Sumatra Copper clarifies previous statement on Tandai gold project

ASX-listed Sumatra Copper & Gold Plc issues a statement to clarify its earlier statement regarding new gold discovery at the Lusang North prospect within the Tandai project.

?The wording that the Tandai project is an ?under-explored area with strong potential to be a multi-million ounce district? is not meant to imply that the Lusang North drill intersection is a multi million ounce 'exploration target' or 'mineral resource'; as this interpretation does not comply with the JORC Code, Clause 18. As such, the company withdraws this statement,? the company said in a statement.

The Lusang North drill intersection as reported on the 2 November was the first drill hole targeted to intersect the Lusang North vein. The Lusang North vein is interpreted to run parallel to the Tandai Vein, which is approximately 200 meters to the south.

?However the continuity of the Lusang North vein is not yet fully understood and will need to be determined by drill testing. The company is currently awaiting drill assays from TD 11025 which may confirm the continuity of the mineralization at depth,? it said.

The company has been applying numerous advanced exploration techniques, including the controlled source audio-frequency magnetotellurics (?CSAMT?) survey over the region. These modern exploration techniques are assisting in the targeting of the current drill program, especially in areas previously obscured by recent volcanic cover, which would have been overlooked by previous explorers.

By way of clarification, the Tandai lode, 200 meters to the south of Lusang North has a long history of formal mining from the early part of the 20th century until post World War II, where at least three Dutch companies worked portions of the system.

The old Dutch mining town at Tandai still remains, and was re-furbished by PT Lusang Mining Ltd (in a joint venture with CSR, then Billiton) when the mine was re-developed and worked between 1985 and 1995.

Reported historic gold production from Tandai is 1.4 million ounces gold and 15 million ounces silver. Historic formal production was from underground, where highest grades were mined from mineralized structures and lower values were left in situ. (romel)