Sumatra Copper & Gold is bringing forward the processing of low-cost stope ore from the Belinau underground mine at the Tembang Gold-Silver Project in Sumatra, Indonesia. This decision has been taken due to a shortfall of ore scheduled to be mined from Berenai open pit.
The company advises that during dewatering of the former Berenai open pit, the pre-2007 survey of the pit surface has been found to be inaccurate and appears to include portions of backfilled and rilled material resulting in a shortfall of ore scheduled to be mined from Berenai during this quarter.
While this issue only affects a small percentage of the overall ore reserve at the boundaries of the former pit and planned pit, it has a significant impact of approximately 3000 gold equivalent ounces in-situ on open pit production during this quarter as mine development advances through this material.
To mitigate the open pit shortfall, the Belinau underground mine will commence the stoping panel from Level 9, instead of the planned Level 11, in order to bring forward low cost stope ore.
The revised mine plan will require a sill pillar below Level 9 and an extra sublevel to be developed during 2018, and will allow the recovery of approximately 90% of the sill pillar at the end of the Belinau mine life to minimise ore loss.
The company's production guidance for 2017 remains unchanged at between 45,000 and 55,000 ounces gold equivalent.
Meantime, the company has completed the Security Purchase Plan (SPP), as detailed in the Offer Document lodged on ASX on February 3, 2017. The company offered eligible holders of CHESS Depositary Interests (CDIs) the opportunity to subscribe for new CDIs, up to a maximum value of $15,000 per eligible CDI holder. The SPP has raised proceeds of $241,000.