Sumatra Copper & Gold has announced an updated ore reserve estimate, completed in accordance with the guidelines of the JORC Code (2012 Edition), for key deposits at its Tembang Gold-Silver Project in southern Sumatra.
The updated reserve estimate encompasses the Belinau, Berenai, Asmar, Tembang Anang, Bujang and Buluh (Siamang) deposits. It totals 2.01 million tonnes @ 2.8 grams/tonne gold and 32.9 grams/tonne silver for a total of 181,000 ounces of contained gold and 2.12 million ounces of contained silver.
The open pit reserve is 1.6 million tonnes @ 2.1 grams/tonne gold and 30.2 grams/tonne silver, and the underground reserve is 400,000 tonnes @ 5.5 grams/tonne gold and 43.0 grams/tonne silver. The reserve is based on the mineral resource estimate announced on March 19, using a gold price of US$1100 per ounce and a silver price of US$20 per ounce.
Completion of the reserve marks another key step towards finalization of the updated 5-year Life-of-Mine plan for Tembang, which forms part of the company’s optimized development strategy.
Sumatra’s managing director Julian Ford says the new reserve estimation is a significant milestone for the company as it paves the way for completion of a debt finance facility with the objective of re-commencing construction at the Tembang project.
“We have based our estimation on a conservative gold price of US$1100 per ounce. Our focus has been on establishing an initial five years of feed for our 400,000 tonnes/annum mill, which is partly-constructed.
“Potential debt financiers will only allow five years in their financial modelling and are using gold price forecasts of between US$1000 to US$1100 per ounce, which is significantly below current spot prices.
“Our aim was to establish a minimum five-year mine life with our latest diamond infill drilling program at Tembang and we have achieved that goal,” he adds.