sumatra copper & gold plc - asx · sumatra copper & gold plc (asx:sum) page 1 of 8 ......

SUMATRACOPPER&GOLDPLCRegisteredNo.5777015

ASXAnnouncement:6October2017

SumatraCopper&Goldplc(ASX:SUM) Page1of1

Amendmenttoannouncement-TembangExplorationUpdate

Sumatra Copper&Gold plc (“theCompany”) provides the following amended Tembang ExplorationUpdatewhichwaspreviouslyreleasedtoASXon18September2017includingamendmentsrequestedbyASXinaccordancewithASXListingRule5.23.

Forfurtherinformationpleasecontact:DavidFowler PhilRetterManagingDirector InvestorRelationsSumatraCopper&Goldplc NWRCommunications+61894800620 M:[email protected] [email protected]

AboutSumatraCopper&GoldplcSumatra Copper & Gold plc (ASX: SUM) is a gold and silver producer and precious metals explorer insouthern Sumatra, Indonesia. The Company’s flagship asset is its Tembang gold-silvermine, currently inproduction. The Company also has an extensive exploration portfolio with projects ranging frombrownfield,near-productionopportunitiestostrategicallylocatedgreenfieldholdings.

DirectorsJocelynWaller GavinCaudle AndyRobbNon-ExecutiveChairman Non-ExecutiveDirector Non-ExecutiveDirector

DavidFowler AdiSjoekriManagingDirector ExecutiveDirector

ContactAmberleyBusinessCentre RegisteredaddressIBMBuilding,Level3 39Parkside,Cambridge1060HayStreet UnitedKingdomCB11PNWestPerth RegisteredNumber5777015WesternAustralia6005T:+61894800620E:[email protected] ASXCode:SUMWeb:www.sumatracoppergold.com

For

per

sona

l use

onl

y

SUMATRACOPPER&GOLDPLCRegisteredNo.5777015

ASXAnnouncement:6October2017


TembangExplorationUpdate(Amended)

Highlights• Exploration strategic alliance formed with Merdeka Copper Gold to extend mine life and

targetproductionincreases• InitialinvestmentofUS$1.5millionoverthenext6months• ExplorationdrillingfromthebaseofBelinauundergroundmineanticipatedtocommencein

theDecember2017quarter• US$2.0millionofcornerstonesupportsecuredforUS$7.5millionequityraise

Sumatra Copper & Gold plc (“the Company”) provides the following update on exploration at itsTembanggold-silveroperationlocatedinsouthernSumatra,Indonesia.

The Company is pleased to announce that it has formed a Strategic Alliance with Indonesian goldproducerMerdekaCopperGoldTbk(“Merdeka”),wherebyMerdekawillfundongoingexplorationtoextendminelifeandtargetproductionincreases.

Underthealliance,Merdekawill initiallyinvestUS$1.5millionoverthenext6months.TheCompanywillinturnissueCDI’stoMerdekaatapricerepresentingthe5tradingdayVWAPpriortothesigningof a formal agreement detailing the specifics of the agreed exploration program. The CDI’s will beissued to Merdeka in tranches based on the exploration spend by Merdeka during each 3 monthperiod(quarter)andwithin1monthofquarterend,withthefirstquarterconcludingon30November2017.

UltimatelyMerdekaintendstoinvestinstagesforuptoUS$10.0millionundersimilartermsforeachsuccessive approved exploration program, subject to ongoing exploration success and appropriatecorporateapprovals.

Merdeka is a Jakarta Stock Exchange listed mining company with a market capitalisation ofapproximatelyUS$600million.MerdekacurrentlyoperatestheTujuhBukitgold-coppermine inEastJava,IndonesiaandhasanexperiencedexecutiveteamheadedbyMrColinMoorhead.MrMoorheadisa formerDirectorofExplorationatNewcrest in Indonesia, responsible for themulti-millionounceGosowongmineandNewcrest’spastjointventurewiththeCompanyatTandai.MerdekaisexpandingitsminingfootprintinIndonesiaandoffersastrongbalancesheetandtechnicalexpertisethroughMrMoorheadandhisteam.

