Sumatra Copper and Gold says a definitive feasibility study (DFS) has confirmed its Tembang project is viable and significantly more economical than previously announced. Tembang is in southern Sumatra and is owned by the company’s subsidiary PT Dwinad Nusa Sejahtera.
The completed DFS has improved the project’s economics and production capability from the pre-feasibility study announced in February this year. Based on a five year mine life, the US$68 million project’s gold production is set at 146,000 ounces and almost 1.4 million ounces of silver, an increase on the PFS figures of 45% and 81% respectively.
Stage one of the project will include a single stage crushing unit and a single SAG mill that will commence commercial production by the end of 2013.
“The DFS has confirmed stage one of Tembang as a robust, low-cost project. The company made substantial improvements to the PFS, including a significant reduction in pre-development capital requirements and cash costs as well as increasing the mine life and precious metals production rate,” says Sumatra managing director Julian Ford.
“We remain on track to commence stage one production on time and will also be bringing the expected start date of stage two mining forward by three years to 2015,” he said.
Mining during the stage one phase will be carried out at two of the seven known deposits at Tembang - Belinau and Asmar - using conventional low risk drill and blast open pit methods. Underground mining will then follow at Belinau.
Tembang hosts 5.5 million tonnes @ 2.3 grams/tonne gold and 31.4 grams/tonne silver for 513,000 ounces of gold equivalent.
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