significant gold results in quartely

Ignore the share price & read the quartely, SIH is advancing very well with signifcant gold hits continuing, when the games are over on the share price we should expect a real rerating:


QUARTERLY REPORT

For the three months ending 31 December 2009

HIGHLIGHTS

SIHAYO GOLD PROJECT, INDONESIA (75%)

Definitive Feasibility Study commenced with an aggressive timetable to commence gold
production at the Sihayo Gold Project by December 2011
7 diamond drilling rigs recently mobilized to site to carry out infill resource definition drilling
Upgraded resource estimation planned to be completed by May 2010
Significant widths of gold mineralisation in infill drilling at: Sihayo 1 North Resource
Significant results included:
o 28m @ 2.5 g/t Au from surface
o 29m @ 4.2 g/t Au from 74m.
o 7m @ 8.3 g/t Au from 1m
o 7.4m @ 4.2 g/t Au from 19m
Significant widths of gold mineralisation intersected at the Sihayo 1 exploration prospect
immediately south of the Sihayo 1 North resource.
Drilling has extended the known mineralisation at the Sihayo 1 prospect to over 400 metres of
strike length and the mineralisation remains open along strike.
Metallurgical test work program has commenced
CORPORATE
Company name change from Oropa Limited to Sihayo Gold Limited
$6.5 million funding package to sophisticated investors approved at AGM. To date $3.99 has been
raised in accordance with the agreed placement and exercise program as approved. The balance
is due and expected on the exercise dates of 23 March and 30 May 2010.
Indonesian investment group Summit Investments became a substantial shareholder and have
indicated their continuing support of the Company
Company is debt free following conversion of all outstanding convertible notes into shares
__________________________________________________________________________________
2 www.sihayogold.com
1. REVIEW OF OPERATIONS
1.1 INDONESIA
Pungkut Gold Project, Sumatra (75%)
SUMMARY
An extensive Definitive Feasibility Study (DFS) program is underway at the 13.2 MT grading 2.4g/t Au (1.01
Moz) JORC compliant Inferred resource at Sihayo (Figure 1) with an aggressive timeline programmed to bring
the project into production by December 2011.
Key events to meet this schedule are to complete infill drilling and an upgraded resource estimate for Sihayo 1
North by May 2010 and; complete the Definitive Feasibility Study (DFS) by the end of 2010. The DFS
management is being undertaken by Mr Greg Entwistle of TWP Australia Pty Ltd who has had extensive
experience in the region as the former Project Director for the development of the 6Moz gold Martabe project;
immediately north of the Pungkut Project. In addition the Company has assembled a team of specialist mining
engineers, geologists, metallurgists, and geotechnicians, many with prior experience in Sumatra and Indonesia.
Seven diamond drilling rigs have recently been mobilized to site to conduct infill drilling of the Sihayo 1 North
resource (Figure 2) with a further rig due in January 2010. A total of 8 diamond drilling rigs will be used to
complete the resource infill, geotechnical and sterilization drilling making Sihayo one of the most active mineral
development projects in Indonesia.
Metallurgical testwork is underway in order to provide data to design the processing plant and crushing facilities
with initial bulk samples recently delivered to the AMMTEC laboratory in Perth. Suitable locations for tailings
storage facilities and plant site location have been identified with detailed site surveys underway and
geotechnical and sterilization drilling planned to commence in the next Quarter. Environmental and social
surveys have commenced with the task of providing data for mandatory environmental approvals and mine
permitting. Initial studies into power requirements have identified hydroelectric power, the local land grid and site
diesel generation all as possible options for power for the plant and associated infrastructure.
Initial results of infill drilling at Sihayo 1 North have shown good continuity of mineralisation within the current
Inferred resource and have returned a number of significant intercepts including 28m @ 2.5 g/t Au from surface
and 29m @ 4.2 g/t Au from 74m. The primary aim of the drilling is to increase the level of confidence in the
resource estimate to that required to complete the DFS. In all a total of 8,000m of drilling is planned to be
completed by May 2010.
