Sumatra Copper discovers new zone of mineralization at Tembang project

By Nellawati

ASX-listed Sumatra Copper & Gold plc announced that fresh high-grade gold and silver assays point to the possible discovery of a new zone of mineralization at its Tembang Gold-Silver Project in South Sumatra.

The results are considered significant because any additional resources which stemmed from this zone would be easily and economically accessed via the planned Belinau underground decline development, the company said in a statement obtained Tuesday. Mining at Belinau is expected start during the December 2013 quarter.

The statement provides the following details.

Two exploration holes, RDD 13218 and RDD 1319, were completed in April 2013 to test a potential northerly vein intersection or flat lying splay of the main lode. Assays have been received for the first of these holes.

Hole RDD 13218 was drilled to a depth of 125 meters and intersected a zone of typical high grade banded epithermal quartz veining from 71.2 meters to 72.64 meters down-hole. A wide interval of quartz-calcite stockworks was also intersected from 72.64 meters to 105 meters. The hole has ended in mineralization (quartz veined polymictic breccia).

Significant assay results were returned from the following intervals:

- 13.3 metres @ 4.4 g/t Au, 8.8 g/t Ag from 70.7 to 84 metres
?including 3.30 metres @ 13.4 g/t Au, 21.1 g/t Ag from 72.2 to 75.5m.

Hole RDD 13219 was drilled approximately 50 meters to the north-west of RDD13218 to a depth of 143.8 meters and intersected two narrow zones of quartz-calcite stockworks from 84.25 to 84.70 meters and from 88.75 to 89.35 meters (assays pending). This indicates mineralization is possibly decreasing to the north, however, this requires further validation through additional drilling.

With the recognition of potential splits or hanging wall zones peripheral to the main vein system, further infill sampling of previous geotechnical/metallurgical drill holes in 2011/2012 have been completed with the following intervals:

- Hole RDD 11180, a metallurgical hole, intersected 2 meters @ 13.02 g/t Au and 71.5 g/t Ag from 39.2 to 41.2 meters and RDD 11193 a geotechnical hole intersected 2.4 meters @ 4.19 g/t Au and 9.3 g/t Ag from 101.1 to 103.50 meters downhole.

While the geometry of this recent intersection in hole RDD 13218, as well as the recent re-sampling of previous holes, is not fully understood, the results highlight the continued high-grade exploration potential around the Belinau vein system. The company plans a review of the structural controls of gold mineralization followed by further diamond drilling in June 2013.

Sumatra Managing Director Julian Ford said the results highlighted the strong potential to increase the resource inventory at Tembang.

?These results suggest we may have a new zone of mineralization at Tembang which could not only supply additional ounces but would also be economically attractive given its close location to the planned decline at Belinau. The mineralisation remains open at depth and along strike.

?We will undertake another round of drilling in this area in June to establish its full potential and then we can determine how or whether to accommodate it in the decline plan.?

Editing by Reiner Simanjuntak