Sihayo updates N. Sumatra gold project activity
Monday, January 31 2011 - 08:36 AM WIB
Sihayo Pungkut Gold Project, Sumatra (75%)
Ongoing resource definition and extension drilling continued throughout the December quarter. A total of 47 holes were completed for 8,142 metres.
The resource definition and extension program with up to five diamond drill rigs has focused on the northern lode adjacent to the main Sihayo resource and on two odes immediately to the south of the current resource boundary.
These two areas of mineralisation will form the basis for the first incremental increase of the Sihayo JORC compliant resource estimate due in March.
Diamond drilling will continue as a combination of resource definition and exploration drilling along strike from the Sihayo resource. The drill program will be a combination of extending existing drill holes to seek preferential lithological boundaries that potentially host gold bearing jasper and new holes to test extensions of known mineralisation.
The possible northwest and southeast extensions of the Sihayo resource, represent a combined strike length of approximately 4.5km.
Regional Exploration
Detailed mapping and sampling of the Tambang Tinggi prospect continued throughout the quarter.
The prospect covers an area of approximately 2.8km east to west and 1.6km north to south. Within this area are extremely encouraging gold and copper results in drilling (historic scout program), rocks and soil samples.
An IP survey commenced during the quarter and is now approximately 50% complete.
A new drilling program is being finalised and drilling is expected to commence in February.
Sihayo Pungkut extension
detailed soil sample program was completed during the quarter and grid establishment was completed for an
IP survey to aid in drill targeting along strike and at depth from the current Sihayo and Sambung Resources;
Hutabargot Julu
The Hutabargot Julu prospect is an epithermal gold style prospect with multiple sub-parallel veins that have yielded historic drill intercept of 5m @ 37.7 g/t from 47m. The prospect is located approximately 7km southeast of the main Sihayo resource and exploration commenced in October 2010. This initial work program has been focused on grid re-establishment for soil / IP surveys, geological mapping and rock chip sampling to aid in drill target definition.
Airborne Magnetic Survey
An airborne magnetic survey over the entire COW commenced in January 2011. The airborne survey will have a particular emphasis on known porphyry copper gold style targets such as; Singalancar, Tambang Tinggi, Rura Balancing, Namilas, Siandon and Mandagang.
Definitive Feasibility Study (?DFS?)
The DFS has progressed well during the Quarter and remains on schedule for end of March completion.
During the quarter the metallurgical test program was completed. The test work has confirmed that a standard CIL plant configuration is the preferred option.
The Process Flow Diagrams, design criteria and equipment selection has been finalised.
The geotechnical programs to assess the ground conditions in the selected sites for the Tails Storage Facility (TSF) and plant site have been completed and the DFS design of both the TSF and plant site have been completed.
The site water balance and hydrology investigation were also completed.
DFS Engineering has been completed with the final costings for the Opex and Capex now being analysed and optimised.
Golder and Associates have completed the environmental baseline study and now completing the full AMDAL study as required by Indonesian regulations.
Indonesian consulting engineers, PT. Indra Karya (?PTIK?) in association with engineering firm SMEC (Snowy Mountains Engineering Corporation), continued work on the detailed Feasibility Study into the potential supply of hydro electric power to the Sihayo Pungkut gold project. The feasibility study is due for completion by the end of March. The potential hydro electric power plant would be a ?run-of-river? project with no requirement for darning the river. (end of edited excerpt)