Sihayo accelerates development plan
Tuesday, March 12 2013 - 04:35 AM WIB
ASX-listed Sihayo Gold Limited recently updated its revised development plan on its 75% owned Sihayo Pungkut Gold Project, in North Sumatra, stating it comprises of Stage 1 over an initial 4 year period with a nominal 1Mtpa standard Carbon-in-Leach ?CIL? processing plant (?CIL plant?) and associated infrastructure followed by Stage 2 over a further 7 years with an expanded 1.3mtpa capacity CIL plant.
Stage 1 initial capital is estimated at US$72 million compared to the previous estimate of US$131.5 million (1.3Mtpa CIL plant), representing a 45% reduction, the company said in a statement at the exchange on Tuesday.
The major components of the capital cost estimate are: process Plant and Infrastructure at $60M, owners cost at $5M, EPCM at $7M totalling US$72M.
The key operating estimates of Stage 1 are: mill throughput of 1Mtpa, average annual production of 60,000oz pa, average process recoveries at 85%, cash site operating costs at US$615/oz ? US$645/oz
?The very robust economics and lower operational risk of Stage 1 makes this a compelling development approach for our initial project?, says company CEO Stuart Gula.
Stage 1 mining will preferentially mine 4Mt of +1 g/t Au cut-off grade material and allow for an additional 0.8Mt of lower grade (0.9 g/t Au) material to be stockpiled and processed later as plant capacity dictates.
Stage 1 indicative ore feed consists of approximately 3Mt at 2 g/t Au from the Sihayo pits and a further lMt at 1.8 g/t Au from the Sambung pit. Waste movement (inclusive of lower grade material) is approximately 8.4Mt from Sihayo pits and 2.8Mt from the Sambung pit.
The revised project life (Stage 1 and 2) is expected to be 10 ? 12 years. There is further potential upside to the project life via extensions of the near surface mineralised material along strike to the NW of the main Sihayo pit and potentially from future drilling at the exciting Hutabargot Julu prospect located within 10km of the proposed Sihayo-Sambung CIL plant.
The company shall own and operate the power station and this would increase the initial capital cost by approximately US$17m for Stage 1 and result in lower cash operating costs overall.
The primary capital cost for Stage 2 is the upgraded crushing and grinding circuits and is estimated at US$11 million.
Additionally, to maintain ore throughput at the 1.3Mtpa level, a Stage 2 pre-strip will be required.
Sihayo is also in the process of completing a Definitive Feasibility Study on the Sihayo Pungkut Gold Project by the middle of 2013.
A number of key areas have been reviewed during the past 6 months and actions taken to reduce overall risk and improve project returns, namely Geology & Resources; Metallurgy; Operational Planning and Implementation; Power Supply; and Capital & Operating Costs.
The infill drilling program is currently 75% complete while a revised Sihayo and Sambung JORC Compliant Resource estimate is expected during April 2013.
Editing by Er Audy Zandri