• Far East Gold is undertaking a placement to raise $3.5m
  • Funds will be used to expedite exploration at the company’s three projects in Indonesia
  • All projects are at the precipice of major value creation with news expected over the next six months

 

Special report: With the gold price trading near all-time highs of around US$2400/oz, Far East Gold is positioning itself to replicate the achievement Justin Werner has previously had in Indonesia’s nickel scene.

Far East Gold (ASX:FEG) is charting a course to success following the appointment of one of Australia’s most successful mining executives – Justin Werner – and the acquisition of a potentially multi-million ounce gold project in Indonesia earlier this month.

Known for his success as managing director of Nickel Industries (ASX:NIC), a minnow which has morphed over the past decade into a $3.5bn mega miner and one of the world’s largest nickel producers, FEG appointed Werner as chairman to help fast-track development across the company’s prospective copper and gold projects.

Werner has been involved with FEG since its inception and will use his knowledge of Indonesia’s mining industry, which he has been involved in for more than two decades, to help the company in its next phase of growth.

 

Tier 1 project portfolio

The $46m market capped explorer has assembled an attractive package of potentially tier-1 projects in Indonesia, which are all on the cusp of significant news flow including the recent acquisition of the advanced Idenburg gold project.

Idenburg sits in Indonesia’s Papua Province and comes with a strong pedigree of its own, with some of the world’s largest gold producers previously exploring the property such as Barrick, Newmont, Newcrest and Placer Dome.

The 95,280-hectare (952.8km2) land-holding is known for high-grade gold occurrences characteristic of orogenic gold systems, similar to WA’s major mining hub of Kalgoorlie and its surrounds and the Mother Lode district of California.

Already boasting an exploration target of up to 7.2Moz of gold at a grade of up to 6.1 g/t spread across 14 prospect areas, FEG is looking to carry out confirmatory drilling to potentially release a maiden resource on the asset.

 

14 prospects have been identified at Idenburg with five of them having been tested by previous exploration drilling. Pic: Far East Gold

 

At Woyla in Indonesia’s Aceh region, recent drilling has uncovered some of the best cumulative gold intercepts to date including a thick 20m intersection containing 7.56g/t.

The explorer is farming into the project, which it believes is one of the most prospective, underexplored assets in South-east Asia, and plans to release a maiden resource as well as kickstart the planning of a feasibility study over the next six months.

FEG has also been in collaboration with Eurasian Resources Group (ERG) over the evaluation of select priority target areas at the Trenggalek project using structural and magnetic data alongside recent surface mapping and rock sampling.

This work confirmed an additional porphyry-related mineral system with the Ngerdani target area, bringing the total number of porphyry-related systems identified within the Trenggalek to six.

The explorer is now looking to test nine defined porphyry-related targets as part of an upcoming phase-1 drilling program.

 

Priority 1 and 2 structural targets primed for follow-up work. Pic: Far East Gold

 

$3.5m pegged to fund resource development and permitting

FEG is looking forward to a year of milestones with a war chest of $3.5m to spend across its three gold-copper projects in Indonesia.

At an offer price of 13.6c per share, the placement represents a discount of 24.44% to the last traded price of 18c.

Given the quality and pricing, FEG attracted strong interest from sophisticated and professional international and domestic investors.

Funds will be used to establish a JORC resource at Idenburg, as well as advance permitting, conduct desktop work and modelling at Woyla for an upcoming resource, and carry out drilling programs at Trenggalek.

In an interview with Stockhead, Werner says he is extremely excited to step up as chairman during such a pivotal time for Far East Gold.

“Indonesia is simply the land of opportunity, possessing vast untapped natural riches similar to those that I have seen previously in the nickel space,” he says.

“The benefits of working in the country include very low costs of production, low exploration costs and significant local employee talent within an underexplored region.

“We believe that the year ahead will mark a significant leap forward for our business.”

For further investor information and to learn more about FEG and its activities, click here.

 

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.

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