Far East Gold’s independent scoping study for the Idenburg Gold Project spotlights a substantial high-grade inferred resource at Sua, underpinning a clear development pathway and a planned drilling campaign to boost confidence and advance feasibility.
- 390,000 ounces at 9.2 g/t Au in high-grade core at Sua
- Two development scenarios support project progression under varied cost assumptions
- Preliminary metallurgical tests show strong 92% gold recovery
- Recommended 73-hole, 6,085m drilling program to refine resource and test extensions
- Study supports pathway to increase ownership from 51% to 80% by end 2027
High-Grade Core Drives Development Focus at Sua
Far East Gold Ltd (ASX:FEG) has completed an independent scoping study that crystallises the high-grade potential of the Sua prospect within its Idenburg Gold Project in Papua, Indonesia. The study highlights a concentrated inferred Mineral Resource Estimate (MRE) of approximately 390,000 ounces of gold at an average grade of 9.2 g/t Au, representing 76% of Sua’s contained gold within just 24% of its tonnage at a 3.0 g/t cut-off. This grade-tonnage concentration offers a compelling foundation for advancing the project’s conceptual development.
The broader Sua inferred MRE totals 514,000 ounces at 2.9 g/t Au, but the study’s focus on the higher-grade core underscores the prospect’s potential to support near-surface, open-pit mining. Historical drilling at Sua has intersected impressive intervals, including 16 metres at 8.49 g/t Au from surface and high-grade hits such as 1 metre at 105 g/t Au, reinforcing the prospect’s quality. Sua’s proximity, about 5 kilometres, to the Trans-Irian Highway adds logistical appeal for future development.
Two Development Cases Underpin Project Progression
The scoping study evaluated two conceptual development scenarios: a standalone Sua case and a staged expansion incorporating the Bermol and North Bermol prospects. Both cases were assessed at a gold price of US$3,300 per ounce with a 9% discount rate, including sensitivity analyses testing mining costs 40% above and below base estimates. Encouragingly, both development paths supported project progression across these cost variations.
Importantly, the study’s modelling relies solely on independently estimated JORC inferred resources at Sua, Bermol, and North Bermol, explicitly excluding Mafi’s inferred MRE and all exploration targets. Given the inferred classification of these resources, the study refrains from disclosing production targets or financial forecasts, reflecting the early-stage nature of the evaluation and regulatory compliance requirements.
Strong Metallurgical Recoveries and Conventional Processing Route
Preliminary metallurgical testwork at Sua returned gold recoveries of approximately 95%, with the study conservatively adopting a 92% recovery assumption. The testing indicated that most gold is amenable to cyanidation, with over 50% gravity recoverable gold, and samples showed low levels of deleterious elements. The conceptual processing flowsheet involves crushing, SAG and ball milling, gravity concentration, carbon-in-leach (CIL), electrowinning, and smelting to produce gold doré, with tailings managed via cyanide detoxification and dry-stack disposal.
Targeted Drilling Program to Boost Geological Confidence
To transition from inferred to higher-confidence resource categories, the study recommends a 73-hole, 6,085-metre drilling campaign across Sua, Bermol, and North Bermol. The initial focus is on Sua, with 26 holes totalling approximately 2,840 metres aimed at infill, step-out, and twin drilling within the main high-grade corridor and conceptual pit area. This program seeks to improve geological confidence, test extensions, and lay the groundwork for an updated MRE and subsequent feasibility studies.
Far East Gold’s CEO Shane Menere emphasised that the study is a stepping stone, not an endpoint, setting a clear development pathway centred on Sua’s high-grade core. He noted that the company aims to support an updated resource with indicated and potentially measured classifications, which would enable the disclosure of project economics and advance the broader Idenburg Gold Project.
Ownership Upside and Exploration Optionality Remain Key
The scoping study also supports Far East Gold’s contractual pathway to increase its ownership in the Idenburg project from 51% to 80% upon delivery of an Indonesian Feasibility Study by the end of 2027. This ownership increase aligns with the company’s strategy to consolidate control as it advances technical and permitting work.
Meanwhile, exploration continues across the 95,280-hectare Idenburg Contract of Work, which hosts multiple prospects beyond Sua, Bermol, and North Bermol. Only six of 15 identified prospects have been drill tested, and four currently hold Mineral Resources, indicating significant upside potential for resource growth and future development options.
Bottom Line?
Far East Gold’s scoping study at Idenburg sharpens focus on a high-grade core at Sua, setting a clear development path and drilling program that could unlock resource upgrades and underpin future economic studies.
Questions in the middle?
- Will the planned drilling program successfully upgrade inferred resources to indicated or measured categories?
- How will metallurgical variability testing impact processing assumptions and recovery rates?
- What timeline and hurdles remain for Far East Gold to complete the Indonesian Feasibility Study and increase ownership to 80%?