Sihayo to complete Sambung in-fill drilling
Tuesday, May 1 2012 - 12:39 PM WIB
Australia listed Sihayo Gold Limited has recently stated to enter the final completion of its infill drilling program on the Sambung Resource, converting the current JORC Compliant Inferred Resource of 1.72 Mt @ 2.2 g/t Au for 123,200oz Au into the higher confidence JORC Compliant Indicated category.
The current Sihayo-Sambung JORC Compliant Resource of 16.3 Mt at 2.7 g/t Au for 1.425 Moz Gold lies on about 2.25km of a 5.5km long trend of gold mineralisation that has been defined by surface exploration work.
The scheduled in-fill diamond drilling program, running between October 2011 and March 2012, is to comprise of 56 holes for 5,455m (SAMDDO86 to SAMDD141). Sihayo stated that the company has completed 41 diamond drill holes for 3,797m as the final component of this drill program.
Resource Consultants (Runge Limited) are scheduled to release an updated JORC Compliant Resource Report in May 2012, while initial Sambung metallurgy results show an improvement in overall recoveries as compared with the main Sihayo Resource with recoveries in the range of 80 percent - 85 percent achieved.
A mineral exploration company with gold exploration projects in Sihayo, Sumatra, the company's focus of activities during the quarter was the Sihayo Pungkut Gold Project ("SPGP") and ongoing regional exploration, with activities included ongoing work on the Definitive Feasibility Study ("DFS"), Sambung Resource infill drilling, Community Development programs adjacent to the SihayoSambung Resource and Hutabargot Julu Prospect surface exploration work.
Sihayo has also appointed OP CleanTech ("DPCT") to complete a standard DFS document for the design, construction and commissioning of a 9.9MW Biomass Power Plant in the area, expected to replace its diesel generators and at a basis of US$100/bbl oil the into cost of power was approximately US$0.25 kw/hr.
The primary fuel source for the proposed power plant is palm kernel shells, in which potential supply within trucking distance of the proposed power plant site exceeds 2 times the annual required supply and is available across multiple independent suppliers.
The total cost of the Biomass Power Plant is expected to reach US$26.4 million to deliver annual cost savings of approximately US$9m compared to diesel power generation once it starts operation.
Editing by Audy Zandri