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Directors Contact Steve Robinson Jocelyn Waller Level 1, 5 Ord Street Registered Address Non-Executive Chairman Non-Executive Director West Perth 6005 39 Parkside, Cambridge Western Australia United Kingdom CB1 1PN Julian Ford Gavin Caudle Managing Director & CEO Non-Executive Director T: +61 8 6298 6200 Registered No. 5777015 E: [email protected] Adi Sjoekri ASX Code: SUM Executive Director www.sumatracoppergold.com
ASX Announcement 31 January 2014
QUARTERLY ACTIVITIES REPORT For the 3 months ended 31 December 2013
Extensive drilling underpins updated Mineral Resources for the Tembang Gold-Silver Project
Highlights
Tembang Project Development, Sumatra
• Updated Resource Estimates for Belinau, Asmar and Buluh were announced in December 2013, which are now based on 100% diamond drilling and are JORC (2012) compliant.
• Revised life-of-mine (LOM) plan developed incorporating updated Mineral Resources and using a gold price of US$1,250 per ounce and a silver price of US$20 per ounce.
• Total estimated capital cost to achieve full production revised to US$71.1M (compared to US$68.1M in the original 2012 Definitive Feasibility Study). Pre-production capital estimated at US$50M of which US$16M has been paid at the end of December 2013.
• Project construction activities placed on hold in December 2013 while additional drilling is completed (“Phase 3 development drilling”). The Mineral Resource estimates and Ore Reserves will be updated following completion of Phase 3 drilling and a revised LOM Plan developed for Tembang for the purpose of completing Project funding and resuming Project construction activities.
Exploration and Development Drilling
• Decision to undertake a 3-month Phase 3 drill program at Tembang with the objective of defining additional Measured and Indicated Resources. The successful addition of profitable ounces is expected to increase the debt-carrying capacity of the Project, strengthening Project economics against gold price volatility and minimising the need for additional shareholder dilution through a more substantial equity raise.
• The Phase 3 drilling program remains on track to be completed on schedule in Q1 of 2014.
Corporate
• Unsecured Convertible Loan facility of US$4M put in place to fund the Company through the Phase 3 drilling program.
• Financier negotiation in regards to debt funding for the Tembang Project are at an advanced stage and expected to be finalised on completion of the Phase 3 drill program and revised LOM Plan. F
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Overview
Sentiment towards the gold sector for both debt finance and equity finance has improved in early 2014 compared to that in Q4 of 2013. The Company is positioned to lever off this improved sentiment once the current Phase 3 drilling program at its flagship Tembang Gold-Silver Project in Indonesia is completed, with plans well progressed to update both the Mineral Resources and Ore Reserves Statement to be in compliance with the JORC 2012 standards. Phase 3 drilling is expected to be completed during Q1 of 2014.
Sumatra remains confident that it will be able to complete Project finance activities once these new Mineral Resource and Ore Reserve statements have been completed, supported by the Project’s favourable economic parameters outlined in the Company’s ASX Announcement of 4th December 2013.
The mining environment in Indonesia is currently being impacted by a number of legislative changes, exacerbated by the upcoming Presidential elections that are planned for later this year. While this negative sentiment has the potential to affect all resource companies operating in Indonesia, it is important to note that these changes are expected to have a negligible effect on Sumatra’s Indonesian operations. The Tembang Project is designed to produce a gold-silver doré to be refined in Indonesia to an LBMA standard for gold and silver, thereby excluding the Tembang operation from current issues associated with the domestic value-add debate. Secondly, Sumatra Copper and Gold plc’s three largest shareholders, who collectively own more than 51% of the shares, are all Indonesian. Corporate Activities
In December 2013, the Company entered into a Convertible Loan Facility Agreement with its major shareholder, Provident Capital Partners (“PCP”), to provide an unsecured convertible debt facility of up to US$4 million under the Company’s available ASX Listing Rule 7.1 placement capacity and subject to compliance with all regulatory guidelines including the ASX Listing Rules.
The first US$2.5 million of this facility was drawn-down during December 2013. The second tranche of US$1.5 million may be drawn-down subject to a number of conditions precedent including satisfactory progress of the current drill program at the Tembang Project.
