Proactiveinvestors Australia

Sihayo Gold Ltd

Sihayo Gold Ltd (ASX:SIH) is a mineral exploration company with gold exploration projects in Indonesia.


Sihayo Gold revises development plan for its Indonesian gold project

Tuesday, March 12, 2013 by Proactive Investors

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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