ONGOING DRILLING DEFINES FURTHER ZONES OF SIGNIFICANT...

ONGOING DRILLING DEFINES FURTHER ZONES OF SIGNIFICANT GOLD

MINERALISATION
HIGHLIGHTS

The Board of Sihayo Gold Limited (ASX:SIH) is pleased to announce that resource definition drilling at the
Sihayo Pungkut Gold project has intersected further zones of significant gold mineralisation at the main
Sihayo resource area that are not included in the JORC compliant resource of 9.6 Mt @ 3.0 g/t Au for 910,000
oz (released on 14th July 2010).
Significant intercepts outside the limits of the currently calculated resource are:

SHDD121 (Re]entry) 10m @ 3.02 g/t Au from 82m and
5m @ 4.03 g/t Au from 96m
SHDD378 4m @ 4.81 g/t Au from 24m
SHDD381 16m @ 5.14 g/t Au from 257m
SHDD384 9m @ 2.99 g/t Au from 14m and
7m @ 1.68 g/t Au from 27m
SHDD394 7m @ 2.80 g/t Au from 35m
SHDD395 13m @ 3.87 g/t Au from 45m
SHDD396 14m @ 3.26 g/t Au from 28m
SHDD398 13m @ 5.46 g/t Au from 4m
SHDD399 7m @ 2.97 g/t Au from 35m
SHDD402 8m @ 4.30 g/t Au from 28m
Significant intercepts that increase confidence within the current resource are:
SHDD383 8m @ 2.89 g/t Au from 0m
SHDD388 8m @ 3.17 g/t Au from 8m
SHDD389 29m @ 6.98 g/t Au from 0m
SHDD391 6m @ 4.07 g/t Au from 9m
gThe continuation of very good drilling results gives us confidence to expect that the overall Sihayo Pungkut
gold resource will grow significantly from the current 10.7 Mt @ 2.9 g/t Au for 1.01 million oz, as we continue
to drill both to the northwest and southeast of the main Sihayo resourceh, said Paul Willis, Chief Executive
Officer, Sihayo Gold Limited.
25 Charles Street, South Perth WA 6151 PO Box 1013, South Perth WA 6951
WESTERN AUSTRALIA
Telephone: +61(8) 9368 4544 Facsimile: +61(8) 9368 4522
Web: www.sihayogold.com e-mail: [email protected]
ABN: 77 009 241 374
EXPLORATION PLAN ADJACENT TO SIHAYO RESOURCE
The resource extension programme is continuing with three diamond drill rigs drilling out the northern lode.
On completion of northern lode drilling, dependent upon final assay results for all holes, it is expected this zone
of mineralisation will form the basis for the first incremental increase of the Sihayo JORC compliant resource
estimate.
A fourth diamond rig will be commencing in mid]September. Ongoing drilling is planned to be a combination of
resource definition and testing the continuity of gold mineralisation to the northwest and southeast of the
Sihayo resource, which represents a combined strike length of approximately 4.5km.
Table 1 summarises significant results for drill holes SHDD378 to SHDD402. Figure 1 is a surface plan
summarising reported significant results and the ongoing drill plan.
Detailed geological modelling of the Sihayo deposit has identified that lithological contacts have acted as
dominant conduits of hydrothermal fluids. These fluids have precipitated economic jasper lodes through
replacement of calcareous stratigraphy in three hard rock primary settings;
1. Tertiary]Permian unconformity,
2. Contacts between volcanic lavas and enclosing calcareous sediments, and
3. Contacts between marble and silty limestone.
A fourth setting of economic mineralisation (post surface weathering of primary lodes) is oxidised zones of
surface regolith gold mineralisation occurring in modern karst environments.
The Sihayo and Sambung Resources, depicted in figure 1, are separated by about 1.25 km of potentially
mineralised strike. Stratigraphy 0.75km to 1 km northwest of the Sihayo resource also yields gold
mineralisation as defined by historic exploration. The combined strike length of this favourable stratigraphy is
approximately 4.5 km. Key work to date that confirms the potential of extending the Sihayo and Sambung
Resources is:
] Drilling results with >10 gram * metres gold intersections,
] Mapping and sampling of jasper outcrops,
] A >0.1ppm semi continuous soil anomaly, and
] A chargeability anomaly at the 850]950m RL
Diamond drilling is currently focussed on the Sihayo depositfs northern jasper lode. On completion of the
northern lode drilling, diamond drilling will continue as a combination of resource definition and exploration
drilling along strike from the Sihayo resource. The drill program will be a combination of extending existing drill
holes to seek preferential lithological boundaries that potentially host gold bearing jasper and new holes to test
extensions of known mineralisation (refer to figure 1).
Thus the forward exploration drilling programme is designed to target favourable known horizons along
strike from the Sihayo resource in an attempt to delineate a single large]scale global resource.
25 Charles Street, South Perth WA 6151 PO Box 1013, South Perth WA 6951
WESTERN AUSTRALIA
Telephone: +61(8) 9368 4544 Facsimile: +61(8) 9368 4522
Web: www.sihayogold.com e-mail: [email protected]
