Sihayo Gold Limited Discover Bonanza Grade Gold At Tambang Tinggi Prospect

14:19 AEST May 2, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Sihayo Gold Limited (ASX: SIH) is pleased to announce that significant gold results have been achieved in the first six holes of the new drilling program at the Tambang Tinggi gold / copper prospect located in the southern area of the Company's Contract of Work ('COW') in North Sumatra, Indonesia.

The fifth hole in the new program, TTDD010, has intersected bonanza grade gold at a depth of 18 meters.

TTDD010 delivered an outstanding intersection of: 10m @ 39.2 g/t Au from 18m including 2m @ 193 g/t Au from 20m

TTDD006 delivered a significant intersection of: 30m @ 3.90 g/t Au from 104m including 12m @ 8.60 g/t Au from 122m


Other significant intercepts included:

- TTDD006 12m @ 1.86 g/t Au from 36m

- TTDD007 2m @ 5.78 g/t Au from 68m

14m @ 1.21 g/t Au from 106m

- TTDD008 8m @ 1.22 g/t Au from 2m

4m @ 9.25 g/t Au from 182m

4m @ 1.32 g/t Au from 196m

- TTDD009 16m @ 1.63 g/t Au from 0m

2m @ 4.25 g/t Au from 58m

2m @ 6.93 g/t Au from 82m

2m @ 4.9 g/t Au from 94m

- TTDD010 2m @ 3.91 g/t Au from 56m

- TTDD011 12m @ 1.67 g/t Au from 54m

8m @ 1.12 g/t Au from 98m

6m @ 3.94 g/t Au from 208m

'These are outstanding results for an exploration program in its infancy. We will be focussing on potentially delineating a new JORC compliant resource over the Tambang Tinggi prospect to add to our existing JORC compliant resource of 15.7 Mt @ 2.8 g/t Au for 1,402,000 oz at our flagship Sihayo Pungkut Gold Project' said Paul Willis, Chief Executive Officer.

Previously released significant results from the initial five hole drilling program at Tambang Tinggi, which was completed in 2005 and 2006, included:

- TTDD001 87m @ 0.7 g/t Au from surface

- TTDD002 125m @ 1.4 g/t Au from surface

- TTDD003 90m @ 0.4 g/t Au from surface

- TTDD004 4m @ 0.6 g/t Au from 47m and

18m @ 0.5 g/t Au from 55m and

4m @ 1.0 g/t Au from 78m and

3m @ 1.9 g/t Au from 86m


EXPLORATION DRILLING PROGRAM AT TAMBANG TINGGI REGION

Exploration drilling within the Tambang Tinggi Region has been planned in two phases; firstly, the drilling of four near surface gold prospects and secondly, the drilling of deeper potential copper / gold mineralisation targets. Determination of the deeper potential targets will be greatly enhanced with the final results from detailed airborne magnetics and dipole-dipole induced polarisation surveys expected in the next four weeks.

The Tambang Tinggi Region is underlain by intercalated andesitic volcanics and limestone. Younger dacitic volcanics and sandy conglomerates overlie the andesite / limestone sequence. A hornblende diorite, weakly to moderately magnetic, has intruded the andesite / limestone sequence. Quartz diorite has later intruded the hornblende diorite in interpreted favourable structural settings. Macro structural features of the Tambang Tinggi Region are controlled by the deep seated Trans Sumatran Fault System.

The intial results of the first six holes of the new drilling program at the Tambang Tinggi Prospect have been very encouraging. Significant gold mineralisation is related to quartz-pyrite+/-chalcopyrite stock work veining within a broad quartz-sericite-tourmaline-pyrite+/-chalcopyrite alteration (phyllic alteration) zone.

The current Tambang Tinggi drilling plan is to complete four further diamond drill holes and then begin scout drilling to the north at Tambang Bawah Prospect. Following the initial program at Tambang Bawah, scout drilling will begin at the Tambang Ailul Prospect.

Tambang Ailul is potentially an extension of the Tambang Tinggi mineralisation. Field inspection at Tambang Ailul demonstrated that mineralisation and alteration is the same style as Tambang Tinggi and suggests a potential strike length of approximately 850m of gold stock work veining, which requires significant drill testing.


HIGHLY ANOMALOUS COPPER

Tambang Tinggi phyllic alteration is similar in style to known phyllic alteration zones adjacent to a number of significant porphyry copper-gold deposits. Notably, highly anomalous Cu was intersected in drill holes TTDD008 and TTDD011:

- TTDD008 63m @ 0.55 g/t Au and 0.09% Cu from 196m including 27m @ 0.39 g/t Au and 0.12% Cu from 232m (Note: No cut off or dilution factored in gold calculation)

- TTDD011 46m @ 0.35 g/t Au and 0.13 % Cu from 116m including 18m @ 0.52 g/t Au and 0.09% Cu from 116m (Note: No cut off or dilution factored in gold calculation)

These highly anomalous copper results indicate that copper mineralisation is stronger at depth, which is consistent with the interpretation of an underlying Porphyry Copper-Gold system.

For the complete Sihayo Gold Limited announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/540148.pdf


About Sihayo Gold Limited:

Sihayo Gold Limited (ASX: SIH) is a mineral exploration company with exploration projects in Indonesia.

With recent exploration successes at the company's Sihayo Gold Project, the Board of Sihayo Gold is focused on developing Sihayo Gold to a mining stage to generate maximum shareholders value.

Sihayo Gold is managed by a highly skilled and dedicated team. This team is firmly committed to increasing the value of the company through focused exploration on projects in highly prospective regions.

Management has assembled a high quality portfolio mineral asset that provides an excellent foundation for the company to move from explorer into miner.



Contact:

Paul Willis
Chief Executive Officer
Sihayo Gold Limited
Tel: +61-8-9368-45