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Sihayo Gold revises development plan for its Indonesian gold project

Sihayo Gold revises development plan for its Indonesian gold project

Sihayo Gold (ASX:SIH) has revised the development plan for its Punkut gold project and intends to follow a staged approach that would provide rapid payback of initial capital.

The development plan comprises Stage 1 over an initial 4 year period with a nominal 1million tonnes per annum standard Carbon-in-Leach processing plant and associated infrastructure followed by Stage 2 over a further 7 years with an expanded 1.3mtpa capacity CIL plant.

The Stage 1 initial capital is estimated at US$72 million compared with the previous estimate of US$131.5million, for a 1.5mtpa CIL plant, representing a 45% reduction.

Key operating estimates of Stage 1 include the mill throughput of 1mtpa with an average annual production of 60,000 ounces per annum and average process recovery of 85%.

Cash site operating costs are estimated at between US$615 per ounce to US$645 per ounce.

The primary capital cost for Stage 2 is the upgraded crushing and grinding circuits and is estimated at US$11million.

Additionally, to maintain ore throughput at the 1.3Mtpa level, a Stage 2 pre-strip will be required.

The capital and operating estimates will be finalised in the definitive feasibility study likely to be out mid-year.

Total cash available at the end of 2012 was $4.12 million.


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