SUMATRA COPPER & GOLD PLC
Registered No. 5777015
ASX Announcement: 30 August 2016
Belinau Underground Mine & Berenai-Nuri Open Pit Update
Sumatra Copper & Gold plc ("the Company") is pleased to provide an update on the Belinau underground mine ("Belinau") and Berenai-Nuri open pit mine at its Tembang Gold-Silver Operation, located in Sumatra, Indonesia ("Tembang").
On 26 July 2016 the Company announced that a geotechnical event had been experienced above Level 4 at the western end of Belinau. Over the past month the Company has filled the void with competent rock from surface and the area is now stable with no anticipated threat to infrastructure.
The interim ore extraction method by ore drives for Levels 5 and 6 has begun and will provide a continuous ore supply to the mill until the decline reaches Level 8, where conventional stoping will resume (Figure 1).
Figure 1 - Belinau bench cut & fill
Over the next 3 months, the revised ore extraction method will result in lower ore production from underground versus the original plan as the decline advances. The Company also plans to acquire two smaller loaders to reduce the width of ore development to 2.5 metres from the previous 3.6 metres. This will reduce dilution and accelerate ore development. A number of other initiatives have been implemented to increase development productivity including: improved integrated scheduling of jumbo drill and ground support routines which has resulted in a 30% improvement in cycle times; introduction of airleg drills to bolt walls which has freed up jumbo drills to bore the face of the decline and development drives.
To compensate for the lower production from underground, the open pit mining schedule has been optimised with additional ore planned to be extracted from the Siamang open pit, where additional intermediary veins have been encountered, combined with a redesign and accelerated schedule for the Berenai-Nuri open pit.
Stage 3: 9,304 oz AuEq at 5.34 g/t AuEq
Stage 1: 20,298 oz AuEq at 3.13 g/t AuEq
Stage 2: 26,345 oz AuEq at 2.44 g/t AuEq
Figure 2 - Berenai-Nuri redesigned open pit
ASX ANNOUNCEMENT 30 AUGUST 2016
The newly designed Berenai-Nuri open pit brings forward 83% of the contained ounces to be mined over the coming year by delaying the waste cutback to the north. The revised 3-stage design of Berenai, as shown in Figure 2, modifies the staging of development but does not alter Ore Reserves or the final pit dimensions.
A comprehensive review of the Company's mine plan has been completed by the operations team led by new COO Rob Gregory. Guidance for full year 2016 is revised from 35,000 oz AuEq1 to 30,000 - 33,000 oz AuEq, with an annualised production rate of 45,000 to 55,000 oz AuEq expected to be achieved during the first quarter of 2017.
A detailed production update will be provided in the September 2016 quarterly report.
Note 1: "AuEq" = Gold equivalent ounces, calculated as gold ounces + (silver ounces / 75) where 1g Au =75g Ag
For further information please contact:
David Fowler Phil Retter
Managing Director Investor Relations
Sumatra Copper & Gold plc NWR Communications
+61 8 6298 6200 M: +61 407 440 882
[email protected] [email protected]
About Sumatra Copper & Gold plc
Sumatra Copper & Gold plc (ASX: SUM) is a gold and silver producer and precious metals explorer in southern Sumatra, Indonesia. The Company's flagship asset is its Tembang gold-silver mine, currently in production. The Company also has an extensive exploration portfolio with projects ranging from brownfield, near-production opportunities to strategically located greenfield holdings.
Directors
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Steve Robinson
Non-Executive Chairman
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Jocelyn Waller
Non-Executive Director
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Gavin Caudle
Non-Executive Director
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David Fowler Managing Director
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Adi Sjoekri Executive Director
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Contact
Level 1, 5 Ord Street
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Registered address
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West Perth WA 6005
Western Australia T: + 61 8 6298 6200
E: [email protected]
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39 Parkside, Cambridge
United Kingdom CB1 1PN Registered Number 5777015 ASX Code: SUM
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Web: www.sumatracoppergold.com
Competent Person's Statement - Mine Operations and Production Schedules
The information in this report that relates to mine operations and production schedules is based on information compiled by Mr Robert Gregory, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Robert Gregory has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Robert Gregory consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.