SIHAYO GOLD LTD - ASX: SIH

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Description

Sihayo Gold Limited (“Sihayo Gold”) is a mineral exploration company with projects in Indonesia, Malawi, India with minor interests in Australia. With recent exploration successes at the Company's Pungkut Gold Project, the Sihayo Gold Board is now focused on developing Pungkut 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 of the world. To date, management has assembled a high quality portfolio of mineral assets that provide an excellent foundation for the company to move from explorer into miner.

Indonesia: Pungkut Gold Project, Sumatra; (earning 75%)

Pungkut is located near the west coast of North Sumatra, approximately 200km northeast of Padang city which has international and domestic air links. Access to the project area is via the sealed Trans Sumatran Highway from Padang. The Pungkut CoW covers an area of 66,200ha and abuts the southern margin of Oxiana's Martabe CoW, which contains the 6 million ounce silver Purnama high sulphidation epithermal gold deposit. The Pungkut CoW is the result of an agreement entered into between API and ANTAM in October 1997. API holds a 75% beneficial interest through its shareholding in the Indonesian joint venture company, PT Sorikmas Mining (“Sorikmas”), with ANTAM holding the remaining 25%. The equity structure of Sorikmas remains unaltered, with Oropa acquiring all of the issued capital in API from the Vendors.

India: Block D-7 Diamond Project, Chhattisgarh; (9% plus 9% buy back)

The past 12 months have produced very little apparent progress towards an outcome to this protracted high court case in Chhattisgarh. Consequently, during most of this financial year, Oropa has focused its field activities at Pungkut and more recently, expanding its mineral exploration activities with the recent acquisition of its Malawian uranium projects and seeking to further diversify its exploration activities with the advanced evaluation of a number of coal projects in Kalimantan, Indonesia. Furthermore, owing to the protracted delays with the high court matter, Oropa decided not to contribute to a number of cash calls made by the Indian partners, preferring to dilute its equity in B. Vijaykumar Exploration Pvt Ltd (“BVTS”) with the right to buy back the additional 10% equity in BVTs at a future date. Throughout the year Oropa has maintained regular contact with its Indian joint venture partners and a number of visits were made to India by Oropa’s directors to obtain updates on the Block D- 7 court case and the status of the two Krishna River Reconnaissance Permit (“RP”) applications in Andhra Pradesh (“AP”).

Africa: Uranium Exploration in Malawi

The Southern African country of Malawi has recently gained prominence as a future uranium producer with the commencement of mining at Paladin Energy Ltd's ("Paladin's") US$200M Kayelekera uranium mine in northern Malawi. The mine was officially opened on 17 April 2009 with a forecast annual production of 3.3Mlbs of U3O8 over a mine life of 7 years based reportedly on proven and probable ore reserves of 10.46Mt at 0.108% U3O8. The Government of Malawi is actively encouraging mineral exploration in the country and supports the mining of uranium to develop this fledgling industry. Oropa's wholly owned subsidiary, Oropa Exploration Pty Ltd ("OEPL") was granted two Exclusive Prospecting Licences ("EPLs") for uranium in June 2007 covering the Mzimba Northwest and Chitunde Projects Areas for a total of2,365km2. A third EPL was later granted covering the Chizani Project Area in December 2007. In addition to the three 100% held EPLs, OEPL entered into Memorandums of Understanding ("MOUs") in 2007 with two local companies to earn 90% interests in two contiguous EPLs some 15km to the north of the Kayelekera uranium mine. Each EPL is currently only granted for the exploration and mining of coal and under the terms of the MOUs, OEPL has to establish joint venture companies, and then apply for the other mineral rights over the EPLs. The EPL holders' 10% interests are free carried and they retain 100% of the coal mineral rights.

Australia: Mulgabbie Gold Project

Oropa holds a 2% nett smelter royalty on all gold production in excess of 100,000 ounces from a 95% share in the Mulgabbie Tenements (PLs 28/768 & 769, 28/1078-1082 and MLs 28/140 and 28/364).

Australia: Mt Keith Gold Project; (2% nett smelter royalty)

Oropa holds a 2% nett smelter royalty on all minerals produced from the Mt Keith gold project (M53/490 and M53/491) arising from its relinquishment of its majority contributing interest in the tenements. Under the terms of the agreement the tenements are to be maintained in good standing. No mining was undertaken over the project area during the year.

Mine For

gold, uranium

Location of operation(s)

Indonesia, Malawi, India, Australia

Address

25 Charles St
SOUTH PERTH, WA, AUSTRALIA

Phone

(61 8) 9368 4544

Email

Website

http://www.oropa.com.au

Last Updated

01/03/2010