AFTER achieving record monthly production of 3379 gold equivalent ounces in October at the Tembang Gold-Silver Project, Sumatra Copper and Gold is undertaking a geological review of ore body interpretations. The review at the Belinau, Siamang and Berenai deposits is focusing on determining the potential for resource extensions and will incorporate the most recent mapping and grade control data from operations.
|The processing facilities at Sumatra Copper and Gold’s Tembang Gold-Silver Project in South Sumatra.|
A recent review of the diamond drill core from various drill programs between 2010 and 2015 determined that two of the deepest holes did not intersect the Belinau vein or host structure. Wireframing of the Belinau vein from drilling and underground mapping information indicates that these holes stopped short of the vein by as little as 10 metres.
A program of resource definition drilling is being planned to drill the projected positions of Belinau vein at 50 metre centres from a strike parallel drive on Level 11. The drilling will test for potential depth extensions below Level 11 over almost the entire strike length of the known deposit.
There has also been a positive reconciliation between the Belinau resource block model to that mined from August to the end of October 2016, with an increase in tonnes (12%), gold grade (23%), silver grade (119%), and gold equivalent grade (35%), resulting in an increase in contained gold ounces by 37% and silver ounces by 145%.
These reconciliations only compared that part of the resource model that has been mined from Levels 5 and 6, and may not be reflective of the total resource model. The company is using the increased geological knowledge and mining grade control data to update the Belinau underground resource model.
The record October production comprised 2924 ounces of gold and 32,296 ounces of silver. On an annualised basis, the production rate is approximately 40,000 gold equivalent ounces.
The 2016 guidance of 30,000-33,000 ounces was reached with 30,509 gold equivalent ounces produced. The 2017 guidance is 45,000-55,000 ounces.
The company and its wholly-owned subsidiary PT Dwinad Nusa Sejahtera recently executed agreements with lenders to amend the existing US$45 million senior secured debt facility and warrants. Major shareholders have agreed to support the amended facility and to convert or terminate their existing convertible notes in order to acquire additional equity in the company.