Sihayo Gold updates Sambung Resource

THE DRILL SERGEANT: Sihayo Gold has upgraded the Sihayo‐Sambung JORC-Compliant Resource, within the company’s Sihayo Pungkut gold project in Indonesia.

The Sihayo‐Sambung Resource now stands at 16.4 million tonnes at 2.7 grams per tonne gold containing 1,427,400 ounces of gold.

“The robustness of our Sihayo‐Sambung Resource has been further strengthened,” Sihayo Gold chief executive officer Paul Willis said in the company’s announcement to the Australian Securities Exchange.

“In many cases, contained gold ounces decrease when converting lower confidence inferred resources to the higher confidence indicated category.

“We are very pleased with the combination of increased geological confidence and increased ounces within the Sambung Resource.

“We will be seeking to add to our resource inventory adjacent to our current resources as geological confidence increases through well planned future diamond drilling programs.”

The Resource update came as a result of an infill drilling program recently completed by Sihayo Gold at the Sambung Resource consisting of 56 holes.

The purpose of the drilling was to upgrade the previous Sambung JORC-Compliant Inferred Resource of 1.7 million tonnes at 2.2g/t gold containing 123,200 ounces to the higher Indicated Category.

As a result Sambung now boasts a JORC-Compliant Resource of 1.8 million tonnes at 2.2g/t gold containing 125,400 ounces, comprising 1.0Mt at 2.3g/t gold for 72,500 ounces in the Indicated Category and 0.8Mt at 2.1g/t gold for 52,900 ounces in the Inferred Category.

In order to include all the Sambung Resource into its Definitive Feasibility Study, Sihayo said a further 18 diamond drill holes will be completed as soon as possible.

 

Sambung Drill Plan (planned drill collars highlighted in green). Source: Company announcement

 

Upon completion of these additional infill holes, the company will target the potential Sambung Resource extension areas.

The company said initial metallurgical testwork for the Sambung mineralisation indicates average recoveries will significantly exceed those of the main Sihayo Resource.