Far East Gold (FEG) is working with SMG Consulting to develop a maiden JORC resource for the Idenburg gold project in Indonesia.
Idenburg is a 95,280-hectare sixth generation contract of work (CoW) that has had more than $US25 million of historical exploration including over 5531m of diamond drilling.
SMG will conduct a site visit and complete a full audit of drill cores and previous assay results.
“Commencement of this work with SMG Consulting will tell us exactly what drilling and assay work is required to fast track to a 2012-compliant maiden JORC resource,” Far East Gold chief executive officer Shane Menere said.
“FEG has amassed significant amounts of data from previous exploration, including the processing of a plethora of historical data from previous work at Idenburg. Combining this data with the recently completed exploration target of over 7.2 million ounces will create a clear path to a maiden JORC for FEG.
“Add this to the recently downgraded forestry restrictions to production forest and we feel the project has a sizable head start toward its next phase of development.”
Of the 14 prospect areas identified at Idenburg, only five have been drill tested, with only 30 per cent of the CoW explored in detail.
The likes of Barrick Gold, Newmont and Newcrest have explored Idenburg in the past, with the project located in the same province as other multi-million-ounce gold and copper deposits such as Grasberg (+70 million ounces), Frieda River (20 million ounces) and Ok Tedi (20 million ounces).
SMG conducted an independent exploration report for Idenburg in June, highlighting an upside exploration target of 7.2 million ounces at up to 6.1 grams per tonne of gold.
Far East Gold has the option to acquire up to 100 per cent of Idenburg through a binding term sheet signed with PT Iriana Mutiara Idenburg in mid-July.
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