Sihayo (ASX:SIH) strike more lengthy Indonesian gold

Sihayo’s latest three drill holes have all returned with lengthy stretches of high-grade gold, including 50m @ 7.75 g/t Au at its nameplate project in the North Sumatra province of Indonesia.

The ongoing drilling seeks to test the depth of the increasingly precious yellow metal at the site, with hopes it will lead to an upgrade of Sihayo’s existing 1.5-million-ounce resource and investigate the viability of an independent underground mine.

Other highlights include 22m @ 13.14 g/t Au from 228m, 32.0m @ 4.73 g/t Au from 249m, 18.0m @ 7.55 g/t Au, and 10.55m @ 3.09 g/t Au from 305m, including 4.55m @ 4.98 g/t Au from 311m.

Sihayo Executive Chairman Colin Moorhead said the results were outstanding and had continued to validate the company’s exploration model.

“We believe the Sihayo gold deposit, which appears to be strengthening in both grade and thickness at depth, is analogous to the multi-million-ounce Cortez Hills gold deposit in Nevada,” Mr Moorhead said.

“With these latest intercepts, we believe there is strong potential to grow the resource and further strengthen the case for an independent underground operation at Sihayo.”

The latest round of drilling follows up on similar intercepts struck last year, marking more encouraging results from a second campaign to extend mineralisation beneath the southern end of the planned starter pit on the resource, with some deeper zones extending beyond the Sihayo resource estimate.

Underground geology and location of reported intercepts

Gold has regained some lustre as investors turn back to the safe haven metal.

Source Trading Economics

At the same time, the greater markets suffer, and the ASX all ordinaries gold has moved up by 10.77 per cent over the last month, a lofty rise when compared to an ASX 200 resources indices, which dipped by 5.94 per cent over the same time, frame.

Sihayo now has assays pending for a further six holes, with another four planned before wrapping up the campaign.

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