infill drill continues confirm high grade gold

ASX ANNOUNCEMENT

15 APRIL 2010

Infill Drilling at Sihayo Continues to Confirm High Grade Gold
Highlights

? Drilling of the South Eastern portion of the resource has continued to intersect significant widths of high grade mineralisation (>5g/t Au) following the discovery of this zone in the March drilling. Significant new results from the high grade zone included;

o SHDD 227 ? 12m at 5.4g/t Au from 95m
o SHDD 230 ? 6m at 7.9g/t Au from 84m
o SHDD 240 ? 11m at 6.0g/t Au from 104m
o SHDD 253 ? 10m at 6.1g/t Au from 83m
and 5m at 10.1g/t Au from 59m
o SHDD 260 ? 7m at 7.4g/t Au from 111m
o SHDD 266 ? 11m at 6.4g/t Au from 76m

? This high grade zone remains untested by drilling at depth to the east.

? Other significant results from infill drilling include;

o SHDD 224 ? 2.9m at 6.6g/t Au from 1m
and ? 15.4m at 8.9g/t Au from 5.4m
o SHDD 226 ? 5.7m at 7.7g/t Au from 24.3m
o SHDD 232 ? 12m at 3.2g/t Au from surface
o SHDD 244 ? 14m at 2.9g/t Au from 1m

