SUMATRA COPPER & GOLD PLC
Registered No. 5777015
ASX Announcement: 01 June 2018
Tembang Operations Update
Mine Production
Sumatra Copper & Gold plc ("the Company") announces that it has temporarily suspended open pit mining activities at its Tembang gold-silver operation located in southern Sumatra, Indonesia.
With the scheduled completion of the Berenai open pit mine this month, the majority of the remaining open pit reserves are contained within the lower grade Asmar orebody. Under Tembang's current cost structure and the prevailing gold price, Asmar is marginally profitable.
As previously announced, the proposed connection of Tembang to the State-owned electricity grid later this year will result in considerable reductions to power charges (from US$0.26 / Kwh to approximately US$0.09 / Kwh) with expected savings in processing costs, underground mining costs and administration.
During this intervening period, the Company has decided to terminate the Open Pit Equipment Hire Contract and anticipates mining will restart in the fourth quarter with a lower cost, bulk mining arrangement. The lower processing costs from grid power and a new open pit mining arrangement will allow the Asmar pit to be reoptimized at a lower cut-off grade. This will also potentially allow the significant Inferred Resource at Asmar to be targeted for conversion to reserves.
Accordingly, the Company has lowered its 2018 production guidance to 37,500 - 42,500 oz AuEq from 45,000 - 55,000 oz AuEq reflecting the temporary suspension of open pit mining.
Chief Executive Officer Rob Gregory commented: "Whilst there will be a short term loss in production, our decision to temporarily suspend open pit mining will significantly improve the profitability of the Asmar orebody and secure the near term future of the operation."
For further information please contact:
Robert Gregory | Phil Retter |
Chief Executive Officer | Investor Relations |
Sumatra Copper & Gold plc | NWR Communications |
+61 8 9480 0620 | M: +61 407 440 882 |
rgregory@scgplc.com | phil@nwrcommunications.com.au |
About Sumatra Copper & Gold plc |
Sumatra Copper & Gold plc (ASX: SUM) is a gold and silver producer and precious metals explorer in southern Sumatra, Indonesia. The Company's flagship asset is its Tembang gold-silver mine, currently in production. The Company also has an extensive exploration portfolio with projects ranging from brownfield, near-production opportunities to strategically located greenfield holdings.
Directors
Jocelyn Waller | Gavin Caudle | Andy Robb |
Non-Executive Chairman | Non-Executive Director | Non-Executive Director |
Rob Gregory | David Fowler | Adi Sjoekri |
Chief Executive Officer | Non-Executive Director | Executive Director |
ASX ANNOUNCEMENT 1 JUNE 2018
Contact
Amberley Business Centre | Registered address |
IBM Building, Level 3 | 39 Parkside, Cambridge |
1060 Hay Street | United Kingdom CB1 1PN |
West Perth | Registered Number 5777015 |
Western Australia 6005 | |
T: + 61 8 9480 0620 | |
E:info@scgplc.com | ASX Code: SUM |
Web:www.sumatracoppergold.com
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Disclaimer
Sumatra Copper & Gold plc published this content on 01 June 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 31 May 2018 23:27:06 UTC