Far East Gold Limited (ASX: FEG) (“Far East” or “the Company”) has announced the commencement of a new diamond drilling campaign at its high-grade Sua prospect, one of the most advanced and prospective gold zones within its Idenburg Contract of Work (CoW) in Papua Province, Indonesia.
The Company’s announcement marks a defining moment for Far East Gold as it begins a phase of aggressive exploration aimed at confirming, extending, and potentially upgrading one of the most promising gold systems in the region.
The Sua drill program will include ten diamond drill holes for a total of 1,820 metres, running concurrently with the ongoing campaign at the North Bermol prospect, another highly prospective area within the Idenburg tenement. The twin programs underline Far East Gold’s confidence in the district’s potential to host a world-class gold system.
Figure 1: Map illustrating prospect and resource zones within the Idenburg Contract of Work (CoW) tenement. Recent mapping in the North Bermol area has identified new shear and fault-hosted gold mineralisation zones.
Exceptional Grades and Geological Continuity at Sua
The Sua prospect has been recognised as a standout high-grade gold target within the Idenburg project. It was originally drilled between 2005 and 2006 by Avocet Mining, where 18 of the 22 historical drill holes intersected gold mineralisation.
The results were described as exceptional, revealing significant continuity across multiple stacked shear zones, typical of large, structurally controlled orogenic gold deposits.
Some of the most notable historical intercepts include:
- KSD002: 7.5 metres at 13.6 grams per tonne (g/t) gold from 21 metres, including 2 metres at 8.78 g/t gold from 78 metres.
- KSD008: 5 metres at 21.8 g/t gold from 107 metres, including 3 metres at 35.0 g/t gold.
- KSD013: 6 metres at 8.22 g/t gold, including 2 metres at 52.3 g/t gold from 13 metres.
- KSD010: 18 metres at 2.05 g/t gold from surface and 8 metres at 2.58 g/t gold from 44 metres, including 1 metre at 14.3 g/t gold.
These intersections confirm that high-grade mineralisation occurs within multiple shear-hosted veins, suggesting a broad and laterally continuous mineralised system. More than 30 gold-bearing veins have been identified in the Sua district, further demonstrating the system’s scale and potential for expansion.
Figure 2: Image showing the Sua prospect with planned drillholes (yellow) designed to confirm previous mineralised zones and extend high-grade areas between 100m-spaced historical holes.
CEO Shane Menere: “An Important Milestone in Unlocking the Idenburg Potential”
Announcing the program, Far East Gold CEO and Director Shane Menere said the start of drilling at Sua represents another decisive step in the Company’s growth story:
“The commencement of drilling at Sua marks another important milestone in unlocking the exceptional potential of our Idenburg project. The historical results from Sua are nothing short of outstanding, with multiple high-grade intercepts up to 52.5 g/t Au. This new drilling program is designed to confirm and extend those results, and we are confident that it has the potential to define a significant high-grade system.”
He also stated that with drilling underway at both North Bermol and Sua, Far East Gold is progressing two standout prospects simultaneously, each showcasing the scale, grade, and continuity required to support a world-class gold operation.
The Company’s dual-site drilling strategy highlights its commitment to accelerating discovery and resource definition within one of the world’s most geologically prospective yet underexplored gold belts.
Figure 3: Far East Gold CEO and Director Shane Menere
Understanding the Sua System: Geological and Metallurgical Confidence
The geological framework of the Sua prospect supports strong confidence in the continuity and recoverability of mineralisation.
Gold occurs within boudinaged quartz-pyrite veins hosted in altered metadiorite, plunging about 35 degrees to the north. The mineralogy includes chalcopyrite, galena, sphalerite, covellite, chalcocite, and visible free gold. This mineral suite, combined with structural and alteration patterns, suggests an orogenic lode-gold system with similarities to major deposits across the Pacific Rim.
Earlier petrographic and metallurgical studies revealed highly favourable processing characteristics. Initial tests indicated gravity recoveries of 50–60%, with overall gold recoveries above 90% using standard carbon-in-leach (CIL) and resin-in-leach (RIL) methods.
This confirms the potential for low-cost, efficient extraction using conventional industry practices — a crucial economic advantage in modern gold development.