? Base on the updated interpretations the current program will be extended to include some expansion drilling on the north, east and south margin of the resource.
? Drilling has also commenced at the Old Camp Prospect on the northern margin of the Sihayo 1N Resource to include this prospect in the overall project inventory.
? The infill drilling is expected to be completed in mid May with an updated JORC resource estimate by end of June.
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The Board of Sihayo Gold Limited (ASX; SIH) is pleased to announce updated results from the resource infill drilling at the Sihayo 1 North resource within its 75% owned Sihayo Project in North Sumatra, Indonesia. The drilling, which aims to upgrade the confidence in the resource estimate under the JORC code, continues to highlight the continuity of mineralisation. It has also continued to expand the zone of higher grade mineralisation within the southeastern portion of the resource.
The infill drilling is based on a nominal 25 by 50 metre grid, which is expected to be of sufficient density for a resource estimate classification of at least Indicated status. Significant intersections from the latest results include 11m at 6.4g/t Au, 11m at 6.0g/t Au and 5m at 10.1g/t Au from the deeper parts of the resource between 59 and 115 metres and 15.4 at 8.9g/t Au, 12m at 3.2g/t Au and 5.5m at 7.7g/t Au from the shallower regolith portion of the resource. Figure 1 shows the locations of the drill holes in relation to the previous resource estimate while Table 1 includes all new significant intersections above 1g/t Au.
The high grade zone can now be traced over an area of 200 by 200 metres and remains open to the east. Further drilling is planned as part of the current program to test the potential extensions outside the current resource outline.
There are currently 7 diamond drilling rigs conducting the resource drilling which is expected to be completed by mid May. The program has been expanded following the recent results to include additional drilling around the northern, eastern and southern margins of the current resource and the Old Camp Prospect, which lies 200 metres north of the resource. Significant results from previous drilling at Old Camp included; 13m at 4.2g/t Au, 27m at 2.7g/t Au and 8m at 3.1g/t Au.
Tony Martin
Chief Executive Officer
About Sihayo Gold Limited
Sihayo Gold Limited is an ASX listed (Code SIH) mineral exploration Company which is focused on the development of a 1Moz gold resource at its 75% owned Sihayo Project in Northern Sumatra in Indonesia. The Company was formally Sihayo Gold Limited but has undergone a number of significant changes to its Board and Management structure in line with its renewed focus on the Sihayo Gold project.
The Sihayo Gold Project currently has an Inferred JORC compliant resource estimate of 13.2 Mt at 2.4g/t Au containing 1.01 Moz of gold which extends from surface to a drilled depth of 150m. Potential extensions to the resource remain in the most part untested and there remains excellent potential to significantly expand the resource base.
The Company has put together a highly experienced project team which commenced work on a Definitive Feasibility Study ?DFS? in late 2009. There are currently seven drilling rigs on site working towards upgrading the confidence in the resource estimate from Inferred status to Indicated by mid 2010. In addition metallurgical, geotechnical, infrastructure and environmental studies are well underway with the aim of completing the DFS by the end of 2010.
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Figure 1: Sihayo 1 North resource infill drilling collar location and scoping study proposed pit outline
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Table 1: Significant New Infill Drill Results Sihayo 1 North (>1g/t Au)
HOLE ID
UTM East
UTM North
Azimuth
Dip
Max Depth
Depth From
Gold Intercept
SHDD217
548110
102290
0
-90
90
50
1m @ 4.3 g/t
SHDD218
547990
102530
0
-90
53
28
1.4m @ 2.8 g/t
SHDD219
548250
102380
0
-90
125
97
5m @ 3.5 g/t
SHDD220
547960
102490
0
-90
53
37
4m @ 1.3 g/t
SHDD221
547880
102720
40
-90
45
13
3m @ 1.1 g/t
20.6
1.35m @ 4.4 g/t
SHDD222
548300
102440
40
-90
129
82
2m @ 1.1 g/t
92
2m @ 6.3 g/t
SHDD223
547860
102610
40
-70
59
9
6m @ 1.9 g/t
SHDD224
547920
102450
0
-90
50
1
2.9m @ 6.6 g/t
5.4
15.4m @ 8.9 g/t
SHDD225
547950
102570
0
-90
47
27
1m @ 2.4 g/t
SHDD226
548080
102330
40
-90
70
21
2.2m @ 4.4 g/t
24.3
5.7m @ 7.7 g/t
35
1m @ 2.4 g/t
SHDD227
548170
102520
0
-90
130
31
2m @ 10.1 g/t
95
12m @ 5.4 g/t
112
2m @ 2.7 g/t
119
2m @ 3.1 g/t
SHDD228
547860
102700
0
-90
39
surface
4m @ 1.5 g/t
SHDD229
547970
102600
0
-90
73
35
1m @ 2.2 g/t
40
2m @ 1.2 g/t
SHDD230
548310
102460
0
-90
106
84
6m @ 7.89g/t
93
1m @ 3.8 g/t
SHDD231
548000
102630
40
-90
53
36
3m @ 1.3 g/t