Aspreviouslydisclosed in theCompany’sASXannouncementof6September2017, twoexplorationdrilldriveswillbeestablishedattheBelinauundergroundminebetweenLevels11and12(thecurrentbaseofplanneddevelopment)todrillfordepthextensionstotheorebody.Twospecialiseddiamonddrillrigshavebeenorderedforthisprogram,whichisanticipatedtocommenceintheDecember2017quarter.AsummaryoftheotherpriorityexplorationtargetsatTembangisprovidedintheAppendixtothisannouncement.

TheCompanyhas also signed an agreementwith itsmajor shareholders ProvidentMinerals Pte LtdandPTSaratogaInvestamaSedayaTbktoaccelerateU$S2.0millionoftheUS$7.5millionMajorEquityRaiseplannedforNovember2017undertheAmendedFacilityaspreviouslyannouncedtothemarketon27June2017.ThefundswillbeprovidedbywayofasubordinatedloanthatwillbeconvertedintoequityinNovember2017.

The Company’s Chairman,Mr JocelynWaller commented: “The potential to increase resources andreserves at Tembang has long been recognised, but to date the Company’s focus has been on

For

per

sona

l use

onl

y

ASXANNOUNCEMENT6October2017


production.WiththisstrategicalliancewithMerdeka,theCompanynowhasastronglocalpartnertoenable the discovery process to be expedited. It’s a significant and positive development for theCompanythatwilladdvalue.”

Forfurtherinformationpleasecontact:DavidFowler PhilRetterManagingDirector InvestorRelationsSumatraCopper&Goldplc NWRCommunications+61894800620 M:[email protected] [email protected]

AboutSumatraCopper&GoldplcSumatra Copper & Gold plc (ASX: SUM) is a gold and silver producer and precious metals explorer insouthern Sumatra, Indonesia. The Company’s flagship asset is its Tembang gold-silvermine, currently inproduction. The Company also has an extensive exploration portfolio with projects ranging frombrownfield,near-productionopportunitiestostrategicallylocatedgreenfieldholdings.

DirectorsJocelynWaller GavinCaudle AndyRobbNon-ExecutiveChairman Non-ExecutiveDirector Non-ExecutiveDirector

DavidFowler AdiSjoekriManagingDirector ExecutiveDirector

ContactAmberleyBusinessCentre RegisteredaddressIBMBuilding,Level3 39Parkside,Cambridge1060HayStreet UnitedKingdomCB11PNWestPerth RegisteredNumber5777015WesternAustralia6005T:+61894800620E:[email protected] ASXCode:SUMWeb:www.sumatracoppergold.com

For

per

sona

l use

onl

y



Appendix–TembangExplorationTargetsThe Tembang project area covers an extensive low to intermediate sulphidation, epithermal veinsystem hosted in a Tertiary (Miocene) volcanic centre. Historic and more recent exploration hasdefined multiple gold and silver mineralised vein and breccia systems, seven of which have beensubjectedtominingtodate.

Exploration upside for “in-mine” and “near-mine” resource extensions and new semi-regional,potentiallystandalonetargetswhichcouldbetruckedtotheTembangplant, remainshigh.Withthemining and milling operation now well underway, increasing in-mine and near-mine explorationactivitywith the aimof growing the resource inventory andextendingmine life is a priority for theCompany.

BelinauUnderground

A review of diamond drill core and survey positions of the historical drilling has enabled a re-interpretationofthemainBelinauveinanditsdispositionrelativetothedeeperdrilling.Atleasttwoof thedeepestholesdidnot intercepttheBelinauvein,andpulledupshort,possiblybyamatterofonlyafewmetres(Figure1).

Figure1:BelinauUndergroundMine–NEendviewofBelinauveinandundergrounddevelopment(current&planned)showingthetwodeepestdrillholesthatarenow

interpretedashavingpulledupshortoftheprojectedpositionoftheBelinauveinbelowthecurrentresource

For

per

sona

l use

onl

y



GoodveintexturesandgradesareobservedindrillcoreforthedeeperholesthathaveinterceptedtheBelinauvein.Similarlydrillcorefromtheeasternpartoftheresourcealsodisplaygoodveintexturesalthough with narrower widths (~1m) and reduced grade (Figure 1). Pinch and swell features aretypicalforthesetypesofveins,soitispossiblethatoneormoreoftheseholesmayhaveinterceptedpinchzonesofthevein.

ThesignificanceofthisfindingisthattheBelinauresourceremainsopenatdepthandpossiblyalongstriketotheeast,andtoalesserextentthewest.

