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

Summary

  • Sihayo continues drilling exploration at its flagship Indonesian gold project, targeting near-mine jasperoid mineralisation on the Sihayo-2 prospect.
  • A total of 30 holes are planned, and twenty have been drilled so far, returning encouraging gold intercept results.
  • The near-surface gold mineralisation on Sihayo-2 is in line with the Company’s objective of finding additional mill feed within trucking distance of the Sihayo Starter Project processing plant location.
  • Sihayo-2 presents an excellent potential for additional low-strip ratio gold mineralisation with favourable metallurgical recoveries.

Indonesian gold explorer and developer Sihayo Gold Limited (ASX:SIH) has embarked on an ambitious exploration journey to unlock the gold potential of the North Sumatra region. The Company has drilled several holes at the Sihayo-2 prospect to evaluate the potential for extensions to the existing resource at the Sihayo Starter Project.

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

Sihayo has developed a three-tier exploration strategy to uncover the project’s gold potential. The main components of the strategy are:

  1. Targeting additional resources within trucking distance of the Sihayo Starter Project
  2. Exploration drilling on targets identified on the Hutabargot prospect
  3. Regional exploration strategy to identify priority targets on the Contract of Work (CoW)

In line with the above strategy, Sihayo has commenced a 30-hole drilling campaign at the Sihayo-2 prospect. Sihayo-2 lies in close proximity to the proposed Sihayo processing plant.

Sihayo-2: Near-mine opportunity for shallow mineralisation

Sihayo-2 is located on the open northwest strike projection of the Sihayo gold belt. Situated at a distance of 500m-1,000m from the Sihayo-1 deposit, the Sihayo-2 target hosts a strong concentration of jasperoid boulders and outcrops located along a narrow NW-SE oriented ridgeline.

Drill hole location on Sihayo-2 (Image source: Company update, 13 July 2021)

For more on project: Sihayo Gold (ASX:SIH) ramps up exploration, reports encouraging early gold intercepts

Drilling Campaign on Sihayo-2

Sihayo commenced drilling at Sihayo-2 in mid-March of this calendar year. The campaign was planned for diamond coring in 30 holes with a total depth of approximately 3,000m. The objective was to test additional gold resources and provide geotechnical data for mine planning.

As per the 13 July update, Sihayo has completed drilling of 20 holes for 1,883m during the ongoing campaign. Twelve of these holes have been split and sampled for assaying.

Significant gold intercept results are:

Copyright © 2021 Kalkine Media Data source: Company update, 13 July 2021

Significance of the assay result

The results indicate a potential for additional low strip ratio gold mineralisation located in the close vicinity of the proposed Sihayo plant site. The data indicates that mineralisation at Sihayo-2 occurs over some 250m of strike length and has up to 10-15m true thickness along the ridgeline on the western side of the prospect.

Mineralised jasperoid in sandy limestone (Image source: Company update, 13 July 2021)

Jasperoid boulders and possible outcrops are located along the adjacent valley designated for the proposed waste dump. The current drilling campaign will test the area for gold-jasperoid mineralisation.

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

Mr Colin Moorhead, Executive Chairman of Sihayo Gold, gave his reaction on the intercept result and said:

“The results are in line with our aims for the Sihayo-2 exploration program and support the presence of near surface mineralisation located close to the existing Sihayo Starter Project Resource. Further investigations are underway to assess whether the occurrence is potentially economic as early mill feed.”

Further, concurrent with the drilling campaign at Sihayo-2, a geotechnical and hydrogeological drilling program is in progress to support the optimisation and design work for the Sihayo Starter Project.

Drilling has also commenced on the Penatapan prospect at Hutabargot Julu, with first results expected towards the end of the month.

Shares of SIH last traded at AU$0.009 on 21 July 2021. The Company has a market cap of AU$33.16 million.

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