Sumatra reports positive outcome from PFS in Tembang
Thursday, February 23 2012 - 01:32 AM WIB
Australian listed miner Sumatra Copper & Gold plc said its Pre-Feasibility Study (PFS) for Stage 1 of its wholly-owned Tembang gold and silver project had delivered a positive outcome.
Tembang is located 120 km northeast of Bengkulu in central Sumatra and covering an area of around 850 km2.
The company said on Wednesday that the Stage 1 consisted of the Belinau deposit, which comprised approximately 13% of the total Tembang project resource of 976,000 ounces gold and 12,794,000 ounces silver. The remaining resource base will be developed during Stage 2 of Tembang.
Sumatra Managing Director Julian Ford said the PFS underpinned the Company?s two stage development strategy. "The PFS has demonstrated the robust project economics of Belinau as a stand alone mine for Stage 1 of the Tembang project development. However we are confident that we will be able to further improve Belinau?s economics through additional open pit tonnage from satellite deposits and optimization studies,? he said.
The current JORC mineral resource for Belinau, released in August 2011 and used for the basis of the PFS, consists of total measured, indicated and inferred resource of 127,000 ounces gold and 1,130,000 ounces silver.
Independent mining consultants Mining Plus Pty Ltd designed and costed the mining component of the study and Como Engineers Pty Ltd the design and construction of the processing plant. The study includes a number of key contributors, consultants as well as Sumatra ?s in house personnel.
The PFS has been based on a gold price of US$1,500 per ounce and US$30 per ounce for silver. The price assumptions for gold and silver will be reviewed again for the DFS.
Key points highlighted from the study include a suggestion to undertake review of the open pit potential, dewatering of the existing pit and relocation the portal access to the base of the pit allowing early access to mineralization and a subsequent expected reduction in capital and pre-production expenditure, significant potential scope to reduce expatriate labor, undertaking a competitive tendering process for improving efficiency, and potential for significant reductions in EPCM costs by delivering project in Indonesia.
Editing by Benget Besalicto Tnb.