In an exciting development for Far East Gold, resources heavyweight Eurasian Resources Group (ERG) has backed the company with a $4 million strategic investment.
ERG invested into Far East’s placement, which ended up oversubscribed at $6.9 million. The cash injection will provide a welcome boost to Far East’s expanding projects across its portfolio.
Notably, ERG indicated that its interests primarily lie in Far East’s Trenggalek copper-gold project in Indonesia, rather than the company’s flagship Woyla asset.
Far East Gold chairman Paul Walker says this showcases the depth of Far East’s portfolio.
“Investment by a player of ERG’s calibre is a game changer for us, he said.
“Not only does ERG bring substantial financial capital and operational experience, but this investment also provides a firm seal of approval about the quality of our management team and the remarkable potential that we have in our portfolio of projects.”
The cash injection will help finance Far East’s exploration efforts as it looks to ramp-up its assets.
Earlier this year, Far East reported bonanza gold grades at its Wolya project, also located in Indonesia.
The company conducted detailed mapping and surface rock sampling to the south of the Aloe Eumpeuk prospect only to discover the occurrence of more high-grade quartz veins.
The new zone – known as the ‘Kareung Reuboeh’ prospect – is located 1.5km south of Aloe Eumpeuk and consists of two quartz veins that are 1m and 3m in width.
Two samples of the 3m-wide vein returned grades of 28.4 grams per tonne (g/t) gold and 8.5g/t silver, and 58g/t gold and 27.3g/t silver.
Far East Gold believes the discovery highlights the potential for the Aloe Eumpeuk and Aloe Rek prospect areas to connect, increasing Woyla’s 13km strike length as a result.
“This is a very significant discovery as the veins were not previously identified by historical exploration and (it) effectively confirms continuation of the structural corridor between the Aloe Eumpeuk and Aloe Rek prospect areas and the potential for additional veins within it,” Far East Gold said in a statement.
Back on home soil, Far East will be continuing its Blue Grass Creek project in Central Queensland, which has produced over three million ounces of gold at 10 grams per tonne.