Sumatra Copper commences drilling programs at Tembang project

By Ruli Setiawan

ASX-listed Sumatra Copper & Gold plc said it has recommenced drilling activities during the fourth quarter of 2014 at Berenai, Nuri, Bujang and Siamang at the Tembang gold and silver project in southern Sumatra.

The company said in a statement that construction activities at the project have also recommenced during the quarter, anticipated commissioning in the fourth quarter of this year.

?Resource drilling and surface exploration activities commenced during the quarter, completing 18 holes for 1,336 meters along with collection of 53 rock samples,? Sumatra Copper said.

The drilling program, "Phase 4", has a planned program of 3,675 meters in 46 holes and will f cus on infill drilling at Berenai and Siamang, extension drilling at Nuri and Bujang and exploration drilling at Racambai-Jenih in the Tembang Project, it explained.

Key points for the quarter:
? Infill drilling along 12.5m infill sections in shallow-south Berenai pit is aimed at increasing confidence in first year of production. Results support the resource model and may add some incremental ounces to the south end of the pit, highlights include 6m @ 4.9 g/t Au from 23m (RRC14434) and 6m @ 3.65/t Au 45m (RRC14436).
? Infill drilling to 12.5m infill sections within the complete strike length of the Siamang pit is aimed at increasing confidence in the first year of production. Visual results (presence of quartz vein) are consistent with the Resource Model along the Siamang main lode. Assay results are pending.
? Extension drilling to the south-west at Bujang is aimed at extending resources and ultimately the reserve pit in this direction. Shallow holes confirmed that the Bujang structure is weakly mineralized near surface, however typical epithermal vein textures with banded chalcedony and associated high grade mineralization encountered in deeper drilling indicate that mineralization at Bujang has a shallow plunge to the Southwest. Highlights include 2.4m @ 3.65g/t Au from 82.6m (RDD14441) and 2.2m @ 11.10g/t Au from 100.9m (RDD14445).
? Extension drilling at shallow-south Nuri aimed at confirming geometry of up-dip edge of the resource model where mineralization is observed to "pinch out" abruptly. Drilling confirms that narrow structure exists where predicted. Highlights include 1m @ 4.47 /t Au from 32.5m (RDD15451) and 1m @ 7.1g/t Au from 29m (RDD15452)
? Surface mapping and sampling was completed at and around the Racambai and Jenih prospects with 53 rock samples collected with an aim to refine drilling targets. Assay results are pending.
? QAQC program ongoing with use of fields duplicates, field blanks, and standards with no issues reported for the period.
? The Geospark database management system is nearing completion and scheduled for roll out in January 2015, which will include implementing digital drill core logging.

Elsewhere, Sumatra Copper said it has recommenced construction at its Tembang project during the quarter.

Construction at Tembang had originally commenced in June 2013 and was suspended in December 2013 while the company undertook additional drilling to redefine the company?s Mineral Resource and Ore Reserve base to enable the completion of an updated Definitive Feasibility Study and secure financing to complete the construction of the project. Significant infrastructure, including camp, administration buildings, leach tanks, concrete foundations, warehouse, security fencing and command posts had been completed, and major equipment items purchased and warehoused with major suppliers, prior to project suspension.

Since project recommencement the following key milestones and activities have occurred:
? Tender of open pit mining contracts (award expected in first quarter of 2015);
? Tender of power supply (award expected in first quarter of 2015);
? Design of process plant concrete and steel largely completed;
? Majority of orders placed for key remaining infrastructure and equipment placed;
? Commencement of shipping of major components of the plant;
? Concrete for plant concrete and steel construction delivered to site and construction commenced;
? Explosives magazine and mess hall construction re-commenced.

Infill and grade control drilling has started at the open pits scheduled for commencement of mining during second quarter of 2015.

Editing by Reiner Simanjuntak