Sign up Australia
Proactive Investors - Run By Investors For Investors

Sumatra Copper & Gold notches record month at gold-silver project

The company is focusing on extending mine life at the Tembang operation.
Tembang at night
A drilling program will begin this month as part of new Merdeka alliance

Sumatra Copper & Gold plc (ASX:SUM) had a record month of production in January at its Tembang Gold-Silver Project in Indonesia.

The operation in South Sumatra produced 4,470 gold equivalent ounces during the month, up from the previous record of 3,650 ounces in November 2017.

Tembang is on track to produce between 3,750 and 4,580 gold equivalent ounces per month throughout 2018.

Strategies to extend mine life

With progress being made on improving production, the company is increasingly focusing on extending mine life with two key strategies.

The first is a strategic alliance with Merdeka Copper Gold Tbk PT (IDX:MDKA) to provide additional funding and expertise to define new resources.

Another is the development of exploration tunnels to exploit known resources that extend beneath existing open pits and is largely self-funded from cash flow.

Sumatra has recently appointed Joe Dymott as general manager development and sees this as a key to accelerating plans to advance the new deposits towards production.

Drilling to target near-mine extensions

Drilling as part of the Merdeka alliance will start in mid-February using a track mounted diamond rig which is on site.

The program is targeting near-mine extensions that can be quickly exploited to feed the Tembang processing facility.

Twelve targets have been identified with the initial drilling expected to target Belinau SW.

View full SUM profile View Profile

Sumatra Copper & Gold plc Timeline

Related Articles

lithium in periodic table
January 17 2018
Ironridge has an extensive West African and Australian exploration portfolio
December 08 2017
King's Bay's drill core is already attracting significant interest, with assays due next month
reverse circulation drill rig
April 19 2018
Drilling underway is targeting maiden resources at the Lydia and Crown Prince prospects.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use