Far East Gold Plans 3,670m Drill Program to Expand 540,000oz Gold Resource
Far East Gold Ltd has advanced its exploration efforts in Indonesia with imminent drilling at Idenburg and Trenggalek, backed by a $4.78 million strategic investment from Xingye Gold, increasing their stake to nearly 20%.
- Drill rig mobilized to Idenburg, drilling to start late May
- Xingye Gold's investment raises stake to 19.99%, injecting A$4.78M this quarter
- 32-hole, 3,670m diamond drilling program planned to expand 540,000oz JORC gold resource
- New discovery zone 'East Bermol' identified at Idenburg
- Strong cash position of A$12.65 million supports ongoing exploration
Strategic Investment Fuels Exploration Momentum
Far East Gold Ltd (ASX: FEG) has reported significant progress in its Indonesian exploration projects during the March 2025 quarter, underpinned by a fresh injection of capital from strategic investor Xingye Gold Hong Kong Mining Company. The latest tranche of A$4.78 million brings Xingye’s total investment to nearly A$14.7 million, securing a 19.99% stake in FEG and providing robust financial backing for the company’s ambitious drilling programs.
CEO Shane Menere highlighted the importance of this partnership, noting that the funding is a critical component in executing Far East Gold’s strategy to unlock value across its portfolio, particularly at the flagship Idenburg project in West Papua.
Idenburg Drilling Set to Expand JORC Resource
The company has mobilized a drill rig to the Idenburg site, with drilling scheduled to commence towards the end of May. The planned 32-hole diamond drilling program will cover 3,670 meters, targeting expansion of the current 540,000-ounce JORC-compliant inferred gold resource at an impressive grade of 4.1 g/t. This resource is derived from only three of the fifteen identified prospect areas, representing roughly 30% of the Idenburg Contract of Work (CoW) area.
Far East Gold is also undertaking a detailed structural evaluation of the Idenburg CoW with Murphy Geological Services to better understand the controls on gold mineralisation and to identify new drill targets. This work aims to support resource growth and enhance the project’s development potential.
New Discovery and Broader Exploration Plans
In addition to resource expansion, Far East Gold announced a new discovery zone named “East Bermol” at Idenburg, following comprehensive surface mapping and rock chip sampling. This discovery adds to the growing prospectivity of the project area.
Meanwhile, at the Trenggalek Copper-Gold Project in Central Java, the company is preparing for an 18-hole, 5,740-meter diamond drilling campaign targeting three porphyry copper systems and one epithermal gold system. This program is planned for the second and third quarters of 2025 and reflects Far East Gold’s commitment to advancing multiple projects simultaneously.
Australian Projects and Financial Position
While exploration activity in Australia was limited during the quarter, Far East Gold maintained its interests across several Queensland projects, including Mount Clark West and Blue Hill Creek, with ongoing preparatory work and applications for collaborative exploration initiatives.
Financially, the company ended the quarter with a strong cash balance of A$12.65 million, supported by the strategic investment and prudent expenditure. Total exploration expenditure for the quarter was approximately A$1.84 million, reflecting focused investment in advancing key projects.
Looking Ahead
Far East Gold’s upcoming drilling campaigns and ongoing geological studies position the company to potentially upgrade its resource base and enhance project economics. The company has invited investors and analysts to a webinar on 1 May 2025, where CEO Shane Menere and Exploration Manager Michael Corey will discuss the 2025 exploration plans and recent developments.
Bottom Line?
With drilling imminent and strategic funding secured, Far East Gold is poised for a pivotal phase of resource growth and value creation.
Questions in the middle?
- Will the upcoming drilling at Idenburg significantly increase the current JORC resource estimate?
- How will the new East Bermol discovery impact the overall project valuation and exploration focus?
- What are the timelines and expected outcomes for the Trenggalek drilling program and subsequent resource updates?
