Far East Gold Limited (ASX: FEG) (“Far East Gold” or “the Company”) has approved an extension to its diamond drilling program at the Sua Prospect within the Idenburg Gold Project in Papua Province, Indonesia, following the delivery of strong high-grade assay results. The decision reinforces growing confidence in the scale and continuity of high-grade gold mineralisation at Sua and positions the Company to capitalise on strengthening global gold market fundamentals.
Figure 1: Overview of the Indonesian projects of Far East Gold Limited [Far East Gold]
Gold Market Backdrop: Strong Demand Meets Structural Constraints
The extension comes at a time when the global gold market continues to demonstrate robust growth. According to Mordor Intelligence, the gold market size is estimated at 4.75 kilotons in 2025 and is forecast to expand to 6.78 kilotons by 2030, representing a compound annual growth rate (CAGR) of 7.38% over the period.
Several structural drivers underpin this outlook. Central banks remain aggressive net buyers as they diversify reserves, while persistent geopolitical uncertainty continues to reinforce gold’s role as a safe-haven asset. At the same time, gold’s expanding use in advanced electronics supports long-term industrial demand, even as mined supply faces rising costs and technical challenges.
Asia-Pacific remains the epicentre of physical gold consumption, particularly in jewellery, while North America and Europe amplify investment demand through exchange-traded products. By application, jewellery accounted for 49.68% of total gold demand in 2024, while the electronics segment is projected to grow at an 8.56% CAGR through to 2030, highlighting gold’s increasing strategic relevance beyond traditional uses.
Figure 2: Global gold demand and supply infographic.
Overview of the Idenburg Gold Project
The Idenburg Gold Project is Far East Gold’s flagship asset in Indonesia and hosts multiple advanced gold prospects within a large Contract of Work area. The Project currently contains a JORC (2012) inferred mineral resource of approximately 540,000 ounces of gold at an average grade of 4.1 g/t Au, underpinned by extensive historic and modern exploration.
Within this broader resource, the Sua Prospect hosts an estimated 296,000 ounces of gold at an average grade of 3.7 g/t Au, making it one of the most significant contributors to the Project’s overall inventory. Gold mineralisation at Sua occurs within a stacked system of quartz veins associated with the Sua–Afley shear zone, a structure that remains open along strike and down-dip.
Figure 3: Location map of the Idenburg Gold Project and Sua Prospect. [Far East Gold]
Strong Historic Foundation at Sua
Exploration at Sua benefits from a solid historic dataset. Two phases of diamond drilling conducted in 2005 and 2006 comprised 22 holes for 2,629 metres, intersecting gold mineralisation in 19 holes. Historic results delivered numerous high-grade intersections, including:
- 7.5 metres at 13.6 g/t Au from 21 metres
- 3.0 metres at 35.0 g/t Au from 107 metres
- 16 metres at 8.49 g/t Au from surface, including 1 metre at 105 g/t Au
These intercepts established Sua as a high-grade gold system and formed the basis of the current JORC resource model.
Figure 4: Oblique perspective showing stacked mineralisation wireframes and historic drill holes at the Sua Prospect that underpin the current JORC (2012) inferred mineral resource estimate. [Far East Gold]
FEG Drilling Confirms and Upgrades High-Grade Potential
Far East Gold recently completed a 10-hole diamond drilling program (KSD023–KSD032) for 1,836 metres at the Sua Prospect. The program aimed to twin historic holes, step out along strike and down-dip, and improve structural understanding of the stacked vein system.
Assay results received to date from the first four holes (KSD023–KSD026) have exceeded expectations. All four holes intersected high-grade gold mineralisation, including previously reported bonanza-grade intervals. Importantly, drilling not only confirmed historic results but also intersected deeper high-grade zones that were not fully defined by earlier programs.
The results demonstrate that gold mineralisation at Sua persists both laterally and at depth, reinforcing the interpretation of a robust, stacked vein system.
Geological Setting and Mineralisation Style
Gold at Sua is hosted within NNE-trending quartz veins dipping approximately 35 degrees to the north, developed within altered diorite and associated meta-sedimentary rocks. The mineralisation forms part of an orogenic gold system, a deposit style known globally for hosting high-grade and laterally extensive gold shoots.
Multiple stacked vein lodes have been modelled within the current resource, and both historic and recent drilling confirm that mineralisation remains open along strike and down-dip. This geological setting provides strong justification for continued step-out drilling.
Drill Program Extension: Testing Depth and Continuity
On the strength of the latest results, the Company has approved a focused extension of the Sua drill program, comprising five additional step-out diamond holes (PKSD011–PKSD015) for approximately 1,360 metres.
These holes are designed as 100-metre down-dip step-outs beneath recent FEG drillholes, targeting extensions of high-grade shoots within the stacked vein system. The objectives of the extension program include:
- Testing continuity of high-grade gold mineralisation at depth
- Better defining the geometry and plunge of high-grade shoots
- Generating data to support potential resource growth and future classification upgrades
The first extension hole is planned from an existing drill pad, allowing drilling to commence promptly following final operational approvals.
Figure 5: Plan view of the Sua Prospect illustrating historic drill holes, FEG drill holes KSD023–KSD032, and the planned extension drill holes PKSD011–PKSD015, together with rock and soil sample gold values. Coordinates are shown in WGS84, Zone 54 South. [Far East Gold]
Metallurgical Characteristics Support Development Potential
Preliminary metallurgical test work completed on both surface samples and drill core composites indicates favourable processing characteristics. Results show 50–60% of gold is recoverable by gravity, with overall carbon-in-leach or resin-in-leach recoveries exceeding 90%.
These outcomes suggest that gold mineralisation at Sua is amenable to conventional processing methods, which may support future development scenarios, subject to further confirmatory work.
Next Steps at Sua
Far East Gold’s immediate focus includes:
- Receiving and reporting assay results from the remaining six holes of the initial drill program
- Commencing the five-hole extension drilling program
- Continuing detailed geological mapping and structural interpretation along the Sua–Afley shear zone
- Integrating new data into the existing resource model to assess implications for resource growth
Each of these steps aims to progressively de-risk the Project while building scale and confidence in the high-grade system.
Investor Outlook: Positioned for Leverage to Gold
Far East Gold’s expanding drill footprint at Sua aligns with a favourable gold market outlook and highlights the Company’s leverage to exploration success.
Share Price Activity (ASX):
- Last price: $0.15 (17 December 2025)
- One-month performance: +7.14%
- Market capitalisation: $55.05 million
With a modest market capitalisation relative to its high-grade resource base, Far East Gold offers investors exposure to exploration upside at a time when gold demand continues to strengthen globally. Ongoing drilling success at Sua, combined with supportive market fundamentals, positions the Company as one to watch in the junior gold exploration space.
