Far East Gold Reports 540,000 Oz Gold Resource at Idenburg, Raises Nearly A$10M

Idenburg Project Breakthrough

Far East Gold Ltd (ASX: FEG) has delivered a significant milestone with the release of a maiden JORC inferred resource estimate for its recently acquired Idenburg Gold Project in West Papua, Indonesia. The estimate totals 4.1 million tonnes at an average grade of 4.1 g/t gold and 3.6 g/t silver, equating to approximately 540,000 ounces of gold and 468,000 ounces of silver. This resource is derived from just three of the fourteen identified prospects within the 95,280 hectare Contract of Work (CoW), underscoring the project's substantial upside potential.

Independent consultants SMGC have further highlighted the project's promise by estimating an upper range exploration target of 7.2 million ounces of gold at a grade of 6.1 g/t. This suggests that the Idenburg project could evolve into a major gold resource with further exploration and drilling.

Strategic Acquisition and Funding

The company has entered into a Conditional Share Purchase Agreement (CSPA) to acquire up to 100% ownership of the Idenburg CoW. Initial payments and share issuances have been completed, with commitments to spend AUD 5 million within 24 months to advance exploration and development. The agreement includes provisions for moving from exploration to mining phases, with vendor options for royalties or carried interests.

Complementing this acquisition, Far East Gold secured nearly A$10 million from Xingye Gold (Hong Kong) Mining Company Limited, a major strategic investor listed on the Shenzhen Stock Exchange. This funding was received in two tranches, with a third tranche of approximately A$4.8 million expected shortly after the Chinese New Year. Notably, the investment was made at a 47% premium to the company's prior placement, reflecting strong confidence in Far East Gold’s asset portfolio and growth prospects.

Broader Exploration Progress

Beyond Idenburg, Far East Gold continues to advance exploration across its Indonesian and Australian projects. In Indonesia, the Woyla Copper Gold Project in Aceh and the Trenggalek and Wonogiri Copper Gold Projects in Central Java are progressing with ground proofing, mapping, and preparatory work for drilling programs slated for early 2025. The Wonogiri project is undergoing an updated feasibility study aimed at transitioning from exploration to production status.

In Australia, the company consolidated its Queensland tenements, including the Blue Hill Creek and Mount Clark West projects, focusing on epithermal gold-silver and orogenic gold mineralisation. Preparations for ground proofing, mapping, and drill targeting are underway, supported by applications for government exploration grants.

Financial and Corporate Position

Far East Gold’s cash position strengthened markedly during the quarter, ending December 2024 with over A$10 million in cash and equivalents, bolstered by the strategic investment from Xingye Gold. The company’s expenditure remains focused on exploration activities, with no mining or production costs incurred during the period. Shareholder approvals were secured in late 2024 to facilitate the Idenburg acquisition and the strategic placement, positioning the company well for its 2025 exploration agenda.

CEO Shane Menere highlighted the significance of these developments, emphasizing the untapped potential within the Idenburg project and the strong backing from Xingye Gold as key enablers for Far East Gold’s growth trajectory.