Australian junior explorer Far East Gold (ASX: FEG) has announced the results of preliminary metallurgical tests from its flagship Woyla project in Indonesia which returned 91% for gold and 86% for silver.

The results follow the final assay results for the company’s recently completed Phase 1 drill program which confirmed the project as highly prospective to contain a high-grade gold and silver epithermal resource.

In December 2022, Far East Gold confirmed bonanza-grade mineralisation from preliminary assays which returned up to 78 grams per tonne (g/t) gold and 631 g/t silver.

Led by CEO Shane Menere, Chairman Paul Walker and with Nickel Industries’ Justin Werner on its Board, the company considered the project to be one of the most highly prospective undrilled copper gold projects in South-East Asia.

“These initial test results indicate that the Woyla project should be amenable to a simple low capex flow sheet with strong recoveries. The comparatively low cost of operations in Indonesia is another reason why we are so excited about Woyla,” Mr Walker said.

Located in Indonesia’s Aceh Province, the 24,260 hectare copper-gold project has four main epithermal vein systems: Anak Perak, Rek Rinti, Aloe Eumpeuk and Aloe Rek with a combined strike length of 13,000 metres – of which 4,640.9 metres was completed in Phase 1.

Previous exploration by Barrick Gold (1996-1998) and Newcrest Mining (1999-2002) identified four main epithermal quartz vein systems, of which the Anak Perak system was the most extensive.

Positive signs for Phase 2 drill program

The 91% and 86% recoveries were the average percentages of cyanide soluble gold and silver respectively, and diagnostic leach tests indicated that the gold and silver could be recovered using conventional cyanide leaching.

“The first preliminary characterisation tests on Woyla samples are positive and the data suggests that a significant part of the gold and silver is associated with coarse gravity gold,” said Independent Expert Metallurgist Dr Mark Steemson, who oversaw the metallurgical test work.

The characterisation tests performed on three mineralised samples of the Woyla drill core included full assays on each composite; diagnostic leach testing to determine the deportment of gold in each sample; and agitated leach testing of each sample to determine gold and silver recoveries and cyanide usage.

Source: Far East Gold

Source: Far East Gold

Far East Gold has commenced its Phase 2 drill program comprising a resource delineation drilling program of approximately 5,000 metres at Rek Rinti, focused around the vein which returned the assay results confirming bonanza-grade mineralisation.

The company holds a 51% interest in the Woyla project that will increase to 80% upon completion of a feasibility study and a maiden JORC resource estimate.

Overall, Far East Gold has commercial rights for the acquisition, exploration and development of six gold and copper projects in Indonesia and Australia, including Wonogiri which has a JORC estimate of 996,000 ounces of gold and 190 million pounds of copper.

CEO’s skin-in-the-game

CEO Shane Menere has increased his holdings in Far East Gold shares, buying 125,000 shares on market last week, for a total of $51,335 – further enforcing his and the other Directors’ confidence in the company’s outlook.

To stay up to date with the latest Far East Gold news and announcements, update your details on the Far East Gold investor centre.

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