SHDD232
547830
102580
0
-90
30
surface
12m @ 3.2 g/t
2
1m @ 1.1 g/t
12
2m @ 2.1 g/t
40
1m @ 3.3 g/t
48
6m @ 1.8 g/t
SHDD234
548260
102390
220
-70
135
90
4m @ 4.5 g/t
100
2m @ 1.6 g/t
105
2m @ 4.5 g/t
SHDD236
547790
102530
0
-90
31
surface
3m @ 5.7 g/t
8
1m @ 1.7 g/t
SHDD238
548130
102310
0
-90
100
60
4m @ 7.7 g/t
SHDD239
547750
102560
0
-90
26
surface
2m @ 2.65 g/t
SHDD240
548270
102490
0
-90
134
104
11m @ 6 g/t
SHDD241
547920
102530
220
-70
100
6
2m @ 3.0 g/t
17
2m @ 2.8 g/t
75
3m @ 2.4 g/t
SHDD242
547810
102640
0
-90
56
5
1m @ 1.4 g/t
9
6m @ 1.7 g/t
19
5m @ 2.0 g/t
37
1m @ 1.6 g/t
41
1m @ 2.3 g/t
SHDD243
547670
102560
0
-90
36
surface
5m @ 1.6 g/t
6.5
1.5m @ 2.3 g/t
12
2m @ 1.7 g/t
SHDD244
547900
102670
0
-90
47
1
14m @ 2.9 g/t
SHDD245
548220
102270
0
-90
110
92
5.2m @ 1.6 g/t
106
1m @ 1.5 g/t
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HOLE ID
UTM East
UTM North
Azimuth
Dip
Max Depth
Depth From
Gold Intercept
SHDD246
548210
102570
0
-90
146
17
1m @ 1.2 g/t
28
17.1m @ 1.6 g/t
110
3m @ 2.5 g/t
118
10m @ 4.2 g/t
SHDD247
547700
102590
0
-90
76
15
7m @ 1.1 g/t
26
5.8m @ 4.3 g/t
32.7
1.8m @ 1.7 g/t
41
2m @ 1.4 g/t
59
3m @ 1.1 g/t
SHDD249
547910
102680
0
-90
60
4
7m @ 2.9 g/t
19
1m @ 1.0 g/t
SHDD250
547790
102610
0
-90
61
surface
2m @ 2.4 g/t
12
4.3m @ 2.4 g/t
21.3
4.7m @ 2.4 g/t
29
7m @ 1.1 g/t
47
2m @ 1.4 g/t
SHDD251
547920
102700
0
-90
60
18
3m @ 1.3 g/t
SHDD252
547870
102800
0
-90
86
11
4m @ 1.6 g/t
21
3m @ 2.2 g/t
SHDD253
548180
102370
0
-90
133
59
5m @ 10.1 g/t
83
10m @ 6.1 g/t
96
3m @ 3.2 g/t
110
1m @ 3.7 g/t
123
1m @ 1.4 g/t
SHDD254
548230
102430
0
-90
151
124
1m @ 1.2 g/t
129
1m @ 2.0 g/t
SHDD255
548240
102210
0
-90
108
92
1m @ 6.8 g/t
SHDD256
547860
102780
0
-90
65
4
12m @ 1.4 g/t
SHDD257
547760
102650
0
-90
44
7
1m @ 1.3 g/t
33
1m @ 1.2 g/t
SHDD258
547730
102620
0
-90
62
surface
1m @ 1.5 g/t
9
4m @ 1.5 g/t
16
7m @ 1.8 g/t
29.8
1.2m @ 1.8 g/t
SHDD259
547840
102750
0
-90
73
8
13m @ 1.5 g/t
SHDD260
548210
102400
0
-90
157
111
7m @ 7.4 g/t
SHDD261
547870
102790
0
-90
53
14
1m @ 1.2 g/t
23.8
1m @ 1.5 g/t
44
3m @ 2.1 g/t
SHDD262
547690
102730
40
-70
55
2
3m @ 1.7 g/t
19
1m @ 1.3 g/t
SHDD263
547650
102680
0
-90
42
surface
20m @ 2.1 g/t
35
1m @ 2.0 g/t
SHDD264
547820
102730
0
-90
50
7
1m @ 1.1 g/t
17
2m @ 2.7 g/t
SHDD266
548170
102350
0
-90
140
76
11m @ 6.4 g/t
105
1m @ 2.4 g/t
SHDD268
547800
102710
0
-90
65
5
1m @ 3.1 g/t
10
1m @ 2.5 g/t
SHDD269
547680
102710
40
-70
52
surface
6m @ 3.6 g/t
10
12m @ 1.9 g/t
SHDD271
547770
102820
0
-90
76
2
1m @ 1.1 g/t
53
2m @ 2.0 g/t
SHDD273
548090
102260
0
-90
55
11
1m @ 2.6 g/t
21
5m @ 1.6 g/t
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Notes to Table 1
1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories of Jakarta
2. Lower cut of 1.0ppm Au used
3. A maximum of 2m of consecutive internal waste (material less than 1.0ppm Au) per reported intersection
4. All interval grades were calculated as a weighted average
5. All intervals reported as down hole lengths
6. Sampling regime as quarter core for PQ, half core for NQ and HQ diameter core
7. Quality Assurance and Quality Control (QAQC):
8. Coordinates in UTM grid system
Note 1: It is advised that in accordance with the Australian Stock Exchange Limited Listing Rule 5.6, the information in this report that relates to Exploration Results is based on information compiled by both Mr Tony Martin and Mr Dean Pluckhahn, who are Members of the Australasian Institute of Mining and Metallurgy. Mr Martin is the Chief Executive Officer of Sihayo Gold Limited and Mr. Pluckhahn is a full time employee of Sihayo Gold Ltd?s 75% owned subsidiary company P.T. Sorikmas Mining (?Sorikmas?). Mr Martin and Mr Pluckhahn have sufficient experience which is relevant to the style of mineralisation and type of deposit which is under consideration and to the activity which Sihayo Gold is undertaking to qualify as a ?Competent Persons? as defined in the 2004 Edition of the ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Mr Martin and Mr Pluckhahn both consent to the inclusion in this report of the matters based on information in the form and context in which it appears.
Note 2: All statements in this report, other than statements of historical facts that address future timings, activities, events and developments that the Company expects, are forward looking statements. Although Sihayo Gold Ltd, its subsidiaries, officers and consultants believe the expectations expressed in such forward looking statements are based on reasonable expectations, investors are cautioned that such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from forward looking statements include, amongst other things commodity prices, continued availability of capital and financing, timing and receipt of environmental and other regulatory approvals, and general economic, market or business conditions.