Sihayo builds cache of solid gold hits at namesake project

ASX-listed Indonesia gold explorer, Sihayo Gold has returned further solid gold hits from a diamond drilling program at its flagship Sihayo gold project in North Sumatra. Better results from the latest assayed hole at the brownfields Sihayo-2 prospect are 8.4m at an average grade of 2.56 grams per tonne gold from 47m and 9.8m going at 1.77 g/t from 77m.

These follow last month’s stand-out intersections from the Sihayo-2 near-mine gold-jasperoid target of 24.8m at 1.09 g/t gold from 52m including 6m at 2.46 g/t and 8m at 1.32 g/t from 96m including 1m at 4.4 g/t.

Sihayo has now completed 13 of the 20 planned diamond holes at Sihayo-2 for a total anticipated aggregate drilling coverage of 2,000m.

According to the company, the drilling data so far continues to support the potential for additional, low-strip ratio gold resources within trucking distance of the proposed main Sihayo gold production hub.

Sihayo-2 is perched on the interpreted north-west, along-strike extension and between 500m and one kilometre from the cornerstone Sihayo-1 gold deposit.

Sihayo-1 and the nearby Sambung deposit host an overall measured, indicated and inferred mineral resource of 24 million tonnes grading an average 2 g/t for 1.5 million ounces of contained gold.

Sihayo Gold released an impressive definitive feasibility study on its proposed Sihayo gold mining and processing “starter project” operation about 12 months ago.

The study projected a bumper average EBITDA of US$93 million per annum over an initial mine of eight years based on annual gold production averaging about 79,375 ounces.

The pre-production capital cost of the development has been forecast at US$144 million.

All-in sustaining costs of production were estimated at an average of US$709 an ounce and the development capital payback was put at 25 months.

Latest published proved and probable ore reserves for Sihayo-1 and Sambung stand at 12.5 million tonnes at 2.1 g/t for 840,000 ounces of contained gold, with Sihayo-1 speaking for 11 million tonnes at 2.1 g/t for 750,000 ounces of the total reserves.

Sihayo Gold Executive Chairman, Colin Moorhead said: “The latest drill results from Sihayo-2 provide further encouragement for the potential for additional near-surface gold mineralisation to support the company’s Sihayo starter project. The intercepts from Sihorbo demonstrate that it is a fertile structure with potential to host bonanza grade shoots.”

Six out of a planned 10 diamond holes have been drilled at the Sihorbo epithermal high-grade vein target on the western side of the Hutabargot Julu prospect about 6km south-east of the Sihayo project site.

Multiple moderate-grade gold-silver occurrences in narrow veins have been encountered, the company says.

Encouraging intersections from the first two holes were 4m at 2.12 g/t gold from 31m depth including 1m at 5.73 g/t from 32m depth and 1.2m at 1.64 g/t gold and 29.6 g/t silver from 32m depth.

Drilling continues at both Sihayo-2 and Sihorbo with further assay results expected in coming weeks.

Sihayo’s key targets – Sihayo-1, Sihayo-2, Sambung, Hutabargot Julu and Sihayo-3, 4 and 5 – occur within the Sihayo gold belt comprising two sub-parallel mineralised trends identified by earlier exploration.

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