Copper gold explorer Far East Gold Ltd (ASX: FEG) has closed off a $6.9 million placement, with an exciting new chapter being opened up with the $4 million cornerstone investment by Eurasian Resources Group (ERG). The placement was run by Reach Markets, Canaccord and Ord Minnett.

One of the largest mining conglomerates in the world, ERG reported annual revenue of US$8.53 billion in 2021 with underlying EBITDA of US$4.21 billion. Headquartered in Luxembourg with operations across 16 countries, the privately held natural resources giant owns mining, processing, energy and logistics operations for a range of commodities that employ a global workforce of over 70,000 people.

The strategic investment came right off the back of FEG finalising the Trenggalek acquisition during the last quarter. FEG now has a 100% economic interest in the advanced 12,813 hectare project, that has already had 17,786m of drilling completed across 81 holes. It was previously explored by Anglo American. 

Field mapping underway at Trenggalek

Far East Gold is not wasting time at the Trenggalek Copper Gold Project.  The company has begun advanced exploration with detailed mapping and drill targets identified at priority porphyry copper prospects within the Trenggalek tenement Field mapping is now in progress at Sentul and Buluroto prospect areas which represent epithermal vein and sulphide breccia type exploration drill targets. Previous drilling at Buluroto intersected significant copper mineralisation within a quartz-sulphide breccia and represents a priority porphyry-related drill target.

Mapping and sampling will commence at the Singgahan prospect area in the near term. Previous drilling confirmed the occurrence of porphyry-type veins and alterations. The Company has defined several untested high-magnetic bodies which are highly prospective, potential large scale, porphyry type copper gold targets.

The Trenggalek project has been designated a Top 3 Priority greenfield gold project by the Indonesian government, and has previously received assays of up to 9m @ 4.91g/t Au and 19g/t Ag.

ERG investment & first right of refusal

ERG is so keen on this project, they attached a right to first refusal condition to their investment. Provided ERG maintain a minimum 8 million share holding in FEG, they have the option to match or beat any offers that FEG is intending to accept for Trenggalek within 30 days. They have also earmarked the $4 million funding for exploration specifically at Trenggalek, which FEG is eagerly intending to drill in the near future.

FEG Chairman, Mr Paul Walker stated: “ERG’s investment holds strategic significance for us, offering not only financial resources but also valuable operational insights on a global scale. This collaboration between ERG and FEG underscores the strength of our management team and the remarkable potential of our portfolio of advanced copper and gold projects.”

Work at Woyla

The remainder of the placement funds will be used to continue drilling Far East Gold’s flagship Woyla project, as well as progressing permitting and technical studies at the company’s other projects. The funds will also be used to cover working capital and the costs of the offer.

The work being done at Woyla continues to uncover the prospectivity of the project. Resource definition drilling has been progressing at the Rek Rinti prospect within the project, where FEG have been drilling since January. Their standout assay from last year, 30m at 2.83 g/t Au and 49.73 g/t Ag (3.43 g/t AuEq) from 98m including 0.5m at 78g/t Au and 631 g/t Ag (85.57 g/t AuEq) from 108.6m, gave them the ammunition they need to press ahead this year. 

Some notable assays from this drilling campaign were 5.3m at 8.43 g/t Au and 99.89 g/t Ag (9.97 g/t AuEq) from 201.2m – 206.5m including 0.5m at 81 g/t Au and 734 g/t Ag (89.81 g/t AuEq) from 201.2m, and 9m at 1.94 g/t Au and 43.39 g/t Ag (2.46 g/t AuEq) from 144m – 153m including 1m at 3.97 g/t Au and 83 g/t Ag (4.97 g/t AuEq) from 144.5m.

Watch the recording of Far East Gold’s investor briefing where Chairman Paul Walker discussed the significance of ERG’s strategic investment and outlined their portfolio of copper gold projects. Click here to watch.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Far East Gold Ltd and may receive fees for its services.

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