Sihayo Gold Limited: Update On Pungkut Project Exploration Activities

10:14 AEST Sept 17, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Sihayo Gold Limited (ASX:SIH) is pleased to provide an update on regional exploration activities across the Sihayo Pungkut Contract of Work Area ('COW').

'Our regional exploration team have planned an extensive work program covering numerous high impact gold and copper / gold prospects across the COW. The regional work is in addition to ongoing resource extension and exploration drilling at our flagship Sihayo Pungkut gold project, containing 10.7 Mt @ 2.9 g/t Au for 1.01 Million ounces,' said Paul Willis, Chief Executive Officer, Sihayo Gold Limited.


Highlights

- Detailed mapping and sampling of the Tambang Tinggi prospect (Au) confirms that gold mineralisation identified in previous scout drilling (112.6 m @ 1.52 g/t Au from surface including 25m @ 4.58 g/t Au from 31m - TTDD002) is part of a large mineralised system.

- Multiple Induced Polarisation (IP) surveys will commence next month and focus on the Tambang Tinggi, Hutabargot Julu and Tarutung gold prospects and the Sihayo Pungkut extensions.

- An airborne magnetic survey of the entire COW is planned for late 2010 with an emphasis on identified porphyry copper gold prospects, including; Singalancar, Rura Balancing, Namilas and Mandagang.


TAMBANG TINGGI PROSPECT

The Tambang Tinggi prospect is located in the southern portion of the COW area. The prospect covers an area of approximately 2.8km east to west and 1.6km north to south. Within this area are extremely encouraging gold and copper results in drilling, rocks and soil samples. Gridding is in progress for an IP survey designed to assist in targeting diamond drilling to test known surface mineralisation and to potentially identify new mineralised systems. During 2005, scout drilling (5 diamond drill holes for 634m) yielded a best intercept of 112.6 m @ 1.52 g/t Au from surface, including 25m @ 4.58 g/t Au from 31m. Mineralisation is open along strike and at depth.

Exploration work to date over the Tambang Tinggi prospect is summarised in Figures 1 and 2 (see link at the bottom of the release). The current phase of work includes;

- Geological mapping,
- Rock chip sampling from historic adits, outcrop and float,
- Infill soil sampling, and
- Grid re-establishment for the IP survey.

The Tambang Tinggi area is underlain by intercalated andesitic volcanics and limestones. Younger dacitic volcanics and sandy conglomerates overlie the andesite / limestone sequence. A hornblende diorite, weakly to moderately magnetic, has intruded the andesite / limestone sequence. Areas of high magnetic response appear to be later intrusives within the hornblende diorite.

Tambang Tinggi mineralisation is intrusive related with styles observed to date, including; - Silica-sericite-pyrite-bornite-chalcopyrite-pyrite-tourmaline alteration with limonite veins / fractures hosting gold;

- Multi phase quartz veins that host chalcopyrite, bornite, tetrahedrite, arsenopyrite and yield up to 31 g/t Au and 0.9% Cu in rock chips;

- Intermittent quartz veins in andesitic volcanics that contain up to 20.1 g/t Au; and

- Copper skarn mineralisation with up to 4.7% copper and anomalous gold in rock and float samples.

Drilling is planned to commence in late 2010.


ADDITIONAL EXPLORATION ACTIVITIES

Below is a summary of prospects, in addition to Tambang Tinggi, that are currently being prepared for exploration or exploration has commenced:


Sihayo Pungkut extensions

Grid establishment is underway for an IP survey to aid in drill targeting along strike and at depth from the current Sihayo and Sambung Resources;


Huatabargot Julu

The Hutabargot Julu prospect is an epithermal gold style propsect with multiple sub-parallel veins that have yielded historic drill intercept of 5m @ 37.7 g/t from 47m. The prospect is located approximately 7km southeast of the main Sihayo resource and exploration will commence in October 2010. This initial work program will consist of grid re-establishment for soil / IP surveys and geological mapping to aid in drill target definition;


Tarutung

The Tarutung prospect is characterised by classic banded epithermal quartz vein float and outcrop that has assayed up to 167 g/t Au and 384 g/t Ag, within a 350m long section of a 1.2km long, NNW trending clay-pyrite alteration zone. Historic trenching contained an intersection of 5m @ 57.7 g/t Au and 312 g/t Ag.

Land owner socialisation is in progress to gain access for grid re-establishment and an IP survey as a lead up to drilling.


AIRBORNE MAGNETIC AND RADIOMETRIC SURVEY

Elliot Geophysics International has been contracted to undertake an airborne magnetic and radiometric survey over the entire COW. The airborne survey will have a particular emphasis on known porphyry copper gold style targets such as; Singalancar, Rura Balancing, Namilas, Siandon and Mandagang. The survey is planned for late 2010.


For the complete Sihayo Gold Limited announcement including figures, please view the follwoing link:
http://www.abnnewswire.net/media/en/docs/63740-ASX-SIH-505700.pdf



About Sihayo Gold Limited:

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

With recent exploration successes at the company's Sihayo Gold Project, the Board of Sihayo Gold is focused on developing Sihayo Gold to a mining stage to generate maximum shareholders value.

Sihayo Gold is managed by a highly skilled and dedicated team. This team is firmly committed to increasing the value of the company through focused exploration on projects in highly prospective regions.

Management has assembled a high quality portfolio mineral asset that provides an excellent foundation for the company to move from explorer into miner.



Contact:

Dean Calder, Company Secretary
Sihayo Gold Limited
Email: sihayogold@sihayogold.com
Tel: +61-8-9368-4544
http://www.sihayogold.com