Sumatra breaks another record

SUMATRA Copper & Gold has smashed another monthly production record at its Tembang gold-silver operation, Indonesia, with the 4470 ounces of gold equivalent poured in January easily exceeding November’s 3650oz and setting the miner up for a strong 2018.
Sumatra breaks another record Sumatra breaks another record Sumatra breaks another record Sumatra breaks another record Sumatra breaks another record

First material being fed into Sumatra Copper & Gold's Tembang CIL plant.

Haydn Black

The miner says it expects to produce between 3750-4580oz per month in 2018.

Production for the company in the December quarter was 9548oz gold and 44,609oz silver for a total 10,137oz (gold equivalent) at all-in sustaining costs of US$1,024/oz.

CEO Rob Gregory said Tembang had reached the steady state production, and had delivered the January record even with a planned three-day mill shutdown during January for relining.

He was now looking towards operations to extend mine life, both developing exploration tunnels to exploit known resources that extend beneath existing open pits, largely funded from cash flow, and from its strategic alliance signed with Merdeka Copper Gold.

The Merdeka exploration program will start mid-month using a track-mounted diamond rig onsite, and eventually a more portable rig. 

The program is targeting near mine extensions that could be quickly exploited to feed the Tembang processing facility. 

A total of 12 targets have been identified.

Separately, the company’s teams are confident they can use the experience gained from the development of the Belinau underground mine over the past two years to develop small exploration drives into known deposits that are either too deep for open pit mining or too difficult to drill from surface due to the topography. 

It believes that the drives can be developed economically to intersect the veins and create underground cuddies to drill the veins at depth.

Sumatra had US$2.1 million in cash at the end of December and a similar amount of bullion, and was debt free following a US$7.5 million capital raising.

Its shares were untraded this morning at A1.8c, valuing the company at $65 million.