Far East Gold receives environmental approval for Idenburg

By Romel S. Gurky

Australia-listed metal exploration firm Far East Gold Limited said it had secured environmental approval from Indonesia’s government to conduct advanced exploration at its Idenburg Gold Project in Central Papua, clearing a key regulatory hurdle for drilling and potential future mine development.

The approval, granted on March 11 by the Ministry of Environment, covers an 8,950 hectare exploration area within the project’s contract of work concession.

The permit, known as UKL-UPL, approves the company’s environmental management and monitoring plans for exploration activities, allowing it to accelerate drilling in what it described as its core development corridor.

“Securing UKL-UPL approval across more than 8,950 hectares at our flagship Idenburg project marks a major inflection point for Far East Gold,” Shane Menere, Managing Director and Chief Executive Officer of Far East Gold, said in a statement.

“With this key regulatory milestone now cleared, we can accelerate toward development with confidence,” he said.

Read also: Far East Gold extends high-grade strike at Idenburg project

The company said the environmental approval represents the first time Indonesian authorities have granted such authority over the highly prospective area.

Far East Gold is also progressing additional permits required for exploration and future development, including a Borrow-Use forestry permit (PPKH), which would allow operations in designated forest areas.

The Idenburg project covers 95,280 hectares under a sixth generation contract of work and lies in a region hosting several world class gold and copper deposits, including the Grasberg mine, one of the world’s largest gold mines.

The project currently hosts a 2012 JORC mineral resource estimate of 540,000 ounces of gold and 468,000 ounces of silver, based on exploration at three prospects out of 29 identified targets across the concession.

The company is continuing drilling at the Sua prospect as part of a resource expansion program and has engaged consultants to update the mineral resource estimate using results from recently completed drill holes.

Far East Gold said the project benefits from infrastructure access via the Trans-Papuan Highway, which could support future development logistics if the project advances toward production.

Editing by Alexander Ginting