SIMBERI

Location

Eastern side of Simberi Island, Tabar Islands Group, New Ireland Province.

Latitude 2°37'29.33"S Longitude 151°58'25.96"E

Status

Operating Mine.

Type of Mine and Waste Disposal

Open Pit. The Simberi Oxide Gold Project is located 60 kilometres from the Lihir gold mine. There are seven gold deposits defined and other prospects identified.  Gold production commenced in February 2008. The mine has a projected life of 8 years.  In December 2009, Allied Gold received a cease work order from the Mineral Resources Association of Papua New Guinea.  Allied reported that gold production was down 16% for the quarterly period ended 31st March 2010 and that production had been “impacted by 12 days of lost production through land owner discussions and mechanical issues”.

Delivery of ore to the processing facilities at Pigiput Bay is by aerial conveyor (RopeCon). Gold deposits occur mainly on ridge tops resulting in a very low waste/strip ratio.  Developments include a deep sea tailings pipeline for tailings disposal.  The pipeline is 528 metres long with the discharge point at a depth of 130 metres. The pipeline is ballasted against waves and currents using concrete blocks. The pipe transports mine tailings slurry that has been pre-diluted with seawater.  Similarities in geology between Simberi Islands and the Tabar Island (Lihir) make Allied confident of a lucrative resource base.

Target Minerals

Gold, Silver

Past Production

Not applicable.

Current Production

Production for the 2008 calendar year was 75,267 ounces (2,133,787 grams).

Ownership and Finance

Simberi is 100% owned and operated by Allied Gold and is its flagship project. Allied Gold is an Australian based companyand is a publicly listed company on the Australian Stock Exchange, the Toronto Stock Exchange and the London Stock Exchange. In September 2004, Allied Gold acquired Nord Pacific Ltd’s 50% asset in the Simberi Mining Joint Venture and their 99% interest in the Tabar Exploration Joint Venture.  Allied Gold owns the licenses to the entire mineralised island group.

Environmental Setting

The mine site is in a volcanic centre in highlands on the eastern side of the island.

Environmental Impacts

Impacts on marine communities associated with deep sea tailings placement can be expected.

Social Impacts:

There are nine clans on the island with a total population of about 1100. The local communities are represented by the Simberi Mining Area Association. The locals live in small coastal villages mainly in the north and west.  Allied Gold claim that no settlements or communities existing in areas which will be impacted by the mining activities. Landowner agreements have been completed but mining was suspended in December 2009 because of local landholder issues.


 

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