Mineoperationswillbedevelopingadrillaccessdriveoff thedecline,andstrikeparallel totheveinfromLevel11(Figure1).ResourcedefinitionandexplorationdrillingisanticipatedtocommenceintheDecember2017quartertointersectthemainBelinauveinoverastrikelengthofupto700m,at50mcentresfromLevel10downtoLevel13.Initiallytheprogramwillentail4,000mofLTK60coringoverathreetofourmonthperiod.Shouldtheresultsprovepositive,drillingwillcontinuetodefineadditionalresources,alongstrikeand/oratdepth.

BerenaiOpenPit

TheBerenaiopenpitcomprisestheBerenai,CentralandNuriveins(compositeveins)andassociatedquartzveinstockworks.Asat31December2016,theBerenai-Central-Nurideposit,comprisesatotalMeasured,IndicatedandInferredResourceof2.0milliontonnesatanaveragegradeof1.9g/tAuand29 g/t Ag at a lower cut-off grade of 0.5 g/t Au, for a total contained 123,000 ounces gold and1,831,000 ounces silver1. The Company anticipates completing a detailed review during the thirdquarter of 2017, followingwhich, RC drilling and/or diamonddrillingwill commence to infill and/orextendthedefinedresources.

Forexample, theBerenaiandNuriveinsareopenatdepthwithhistoricaldrill interceptscomprisinggradesofsufficienttenortowarrantinvestigationforpotentialundergroundmining(Figure2).

Figure2:Berenaiopenpit(sectionthroughsouthernendofthepit)showingdrillhole

interceptsfromhistoricaldrilling.

1-refertoASXAnnouncement“MineralResourceandOreReserveUpdate”of28April2017

For

per

sona

l use

onl

y



OtherResourceExtensionTargets

TheCompanycompletedopenpitminingoftheSiamangandSiamangEastcompositeveinstructuresinearlyJanuary2017withtheadjoiningBuluhdepositscheduledtobeminedin2018.Narrow,high-grademineralisationcontinuesatdepthonallknownveins.

The resourcemodel is being updated using the recentmapping andmining data to investigate thepotential for strikeextensionsaswell asdepthextensions forundergroundmining.Previousdrillinghasshowngoodpotentialforundergroundresourcestobedefined.

The Bujang deposit is located approximately 800m to the north-west of the high grade Belinauundergroundmineonthemarginofanandesiticporphyrydyke.Bujang isadiscretequartz-sulphideveinlodewithaknownstrikelengthofapproximately200m.ThelastdrillprogramatBujangin2014extended mineralisation along strike to the south where a number of high grade intercepts weremade.Follow-updrillingisplannedinthisarea.

InpitmappingatAsmar isongoing tobetterunderstandthecontrols tothemineralisation.There ispotentialforupgradingtheInferredResourceswithfurtherdrilling.

Near-MineandRegionalExploration

2016sawanincreaseinnear-mineexplorationactivitieswiththeexplorationteambeingaugmentedwith additional geological staff. With the assistance of technical consultants, a whole of projectexploration review was completed to identify, rank and prioritise targets for further investigation,leadingtothedevelopmentoftheTembangExplorationTargetPipeline(Figure3).Thisworkresultedinthedefinitionof22targetsrankedfrom“grassroots”to“drilltesting”with8priority1,10priority2and4priority3targets.Ofthe22targetsidentified,15arelocatedwithin2.5kmoftheTembangplant(near-minetargets)and6arelocatedwithin2.5km–5kmoftheplant(regionaltargets).

Figure3:Tembangnear-mineandregionalexplorationtargetsbystageandpriority.

For

per

sona

l use

onl

y



During 2016, significant exploration activitieswere undertaken at 9 near-mine targets including soilgeochemistry, geological mapping, rock chip sampling, ground magnetics and trenching. Noexplorationdrillingwasundertakenduringtheperiod.Initialsitevisitswereundertakentoanumberofregionaltargetsconfirmingprospectivityfromthelimitedactivitiescompleted.

SoilgeochemicalsurveyswerecompletedintheAsmar-Merin-AnangEastarea,BelinauSW,BelinauNEandJenihareas(Figure4)highlightingaseriesofencouraginggold-silver+pathfinderelement(As,Sb,Cu,Pbetc)anomalieswarrantingfollow-up.Inadditiontothesoilgeochemicalprograms,detailedre-evaluationofavailabledatasetsresultedinthedefinitionoftheAditprospectasaprioritytarget.