An independent JORC 2012-compliant resource, prepared by SMG Consultants (SMGC), estimated an inferred resource of 2.5 million tonnes at 3.7 g/t gold, equating to approximately 296,000 ounces of contained gold at the Sua prospect. The Company expects these numbers to grow significantly as new drilling extends known mineralised zones both down-dip and along strike.
Strategic Significance of the Idenburg Project
Located within Indonesia’s Papua Province, the Idenburg Project spans a vast 95,280 hectares under a sixth-generation Contract of Work valid until 2026. This area sits within the same geological corridor as Grasberg, Wabu, and Ok Tedi — three of the world’s largest gold and copper deposits. The Idenburg terrane itself comprises metamorphic and ophiolitic rocks associated with regional thrust faults, creating ideal structural traps for gold-bearing hydrothermal systems.
Over the years, exploration across the Idenburg district has revealed widespread mineralisation, confirming the region’s potential to host multiple gold deposits. The discovery of numerous shear zones and quartz veins at Sua and North Bermol supports Far East Gold’s interpretation of a large-scale mineralised corridor.
Importantly, the Idenburg tenement’s scale and setting give Far East Gold flexibility to explore both high-grade vein-style deposits and larger bulk-tonnage systems. This combination enhances its long-term development potential.
Figure 4: Far East’s Idenburg project location in Indonesia
A Growing Portfolio Across Australia and Indonesia
While Idenburg currently commands the spotlight, Far East Gold’s strength lies in its diversified portfolio of six copper-gold projects across Australia and Indonesia. Each of these assets sits within a world-class geological province:
- Blue Hill Creek (Queensland): An 8,000-hectare gold project within the Drummond Basin featuring low-sulphidation epithermal systems, with surface grades reaching 6.93 g/t gold and 37.3 g/t silver.
- Mount Clark West (Queensland): A 1,912-hectare copper-gold target within the Connors Arc, showing geophysical signatures typical of porphyry systems, with exploration models indicating 400–650 million tonnes of mineralised rock.
- Wonogiri (Central Java): A 3,928-hectare project hosting the advanced Randu Kuning deposit, with future drilling planned to refine resources and move towards mine development.
- Woyla (Aceh, Indonesia): Covering 24,260 hectares, this high-grade gold project hosts both epithermal veins and potential copper-gold porphyry systems. Recent exploration has identified new high-grade zones for follow-up.
- Trenggalek (East Java): A 12,813-hectare project within the Sunda Magmatic Arc, highly prospective for both porphyry and epithermal mineralisation, analogous to nearby world-class deposits such as Tujuh Bukit.
Through this diversified strategy, Far East Gold has positioned itself as a regional exploration leader, balancing low-risk Australian projects with the transformative upside of Indonesian assets.
Figure 5: A map showing the project locations of Far East Gold
Favourable Gold Market Conditions
The timing of the Sua drilling program coincides with a favourable global gold market.
As of 10 October 2025, gold trades at around USD $3,985.12 per troy ounce, representing a 51.85% year-to-date gain, while in Australian dollars, it sits at approximately AUD $6,063.79 per ounce.
Analysts attribute this sustained rally to a combination of macroeconomic factors, ongoing inflationary pressures, geopolitical uncertainty, and rising demand from central banks and Asian markets. For exploration-focused companies like Far East Gold, this price environment significantly enhances project economics and investor confidence.
Far East Gold’s Growing Market Presence
Far East Gold Limited, trading under ASX code FEG, had a market capitalisation of approximately $49.54 million and a share price of $0.125, within a 52-week range of $0.110 to $0.230 as of 10th October, 2025.
This valuation reflects growing investor interest in the Company’s exploration momentum and diversified asset base. As drilling progresses at both Sua and North Bermol, the market will be closely watching for results that could redefine the scale and value of the Idenburg gold system.
Investor Outlook
For investors, the commencement of drilling at the high-grade Sua prospect represents more than just another exploration update — it signals the beginning of a pivotal growth phase for Far East Gold.
The combination of historical high-grade results, confirmed geological continuity, and metallurgical recoveries exceeding 90% provides a solid technical foundation for value creation. With exploration now active at two prospects within the Idenburg CoW, the Company is well-positioned to deliver substantial news flow in the months ahead. Moreover, the current strength in global gold prices provides a compelling backdrop for further exploration investment. As the Company continues to build momentum, it stands poised to transition from explorer to emerging gold producer, with its projects strategically located near world-class mineral belts.
