Far East Gold Ltd (ASX:FEG, OTC:FEGDF) is plotting a course to a JORC-compliant resource at the PT Iriana Mutiara Idenburg gold concession in Indonesia, engaging SMG Consulting to lead a site visit and audit of drill cores and assay work.
SMG also produced an exploration target report for Idenburg, in the Keerom Regency in Papua province, sketching out a best-case scenario target of up to 7.2 million ounces at up to 6.1 g/t gold for the tenements.
Only five of 14 identified prospect areas have been drill tested thus far, offering a high level of exploration potential as the concessions sit within a gold province hosting multi-million-ounce gold and deposits of up to more than 70 million ounces of gold.
These deposits include Grasberg (+70 million ounces), Porgera (+7 million ounces), Frieda River (20 million ounces) and Ok Tedi (20 million ounces).
Moving to next phase
“Commencement of this work with SMG Consulting will tell us exactly what drilling and assay work is required to fast-track to a 2012-compliant maiden JORC resource,” Far East Gold CEO Shane Menere said.
“FEG has amassed significant amounts of data from previous exploration, including the processing of a plethora of historical data from previous work at Idenburg.
“Combining this data with the recently completed exploration target of over 7.2 million ounces will create a clear path to a maiden JORC for FEG.
“Add this to the recently downgraded forestry restrictions to Production Forest and we feel the project has a sizable head start toward its next phase of development.”
The preparations for a JORC resource at Idenburg will occur in two phases.
Phase one will involve a site visit, reviewing facilities, logistics, core drilling and available quality assurance samples, while also validating selected bore hole locations and assessing potential drilling location requirements.
This first phase will end with an updated exploration plan and working plan to achieve a maiden JORC resource.
The second phase will involve producing the report itself, which will combine all data from existing prospects, update geological models, determine the extend of the gold resource in accordance with JORC standards, estimate the current resource, and issue a maiden JORC resource estimate.
