Far East just doubled the strike length at Woyla with some better-than-bonanza grade gold potential
Link copied to
Far East Gold has high hopes for its Woyla copper-gold project in Indonesia, which has just returned bonanza grade gold assays and nearly doubled its strike length ahead of the company’s $12m IPO next month.
Rock samples delivered grades of up to 119 grams per tonne (g/t). That’s well above the 20-30 g/t required to meet bonanza grade.
Far East Gold (ASX:FEG) says it’s nearly doubled the strike length of 10.4 kilometres since earlier exploration work last year, suggesting there’s “even more potential for significant gold resources”.
“These factors brand the Woyla tenement as a potential Tier 1 gold project – along the lines of Newcrest’s (ASX:NCM) Gosowong project, which yielded more than six million ounces of gold,” chairman Paul Walker said.
“With the results from December’s exploration work, we have confirmed our focus on an initial drill program, which could begin as early as the first half of this year.”
The company has six advanced projects – three in Indonesia and three in Australia – spanning more than 45,000 hectares and with multiple walk-up drill targets.
Walker, Werner and Menere – an Indo-experienced dream team
FEG says its Indonesian prospects represent potential in its underexplored mineral resources and cost-efficient operations – particularly considering the management team has extensive on-ground operational expertise and mining experience in the country.
Walker has 30 years’ experience in international business, capital raising, and resource projects, non-executive director Justin Werner is a 20-year mining veteran and managing director of ~$4 billion company Nickel Mines, and CEO Shane Menere is an expert in leading major projects from exploration to operation.
In August 2021, FEG successfully applied to change the forestry designation of 7665 hectares of land in Indonesia’s Woyla area – opening the path for the first-ever drilling/advanced exploration activities and future operations to occur on this project.
Then there’s Indonesia’s Wonogiri tenement, which has a JORC 2012 resource estimate of 996,500 ounces of gold and 190 million pounds of copper.
The leadership team holds a strong ~39% skin-in-the-game – with the company having secured rights to acquire between 80-100% economic interest in the projects.
Aussie projects ‘highly prospective’
The company’s three Australian projects are in Queensland’s Drummond Basin and Connors Arc areas, which are highly prospective for epithermal gold and copper gold porphyry deposits and are near world-class operational mine sites.
The Drummond Basin has historically produced more than 4.5 million ounces of gold with a total known gold endowment in excess of 7.5 million ounces of gold.
And both the Drummond Basin and Connors Arc have proven to be fertile ground for the discovery of epithermal and intrusive related gold systems.
Gold still a safe haven for investors
Walker says gold has performed well over the past year and a half and has “maintained its long-standing reputation as a ‘safe haven’ for investors in times of market uncertainty.”
“In the face of rising inflation, and corresponding interest rates, investing in gold stocks has proven to be an effective hedge and portfolio de-risker,” he said.
“The market for gold is expected to grow to $249.6 billion by 2026, exhibiting a compound annual growth rate (CAGR) of 3.1% between 2021 and 2026.
“Copper has also demonstrated impressive gains in the past year, with its prices breaching all-time highs. Post-COVID fiscal stimulus and green energy transition acted as the major contributors to copper’s demand.”
Add to this, ongoing supply challenges which are expected to support the red metal’s price well into the years ahead, while the global copper market is tipped to hit US$310 billion by 2026, exhibiting a CAGR of 5.1% between 2021 and 2026.
To hear more about the IPO offer, join Far East Gold for an investor briefing by visiting this page.
With the link to – https://fareastgold.investorportal.com.au/