Major breakthrough for Far East Gold at key Indonesian project
Far East Gold is the first company to drill Woyla in its 25-year history, despite majors Barrick and Newcrest being previous explorers of the landholding.
For the first time in its history, the Woyla copper-gold project in Aceh owned by Far East Gold (ASX: FEG) can now be drilled over its entire strike length.
The Indonesian Government has issued a decree granting a borrow-use licence.
The licence is being issued as Izin Perseetujuan Penggunaan Kawasan Hutan (IPPKH) — translated as borrow-use licence — which is is the administrative process required for advanced exploration to occur in the forest designated section of the tenement.
The Woyla project was previously explored by both Barrick Gold and Newcrest Mining (ASX: NCM) and, in its 25-year history, neither they nor any other company has been able to achieve this breakthrough.
‘One of the most prospective’ deposits in South East Asia
Woyla covers 24,260 hectares and is located in the Aceh province at the northern tip of Sumatra.
“The grant of the IPPKH is a significant result for the Woyla project and provides the company with the first ever rights to explore and drill the entire 13,000m of defined strike length and other targeted areas of geological interest in the tenement,” Far East Gold noted.
“In the company’s opinion, this project is one of the most highly prospective, undrilled copper gold projects in South East Asia.”
The company added that Woyla has the potential to host high grade epithermal and porphyry deposits.
Far East Gold holds a 51% stake, which will increase to 80% upon completion of a feasibility study and a maiden JORC resource estimate.
‘Remarkable’ results so far with exploration
The company says it has built on previous exploration work and seen “remarkable” results so far.
These include extending the strike length of known vein systems to 13,000m and confirming the presence of “bonanza” grade gold, with assay results of up to 119 grams per tonne gold and 1,179g/t silver.
Far East Gold’s initial diamond drill program will test the resource potential of the 4,700m Anak Perak epithermal vein system.
Some 1,000m of that is outside the designated forest zone.