Far East Gold Ltd (ASX:FEG, OTC:FEGDF) has defined a maiden JORC inferred resource estimate (MRE) of 540,000 ounces of gold at 4.1 g/t and 468,000 ounces of silver at 3.6 g/t at the Idenburg Gold Project in Papua Province, Indonesia.
The total resource, determined by SMG Consulting (SMGC), is from the three key prospects of Sua, Bermol and Mafi — three of the 14 prospects identified within the 95,280-hectare Idenburg Contract of Work (CoW) area.
This estimate was achieved without any additional drilling and was based on historical drill hole data plus newly acquired topographic survey data and revised 3D deposit modelling.
The MRE is consistent with the initial exploration targets determined by SMGC in the June 2024 Exploration Target (NYSE:TGT) Report which the company released in August.
Confident of growth
Notably, previous exploration focused on only about 30% of the total exploration area while most of the property remains vastly under-explored and holds potential for an expansion of the contained resources.
The company is confident it can expand the initial JORC gold-silver resource through a planned detailed surface mapping and sampling program followed by a Phase 1 drill program.
Far East Gold CEO and director Shane Menere highlighted that “there is still significant upside to expand that resource across those underexplored regions”.
Realm of a Tier-1 world-class portfolio
The company last month executed a Conditional Share Purchase Agreement (CSPA) with PT Iriana Mutiara Idenburg (IMI (LON:IMI)) to acquire up to 100% of the Idenburg Project. Under a CoW, the CSPA will initially allow FEG to acquire a 51% interest in the project, subject to meeting agreed conditions.
“The Idenburg acquisition catapults FEG into the realm of a Tier-1 world-class asset holding portfolio," Menere said.
Read more: Far East Gold to accelerate portfolio growth with Idenburg acquisition
The Idenburg project, which spans 95,280 hectares, is in a region known for hosting world-class gold and copper deposits, including Grasberg (+70 million ounces of gold), Porgera (+7 million ounces), Frieda River (20 million ounces) and Ok Tedi (20 million ounces).
Idenburg project in Papua Indonesia relative to the locations of world-class multi-million ounce gold-rich porphyry copper deposits.
Previous exploration results include:
Future work programs
As part of the mineral resource estimation, SMGC also recommended a future work program to expand the areas of defined mineral resources at the Sua, Bermol and Mafi prospect areas and delineate additional resources in the other prospect areas identified. These include:
- A revised interpretation of remote-sensed imagery, incorporating new findings from prospect-level exploration, should facilitate vectoring towards potential extensions and/or new areas of mineralisation in the Kali Kae, Tekai, Kimly and North Bermol prospects.
- Infill and step-out drilling at Sua, Bermol and Mafi. Infill drilling will provide better constraints on the initial Inferred MRE and test for potential steeper feeder structures beneath the thrust. Step-out drilling will confirm the along-strike continuity of the mineralisation and validate the surrounding gold exploration targets.
- Future infill drilling campaigns should be accompanied by comprehensive metallurgical sampling at Sua, Bermol and Mafi, including the viability of recovering lead, zinc and copper sulphide mineralisation.
A review of pathfinder elements in drill core and soil databases to ascertain vectors to mineralisation for use in prospect-scale programs.
Application of detailed magnetic and IP dipole-dipole geophysics to existing prospects to better understand the structural controls and potential extensions to zones of known mineralisation.
Investors have responded positively to the maiden MRE with shares up 5.71% in early ASX trading to A$0.185.