Sihayo obtains extension of FS for North Sumatra gold project

By Ruli Setiawan

ASX-listed Sihayo Gold Limited announced on Tuesday that the government of Indonesia has extended the so-called fesibility study period until October 6, 2014 for the company contract of work on the Sihayo Pungkut Gold Project in North Sumatra.

The company in joint venture with Indonesian state-controlled mining firm PT Anek Tambang (Antam) owned 75 percent of PT Sorik Mas, which runs the gold project. Antam holds the remaining stake in the concession covering an area of 66,200 hectares.

?We are pleased to announce receipt of a permit to extend the ?Feasibility Study Period? for the Company?s Contract of Work (CoW) until 6 October 2014. This extension was required to enable submission of the Government of the Republic of Indonesia Feasibility Study (GoIFS),? Sihayo said in a statement.

A feasibility study (FS) is an obligation outlined i the CoW. The company said hoped to be able to obtain government approval of the FS in mid 2014. This approval, along with approval of the environmental impact assessment (or AMDAL) are requirements to obtain the construction permit.

Editing by Reiner Simanjuntak