Sihayo updates N. Sumatra gold project activity
Friday, April 30 2010 - 02:37 AM WIB
Review of Operations
Pungkut Gold Project, North Sumatra (75%)
Summary
The Definitive Feasibility Study (DES) program continues to progress well at the 13.2 MT grading 2.4g/t Au (1.01 Moz) JORC compliant Inferred resource at Sihayo (Figure 1). Work is continuing in line with the aggressive timeline programmed to complete the DFS by December 2010 and be in a position to commence construction as early as possible in 2011.
Infill drilling of the Sihayo 1 North resource area is approximately 80% completed, the program has been expanded to include drilling of the Old Camp Prospect, which is considered to be an extension of the main Sihayo 1 North deposit. There are currently seven diamond drilling rigs operating on infill drilling at Sihayo with the aim of upgrading the resource estimate from Inferred status to Indicated status under the JORC code.
Results of the drilling during the Quarter have been successful in confirming good continuity of the mineralisation between drill holes. The drilling has identified two main lodes of mineralisation, an upper lode immediately below the Tertiary unconformity and a second deeper lode in the south eastern portion of the resource.
Of particular note during the quarter were the results of detailed drilling of the deeper lode at the south eastern end of the resource where drilling identified thick sections of high grade mineralisation including results such as 26m at 9.4g/t Au and 26m at 5.8g/t Au. Previous wide spaced drilling in this portion of the resource had identified sporadic intersections of high grade mineralisation 5 to 10 metres thick and of grades between 5g/t to l0g/t Au but the continuity of mineralisation could not be confirmed The recent drilling has now defined a continuous high grade lode which is expected to have an overall positive impact on the grade of the resource.
Based on the results of the drilling to date the resource remains open to the north, east and south.
Following the completion of the Infill drilling program, exploration drilling will continue with the initial aim of confirming extensions of the mineralisation around the current resource to expand the overall resource base. Further afield, work will be conducted to identify other areas with the same geological sequence as seen at Sihayp, in particular along the main Sumatran Fault Zone to the northwest and south east of Sihayo. Earlier work has identified geochemical anomalism along at least 7km of the fault system along strike between the Sihayo 2 and Dolok prospects (Figures 1 and 2), most of which has not been tested by drilling.
The Project Manager of the DES, Mr Greg Entwistle has joined Sihayo Gold Limited on a full time basis as the Company?s Chief Operating Officer and Project Manager. The Company believes this appointment is critical in achieving its stated aim of completing the DFS by December 2010 and be in a position to commence construction early as possible in 2011. Greg?s experience in managing the feasibility and development of the Martabe and Gosowong gold projects in Indonesia will complement the current DES team.
Metallurgical test work continued during the Quarter, approximately 50 bulk samples have been delivered to the
AMMTEC laboratory in Perth and are currently undergoing grind and leach tests and other process test work. The metallurgical program is expected to be completed in June.
Geotechnical and sterilization drilling of the proposed site for the tailings storage facility (TES) have commenced with GHD managing the work and is expected to be completed during the 4th Quarter. Geotechnical drilling of the resource area has also commenced.
Baseline environmental studies have been completed by Golder and Associates in Indonesia.
Following successful preliminary studies two international groups are currently conducting detailed studies into the viability of the use of hydro electric power for the mining operation. (end of edited excerpt)