Update on Sihayo Pungkut gold project feasibility study

By Puspita Maylana Devi

ASX-listed Sihayo Gold Limited said it has developed a plan for mining the near surface mineralisation at the Sihayo Pungkut gold deposit in North Sumatra as part of a proposed staged development strategy.

Indicative results are highlighted as follows:
? 4.6Mt Ore mined @ 2.4g/t Au
? Waste to ore strip ratio 1.8: 1
? Processing Rate 75oktpa
? 276,000 Ounces of recovered gold produced (includes 264,500oz from Measured & Indicated ore and 11,500oz from Inferred ore)
? Initial 6 year Stage 1 mining period
? Average Processing recoveries 78%
? Average Site Cash Operating Costs US$635/oz1 (assumes diesel fuel power supply)
? Construction Capital Estimate US$55 - US$60M equates to US$208/oz (includes diesel power generation and excludes contingency).

These results reflect improved outcomes from metallurgical test work that has been completed and reflects coarser grinding requirements and lower retention times than previously identified, the firm said in a statement on Thursday.

?Please note we continue to refine the process plant operating parameters, mine design & schedule and associated operating costs that will also be impacted by further results from pending metallurgical test work on Stage 1 due for completion in November,? it said.

Alternative power solutions, such as a coal fired power plant have the potential to significantly reduce processing costs but will require some additional CAPEX. The full evaluation of alternatives will take several months to be refined.

?While developing our planning, we continue our efforts to realize significant value from the remaining gold ounces contained within the total JORC Compliant Resource,? it said.

A further 700,000 ounces remains within the Measured and Indicated Resource category that is being considered for extraction via either surface and/or underground mining from subsequent stages of the Project.

?Stage 1 is aimed at developing an operating scenario that quickly repays initial capital and provides an operating footprint to realize the value from known resources at depth as well as from other exploration prospects such as Hutabargot?, says Mr. Stuart Gula, Chief Executive Officer.

The company has adjusted its activity to reduce in-field exploration work and prioritize permitting and approvals required to advance the project.

Editing by Johannes Simbolon