Sihayo Gold Limited (ASX:SIH) has intersected some moderately thick high-grade gold in recently completed drilling on the company’s Sihayo Starter Project in North Sumatra, Republic of Indonesia.
The primary objectives of the seven-hole, 2,216 m diamond drilling programme were to test for potential extensions to known deeper high-grade gold mineralisation located below the planned Sihayo starter pit.
“The existing Sihayo model clearly shows grades and thicknesses improving at depth to the south of the current optimised pit-shell, however that mineralisation has been, until now, considered to be largely refractory in nature,” Executive Chairman, Colin Moorhead, said.
“Encouraged by strong improvements in metallurgical recoveries arising from High pH (Caustic) Leaching at Sihayo, the Company targeted seven new holes into this area to assess the potential for an underground mining opportunity and explore for indications of a high-grade feeder zone.
“Results from this drilling have confirmed the grade and thickness of some of the deeper mineralisation in the model and has indicated extensions to the known high-grade gold zones. Furthermore, mineralised composites have been tested for the impact of High pH Leaching with results very much in line with our new metallurgical model.
“A mining study has commenced to assess the potential for a small underground mine and assess the trade-off between open pit and underground mining at Sihayo.”
The holes completed in this recent drilling programme have tested some deeper zones within the Sihayo gold resource, which are characterised by locally high gold grades identified by historic drilling. These deeper zones fall within the Inferred Mineral Resource category and are not included in the current Ore Reserve estimate due to insufficient drilling data being available to accurately define their extent and geometry. The holes were located on the southern end of the proposed pit shell.
Gold results were received for the seven holes and are highly encouraging. Five of the seven holes returned high-grade gold intercepts and confirm the continuity and extensions to some of the high-grade gold mineralisation previously identified beneath the Sihayo starter pit.
The high-grade gold mineralisation is open in several directions, and with additional drilling, there is potential to join some of the currently disconnected resource blocks into larger coherent zones of high-grade mineralisation or lead to the discovery of a higher-grade feeder zones below the Sihayo deposit.
For further information please visit: https://www.sihayogold.com