ABN: 77 009 241 374
Figure 1: Sihayo Gold Resource Surface Plan
25 Charles Street, South Perth WA 6151 PO Box 1013, South Perth WA 6951
WESTERN AUSTRALIA
Telephone: +61(8) 9368 4544 Facsimile: +61(8) 9368 4522
Web: www.sihayogold.com e-mail: [email protected]
ABN: 77 009 241 374
HOLE ID
EAST
UTM
NORTH
UTM
AZI DIP FROM TO
INTERCEPT
(M)
Au
g/t
INSIDE OR OUTSIDE
CURRENT
RESOURCE
Re]entry
SHDD121
547971 102984 0 ]90 82 92 10 3.02
Outside
Re]entry
SHDD121
547971 102984 0 ]90 96 101 5 4.03
Outside
SHDD378 547587 103172 0 ]90 24 28 4 4.81 Outside
SHDD381 548416 102343 0 ]90 257 273 16 5.14 Outside
SHDD384 547761 102728 0 ]90 14 23 9 2.99 Outside
SHDD384 547761 102728 0 ]90 27 34 7 1.68 Outside
SHDD384 547761 102728 0 ]90 52 53 1 1.51 Outside
SHDD385 548166 102844 0 ]90 117 118 1 1.05 Outside
SHDD388 547886 102649 0 ]90 35 37 2 2.93 Outside
SHDD392 548099 102831 0 ]90 77 79 2 3.96 Outside
SHDD393 548079 102881 0 ]90 43 47 4 2.47 Outside
SHDD394 548007 102952 0 ]90 35 42 7 2.80 Outside
SHDD394 548007 102952 0 ]90 49 50 1 1.15 Outside
SHDD395 548051 102883 0 ]90 45 58 13 3.87 Outside
SHDD396 547990 102928 0 ]90 28 42 14 3.26 Outside
SHDD396 547990 102928 0 ]90 66 67 1 1.51 Outside
SHDD397 548043 102861 0 ]90 36 38 2 1.82 Outside
SHDD397 548043 102861 0 ]90 44 46 2 2.64 Outside
SHDD397 548043 102861 0 ]90 58 60 2 1.39 Outside
SHDD398 547979 102906 0 ]90 4 17 13 5.46 Outside
SHDD399 548039 102914 0 ]90 35 42 7 2.97 Outside
SHDD400 547960 102886 0 ]90 69 70 1 1.03 Outside
SHDD400 547960 102886 0 ]90 72 74 2 1.91 Outside
SHDD402 548004 102878 0 ]90 28 36 8 4.30 Outside
SHDD379 547646 103070 0 ]90 50 56 6 1.59 Inside
SHDD379 547646 103070 0 ]90 59 60 1 1.56 Inside
SHDD383 547710 102764 0 ]90 0 8 8 2.89 Inside
SHDD383 547710 102764 0 ]90 18 21 3 1.86 Inside
SHDD384 547761 102728 0 ]90 2 3 1 3.56 Inside
SHDD384 547761 102728 0 ]90 6 10 4 1.66 Inside
SHDD386 548391 102479 0 ]90 140 142 2 1.26 Inside
SHDD387 547836 102666 0 ]90 0 4 4 1.30 Inside
SHDD387 547836 102666 0 ]90 10 12 2 3.28 Inside
SHDD387 547836 102666 0 ]90 29 30 1 1.01 Inside
SHDD388 547886 102649 0 ]90 0 8 8 3.17 Inside
SHDD388 547886 102649 0 ]90 14 16 2 1.12 Inside
SHDD389 547924 102460 0 ]90 0 29 29 6.98 Inside
SHDD391 548236 102683 0 ]90 9 15 6 4.07 Inside
Table 1: Summary of Gold intercepts in SHDD378 to SHDD402 & Re]entry of SHDD121
Notes
25 Charles Street, South Perth WA 6151 PO Box 1013, South Perth WA 6951
WESTERN AUSTRALIA
Telephone: +61(8) 9368 4544 Facsimile: +61(8) 9368 4522
Web: www.sihayogold.com e-mail: [email protected]
ABN: 77 009 241 374
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 and half core for NQ and HQ diameter core
7. Quality Assurance and Quality Control (QAQC): Standard or duplicate or blank inserted every 10 samples.
8. Coordinates in UTM grid system (WGS84 z47N)
Yours faithfully,
SIHAYO GOLD LIMITED
Paul Willis
Chief Executive Officer
7th September 2010
Competent Persons Statements
Sihayo Gold Limited: The information in this report that relates to exploration, mineral resources or ore reserves is based on information compiled by Mr
Graham Petersen (BSc.Geol) who is a full time employee of PT Sorikmas Mining(75% owned subsidiary of Sihayo Gold Limited), and is a Member of the
AusIMM. Mr Petersen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a competent person as described by the 2004 Edition of the gAustralasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reservesh. Mr Petersen consents to the inclusion in this report of the matters based on his information in the form and context in
which it appears.
Runge Limited: The information in this report that relates to Mineral Resources at Sihayo is based on information compiled by Mr Robert Williams BSc, a
Member of the Australian Institute of Mining and Metallurgy, who is a full time employee of Runge Limited and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Williams consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.
Modelling: The Sihayo deposit was estimated by Runge Limited using Ordinary Kriging grade interpolation, constrained by mineralisation envelopes prepared
using a nominal 0.5g/t gold cut]off grade for the lower grade upper weathered zone, and 1.0g/t Au in the deeper higher grade zones. In all cases a minimum
downhole intercept length of 2m was adopted. The block dimensions used in the model were 25m EW by 10m NS by 5m vertical with sub]cells of 6.25m by
2.5m by 1.25m. Statistical analysis of the deposit determined that no high grade cuts were required in the estimate. Grades were estimated using Ordinary
Kriging. Bulk density was assigned in the model based upon the results of 853 bulk density determinations.
Note
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 Limited, 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.