SIHAYO Gold has received approval to extend the feasibility study period for the Sihayo Pungkut Gold Project in North Sumatra until October 6, 2014. The extension was required to enable submission of the Government of the Republic of Indonesia Feasibility Study.
In February 1998, following application for an exploration licence, PT Sorikmas Mining (PTSM) was granted a seventh generation Contract of Work (CoW) with the government. PTSM is a joint venture between Aberfoyle Pungkut Investments and Aneka Tambang with the former holding 75% and the latter 25%. Sihayo Gold holds 100% of Aberfoyle and is manager of the JV responsible for funding and execution of activities.
A CoW is the highest standing legal mining tenure achievable in Indonesia. PTSM’s initial CoW covered 201,600 hectares but as a result of relinquishments, the CoW currently covers 66,200 hectares. Under a CoW a company is required to complete a feasibility study phase followed by a construction phase and then a 30-year production phase. At the end of the production phase, the company has the right to two 10-year extensions.
PTSM’s CoW is in the feasibility study phase for which it has been granted an extension until October 6. To obtain feasibility study approval, an Indonesian language document in a form stipulated by the Government is to be submitted to the Director General of Minerals & Coal within the Ministry of Energy & Mineral Resources for review and approval. The company made a formal submission of the Indonesia feasibility study in February 2014 and is awaiting a formal review meeting to review this submission.
Owing to the presence of protected forest within the CoW area, PTSM’s Environmental Impact Assessment (AMDAL) is being reviewed by the Department of Environment. A submission has been made to the environment ministry for approval of the terms of reference describing the expected project footprint, likely areas that will be impacted and the potential impacts. PTSM continued to await approval of the terms and permission to proceed with preparation of an Environmental and Social Impact Assessment.
To date Sihayo has identified a 1.4 million ounce JORC-compliant resource at the Sihayo Pungkut project. It has also identified highly prospective epithermal targets within an 11.5km mineralized trend at the Hutabargot Julu prospect that is within 10km of the Sihayo Pungkut project. The size and proximity of Hutabargot Julu to the proposed processing plant opens up the potential for targeting smaller high grade satellite zones as well as larger stand-alone targets