Far East Gold Unveils Initial Resource Estimate for Idenburg Gold Project
FEG (FEG) Share Update November 2024 Wednesday 13th
Far East Gold Announces Initial Resource Estimate for Idenburg Gold Project
Far East Gold Limited (ASX: FEG) has announced an initial JORC-compliant inferred resource estimate for its Idenburg Gold Project in Papua, Indonesia, marking a significant milestone in the company's exploration efforts.
Instant Summary:
- 540,000 ounces of gold at 4.1 g/t and 468,000 ounces of silver at 3.6 g/t.
- Resource estimate based on 3 of 14 identified prospects: Sua, Bermol, and Mafi.
- Potential for resource expansion with further exploration.
- Logistical advantages due to location near Trans Irian Highway.
- CEO Shane Menere discusses the announcement in a video available on the investor hub.
Resource Estimate Details
Far East Gold has announced an inferred resource of 540,000 ounces of gold at a grade of 4.1 g/t and 468,000 ounces of silver at a grade of 3.6 g/t at its Idenburg Project. This estimate was independently determined by SMG Consulting and is based on historical drill data supplemented by new topographic surveys.
The resource estimate covers three prospects: Sua, Bermol, and Mafi, which are part of a larger area with 14 identified prospects. The inferred resources were calculated without additional drilling, highlighting the project's potential for further expansion.
Project Location and Logistics
The Idenburg Project is located in Papua, Indonesia, near the border with Papua New Guinea. The project benefits from its proximity to the all-weather Trans Irian Highway, which provides easy access and cost-effective logistical support compared to other projects in the region.
Exploration and Future Plans
Far East Gold plans to expand the resource through detailed surface mapping and sampling, followed by a Phase 1 drill program. The company is optimistic about the potential for discovering additional resources within the under-explored areas of the project.
The announcement of the initial resource estimate is a positive development for Far East Gold, potentially boosting investor confidence and interest in the company's exploration activities. The project's location and logistical advantages further enhance its attractiveness. However, the inferred nature of the resource means that further exploration is needed to confirm these estimates and potentially upgrade them to indicated or measured resources.
Investor Reaction:
Analysts are likely to view this announcement as a positive step forward for Far East Gold, given the significant resource potential and strategic location of the Idenburg Project. However, the classification as an inferred resource suggests that further exploration is necessary to fully realize the project's potential.
Conclusion:
Investors should keep an eye on Far East Gold's upcoming exploration activities and any updates on the Idenburg Project. The company's ability to expand and upgrade the resource will be crucial in determining the project's long-term value.