Sihayo Gold reports increase in N. Sumatra resource estimate
Monday, March 21 2011 - 01:46 AM WIB
The new estimate is based on an extensive infill and resource extension drilling program completed between July 2010 and March 2011. The upgraded estimate for the Sihayo resource takes the total project JORC compliant resource to 15.7Mt at 2.8g/t containing 1,402,000 ounces, the company said.
The Company?s CEO, Paul Willis, said ?Overall drilling results and the new resource figures are very encouraging and the substantial increase in contained gold is economically very significant. This new resource estimate is being included in the Definitive Feasibility Study (DFS), and supports our confidence in taking our first project forward to the production stage.?
?It is also clear that the resource is constrained by drilling in a number of directions and that mineralisation is expected to extend beyond the current resource outline. Ongoing exploration/resource extension drilling will continue to seek to identify the overall resource potential of the Sihayo area.?
The new resource estimate covers an area of approximately 1.4 km by 0.6km and is based on approximately 496 diamond drill holes which were drilled on a nominal 25 metre by 50 metre grid within the majority of the resource area with the more recent southern extension holes drilled on a nominal 50 metre by 50 metre grid.
The exploration drilling program for the next 3-6 months is designed to target favourable known horizons within the north and south extensions along strike from the Sihayo resource, primarily targeting shallow oxidized zones. The northern limit of the regolith mineralisation is not defined.
The resource estimate was completed by international industry consultants Runge Limited based on data and geological information supplied by PT Sorikmas Mining (75% owned subsidiary of Sihayo Gold Limited and 25% owned by PT Antam Tbk). No mining dilution has been included in the resource estimation.
?The significant increase in the gold resource ounces necessitates that the pit optimisation and mine scheduling process be re-worked and updated for inclusion in the DFS. Consequently, the finalisation and release of the DFS results will now occur later than the previously advised date of end of March 2011,? the company said. (kanti)
Sihayo - Sambung JORC Compliant Resources estimate
| Resources | Tonnage (Mt) | Grade (Au g/t) | Contained Gold (ounces | JORC Classification | Cut-off grade (Au g/t) |
| ? | |||||
| SIHAYO | 13.2 | 2.8 | 1,195,600 | Indicated | 1.2 |
| SIHAYO | 1.4 | 2.8 | 106,500 | Inferred | 1.2 |
| ? | 14.6 | 2.8 | 1,302,000 | Indicated & Inferred | 1.2 |
| ? | |||||
SAMBUNG |
1.1 | 2.6 | 100,000 | Inferred | 1.5 |
| ? | |||||
| Total | 15.7 | 2.8 | 1,402,000 | Indicated & Inferred | ? |