IPO bolter Far East Gold finishing debut year in a canter, confirms gold-silver in ‘massive’ quartz zone at Rek Rinti
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One of the ASX’s most successful IPOs this year has confirmed multiple zones of gold and silver mineralisation at one of its bonanza grade projects in Indonesia.
Far East Gold (ASX:FEG) has completed preliminary assay results for its entire Rek Rinti drillhole (RDD004) at the Woyla Project in Indonesia which show 3.43g/t gold equivalent over 30m, within a “massive” quartz zone.
Rek Rinti first made headlines back in April, just a month after FEG listed on the ASX, returning bonanza grades of 38.14g/t gold, 581g/t silver and 46.38g/t gold, 138g/t silver.
Now, with all preliminary assay results from the Woyla Copper Gold Project in and confirming the huge resource potential, Far East is ready to start a resource delineation drill program.
Highlights on a gold equivalent (AuEq) basis include:
The gold-silver mineralised zones remain open along strike and to depth, and FEG still has three diamond drill rigs active, two at Rek Rinti and one at the Anak Perak prospect area. Surface mapping has also identified multiple separate veins at Rek Rinti, four of which are still being tested in the phase 1 drill program.
Nearly 4000m of the Phase 1 drilling program of 4700m has now been completed and FEG expects the full program to be done by the end of 2022. Preliminary assays so far cover 2350m of that program and FEG expects the remaining assays to be in early 2023, to further inform the planned resource delineation.
It caps a run of good news flow for FEG, which on Friday announced its recent Share Purchase Plan raised $4.4 million, well above its initial target of $1.5 million. The new shares were issued at $0.50 per share, a slight discount to the current price of $0.53.
The extra funding brings the total successfully raised in December to more than $6.5 million in December. Funds will be used for further exploration at the Woyla project and cover the cost of offers.
FEG listed on the ASX in March with a $12m IPO at $0.20 a share and is now up some 155% for the year, making it one of the most successful listings this year.
It holds six advanced stage tenements across Australia and Indonesia including a 1Moz and growing gold resource at the ‘Wonogiri’ project in Indonesia as well as the Woyla Project which was previously held by Barrick Gold and Newcrest.
These major miners identified several drill targets but were never able to start due to forestry designations – an issue Far East has bested.
There’s also ‘Trenggalek’, where more than 17,700m of drilling has been carried out to date.
Last month the company raised $3.6m for Woyla exploration and aims to release preliminary assay results from the Anak Perak and Rek Rinti drill programs before the end of the year.
With no vein exposed at the surface, RDD004 was drilled to test a projected vein near hole RDD001-003. It scored a big hit 98-159m from surface, intersected a 61m wide zone of massive quartz representing an apparent true width of 56m.
FEG says “very rare” fine-grained electrum mineralisation was noted at 108.8m downhole associated with an assay of 78g/t Au and 631g/t Au over 0.5m.
The full prelim assay shows significant gold and silver mineralisation occurs over wide intervals associated with zones of multiphase quartz veins and quartz breccia.
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.