Far East Gold kick-starts Java copper project after international group gains first right to buy

Indonesia explorer Far East Gold (ASX: FEG) has begun detailed geological mapping at its Trenggalek copper-gold project in Java following an international mining company taking a strategic equity stake in the Australian junior.

Last week it was reported that Luxembourg-based Eurasian Resources Group (ERG) had invested $4 million as an equity interest in Far East, giving it first right of refusal if Trenggalek is placed on the market.

Following that deal, field mapping and sampling are in progress at the Sentul and Buluroto prospects.

Previous drilling at Buluroto intersected “significant” copper mineralisation within a quartz-sulphide breccia and, says Far East, represents a priority porphyry-related drill target.

These represent epithermal vein and sulphide breccia type exploration targets, says Far East Gold.

Third prospect mapping soon

The company says it will soon begin mapping and sampling at a third prospect, Singgahan.

Previous drilling there confirmed the occurrence of several untested high-magnetic bodies.

These are seen as highly prospective, potential large scale, porphyry type copper gold targets.

The company has already identified four priority prospect areas for the next phases of advanced copper exploration.

Trenggalek is considered by Far East Gold as a comparatively under-explored area.

Eurasian now third largest shareholder

The Trenggalek copper gold project is a 12,813-hectare operation and production mining permit tenement which is regarded by Far East Gold as highly prospective for epithermal and porphyry related copper, gold and base metal deposits.

The project is located within the Sunda-Banda Arc, which is recognised as an important metallogenic belt that is host to several world-class porphyry and related mineral deposits.

ERG is a privately held diversified natural resources group, operating across Eurasia, Africa and Brazil.

With its $4 million investment, ERG becomes Far East Gold’s third largest shareholder.

Its first right of refusal is conditional upon ERG holding a minimum of 8 million Far East shares.

In forefront of copper, cobalt production

It is 40%-owned by the Kazakhstan government and is that country’s only aluminium producer.

Its operations across 16 countries includes the Frontier copper mine in the Democratic Republic of Congo.

ERG describes itself as in the forefront of cobalt and copper production with its Metalkol Roan tailings reclamation facility

Reprocessing historic waste dumps

Matalkol Roan is described as a comprehensive hydro-metallurgical facility to reprocess the historic tailings dumped into the environment from previous activities by other mining companies in the area in the 1950s when the DRC was a colonial territory, known as the Belgian Congo.

Metalkol was launched in 2018 and has a target potential capacity of 24,000 tonnes of cobalt and 120,000 tonnes of copper.

ERG is also a supplier of electricity and an operator of railways in Central Asia.

This year it began construction of a railway line in Brazil that will be capable of moving 60 million tonnes of freight per annum.