Far East Gold has been one of the most successful IPOs of 2022 and there are some really good reasons why the company has held on to most of its gains since listing in March.

Shares in the company were quick to climb past the 20c listing price, remaining for the most part in the band between 30c and 40c up, starting to find its feet from mid-July before shooting up in mid-September to the plus 60c mark where it has stayed ever since.

Holding on to gains of more than 200% is not something that most IPOs can boast of achieving and it all boils down to the trail of success that Far East Gold (ASX:FEG) has enjoyed.

At the core is the company’s flagship Woyla copper-gold project in Indonesia that was previously held by luminaries such as Barrick Gold and Newcrest.

Despite their interest, neither gold major was able to secure key forestry and environmental approvals to drill at the project, which made Far East’s ability to secure the go ahead to tread where others were unable to do so all the sweeter.

This led to first-ever drilling at the Anak Perak prospect within the Woyla project following early stage rock chip sampling that returned bonanza grade assays of up to 119 grams per tonne (g/t) gold and 533g/t silver.

Assays underway

While laboratory assays are still pending (and imminent) for the drilling, all six of the holes drilled to date in the Phase 1 18-hole program have intersected the Main Zone quartz vein breccia system, which show consistent vein width along the 200m of strike length tested to date.

Visual observations of drill core continue to support the company’s interpretation that Anak Perak is a multistage vein-breccia system with vein textures and styles of mineralization consistent with those documented within other low-sulphidation type epithermal Au-Ag deposits.

Ginguro banding – a common feature seen in high-grade epithermal deposits, such as the 6Moz Gosowong mine in Indonesia – has also been observed in the quartz veins.

Further drilling and exploration

While the Anak Perak prospect within the Woyla project is a key focus of the company’s activities, it is certainly not the end all or be all. Drilling has also started at the Woyla project’s highly prospective Rek Rinti prospect area, which also contains ginguro banding and where sampling has returned results of up to 46g/t gold and 664g/t silver.

Over at the Wonogiri project, Far East has secured environmental technical approval for air emissions as part of its proposal to develop and mine the 1.15Moz gold equivalent deposit.

Metallurgical testwork has also proved that gold recoveries of up to 96% are possible and work has started on an update to the 2016 scoping study.

In Australia, the company has completed its first phase of a 11 hole drill program at the Hill 212 project in Queensland, which is located near the Pajingo Mine’s Vera Nancy deposit, which has produced over 3Moz of gold at an average grade of 10g/t.

Far East Gold has also defined an Exploration Target for the Mount Clark West Copper Gold project located in Central Queensland. Historical drilling returned a 104m intersection grading 0.1% copper with a higher-grade zone of 14m at 0.23% copper. The Exploration Target has a range of 400Mt at 0.4% Cu Eq to 650Mt at 0.6% Cu Eq.

Experienced leadership

Guiding all this activity is Far East’s experienced board and management with chairman Paul Walker having 30 years’ of experience in international business, capital raising and resource projects. Non-executive director Justin Werner is a mining veteran with extensive on-ground experience over the 20 years he has spent in the industry.

This includes serving as managing director of $2.1bn company Nickel Industries, co-founding private gold explorer Gemala Borneo Utama and providing consultancy services to Freeport-McRoRan regarding their giant Grasberg mine.

Michael Thirnbeck – the company’s newest non-executive director – brings over 30 years’ of broad mining, corporate and commercial experience while managing numerous mineral development projects in Papua New Guinea, Indonesia and Australia.

Chief executive officer Shane Menere also has over 15 years’ experience working with and supporting some of the largest mine sites throughout Asia Pacific and is an expert in leading major projects from exploration to operation.

This combination of on-ground operation and Indonesian mining experience has been clearly demonstrated by the company’s ability to secure approvals where even majors failed – see Woyla.

This article was developed in collaboration with Far East Gold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.