Sumatra Copper & Gold sees gold mine to start production in 2013

Australia-listed firm Sumatra Copper & Gold is aiming to bring its Tembang gold project in Bengkulu into production in the second quarter of 2013.

The company said in a presentation on Tuesday that the mine will have a total life of 10 years, which will be divided into two stages with combination of open pit and underground mining method.

According to the company, the Tembang project has resources of 976,000 ounces of gold and 12.8 million ounces of silver.

For the first stage which will last for four years, the mine is expected to produce 40,000-45,000 ounces of gold and 350,000-400,000 ounces of silver annually, processing 7g/t au ore with capital expenditure of US$30 million.

Stage two will involve gold production similar to stage one but higher silver production of 650,000-800,000 oz per annum.

Tembang is a brownfield project-previously in production in 1997-2000.

The company owns 100 percent of the project. (alex)