Name of the Project
Sihayo gold project.

Location
The project is located in North Sumatra, Indonesia.

Client
Sihayo Gold.

Project Description
Sihayo has proven and probable reserves estimated at 11.39-million tonnes grading 2.1 g/t gold, and measured, indicated and inferred mineral resources of 23.4-million tonnes grading 2.1 g/t gold.

A feasibility study has proposed a production rate of about 91 000 oz/y using an owner mining and management concept to reduce operating costs.

Mining will be conducted using conventional openpit mining methods (drill, blast, load and haul) by an owner-operator mining fleet using 50 t excavators, and 38 t articulated dump trucks. A conventional carbon-in-leach circuit will process the ore but will include a ReCYN, or resin-based technology plant, for the recovery of reagents and detoxification. The processing plant will have a 1.5-million-tonne-a-year to 2-million-tonne-a-year capacity at an average recovery of 74% delivering 91 000 oz/y over the life-of-mine (LoM).

About 683 000 oz are expected to be recovered over a 7.5-year LoM.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $111-million.

Value
The project is estimated at $152.8-million.

Duration
Not stated.

Latest Developments
Sihayo Gold will now work with its major shareholders to determine options to finance the project, while potential sources of project financing will also be approached.

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 project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sihayo Gold, tel +61 427 401198 or email sihayogold@sihayogold.com.