Allied Gold, the oil company focused on the Pacific Rim of Fire continued its strong run after increasing gold reserves at Simberi in Papua New by 155%.

The group, which has rallied since announcing a swing into profit at the end of August, said an extensive 18-month drill programme has resulted in an increase of 1.31m ounces of gold ore to 2.15m ounces of contained gold.

They were just 0.84m ounces a year ago. Today's upgrade takes group reserves to 3.43m ounces.

Allied has budgeted exploration expenditure of A$8m for 2011 to undertake 20,000 meters of core and 40,000 meters of RC drilling.

It will be targeting pit edge oxides at the Sorowar deposit and underlying sulphide mineralisation at Pigiput, Pigibo and Sorowar, as well as testing the possible link between the Samat North and Samat East deposits.

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