Results of the final six holes of exploration drilling at the Sihayo 1 prospect, immediately south of Sihayo 1 North
Inferred Resource and along strike from Sambung Inferred Resource, were received during the Quarter. All
holes intersected mineralisation over 1g/t Au and better results including 11m @ 1.7 g/t Au from 132m and
6.95m @ 2.9 g/t Au from 2m while earlier results included 23m at 3.0g/t Au from 83m. Drilling has now
identified mineralisation over 400 metres of strikelength and the mineralisation remains open in three directions.
Further drilling is required to continue to test the full strike extent and infill the higher grade areas prior to initial
resource estimation.
Following completion of the Sihayo 1 North infill drilling, the focus will be on drilling to increase the overall
resource base at the Old Camp, Sihayo 1, Sihayo 2 and Sambung, prospects along with identifying and drilling
new exploration targets in the 4 kilometre long Sihayo trend (Figure 2).
While no recent regional exploration has been conducted due to the extensive Sihayo 1 North work program,
plans are in progress to conduct the low-level exploration required to develop known areas of mineralisation in
the South Block into drill ready targets. Deep drilling is also planned for the second half of the year on the
extensive low-sulphidation epithermal veins at Hutabargot Julu where 22 shallow holes to date have produced
consistent and encouragingly anomalous gold along with the massive quartz-breccia/vein system. The Company
believes there may be significant potential for bonanza type mineralisation that is often encountered in
epithermal vein systems below otherwise low grade mineralised veins.
Department of Forestry permitting has been applied for and is still pending to obtain access into the most
prospective porphyry target areas. A-type veining identified at 3 of the prospects give drill ready targets with
only mapping and geophysics required in order to best orientate the drill rigs to effectively intersect the target.
__________________________________________________________________________________
3 www.sihayogold.com
Prospect scale airborne magnetics and radiometrics are being considered to identify non-outcropping or
unidentified porphyry targets. Given the frequency of gold and copper mineralized skarn, and epithermal vein
occurrences and level of geochemical anomalism along with known porphyry occurrences in the South Block,
information from airborne geophysics has highlighted the potential for a number of priority targets. Similarly
while the level of geochemical anomalism is lower in the North Block it has a proven history of gold
mineralisation at Sihayo and also has the best grades of gold / copper / molybdenum in porphyry outcrop and
the potential to host substantial mineralisation.
Figure 1: Pungkut project area North Sumatra, showing principal prospects
Figure 2: Sihayo gold trend, North Block, Pungkut Project
__________________________________________________________________________________
4 www.sihayogold.com
Sihayo 1 North
Infill drilling has commenced on the sub-horizontal sediment-hosted Sihayo 1 North resource. A team of
geologists has been assembled to ensure that all of the planning, logging, quality control, and resource
estimation can be completed in an efficient and timely manner. Drilling to date is confirming the interpretation of
the previous geological model and providing additional information for a more precise re-interpretation (Figures 3
and 4). Best results include:
SHDD139: 4.2m @ 5.0 g/t Au from surface
and 1.3m @ 10.2 g/t Au from 6.7m
SHDD140: 7m @ 8.3 g/t Au from 1m
SHDD142: 3m @ 4.5 g/t Au from 40m
SHDD144: 3.4m @ 4.0 g/t Au from 3m
and 3m @ 6.1 g/t Au from 7.4m
SHDD144: 5.45m @ 4.0 g/t Au from 14.1m
SHDD146: 1.9m @ 7.3 g/t Au from 15.8m
SHDD146: 7.35m @ 4.2 g/t Au from 18.6m
SHDD146: 7m @ 3.6 g/t Au from 46m
SHDD146: 29m @ 4.2 g/t Au from 74m
SHDD153: 7m @ 3.6 g/t Au from 2m
SHDD158: 28m @ 2.5 g/t Au from surface
OZMET has been contracted to provide consulting for the metallurgical program in order to provide data for gold
recoveries, reagent optimization, and processing plant design. A comprehensive metallurgical sampling
program has commenced using existing drill core and dedicated metallurgy holes. Samples have been sent to
AMMTEC Ltd metallurgical testing laboratories based in Perth, Australia. Testwork has now commenced with
initial results by March 2010.
