Sihayo Gold is seeking to raise up to $2.163 million through a pro rata non-renounceable entitlements offer. The majority of the funds are intended to be used for a feasibility study review at the Sihayo Pungkut project in North Sumatra, Indonesia.
This work is expected to account for 69.48% of the funds with other expected allocations for repayment of loans (12.24%), offer expenses (6.05%) and working capital (12.23%).
To date the company has identified measured, indicated and inferred mineral resources of 1.4 million ounces of gold, reported in accordance with JORC 2012, within which is contained a combined proven and probable ore reserve of 544,000 ounces.
Sihayo has also identified highly prospective epithermal targets within an 11.5km mineralised trend at the Hutabargot Julu prospect, which is within 10km of the Sihayo Pungkut project. The size and proximity of Hutabargot Julu to the proposed processing plant opens up the potential for targeting smaller high grade satellite zones as well as larger stand-alone targets.
The company has previously announced:
• ‘Initial’ approval of the Government of Indonesia Feasibility Study;
• Receipt of approval from the Department of Environment (KLH) and Minister of Environment for the Analisis Mengenai Dampak Lingkungan Hidup (AMDAL) and Environment Permit;
• The Forestry or ‘Borrow and Use’ (Pinjam Pakai) permitting from the Forestry Department;
• Feasibility Study Optimisation Study; and
• Construction Permit from Director General of Minerals and Coal.
The company conducted a review of the 2014 Feasibility Study in early 2017 which showed potential opportunities to improve various components of the project.
On June 1, 2017 the company appointed a new CEO, Malcolm Paterson who has reviewed the output from previous studies and with additional work from his own team is planning to produce a revised feasibility study by the end of this calendar year.
This will be comprehensive and will take advantage of Malcolm Paterson’s recent experience in similar projects and will explore new processing technology to reduce overall processing costs. The goal of the study is to deliver a larger project with more robust economics without significantly increasing upfront capital requirements.