Sumatra reports record October production at Tembang gold-silver project
Wednesday, November 9 2016 - 02:56 AM WIB
ASX-listed Sumatra Copper & Gold plc said that as a result of operational improvements following the appointment of Chief Operating Officer Rob Gregory in July 2016, the company achieved a record 3,379 ounces AuEq1 production during October 2016 at its Tembang gold-silver project in South Sumatra.
The company said in a statement on Wednesday that the production comprises of 2,924 ounces of gold and 32,296 ounces of silver. On an annualized basis, the October gold equivalent production rate is approximately 40,000 oz AuEq.
Sumatra Copper said the higher production rate is principally the result of increased productivity and reduced dilution in the Belinau underground mine, which is the main driver of operational profitability.
In July 2016, following problems associated with long hole stoping in the upper levels of the mine, the company announced the adoption of an interim bench cut and fill mining method. This method was expected to produce lower tons at a higher grade due to better control of dilution.
Underground production for October demonstrates that the revised mining method has been implemented successfully with a 7.2 g/t AuEq mined head grade achieved for the month. Belinau provided 56 percent of the total recovered ounces for October.
Underground development productivity was also high during the month, with a total 426 meters of development during October compared to a monthly average over the prior 6 months of 273 meters. The decline has passed Level 7 on its way to Level 8 and remains on schedule to facilitate the resumption of stoping from Level 12 upwards by the end of the first quarter of 2017, at which point production from Belinau will substantially increase.
Sumatra Copper said mill recoveries improved significantly during October with 92.4 percent for gold and 78.4 percent for silver. The increased mill recoveries were the result of optimized feed blend and batch scheduling allowing longer residence times within the process plant. This result validates the proposed upgrade of the leach adsorption circuit prior to the planned process plant utilization rate increasing to 100 percent during the first quarter of 2017.
Sumatra Copper said 2016 guidance remains unchanged at 30,000 - 33,000 oz AuEq, increasing to 45,000 ? 55,000 oz AuEq in 2017.
Editing by Reiner Simanjuntak