Sihayo update N. Sumatra gold project
Thursday, July 31 2014 - 12:43 PM WIB
1. Corporate
On April 29th 2014, the Company concluded the issue of shortfall share resulting from the Non-Renounceable Entitlement issue which closed on 21st March 2014. Shortfall shares were issued to:
Lion Selection 1,571,428 shares
PT Saratoga Investama Sedaya 28,420,378 shares
Provident Minerals Pte Ltd (Underwriter) 36,367,446 shares
On July 14th, Sihayo Gold Limited (the Company) announced the implementation of a small holdings sale facility (Facility) which provides eligible shareholders with the opportunity to sell their shareholding without incurring brokerage or handling costs. Eligible shareholders were sent a letter outlining the terms and conditions of the Facility on 18 July 2014.
It is important for eligible shareholders to note that as the Facility is being conducted on an ?opt out? basis, any shareholder wishing to retain their holding must take action in response to the letter to avoid their shares being sold.
The board is considering the future funding requirements of the company and an announcement will follow in due course.
In the interim the Company has sought and obtained a USD500,000 loan from major shareholders, which was fully drawn in July.
The Company finished the Quarter with a cash balance of AUD 56,000.
2. Sihayo Pungkut Gold Project
The Company continues to work toward completion of Statutory permitting & approvals as well as investigation of opportunities to further optimise the results of the feasibility study announced in relation to the Sihayo Pungkut Gold Project (?the Project?) on 29 January 2014.
The Project which has a JORC 2012 compliant Mining Reserve containing 554,000 gold ounces is located in north Sumatra Indonesia as per Figure 1 below.
Permitting and Approvals
The Project is located within a Generation VII Contract of Work (CoW) located in Northern Sumatra, Indonesia.
The Company holds an interest in the Project through 100% ownership of Aberfoyle Pungkut Investments Pte Ltd (API). The CoW is held by PT Sorikmas Mining (Sorikmas) which is operated under a Joint Venture arrangement between API - 75% and PT Aneka Tambang ? 25% (ANTAM).
On May 13th the Company announced 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?).
Key permits for the project to progress to the construction phase are being processed as follows:
- A GoIFS was submitted during February 2014 comprising technical and financial information in support of the project. We have participated in 3 meetings with Director General of Minerals & Coal within the Ministry of Energy & Mineral Resources (?MoEMR?) related to review of the GoIFS. Our latest plenary session was held 17 July 2014 and the company will subsequently make a further submission for final assessment.
- AMDAL assessment will be used by the Ministry of Environment (KLH) as an instrument for supervision over the project and regional development in the area of the operation. A submission has been made in relation to the ?terms of reference? (KA-ANDAL) for this assessment. We continue to await permission to proceed.
- Forestry or ?Borrow and Use? (Pinjam Pakai) permitting from the Forestry Department must be completed subject to receipt of final permits on the above.
Feasibility Study Optimisation
The company continues to pursue a number of scenarios that will optimise outcome of the 29 January Feasibility Study. The Optimisation Scenarios presented below demonstrate project sensitivity only and results have not been confirmed to ?Feasibility Study? standard.
1. Assumes initial access roadwork and associated land compensation/acquisition performed prior to project construction (~USD5M). (~USD4M remains for additional roadwork and upgrades)
2. Improved geological modelling and further review on Sydney Metcomps indicates a potential opportunity based on Au / As / % Recovery relationship. Further geological/geometallurgical assessment is under consideration.
3. USD0.16/Kwhr assumes a commercial IPP arrangement. We expect that USD0.11/Kwhr under a PLN arrangement yet to be confirmed (Total Project Power Requirement is 36-40Kwhr/t). Discussions continue with PT PLN Persero (PLN) in relation to potential power supply for the project. The company is also seeking out other potential alternatives that may substantially reduce operating cost for the project.
4. Lower earthmoving costs are expected due to improved trafficability/productivity as pit moves out of oxide material during Stage 2 (1/4/2022).
The company is reviewing earthmoving and access road construction costs and associated timing to complete construction.
3. Hutabargot Prospect
No activity to report
4. Surface Exploration
No activity to report.
Management continues to work with major shareholders in respect to ongoing funding requirements. The Saratoga and Provident Groups have indicated they remain supportive of the Company. (end of excerpt)