Geotechnical information is being gathered during the infill drilling program in order to provide mine design and
pit wall stability parameters. GHD Australia has been contracted to compile the geotechnical data and a site visit
has been made to check the core logging procedures. The geotechnical contractor for analyzing the data will be
selected at a later date.
GHD Australia has been selected as the contractor to provide for tailings storage facility and slurry pumping
design, and geotechnical survey for the plant and tailings facility sites. An initial scoping study has identified
prospective sites. An Indonesian survey team has been mobilized to site in order to place survey base stations
and to create an accurate high resolution topographic map. A diamond drilling rig is planned to be mobilized to
site in January 2010 in order to drill geotechnical holes.
Golder Associates has been contracted to provide technical advice and assistance and to form the
environmental and social study teams. A field trip has been completed to collect data for the baseline study with
further activity continuing on an ongoing basis to identify any risk items and as part of the ramp up of the
community relations programs. Environmental and social programs are aiming to meet and exceed the
requirements of an international minerals company, to meet the standards and permitting required by Indonesian
law, to meet the standards required as an ASX listed company, and facilitate a smooth transition to mining.
High level studies are underway in to alternatives for meeting the electricity requirements of the mine. With the
equatorial rainfall spread across most of the year and consistent flows in nearby rivers the potential to exploit
hydro-electricity is being explored, along with options for accessing electricity from the state power company
PLN and other generating options.
__________________________________________________________________________________
5 www.sihayogold.com
Figure 3: Sihayo 1 North infill drilling collar location and scoping study proposed pit outline
Figure 4: Sihayo 1 North cross section 54600mN
__________________________________________________________________________________
6 www.sihayogold.com
Table 1: Significant Drill Results Sihayo 1 North (>1g/t Au) December Quarter 2009
__________________________________________________________________________________
7 www.sihayogold.com
Notes
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 half core for PQ and HQ diameter core
7. Quality Assurance and Quality Control (QAQC):
8. Coordinates in UTM grid system
Sihayo 1
The exploration drilling program was completed at the Sihayo 1 prospect, located immediately south of the main
Sihayo 1 North resource. The first program of broad 100x100m drilling aimed to define the extent of the blind
mineralisation beneath Tertiary sediments. The program was successful in identifying continuous mineralisation
over a strike length of 400m including 23m at 3.0g/t Au and the mineralisation remains open to the northwest,
northeast and southeast (Figure 5). Drilling has been suspended temporarily while the infill drilling for the Sihayo
1 North indicated resource is completed. Drilling is planned to resume in the second half of 2010 to test up to a
further 1.3 kilometres of potential strike extension to the NW and SE. Significant results received during the
Quarter from the final six holes in the program included;
SHDD137: 11m @ 1.67 g/t Au from 132m
SHDD141: 5m @ 1.44 g/t Au from 101m
SHDD143: 3m @ 1.15 g/t Au from 19m
SHDD145: 6.95m @ 2.91 g/t Au from 2m
Figure 5: Sihayo 1 drilling and geology
__________________________________________________________________________________
8 www.sihayogold.com
Table 2: Significant Drill Results Sihayo 1 (>1g/t Au) December Quarter 2009
Notes
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 half core for PQ and HQ diameter core
7. Quality Assurance and Quality Control (QAQC):
8. Coordinates in UTM grid system
Sihayo Trend
Immediately following the completion of drilling for the Sihayo 1 North resource drilling will resume on near
resource targets. Priority areas will be to conduct infill drilling at Old Camp in order to add further resources into
the mining inventory, and to delineate and then drill out Sihayo 1 and Sihayo 2.
