Gold & Silver Mining Projects in Indonesia
Tembang Gold-Silver Project
Sumatra Copper & Gold’s flagship Tembang Gold-Silver Project is project located in the North Musi Rawas Regency of South Sumatra, Indonesia. Tembang covers a significant epithermal gold-silver system, having previously been in production for approximately four years during the 1990s.
A Definitive Feasibility Study was completed by the Company in April 2014 based on a Proved and Probable Ore Reserve of 2.01 million tonnes at 2.8 g/t Au and 32.9 g/t Ag for a total of 181,000 ounces of gold and 2.12 million ounces silver.
In October 2014, the Company successfully obtained a senior secured debt facility of up to US$45 million. Construction of the mine commenced in November 2014 and practical completion and the first gold pour was achieved during September 2015, eight weeks ahead of schedule. Ore is currently sourced from several open pit operations and an underground mine.
Annual production is targeted in the range of 40,000 to 50,000 gold equivalent (AuEq) ounces* (life-of-mine average of 33,000 oz Au and 345,000 oz Ag) with forecast a C1 cash cost of US$525/oz and AISC of US$800/oz net of silver credits for the first 3 years of operation.
Tembang is located within a 99.8sq km production permit (IUP) valid for 20 years to April 2032 and is surrounded to the east and south by an additional 98.5sq km exploration permit (IUP) valid to December 2017. Both IUPs are held by 100%-owned subsidiaries of Sumatra Copper & Gold plc.
* Gold Equivalent (AuEq) Reporting
AuEq = gold assay + (silver assay/65) where 65 g/t Ag = 1 g/t Au. The price assumptions used in the calculation are an average gold price of US$1,200 per ounce and an average silver price of US$20 per ounce. Metal recovery assumptions are 86.7% for gold and 80% for silver.
Tandai Gold-Silver Project
Sumatra Copper & Gold's 100%-owned Tandai project is located approximately 100km north of the Provincial capital Bengkulu in the Regency of North Bengkulu. The 140.4sq km exploration permit (IUP) valid to December 2017 covers the Lebong Tandai epithermal gold deposit, which is one of the largest and highest grade gold mines in Indonesia historically producing around 1.4 million ounces of gold at reported grade of 15 g/t Au.
In addition to outlining further potential at Lebong Tandai, significant gold mineralisation has also been discovered along strike at Lusang North, associated with a high-grade vein breccia system, and at the Ulukau epithermal vein system further south. A new greenfields discovery has also been made at the Asa prospect, located in the far south of the IUP. Asa is a vein breccia target associated with high gold and base metal results. Rock chip assays of up to 13.50 g/t Au, 291.0 g/t Ag, 5.20% Cu and 5.67% Pb were returned from channel samples. The strike of the host structural trend has been estimated at around 2km.