Exploration begins at Trenggalek, FEG preparing for drilling

There usually comes a point in time when a junior explorer gets to a stage in their lifecycle as a pre-production company that requires a strategic partnership in order to take that crucial next step. Far East Gold Ltd (ASX: FEG) has reached that point, and their new strategic investor and major shareholder is perfectly positioned to propel FEG into a new chapter of development opportunities.

There usually comes a point in time when a junior explorer gets to a stage in their lifecycle as a pre-production company that requires a strategic partnership in order to take that crucial next step. Far East Gold Ltd (ASX: FEG) has reached that point, and their new strategic investor and major shareholder is perfectly positioned to propel FEG into a new chapter of development opportunities.

A $4 million cornerstone investment by Eurasian Resources Group (ERG) is directly facilitating the exploration of one of South East Asia’s most highly prospective projects. 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 from 5.8m, including 1m @ 8.1g/t Au and 23g/t Ag

Trenggalek was explored by Anglo American around a decade ago, where they spent over US$3.5 million drilling a number of high priority prospect across the project’s tenement area. A few standout assays include 9m @ 4.5g/t Au & 8g/t Ag, 13.7m @ 3.2g/t Au & 60g/t Ag including 2.0m @ 8.7g/t Au & 48g/t Ag, and 6.6m @ 4.9g/t Au & 149g/t Ag. However it was the porphyry prospectivity of Trenaggalek that Anglo was really interested in exploring.

Trenggalek exhibits a similar sized volcanic centre (5.6km) to Tujuh Bukit deposit (30.1M oz Au & 18.9Bn lb Cu) cut by major structural lineaments, annular medium to high intensity magnetic features, with zones of hydrothermal alteration related to discrete areas of low magnetics.

Petrological studies completed on selected core samples have confirmed porphyry targets. The diorite, quartz diorite, tonalite and associated breccias intrude in a thick package of calcareous volcaniclastic rocks. These rock types are similar to those rocks hosting the Tujuh Bukit and Batu Hijau deposits.

During Anglo American’s campaign, numerous porphyry-style veining and alteration observations were made, which will be valuable data for FEG to use in their exploration plan. Far East Gold commenced exploration activities last week, with field mapping and sampling in progress at the Sentul and Buluroto prospect areas. These prospects have 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 high priority porphyry-related drill target.

Image: Trenggalek IUP-OP located within the Sunda-Banda Arc.

Source: Far East Gold

The recently completed mapping has identified additional vein occurrences that were previously unknown, which furthers the case for continued high grade gold and silver mineralisation. The type of rock intersected is consistent with previous exploration, so FEG is going into this next phase of exploration with a substantial level of understanding of the project.

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.

Their $4 million strategic investment came right off the back of FEG finalising the Trenggalek acquisition during the last quarter, and was part of a $6.9 million equity raise. 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. Far East Gold is now well funded to execute on their exploration plans and looks forward to continue delivering exciting news to the market.

To stay up-to-date on Far East Gold’s company news and announcements, register your details on their investor portal.

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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