Soil sampling has commenced on the eastern flank of the Sihayo resource where further jasperoids are likely to
be covered by an extensive area of thin Tertiary sediments. A soil orientation study over known mineralisation
has shown that there is likely to be an anomaly generated over gold bearing jasperoids if the Tertiary Sediment
is less than 15m thick.
Regional exploration during the Quarter has discovered extensive skarn style alteration in andesites and diorites
4 kilometres along strike to the northwest of Sihayo. This discovery highlights the size of the Sihayo
hydrothermal system and the potential for discovery of other styles of mineralisation such as skarn or porphyries.
Regional Activities
No regional exploration was conducted during the Quarter while the focus of work has been on the Sihayo 1
North project. A regional exploration plan is expected to re-commence in the second quarter of 2010 with low
level exploration in the South Block in order to maintain an active presence and to develop some of the
prospects into drill ready targets.
In the second half of 2010 as drill rigs complete the infill drilling at Sihayo then drilling can take place on regional
targets.
Exploration approval is being sought from the Department of Forestry to work in areas previously placed in
suspension while the national park issue was resolved. Once approval is given then reconnaissance mapping
and sampling is planned for the porphyry targets at Singalancar, Rura Balancing, and Namilas (Figure 1).
__________________________________________________________________________________
9 www.sihayogold.com
1.2 MALAWI (URANIUM) 100%
No activities were carried out during the Quarter.
The Company is planning to conduct a visit to Malawi in late January with the aim of recommencing regional
exploration activities in the second Quarter of 2010.
1.3 INDIA (DIAMONDS) 9-10%
No progress has been made during the Quarter in resolving the legal status of the diamond tenements in India.
The Company remains optimistic that its Indian JV Partner will be successful in gaining access to the tenement
and application areas in the future. In the mean time there is no cost to Sihayo in maintaining its current equity.
2. Corporate Activities
Following the announcement of the $6.5 million funding package in the September 2009 quarter and the
subsequent share holder approval at the Companys Annual General Meeting a further 24,071,720 shares were
placed to sophisticated investors raising $0.96 million. In addition 74,500,000 options were also issued. Of these
30,000,000 were exercised in December 2010 raising $1.5m and bringing the total subscribed to date to $3.99m.
The balance is due and expected on the exercise dates of 23 March and 30 May 2010 respectively. The investor
group comprising primarily of Indonesian based investors continue to show strong support for the Companys
accelerated plan for near term development of the Sihayo gold project.
In November the Company announced the conversion of all the outstanding convertible notes into shares.
In line with the Companys objective of developing the Sihayo gold mine it changed its name from Oropa Limited
to Sihayo Gold Limited following shareholder approval at the Annual General Meeting
Yours faithfully,
SIHAYO GOLD LIMITED
TONY MARTIN
Chief Executive Officer
28 January 2009
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 Ltds 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.
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 1
Listing Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
SIHAYO GOLD LIMITED
ABN Quarter ended (current quarter)
77 009 241 374 31 DECEMBER 2009
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter
$A
Year to date
(6 months)
$A
1.1 Receipts from product sales and related debtors - -
1.2 Payments for (a) exploration and evaluation
(b) development
(c) production
(d) administration
(1,123,028)
-
-
(288,742)
(1,528,912)
-
-
(469,618)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received
17,056 27,206
1.5 Interest and other costs of finance paid (44,828) (86,162)
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
Net Operating Cash Flows (1,439,542) (2,057,486)
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments
(c) other fixed assets
-
-
(34,732)
-
-
(61,526)
1.9 Proceeds from sale of: (a)prospects
(b)equity investments
(c)other fixed assets
-
-
-
-
-
-
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other cash acquired on purchase of subsidiary - -
Net investing cash flows (34,732) (61,526)
1.13 Total operating and investing cash flows
(carried forward) (1,474,274) (2,119,012)
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 2
1.13 Total operating and investing cash flows
(brought forward) (1,474,274) (2,119,012)
Cash flows related to financing activities
1.14 Proceeds from convertible notes issued - 5,000
1.14 Proceeds from issued shares 2,462,869 3,996,717
1.14 Proceeds from shares to be issued through SPP - -
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other cost of share issue (45,689) (52,045)
Net financing cash flows 2,417,180 3,949,672
Net increase (decrease) in cash held 942,906 1,830,660
1.20 Cash at beginning of quarter/year to date 1,838,601 960,522
1.21 Exchange rate adjustments to item 1.20 (4,679) (14,354)
1.22 Cash at end of quarter 2,776,828 2,776,828
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter
$A
1.23 Aggregate amount of payments to the parties included in item 1.2 225,509
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
Includes interest paid to convertible note holders at a rate of 10% per annum on principal
sum outstanding.
