Sumatra Copper & Gold: Further Tembang high grade drilling results

Tuesday, May 25 2010 - 04:54 AM WIB

(25 May 2010)-- Sumatra Copper & Gold plc are pleased to provide an update of activities at the Bengkulu project.

Tembang Drilling Update
The Tembang project is located approximately 120 kilometres north-northeast of Bengkulu in South Sumatra province. Tembang is a large intermediate-suiphidation epithermal deposit comprising gold-silver bearing quartz veins hosted by Tertiary volcanics. The Company has rights to two IUPs totalling an area of some 850 km2 over and around the former Rawas mine that operated between 1997 and 2000.

A total of 21 holes have been completed during the current programme of diamond drilling designed to test the down dip extensions of the higher grade vein systems at Buluh, Bujang and Belinau.

At Belinau RDD10061 returned 1.15 metres @ 19.11g/t Au and 119.5g/t Ag, RDD 11062 2.60 metres @ 14.18g/t Au and 63.1g/t Ag. Both these intercepts were hosted by colloform banded suiphidic quartz veins which are typical of the high grade vein parts of the system. This shows the continuation of the southern shoot at depth. The long section depicted below shows all the recent drill pierce points and intercepts.

At Nuri RDD 10060 returned a wide intersection of 18.9 metres @ 1.49g/t Au, 19.8g/t Ag. This included a higher grade intercept of 5.4 metres @ 3.18g/t Au, 53.3g/t Ag.

Two significant intercepts were returned in the waste dumps at both Nuri and Belinau. At Nuri RDD 10060 returned 17 metres @ 0.67g/t Au, 1.2g/t Ag. At Belinau RDD 10061 intersected 17 metres @ 0.65g/t Au, 0.9g/t Ag (including 9 metres @ 1.06g/t Au). These results are encouraging and show the potential for further significant mineralisation in the waste dumps in addition to known resources of both vein and halo mineralisation. A preliminary program of close spaced drilling is planned to test tenor and continuity of mineralisation in two waste dump areas. (end of edited release)

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