are conditions precedent which will change its percentage
interest in a mining tenement, it should disclose the change of percentage
interest and conditions precedent in the list required for items 6.1 and
6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not
address a topic, the Australian standard on that topic (if any) must be
complied with.
== == == == ==
- --------------------------------------------------------------------------------
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 5