East Asia Minerals will restart its drilling program at the Sangihe Gold-Copper Project in Sulawesi, in a major step towards advancing development of the project.
The company is working with Indonesian-based engineering firm SGMS to conduct engineering studies at the site and new exploration and development staff have been employed to schedule drilling. East Asia says the next steps will be to carry out an environmental impact study, metallurgical test work and feasibility studies.
The company’s chief executive officer Edward Rochette says, “We do not anticipate any permitting issues at Sangihe with respect to the upcoming exploration programs planned by management and believe it’s the perfect place for EAS to hit the re-start button.
“Management is extremely pleased with the site visit in late August and has taken steps to advance development of this project. This includes an evaluation of the proposed mine site, assimilation of information to plan the next steps for the project in addition to advancing relationships with the local government and community. The company’s goal is to have drills turning at Sangihe by the end of November.”
The project is on the island of Sangihe off the northern coast of Sulawesi. It has a 2010 43-101 compliant inferred mineral resource of 27.3 million tonnes averaging 0.95 grams/tonne gold and 13.58 grams/tonne silver for 836,718 ounces gold and 11,927,237 ounces silver.
East Asia’s chief operating officer Dave Anthony says 55% of the deposit is contained in oxide material which should yield very high gold recovery at the start of operations. “With conventional milling practices, we anticipate gold recovery could reach 90% from the oxide material. Further drilling is planned, to evaluate opportunities to increase the size of the resource. Metallurgical test work is planned, to evaluate processing requirements and to provide optimum economy for the life of mine.”
The Asian-based, Canadian mineral exploration company has gold and copper exploration properties in Indonesia, and uranium exploration properties in Mongolia. In Indonesia, East Asia has a 70% to 85% interest in three advanced gold and gold-copper properties in Aceh Province, Sumatra, and Sangihe Island, North Sulawesi.