Sumatra Copper achieves 2016 production guidance
Tuesday, January 10 2017 - 02:50 AM WIB
ASX-listed Sumatra Copper & Gold plc announced Tuesday that it achieved production guidance for calendar year 2016, with a total of 30,509 AuEq1 oz produced from its Tembang gold- silver operation located in southern Sumatra.
The company said in a statement that plant recoveries increased during the December quarter with gold and silver recoveries averaging 91.5 percent and 78.3 percent respectively (the prior three quarters averaged 84.2% and 68.4% respectively).
Further to the announcement of December 5, 2016 regarding damage to an underground drill from an influx of water at the Belinau underground mine, the rig has now been repaired and is expected to be operational by the end of January. In addition, the company said it has procured a third jumbo drill rig which has arrived in Indonesia and is expected to be operational by mid-January.
The structure related to the perched water table has now been identified and is believed to be a shallow-dipping dilational zone within the orebody associated with abundant vugs and voids. Strategies have been developed in the mine plan to mitigate the risk of any further uncontrolled water ingress, Sumatra Copper said.
Decline development during December 2016 progressed to Level 8 with ore development now underway on Level 7. The additional drill rig will assist in further accelerating development such that stoping can recommence as early as possible in the March quarter of 2017.
Managing Director David Fowler commented: ?Despite the considerable challenges experienced during 2016, meeting production guidance for our first full year of operations at Tembang was an excellent outcome. Our focus during the second half of the year was on bolstering the mining expertise on site and included the appointment of experienced mining engineers Rob Gregory, as COO, and more recently Andy Robb, as a Non-Executive Director. The company is now well positioned to deliver a step-change in production during the March 2017 quarter once conventional stoping recommences in Belinau, replacing the current interim bench cut-and-fill ore drives.?
The company said comprehensive production and cost information will be provided in the December 2016 Quarterly Report to be released later this month. Guidance for 2017 remains unchanged at between 45,000 and 55,000 oz AuEq, it added.
Editing by Reiner Simanjuntak