Gold miner Allied Gold finished 2010 with a flourish, with production at its Simberi mine in Papua New Guinea exceeding expectations in the final quarter.

Preliminary data for the three months to 31 December 2010 show Simberi processed around 580,000 tonnes at a grade of 1.14 grams per tonne (g/t) with 18,921 ounces of gold produced.

Simberi's total cash cost for the December quarter is expected to be between US$650-US$675 per ounce, subject to inventory adjustments and final review in coming weeks.

First gold from Allied Gold's wholly-owned fully-funded 120,000 ounces per annum (oz pa ) Gold Ridge gold mine in the Solomon Islands remains on budget for the first quarter of 2011. Combined with gold production from Simberi this will lift Allied's gold production towards a 220,000 oz pa early in 2011, the company said.

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