Transcription of The Stock Network Interview with Far East Gold (ASX:FEG), Managing Director & CEO, Shane Menere
Lel Smits: Far East Gold is advancing its flagship Eidenberg Gold project in Papua province, Indonesia, as the company transitions from exploration into development planning. With a 44% increase in the project’s chalk mineral resource to 780,000 ounces of gold, advancing permitting strong community support and a scoping study now underway, the foundations are coming together for the project’s next phase of growth. I’m joined today by Far East Gold Managing Director and CEO Shane Mennery to discuss Eidenberg’s development pathway, upcoming catalysts and the company’s evolving understanding of project economics.
Shane, welcome back to the Stock Network.
Shane Menere: Thank you, Lel. It’s very nice to be here.
Lel Smits: Now, Shane, do you think the market is still valuing the company as an explorer rather than an emerging gold development company, and why?
Shane Menere: Yes, I think to some extent it probably is. Over the last 12-months, FEG has evolved significantly and we’ve delivered continued high-grade drilling success at Eidenberg and materially advanced that metallurgy piece, progressed environmental and permitting milestones. Importantly, we’ve now got a scoping study nearing completion, so when you combine that resource growth, metallurgy, permitting, studies, that conversation naturally starts shifting from exploration towards project development, potential and economics, and that transition is important because development-stage gold companies are generally valued very differently to pure gold explorers, and we think Eidenberg is now entering that next phase.
Lel Smits: Absolutely, and when it comes to valuations, when investors compare Far East gold against peers on a resource-ounce basis, the valuation gap appears significant. What do you think the market is overlooking here?
Shane Menere: Yes, there are several things. Firstly, grade. The drilling at Sue has been exceptional, including that visible gold and very high-grade intercepts within those broader mineralised zones. Secondly, that metallurgy, those recoveries achieved so far through conventional gravity and sea oil processing are very encouraging and importantly suggest that relatively simple and cost-effective processing pathway. Thirdly, I’d say scale.
The current resource footprint only represents part of what appears to be a much larger mineralised system emerging across the district, and finally, that permitting progression in Indonesia is often underappreciated, and as we continue advancing those environmental and forestry milestones, we believe that the project is progressively being de-risked from that development perspective.
Lel Smits: Excellent, and how do you believe Eidenberg is now transitioning from a discovery story toward a genuine long-term development opportunity?
Shane Menere: Yes, so I believe that transition is beginning to occur. The scoping study is an important milestone because it starts integrating mining, metallurgy, permitting, and development assumptions into that consolidated economic framework.
So at the same time, we’re continuing the drilling programs. We’re looking to do a little bit more relatively soon to get to a point where we can roll that work from the scoping study into an Indonesian government feasibility study, and that’s designed to not only grow that resource base, but also support the future mine planning and potential resource category upgrades into indicated and even measured. So what’s exciting is that we still believe the broader district scale potential of Eidenberg is only beginning to emerge, and so management’s focus now is very much around that discipline execution piece, systematically advancing Eidenberg towards what we believe would become a very significant potential tier one long-term Gold project.
Lel Smits: Fantastic, and finally Shane, why should investors, do you think, be paying close attention to Far East Gold right now?
Shane Menere: I strongly believe the company is at that inflection point. So historically, the market has largely viewed FEG as an exploration company only, but today we now have multiple important elements coming together simultaneously. So high-grade drilling, as I mentioned, and the metallurgy, that resource growth, permitting progression, a scoping study nearing completion, of course, and a clear pathway towards further development work.
And now we’ve kicked off into that feasibility piece, which I hope to have completed this calendar year. So importantly, we still believe Eidenberg remains in the early stages of demonstrating its broader district scale potential in terms of ounces in the ground, but from management’s perspective, the opportunity today is increasingly about systematically de-risking and advancing what we believe could be a substantial long-term Gold development opportunity on that pathway through the development and ultimately production.
Lel Smits: Shane, I appreciate the update from Far East Gold.
Shane Menere: Thank you, Lel. I appreciate the opportunity and thank you for everybody for the support.
Ends