Sihayo Gold intersects further high grade gold at N. Sumatra project

Australian mining firm Sihayo Gold Limited said Tuesday that infill drilling of the Sihayo 1 North and Old Camp resource has continued to intersect significant widths of high grade gold within its 75 percent owned Sihayo Pungkut project in North Sumatra.

New results have been received for approximately 10 holes and these continue to show excellent continuity of gold mineralisation within the resource area, the company said.

The new results received from hole SHDD 332 continue to extend the high grade portion of the resource to the southeast and significantly increase the potential for this high grade zone to continue down plunge beyond the extent of the current infill drill program. The hole intersected a wide zone of jasperoid hosted mineralisation, which returned 19m at 13.4g/t Au from a depth of 152m

Holes SHDD 341 and 342 also returned significant intersects over 14m @ 1.8 g/t Au and urn @ 3.1 g/t Au intervals respectively and drilling is continuing to extend mineralisation in this area, it said.

A further four holes, SHDD 328, 334, 337 and 338, on the northeastern side of the resource intersected significant widths and grades of gold mineralization. Results of these holes included 13m at 3.3g/t, 11m at 3.5g/t, 11m at 6.2g/t, 11m at 5.0g/t and 19.3m at 2.4g/t gold. Based on the recent drilling there is excellent potential to define further mineralization between Sihayo1 North and Old Camp and further along strike to the southeast and northwest. Table 1 lists all new results over 1g/t Au.

Assay results from a further 40 holes completed as part of the infill drilling program are expected over the next two weeks. Following receipt of the remaining assay results the company will complete an upgraded JORC resource estimate.

Sterilisation hole SHDD 327, interesected mineralisation from a depth of 177m, including 5m at 1.8g/t gold. The hole was drilled 280m southeast of the high grade infill hole SHDD 332 and further supports the potential that mineralisation extends to the southeast.

Exploration drilling over the coming months will test all the potential extensions identified during the infill resource drilling program, in addition to testing numerous other targets identified over an area of more than 7 km along strike from the known resource, it added.

The company?s immediate focus is the development of a 1Moz gold resource at the project. The Sihayo Pungkut Project currently has an Inferred JORC compliant resource estimate of 13.2 Mt at 2.4g/t Au containing 1.01 Moz of gold, which extends from surface to a drilled depth of 150m. Potential extensions to the resource remain in the most part untested and there remains excellent potential to significantly expand the resource base. (denny)