Far East Gold (FEG) has signed a binding term sheet with PT Iriana Mutiara Idenburg (IMI) giving it the right to acquire up to 100 per cent of the Idenburg gold project in Indonesia.
Located in the same province as multi-million-ounce gold and copper deposits such as Grasberg, Porgera and and Ok Tedi, Idenburg is a sixth-generation contract of work (CoW) spanning more than 95,000 hectares.
More than $US25 million of exploration has been invested in Idenburg to date including more than 5500m of diamond drilling.
As part of the binding term sheet, FEG contracted SMG Consultants (SMGC) in Jakarta to assess historical exploration results, leading to the identification of significant gold exploration targets and resource potential.
SMGC’s independent evaluation suggests an upper range exploration target of 7.2 million ounces of gold at 6.1 grams per tonne (g/t) gold, spread across 14 prospect areas. The lower range exploration target is estimated at 189,000 ounces at 1g/t Au.
“The independent assessment by SMGC confirms the significant exploration potential of this project,” FEG chief executive officer Shane Menere said.
“We are committed to advancing exploration efforts to unlock the full value of this promising asset.”
The addition of Idenburg coincides with the appointment of nickel veteran Justin Werner as chairman, who has more than 20 years’ experience in resource discovery and mine development in the Indonesian mining industry.
A co-founder of FEG, Werner is the managing director of Nickel Industries – the world’s largest pure listed nickel producer.
In a little over five years, Werner has been instrumental in growing Nickel Industries into a company with a $4 billion market capitalisation.
“Having been involved with the company since its inception as a founder and non-executive director, I am excited by the company’s extensive portfolio of potential Tier 1 gold and copper assets and look forward to working closely with the board to help further guide development of our quality asset base,’’ Werner said.
Menere welcomed Werner’s appointment.
“Justin brings a deep understanding of the Indonesian resources sector having developed a number of successful mines in country along with strong record in capital markets,’’ Menere said.
“With the signing of a binding term sheet for the highly prospective Idenburg project, continued strong drilling results from our Woyla project and preparations in place to commence our maiden drill program at Trenggalek, the board believes Justin’s experience and insight will be invaluable as we look to drive forward development of our suite of highly prospective copper and gold projects.”
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