An ongoing 4000 metre drilling program at Sumatra Copper & Gold’s Tembang Gold-Silver Project is underpinning final mine design and grade control and highlighting both resource extension and exploration upside. The program was 75% complete at the end of February.

The company expects that the confirmatory drilling for final mine design and grade control will further convert indicated mineral resources to the measured resource status while there is also positive indication of the opportunity for extension of resources and exploration upside.

An infill drilling program inside both the Berenai and Siamang DFS ore reserve pits for the purpose of increasing the proportion of measured resources, grade control and finalization of mine design at these deposits for production is scheduled to start in the second quarter.

Extensional drilling completed at Berenai confirmed width and grade of mineral resources as expected and discovered additional mineralization in the footwall of the Berenai main lode. The resource model can now be projected to surface and additional follow-up drilling is under way.

The drilling completed within the Siamang pit has confirmed the expected continuity and tenor of mineralization. A resource model update is under way and offers the potential for a revised pit optimization to provide more ounces, than the current DFS pit design.

Sumatra has also undertaken extension drilling adjacent to both the Nuri and Bujang DFS ore reserve pits aimed at adding open pit ounces at these deposits.

Two drill holes at the Jenih prospect, north-northeast of Belinau, for down dip extension of mineralization have been completed and provide indication that intercepts are in the upper levels of an epithermal system. Following additional interpretation further drilling will be planned for future drill programs.

The Racambai prospect, with a target area and geometry attractive due to proximity to the Belinau deposit and along similar structural orientation, is still to be drilled to test for increasing grade at depth of known mineralization.
Exploration drilling at the NW Plant prospect, west of Buluh complex, has been completed and confirmed the target structure of mineralization continues from surface. However, mineralization was weak and no further drilling is planned.

Sumatra's acting CEO David Fowler says, “This program was largely infill drilling within existing pits to upgrade drill density to refine resource models and pit designs for the early years of production.

“We are pleased with the results and the limited drilling on the periphery of existing pits provides encouragement that resources will be expanded over time.

“Over the course of the last year considerable effort has been put into organization and interpretation of historical data in what is a significant epithermal system at Tembang. This work is demonstrating substantial exploration potential. Our aim is to validate targets during 2015 and commence a program to extend existing resources and define new resources later in 2015.”

Mining at Tembang is scheduled to begin during the second quarter of 2015 with commissioning in the fourth quarter.

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