Sihayo Gold updates N. Sumatra project DFS
Monday, December 21 2009 - 02:06 AM WIB
Introduction
The recent commencement of a Definitive Feasibility Study (DFS) has seen a dramatic increase in onsite activity at the Sihayo Project in Northern Sumatra. Drilling has commenced to increase the confidence in the Sihayo and Sambung resources from Inferred status to Indicated status and at the same time exploration drilling has continued to intersect widespread gold mineralisation between these two resources.
With the appointment of Greg Entwistle from TWP Australia as the Project Coordinator many of the DFS programs including environmental studies, metallurgical studies and infrastructure studies are now progressing well. Greg is a former Project Director of the Martabe Gold Project, located 70km north of Sihayo, and he has extensive experience in completing DFS work in this region of Indonesia.
The Company has also completed a detail schedule of work and is now planning to complete the DFS by the end of 2010 with the aim of moving into production late 2011 or early 2012.
Exploration Drilling - Sihayo 1 Prospect
The Company has now received all results for the exploration drilling at the Sihayo 1 prospect located immediately south of the Sihayo 1 North resource. A total of 15 holes have been completed at a nominal 100 metre spacing over an area of 550 metres by 300 metres and all holes except one have intersected gold mineralisation greater than 1 g/t. Importantly the results show there are a number of areas with thicker intersections of higher grade mineralisation including 23m at 3.0g/t, 7m at 2.9g/t, 4m at 3.9g/t and 11m at 1.7g/t. The mineralisation remains open in three directions.
Further drilling will now be required to assess the higher grade portions of this prospect and to test the potential extensions with the ultimate aim of adding to the overall Sihayo resource inventory.
Resource Infill Drilling - Sihayo 1 North Resource
Results of the first 5 infill drill holes within the Sihayo 1 North resource have been received these have included several significant gold results including 7m at 8.3g/t, 735m at 43g/t, 29m at 4.2g/t and 4.2m at 5.0g/t. Although these initial results only represent a small proportion of the overall program they have provided confirmation of the continuity of the mineralisation and shows there may be some potential to add additional incremental resources near the margins of the current resource.
The planned program of infill drilling will total in excess of 8,500 metres of diamond drilling and is expected to be completed in May 2010 with an updated JORC resource estimate of at least Indicated Category completed by the end of June 2010. This updated resource will provide the basis of the DFS.
Definitive Feasibility Study
Following the appointment of the new Project Coordinator work has commenced on a number of important aspects of the DFS, in particular, those areas which are critical to completing the DFS by the end of 2010.
Metallurgy Studies - an extensive program of test work has been formulated and sample collection and shipment to the relevant laboratories is underway.
Geotechnical Studies - work has commenced on data collection for the pit designs. Environmental and Social Impact Studies - onsite baseline studies have commenced.
Plant and Tailings Storage Facility Locations - preferred sites for the plant and TFS have been identified and detail surveying and geotechnical drilling is set to commence in the near future.
TWP Australia has provided Sihayo with a detail DFS schedule which aims to fast track the project. The critical dates include
1. Completion of the upgraded JORC resource by July 2010.
2. Completion of the DFS by end 2010.
3. Completion of statutory approvals and permitting by ~ quarter 2011.
4. Completion of construction by end of 2011. (end of edited release)
Editor?s Note:
The Pungkut Contract of Work (CoW) in North Sumatra which includes the Sihayo gold project is held by PT Sorikmas Mining which is 75 percent owned by Sihayo Gold Limited.