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated
assets and liabilities but did not involve cash flows
NOT APPLICABLE
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the
reporting entity has an interest
NOT APPLICABLE
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 3
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available
$A
Amount used
$A
3.1 Loan facilities - -
3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
$A
4.1 Exploration and evaluation 1,200,000
4.2 Development -
Total 1,200,000
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as
shown in the consolidated statement of cash flows) to
the related items in the accounts is as follows.
Current quarter
$A
Previous quarter
$A
5.1 Cash on hand and at bank 1,732,964 1,794,737
5.2 Deposits at call Bank Guarantee
- Term Deposit
20,000
1,023,864
20,000
23,864
5.3 Bank overdraft - -
5.4 Other Share Purchase Plan A/c - -
Total: cash at end of quarter (item 1.22) 2,776,828 1,838,601
Changes in interests in mining tenements
Tenement
reference
Nature of interest
(note (2))
Interest at
beginning
of quarter
Interest at
end of
quarter
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
- - - -
6.2 Interests in mining
tenements acquired or
increased
- - - -
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 4
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price per
security (see note
3) (cents)
Amount paid up per
security (see note 3)
(cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buybacks,
redemptions
7.3 +Ordinary
securities
425,202,424 425,202,424 N/A N/A
7.4 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buybacks
24,071,720
30,000,000
43,099,902
5,000,000
15,000,000
10,000,000
5,000,000
24,071,720
30,000,000
43,099,902
5,000,000
15,000,000
10,000,000
5,000,000
$0.04
$0.05
$0.02
$0.02
$0.02
$0.02
$0.02
$0.04
$0.05
$0.02
$0.02
$0.02
$0.02
$0.02
7.5 +Convertible
debt securities
(Convertible
Notes)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
75,533,150 $0.02 $0.02
7.7 Options
(description and
conversion
factor)
12,791,439
13,280,376
8,500,000
14,974,500
7,500,000
3,000,000
25,000,000
19,500,000
12,791,439
13,280,376
Exercise price
$0.20
$0.20
$0.15
$0.05
$0.05
$0.05
$0.06
$0.05
Expiry date
31/01/2010
31/01/2011
31/05/2013
31/08/2011
26/08/2011
31/08/2011
23/03/2010
30/05/2010
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 5
7.8 Issued during
quarter 3,000,000
30,000,000
25,000,000
19,500,000
$0.05
$0.05
$0.06
$0.05
31/08/2011
23/12/2009
23/03/2010
30/05/2010
7.9 Exercised during
quarter 30,000,000 $0.05 23/12/2009
7.10 Expired during
quarter 2,700,000 $0.13 31/12/2009
7.11 Debentures
(totals only)
7.12 Unsecured
notes (totals
only)
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting
standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2 This statement does /does not* give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 28 January 2010
(Company Secretary)
Print name: DEAN CALDER
Notes
1 The quarterly report provides a basis for informing the market how the entitys activities have
been financed for the past quarter and the effect on its cash position. An entity wanting to disclose
additional information is encouraged to do so, in a note or notes attached to this report.
2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining
tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint
venture agreement and there are conditions precedent which will change its percentage interest in a
mining tenement, it should disclose the change of percentage interest and conditions precedent in the list
required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1
and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and
AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Accounting
Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that
topic (if any) must be complied with.
== == == == ==