Thursday, 3rd November 2005 (2552 views)

Australian mining company Allied Gold is to go ahead with its plans to develop a new gold mine in Papua New Guinea.

The Simberi project is expected to produce 62,300oz of gold a year and generate £47.6 million in operating cash surplus over the next nine years.

Production on the new mine is expected to start at the end of 2006.

So far, there has reportedly been strong interest from other mining companies keen on providing financial support.

The £21.3 million oxide project will be on Papua New Guinea's Tabar Islands and is currently awaiting formal project financing.

Allied is reportedly also drilling the high-grade sulphide mineralisation underlying Simberi's oxide reserves in preparation for a following phase that should take the overall yearly output to over 100,000oz.

 

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