Follow-up trenching of soil anomalies was undertaken at the Asmar North, Anang East, Merin &BelinauSWprospects.Of these, theAsmarNorthprospect returnedparticularlyencouraging resultsincluding the definition of a 300m long x 150m wide corridor of epithermal quartz veining andstockworking extending northeast from the junction of the Asmar& Tembang-Anang gold resourceareas (Figure 5). Ten trenches completed to date have intersected encouraging veining with bestresults including 1.20m at 7.5 g/t Au& 7.0 g/t Ag (RTR16014)2, 0.70m at 3.83 g/t Au& 2.5 g/t Ag(RTR16022)3,1mat5.81g/tAuand4.3g/tAg(RTR16012)3,2mat4.05g/tAu&3.13g/tAgand2mat2.04g/tAu&1.78g/tAg(RTR16031)4and2mat1.11g/tAu&1.5g/tAg(RTR16032)4.

Figure4:Tembanggoldsoilgeochemistrywithmineandkeyprospectlocations.

Plannednear-mineexplorationactivitiesfor2017willincludeadditionaltrenchingattheAsmarNorthprospect, where the vein system remains open to the northeast, as well as initial drill testing of anumber of prospects includingAsmarNorth andAdit. Assessment of other high priority targetswillcontinue with additional resources applied to the regional targets, many of which have untestedextensivesoilandrockchipgoldanomalies.

2-refertoJune2016QuarterlyActivitiesReportannouncedonthe29July20163-refertoSeptember2016QuarterlyActivitiesReportannouncedonthe28October20164–refertoDecember2016QuarterlyActivitiesReportannouncedonthe20January2017F

or p

erso

nal u

se o

nly



Figure5:Tembang-AsmarNorthprospectgeology&trenchresults.

CompetentPerson’sStatement–ExplorationResults

TheinformationinthisannouncementthatrelatestotheexplorationresultsandMineralResourcesofSumatraCopper&GoldissummarisedfrompubliclyavailablereportsasreleasedtotheASXanddulyreferencedinthetextofthisreport.

TheCompanyconfirmsthatitisnotawareofanynewinformationordatathatmateriallyaffectstheinformation included in the original ASX announcements and, in the case of estimates of MineralResources thatallmaterialassumptionsandtechnicalparametersunderpinning theestimates in therelevantASXannouncementcontinuetoapplyandhavenotmateriallychanged.

The information in this report that relates to exploration results for in-mine targets is based oninformation compiled byMrGary Powell,who is an independent consultant of the company and aMember of the Australasian Institute of Mining and Metallurgy and the Australian Institute ofGeoscientists.MrPowellhassufficientexperience,whichisrelevanttothestyleofmineralisationandtype of deposit under consideration and to the activity, which he is undertaking to qualify as aCompetentPersonasdefinedinthe2012Editionofthe'AustralasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves'.MrPowellconsentstotheinclusioninthisreportofthemattersbasedonhisinformationintheformandcontextinwhichitappears.

The information in this report that relates to exploration results for in-mine targets is based oninformation compiled by Dr Brian New, who is an independent consultant of the company and aMember of the Australasian Institute of Mining andMetallurgy. Dr New has sufficient experience,which is relevant to the style ofmineralisation and type of deposit under consideration and to theactivity,whichheisundertakingtoqualifyasaCompetentPersonasdefinedinthe2012Editionofthe'AustralasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves'.DrNewconsentstotheinclusioninthisreportofthemattersbasedonhisinformationintheformandcontextinwhichitappears.

For

per

sona

l use

onl

y



Theinformationinthisreportthatrelatestoexplorationresultsfornear-mineandregionalexplorationisbasedon informationcompiledbyMrSimonRigby,whoisaparttimeconsultanttotheCompanyandaMemberoftheAustralianInstituteofGeoscientists.MrRigbyhassufficientexperience,whichisrelevant to the style of mineralisation and type of deposit under consideration and to the activitywhich he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. MrRigbyconsentstotheinclusioninthisreportofthemattersbasedonhisinformationintheformandcontextinwhichitappears.

For

per

sona

l use

onl

y

sumatra copper & gold plc - asx · sumatra copper & gold plc (asx:sum) page 1 of 8 ......

Documents