Indonesia-focused gold explorer Sihayo Gold has tabled a maiden resource for the company’s Sihorbo South deposit within its Hutabargot Julu project and in the process piled on another 100,000 ounces of gold to its 1.56-million-ounce base.
The welcome maiden resource comes in at 6.4 million tonnes at 0.5 grams per tonne gold and 17 g/t silver, containing 100,000 ounces of gold and 3.6 million ounces of silver. The contained combination of silver and gold equates to 150,000 gold ounces.
The company has been actively exploring several prospects with the potential to become satellite operations located within trucking distance of the company’s flagship Sihayo Starter project which incorporates the two deposits constituting the bulk of the 1.56-million-ounce resource.
Sihorbo South is the first of these prospects outside the starter project to have a mineral resource estimate published.
The company plans to conduct a scoping study to assess the potential to include the new resource as a satellite operation for the starter project.
Additional drill holes will be required to upgrade the resource classification.
A follow-up drilling program is being planned and may be implemented upon the completion of ongoing drilling activities at Sihayo.
Sihayo Gold Executive Chairman, Colin Moorhead said: “Sihorbo South is the first and most advanced of our many epithermal targets identified to date within the Hutabargot Julu prospect area.”
The Sihorbo South mineralisation extends from the surface to a depth of 200m and is open along strike and at depth with the ratio of gold to silver increasing to the south.
Significant potential remains for additional resource growth in adjacent vein targets located within Hutabargot Julu.
Whilst the company says its new resource is of modest scale, it is eyeing to potentially grow the resource and discover others in the area.
The starter project has also shown to be quite price sensitive to the addition of incremental ounces and as such the company expects with further work the Sihorbo South resource will make a significant impact on the project.
Sihayo recently commenced an eight-hole drilling program for 2500m to test for extensions to higher-grade gold mineralisation located below its premier 1.4-million-ounce Sihayo deposit.
Five holes of the eight-hole program have been completed with another currently in progress.
The company anticipates the results to be received during the coming months.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
