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Sihayo to cost $58.7m

6th August 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – An updated feasibility study (FS) into the Sihayo gold project, in Indonesia, has increased the expected capital cost from the $58.7-million estimated in the start of 2014, to $153-million.

However, with an increase in the mineral resource estimate, the project is now expected to recover some 683 000 oz over a seven-and-a-half-year mine life, compared with the 427 000 oz projected in the 2014 FS.

The updated FS was based on a processing rate of between 1.5-million tonnes and 2-million tonnes a year, delivering some 91 000 oz/y of gold over the life-of-mine, ASX-listed Sihayo Gold said on Monday.

This compared with a processing rate of 750 000 t/y to deliver 43 000 oz/y considered in the original FS.

The updated FS has estimated a post-tax, post royalty net present value of $111-million.

The updated study was based on a mineral resource estimate of 1.6-million ounces, and a mining reserve of 761 000 oz.

Sihayo told shareholders on Monday that the company will now work with its major shareholders to determine options to finance the project, while approaches will also be made to potential sources of project financing.

The company will also submit amendments to the existing approved feasibility study and the environmental permit, and will continue to look for ways to optimise the Sihayo gold project.

Edited by Creamer Media Reporter

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