Sumatra Copper unveils updated ore reserve for Tembang gold project
Tuesday, March 25 2014 - 06:20 AM WIB
ASX-listed Sumatra Copper & Gold plc announced Tuesday an updated ore reserve, completed in accordance with the guidelines of the JORC Code, for key deposits at its flagship 100 percent-owned Tembang gold-silver project in southern Sumatra.
The updated ore reserve encompasses the Belinau, Berenai, Asmar, Tembang Anang, Bujang and Buluh (Siamang) deposits, totaling 2.01 million tons at 2.8 g/t gold and 32.9 g/t silver for a total of 181,000 ounces of contained gold and 2.12 million ounces of contained silver, the company said in a statement.
The ore reserve is based on the mineral resource estimate announced to the ASX on 19 March 2014, using a gold price of US$1,100 per ounce and a silver price of $20 per ounce.
The completion of the ore reserve marks another key step towards finalization of the updated 5-year life-of-mine plan for Tembang, which forms part of the company?s previously announced optimized development strategy.
Sumatra?s Managing Director Julian Ford said the new ore reserve estimation was a significant milestone for the company as it paves the way for completion of a debt finance facility with the objective of re-commencing construction at the Tembang Project.
?We have based our estimation on a conservative gold price of $1,100 per ounce. Our focus has been on establishing an initial five years of feed for our 400,000tpa mill, which is partly-constructed,? Ford said. ?Potential debt financiers will only allow five years in their financial modelling and are using gold price forecasts of between $1,000 to $1,100 per ounce, which is significantly below current spot prices.?
Tembang Project - March 2014 Ore Reserves
| Deposit | Ore Reserve
Category |
Tonnes
('000t) |
Grade
Au (g/t) |
Contained
Gold (oz) |
Grade
Ag (g/t) |
Contained
Silver (oz) |
Open Pit Reserves |
||||||
| Asmar | Proved | - | - | - | - | - |
| Probable | 733 | 1.6 | 38,000 | 24.8 | 585,000 | |
| Berenai | Proved | - | - | - | - | - |
| Probable | 710 | 2.2 | 51,000 | 31.8 | 726,000 | |
| Bujang | Proved | - | - | - | - | - |
| Probable | 56 | 3.7 | 7,000 | 57.2 | 102,000 | |
| Siamang | Proved | 4 | 7.8 | 1,000 | 102.8 | 12,000 |
| Probable | 31 | 1.6 | 8,000 | 61.6 | 61,000 | |
| Tembang Anang | Proved | - | - | - | - | - |
| Probable | 59 | 1.6 | 3,000 | 31.1 | 59,000 | |
| Total Open Pit | Proved | 4 | 7.8 | 1,000 | 102.8 | 12,000 |
| Probable | 1,588 | 2.1 | 106,000 | 30.0 | 1,534,000 | |
| ? | Total | 1,592 | 2.1 | 107,000 | 30.2 | 1,546,000 |
|
Underground Reserves |
||||||
| Belinau | Proved | 204 | 6.0 | 39,000 | 41.5 | 272,000 |
| Probable | 214 | 5.1 | 35,000 | 44.4 | 306,000 | |
| Total | 418 | 5.5 | 74,000 | 43.0 | 578,000 | |
|
Total Reserves 2014 |
||||||
| Tembang | Proved | 208 | 6.0 | 40,000 | 42.5 | 284,000 |
| Probable | 1,802 | 2.4 | 141,000 | 31.7 | 1,839,000 | |
| Total | 4,010 | 2.8 | 181,000 | 32.9 | 2,123,000 | |
| Calculations have been rounded to the nearest 1,000 t, 0.1 g/t grade and 1,000 oz. metal | ||||||
Editing by Reiner Simanjuntak