Sumatra: Ore production recommences at Berenai open pit mine
Tuesday, May 30 2017 - 05:24 AM WIB
ASX-listed Sumatra Copper & Gold plc said that the Berenai open pit mine at its Tembang gold-silver mine project in South Sumatra has recommenced normal ore production.
As announced on February 27, the Berenai open pit surface as defined in the original feasibility study was found to be inaccurate and included portions of backfilled and rilled material. This requirement to mine additional unscheduled waste has delayed open pit ore production from Berenai. The waste material, comprised mainly of thick mud, has proven difficult to remove particularly during the wettest period of the year.
?The company is pleased to report that the mud has now been removed and normal open pit ore production has recommenced,? Sumatra Copper & Gold said in the latest production update report on the Tembang gold and silver project issued on Tuesday.
The company said there are 12,000 AuEq1 ounces scheduled to be mined below the current floor (RL 120m) in Stage 2 down to RL 82.5m and a further 5,600 ounces AuEq in Stage 3 down to RL 70m during the remainder of 2017.
Elsewhere, the company said the Belinau underground mine has been transitioning, as planned, from interim bench cut and fill ore drives to shrinkage stoping with underground ore production scheduled to be low during this period.
The combined impact of limited underground and open pit production placed significant pressure on working capital during April and May with consequential supply delays for key underground equipment and infrastructure. ?The required equipment has now been ordered, with stoping planned to commence in the near future,? it said.
Development of the hanging wall drives has been progressing using the larger equipment, with airleg miners utilized for ore drives, drawpoints and both rises of the first stope. The first of three smaller underground loaders has been delivered to site with the remaining two to be delivered during June, which will reduce development widths and allow access to the small shrink stope drawpoints.
As a result of the added challenge of removing the substantial amount of mud in the Berenai open pit and the consequential delay in ore production from Berenai, the company said that June quarter production is expected to be significantly lower than planned and full year guidance is reduced to 40,000-50,000 oz AuEq from the previous guidance of 45,000-55,000 oz AuEq.
Due to lower than planned ore production during April and May 2017, the company said it has borrowed a further US$2 million from its major shareholders, Provident Minerals Pte Ltd and PT Saratoga Investama Sedaya Tbk, to fund working capital. The loan with the major shareholders is unsecured and has an interest rate of 10 percent.
Editing by Reiner Simanjuntak