STOCKS NEWS EUROPE-Allied Gold up on "excellent" assay

Shares in Allied Gold (AGLD.L) gain over 9 percent after reporting assay results from its 100 percent owned mine at the Pigibo Prospect on Simberi Island in Papau New Guinea, which broker Ambrian describes as "excellent".

"These results are excellent as not only are they well above the global resource grade, but they also surround what was a small, low-grade area of mineralisation, and thus have the potential to add one to two hundred thousand ounces of oxide material to the resource," says Brock Salier, Ambrian analyst.

The broker retains its "buy" rating citing a number of positives including a likely increase in oxide resource potential and M&A activity alluded to in the recent trading report.

Ambrian estimates Allied Gold will break even by 2011 with and earnings per share forecast of 1.8 pence.

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