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Sihayo starter project, Indonesia

Image of gold nuggets

Photo by © Bloomberg

25th August 2023

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Sihayo starter project.

Location
North Sumatra, Indonesia.

Project Owner/s
Sihayo Gold.

Project Description
The Sihayo mine plan comprises an ore reserve estimate of 11.7-millon tonnes at 1.98g/t gold for 747 000 oz of gold.

The plan is based on an openpit operation producing 653 000 oz of gold from 781 000 oz contained gold over a life-of-mine (LoM) of 6.25 years.

The Sihayo process plant has been designed to treat the expected range of mineralisation types to be delivered during the LoM mining schedule. The mineralisation is characterised into seven categories, based on rock type (regolith, jasperoid and clay-sulphide) and oxidation state (oxide, transitional and fresh).

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $169-million and an internal rate of return of 16.2%, with a payback of four years.

Capital Expenditure
Total upfront capital, including contingency, is estimated at $221-million.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Sihayo Gold, tel +61 3 9935 9161 or email sihayogold@sihayogold.com.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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