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Sihayo Gold (ASX:SIH) advances on 3-tier exploration strategy at flagship project

Highlights 

  • Sihayo Gold continues its drilling program at the Sihayo Starter Project and the Hutabargot Julu prospect.
  • The targets for the ongoing drilling campaign include Penatapan on the Hutabargot Julu prospect and Sihayo-2 on the Sihayo Starter Project.
  • The Company is moving forward with early works at the Sihayo Starter Project.
  • SIH is also engaged in project optimisation works, as indicated by the DFS report.

Sihayo Gold Limited (ASX:SIH) is continuing its aggressive exploration program in North Sumatra, Indonesia. The Company is progressing on its strategy of near-term production at the Sihayo Gold Project along with long-term resource and production upgrades at the project.

Read more: Sihayo Gold (ASX:SIH) in high spirits after encouraging gold intercepts from ongoing drilling campaign

The Sihayo Gold Project lies in the prolific Trans Sumatra Fault Zone (TSFZ), which is host to several gold projects with significant reserves and resources. The project lies within the 66,200ha Sihayo Pungkut JV 7th generation Contract of Work (CoW), of which Sihayo Gold Limited has a 75% interest in. The CoW exhibits significant potential for gold mineralisation and SIH has delineated several targets on the CoW to explore and upgrade its resource potential.

While the Company progresses development of its Sihayo Gold Project, Sihayo has formulated and progressed a 3-tier exploration strategy across the CoW. The main essence of the strategy includes:

  • Targeting additional resources within trucking distance of the Sihayo Gold Project
  • Identifying and exploring targets on the Hutabargot Julu Prospect
  • Regional exploration strategy to increase mineral resources and reserves of the project.

Sihayo Project Growth Pipeline (Image source: Company update, 19 April 2021)

Good read: Sihayo Gold’s (ASX:SIH) exploration gaining momentum amid rising gold prices

Ongoing drilling campaign

Sihayo has mobilised drill rig to Hutabargot Julu and Sihayo-2 prospect. The Penatapan target on Hutabargot was identified due to artisanal mining activities and later during the reconnaissance drilling on the prospect. The target yielded significant intercepts, including 9m @ 8.36g/t Au & 9.3g/t Au, from 8m.

Setting drill rig on Penatapan prospect (Image source: Company update, 5 July 2021)

To test the vein system at Penatapan, SIH planned 10 holes on the prospect. It will take around two three months to complete the drilling operations at Penatapan.

Sihorbo Vein Target –drill hole locations (Image source: Company update, 5 July 2021)

Drilling on Sihayo-2

SIH is concentrating on its effort to increase the mineral resources of the Sihayo Gold Project. The project currently holds a mineral resource estimate (MRE) of 1.5Moz of gold. SIH is planning to increase its resource potential within the trucking distance from the proposed processing plant site. To meet this objective, SIH has commenced drilling on the Sihayo-2 prospect.

Good read: Sihayo Gold (ASX:SIH) ramps up exploration, reports encouraging early gold intercepts

Sihayo-2 location map with drill hole locations (ASX: Company update, 13 July 2021)

A total of 30-hole drilling campaign was sanctioned for targeting the jasperiod on the prospect. As per the latest update from the Company, 20 holes have been drilled and they have hit a significant mineralised zone on the prospect. Some of the significant intercepts are:

Drill intercepts Sihayo 2 prospect (Data source: Company update, 13 July 2021)

Also read: Sihayo Gold (ASX:SIH) shares zoom 8% in 3 days on encouraging gold intercept result

The first hole in the ongoing campaign was spud in mid-March 2021. As per the last update, 20 holes were drilled and a total of 12 holes have been assayed so far.

Concurrent to the drilling program at Sihayo-2 and Penatapan prospects, SIH is also undertaking geotechnical and hydrogeological drilling on the project.

Stock update

SIH closed the day’s trade at AU$0.009 on 27 August 2021, with a market cap of AU$35.16 million.

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