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Exploration|Gold|PROJECT|Roads|Environmental
exploration|gold|project|roads|environmental

Sihayo to dish up 635 000 oz

23rd June 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The Sihayo gold project, in North Sumatra, will produce some 635 000 oz over an eight-year mine life, a definitive feasibility study (DFS) has found.

ASX-listed Sihayo Gold on Tuesday said that the DFS estimated the project would deliver earnings before interest, taxes, depreciation and amortization of $630-million over its mine life, and gross sales of $1-billion.

The two-million-tonne-a-year operation is estimated to have a pre-production capital cost of $144-million, with the after-tax net present value estimated at $205-million and an internal rate of return of 28%, based on a gold price of $1 700/oz.

The DFS is based on a mineral resource estimate of 24-million tonnes, at 2 g/t gold for 1.5-million ounces of in-situ gold, and an ore reserve of 12-million tonnes, at 2.1 g/t gold for 840 000 oz.

Sihayo told shareholders on Tuesday that the project was at an advanced stage of development, allowing it to be brought online in quick succession.

Over the next 12 months, the junior company will start early capital works to complete critical path items, including the development of site access roads, completing project and environmental permit approvals, and obtaining project finance from commercial banks.

Sihayo will also undertake systematic exploration to establish near-mine gold targets.

Edited by Creamer Media Reporter

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