Far East Gold (ASX:FEG) begins drilling its potential company maker at Idenburg

Far East Gold (ASX:FEG): A new chapter in the New Guinea Orogenic Belt

What do names like Hidden Valley, Frieda River, Wafi-Golpu, Porgera, Ok Tedi, and Grasberg have in common? They’re all globally significant porphyry copper-gold or epithermal gold deposits located along the highly mineralised New Guinea Orogenic Belt. These world-class discoveries were made possible by the intense tectonic collision between the Indo-Australian and Pacific plates, the same dynamic geological forces that shape the Pacific’s Ring of Fire.

Today, that same geological setting could be giving rise to another major discovery, and Far East Gold (ASX: FEG) is positioning itself right at the centre of it with its flagship Idenburg Gold Project in the Papuan part of Indonesia, that is, the western side of the island of New Guinea.

 

Idenburg: An emerging tier-1 opportunity

The Idenburg Project is located about 120 km south of Jayapura in Papua Province, one of six provinces that make up the Papua region. The project was secured by Far East Gold in 2024 under exceptionally favourable terms. Despite US$25m in prior exploration by majors like Barrick and Newmont (including over 5,000 metres of diamond drilling), Far East Gold acquired a 51% stake for just A$6.75 million in shares, with a clear pathway to 100% ownership through staged work commitments and future share issues.

And the company wasted no time delivering value. Within a month of closing, Far East Gold was able to announce a maiden JORC-compliant inferred resource of 540,000 ounces of gold at 4.1 g/t and 468,000 ounces of silver at 3.6 g/t, using only historical data and modest topographic surveying.

But this is just the beginning.

 

A massive exploration target with blue sky potential

Far East Gold is aiming much higher — toward a significant exploration target estimated by its consultants at up to 7.2 million ounces of gold at grades up to 6.1 g/t. The current resource is derived from just three of 14 (soon 15) known prospect areas — Sua, Mafi, and Bermol — all of which remain open along strike and at depth. Only a third of the 95,000-hectare Contract of Work (CoW) area has been meaningfully explored, suggesting vast untapped upside.

Recent high-grade surface samples from the newly identified Bermol East prospect include 19.31 g/t, 16.75 g/t, 10.18 g/t, and 8.43 g/t gold, underscoring the project’s remarkable prospectivity.

 

Check out our recent interview with FEG CEO Shane Menere!

 

Drilling underway: resource expansion and new discoveries expected

In early June 2025, Far East Gold commenced its maiden drilling campaign at Idenburg, comprising 32 diamond drill holes over 3,670 metres. Of these, 20 holes will infill and expand existing prospects (Sua, Mafi, Bermol), potentially converting parts of the resource from Inferred to Indicated or Measured status. The remaining 12 holes target the untested Kwaplu prospect, a large gold-in-soil anomaly that could deliver the next discovery.

This campaign is expected to generate a strong flow of news over the coming months and pave the way for both a resource upgrade and a clearer path to development.

 

Excellent access and metallurgical fundamentals

Unlike many remote projects in the region, Idenburg benefits from exceptional infrastructure access. The site is adjacent to the Trans Papuan Highway, a 4,330 km development corridor built by the Indonesian Government to enhance regional connectivity in this remote and sparsely populated part of Indonesia where only around 5.7 million people live in an area the size of California. For Far East Gold the Highway eliminates the need for helicopters and drastically reduces logistical costs.

In terms of processing, historical metallurgical tests at Sua showed excellent recovery potential: 55–60% gold recovery via gravity alone, and over 95% recovery using Carbon-in-Leach (CIL). Far East Gold plans additional test work to refine the flowsheet during this drill program.

 

Strategic backing from the Xingye Group, and broader portfolio strength

Idenburg’s potential has already attracted major strategic capital. In early 2025, Far East Gold secured a $14.5 million placement from Xingye Group, one of China’s leading silver and tin producers (market cap around US$4bn). The placement, struck at a 47% premium, gave Xingye a 19.9% stake in Far East Gold. That’s a strong endorsement of the company’s assets, vision, and leadership.

With a market cap still under A$60m, the upside potential for investors remains compelling.

While Idenburg takes centre stage, Far East Gold holds additional Indonesian assets with significant value potential. The Woyla Project in Aceh is home to bonanza-grade intercepts such as 0.5 metres at 81 g/t Au and 734 g/t silver at the Rek Rinti prospect. Meanwhile there’s also Wonogiri in Central Java) and Trenggalek in East Java, two projects underpinned by established resources and high-impact exploration targets. These assets represent future value catalysts as the company progresses its pipeline.

 

A strategic edge in Indonesia

Indonesia’s mining sector has matured significantly since the late 1990s, though historical perceptions of regulatory risk persist. That said, leadership makes the difference, and Far East Gold has it in spades.

CEO and Founder Shane Menere is a seasoned operator and driving force behind the company’s success. Shane boasts significant experience in the archipelago, proficiency in Bahasa Indonesia, and a strong focus on local partnerships and stakeholder engagement. His leadership, along with that of Chairman Justin Werner (also Managing Director of Nickel Industries, ASX: NIC), provides a unique edge in navigating both the geological and geopolitical landscapes of Indonesian mining while boasting a track record of successfully developing Indonesian mine sites into operation.

 

A world-class discovery in the making?

Idenburg may not yet be another Grasberg, but with an exploration target approaching 7.2 million ounces, it’s shaping up to be one of the most exciting gold stories in the Asia-Pacific. With drilling underway, strategic funding in place, and an experienced team steering the ship, Far East Gold could very well be sitting on the next globally significant gold discovery.

For shareholders and prospective investors, the coming months could prove transformational.

 

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