Tandai Project

 Tandai, like Lebong, represents an under-explored historical mining district. During the colonial era, at least three Dutch companies were operating on adjacent lands. Tandai lies within the same 2,500 km2 SIPP as Lebong, and Sumatra have commenced the process of transitioning the tenement into a separate exploration licence (IUP) under the New Mining Law.

Tandai is a high-grade, epithermal, intermediate-sulphidation system with gold-silver mineralisation hosted by a series of veins distributed over a vertical extent exceeding 500 metres. The deepest levels of the mine were still in production when abandoned during the Japanese invasion of WWII. Historic Dutch production totalled 1.4 million ounces of gold and 15 million ounces of silver at a grade of 15.4 g/t gold, and 167 g/t silver. During WWII the Japanese focused on recovering copper from the district. The mine was reopened temporarily in 1986 and during 6 years of operations, a further 150,000 ounces of gold were produced.

Despite the long history of production a multi million ounce exploration target potential remains as work conducted by the Company demonstrates the Dutch to have exploited a modest portion of the large geologic system.

Sumatra's first objective is to identify open-pittable resources in the vicinity of the old underground mines. Current informal activity is at, or close to, the surface and indicates that these objectives are realistic. Dutch production records identify that approximately 1.0 million ounces of the high-grade gold-silver mined was recovered solely from the Tandai vein and this represents only 15% of the strike-length of veining identified by the Company.

Due to the size of the geologic system and the limited historical data recovered to-date the Company has yet to identify the system''s overall zonation, and where the centre to the system most probably lies. The main exploration targets lie within and immediately adjacent to the old mine with the most prominent being the 3km long Glumbuk structure, which is parallel to Tandai, and was only partially mined from underground by the Dutch.