Where global mining giants Barrick Gold (A$39 billion) and Newcrest (A$15 billion) stumbled and fell, a comparative minnow has hit the ground running – making history in the process.

Despite explorations on the highly prospective 24,260ha Woyla copper-gold project first occurring more than a quarter of a century ago, the Indonesian Government has only now made the milestone decision to grant the licence needed to enable drilling at the site.

And Far East Gold (ASX: FEG) – a junior explorer led by some of the biggest names in Australian mining, including Justin Werner of Nickel Mines (ASX: NIC) – is the company that made it happen.

Chairman Paul Walker said the project, a sixth-generation contract of work, represents “one of the best undrilled prospects in South-East Asia”, noting its potential for high-grade bonanza style epithermal-type veins and proximal porphyry and skarn-type copper-gold deposits.

“As a company working diligently and passionately to progress our assets, we are thrilled to have been granted the highly sought-after Izin Persetujuan Penggunaan Kawasan Hutan (IPPKH) licence,” Mr Walker said.

“It’s testament to the FEG team’s vast experience, significant efforts and strong relationships on the ground that we have received this administrative authority from the Indonesian Government.

“This milestone achievement opens the door for advanced exploration activities to now occur in the forest-designated section of the tenement.”

The official decree also contains an “approval of the borrow-use management ability statement of the gold and its associated mineral exploration activities” for the contract-of-work area.

The borrow-use approval covers the project’s four main epithermal prospect areas: Anak Perak, Rek Rinti, Aloe Eumpeuk and Aloe Rek, totalling a vein strike length of 13,000m and with “remarkable” bonanza-grade assay results of up to 119 g/t gold and 1179 g/t silver.

These high grades occur within vein samples exhibiting ginguro bands, which are an important textural feature common to high-grade vein deposits such as Gosowong in Indonesia (6Moz gold at grades of 20-40 g/t) and Hishikari in Japan (8Moz gold at grades of 30-40g/t).

All four prospects at Woyla have walk-up drill targets – developed based on results from previous exploration work by Barrick and Newcrest – with Far East Gold’s initial diamond drill program aiming to test the resource potential of the 4,700m Anak Perak epithermal vein system.

Join an investor briefing with Far East Gold chairman Paul Walker on Tuesday, 20th September, at 12pm (AEST). Click here to register.

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

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Sources

• • Far East Gold, Woyla
  • ASX Announcement, Woyla Project Update
  • nickelindustries.com, Board & Management