Contract amendment to have financial impact on Sihayo Pungkut gold project
Monday, May 1 2017 - 05:52 AM WIB
ASX-listed Sihayo Gold Ltd said on Monday that an amendment of its mining contract over the Sihayo Pungkut gold project in North Sumatra will cause material changes that would have financial impact on the project.
?The financial impact of these changes will be included in the ongoing review of the feasibility study,? Sihayo said in a statement.
Sihayo said that it signed with the government of Indonesia in March an an amendment to the Contract of Work. The two material changes are to bring royalties into line with current regulations and divestment is to begin in year six of production, to reach 51% by year 10.
The company holds an interest in the Sihayo Pungkut Gold Project is located within a Generation VII Contract of Work (CoW) located in Northern Sumatra through 100 percent ownership of Aberfoyle Pungkut Investments Pte Ltd (API). The CoW is held by PT Sorikmas Mining (Sorikmas) which is operated under a Joint Venture arrangement between API - 75% and PT Aneka Tambang ? 25%.
The project has Mineral Resources of Measured, Indicated and Inferred containing 1.4M gold ounces1 reported in accordance with JORC 2012 within which is contained a combined Proved and Probable Ore Reserve of 554,000 gold ounces2.
Sihayo said it continues to work toward completion of statutory permitting and approvals as well as investigation of opportunities to further optimize the results of the feasibility study announced in relation to the Sihayo Pungkut Gold Project on January 29, 2014.
Editing by Reiner Simanjuntak