The appointment of Credit Suisse to arrange the debt finance and hedging for the Tembang Project expired in January 2014 in accordance with the 12-month term of the mandate announced in February 2013. The Company is at an advanced stage of negotiation with debt financiers with the objective of finalising a debt-funding package. Subsequent to completion of the Phase 3 development drilling and updated Life of Mine Plan, a revised debt and hedging term sheet is expected to be announced in Q1 2014.
Project Development
While the extensive resource drilling and optimisation program at Tembang is completed and Project finance finalised, the Company has completed an orderly suspension of construction activities at Tembang, stood down the owner’s team and suspended all contracts associated with the project.
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Resource Estimates in Compliance with JORC 2012
The Company announced updates to the Mineral Resource estimates for the Belinau, Asmar and Buluh deposits in December, bringing these Mineral Resource estimates in-line with the 2012 JORC reporting requirements. These updates are part of the life-of-mine (LOM) Drilling program, which continues to be carried out by the Company. The new Mineral Resources are summarised below:
Table 1: Asmar Resource
Resource Category Tonnes Grade
Au g/t Grade Ag g/t
Contained Gold (oz)
Contained Silver (oz)
Measured
Indicated 1,606,000 1.2 21 62,000 1,091,000
Inferred 1,547,000 1.4 13 69,000 657,000
Total 3,152,000 1.3 17 132,000 1,748,000 (Using a 0.5 g/t Au cut off)
Table 2: Buluh Resource
Resource Category
Mined Tonnes Grade Au g/t Grade Ag g/t Contained
Gold (oz) Contained Silver (oz)
Measured 109,000 3.98 51 14,000 177,000
Indicated 236,000 2.4 30 18,000 227,000
Inferred 302,000 2.3 32 22,000 308,000
Total 647,000 2.6 34 54,000 712,000 (Using a 0.5 g/t Au cut off)
Table 3: Belinau Resource
Resource Category
Mined Tonnes
Grade Au g/t
Grade Ag g/t
Contained Gold (oz)
Contained Silver (oz)
Measured 132,000 9.70 70 41,000 298,000
Indicated 139,000 9.0 77 40,000 346,000
Inferred 67,000 7.3 65 16,000 141,000
Total 338,000 8.9 72 97,000 785,000 (using a 2.78 g/t Au cut off as originally reported in August 2011 Resource) Figures in above tables may not sum due to rounding Significant figures do not imply an added level of precision. The Mineral Resource upgrades for the Buluh and Belinau deposits were prepared by H&S Consultants Pty Ltd. The Asmar resource upgrade was completed by Cube Consulting. Resources were last reported under the 2004 guidelines in 2011 (ASX Announcement, August 2011) under the 2004 JORC reporting guidelines.
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1.0 Tembang Resource and Project Update
Sumatra announced an updated Production Target for the Tembang Project on 4 December 2013, based on an updated Stage 1 Life of Mine (“LOM”) Plan. Using a gold price of US$1,250 per ounce and silver price of US$20 per ounce (with the open pits at Asmar and Buluh being optimised using a gold price of US$1,150 per ounce), the 6-year LOM schedule shows gold and silver production ramping up over a two-year period to a peak of 44,000oz of gold per annum and 365,000oz of silver per annum. The All-in-Sustaining-Cost (“AISC”) is forecast at US$872/oz, as outlined in Table 4 below. There have been no change in the assumptions used in the LOM since this was published on the 4th December 2013. This compares favourably with other new and existing gold mines.
Table 4: C1 Cash Cost and All-‐In-‐Sustaining Cost
US$/oz Gold
Site Cash Costs Including Site Based Administration and Refining Costs $768
less silver Credits -$213
Cash Costs (C1) $555
including Royalties $54
Subtotal (adjusted Cash Costs) $608
add Corporate Overheads $106
add Exploration Costs $10
add Underground Mine development $147
All-In-Sustaining Cost (AISC) $872
Note: numbers may not add up due to rounding errors. For more details and the basis of the information shown in Table 1, this table should be read in conjunction with the detailed report, Tembang Resource and Project Update published by the company on the 4th December 2014. The aim of the current drilling program is, firstly, to convert existing Inferred Resources into Measured and Indicated Resources at the Asmar, Siamang and Belinau deposits. Secondly, the current drill program is also targeting the Tembang/Anang and the Berenai areas with the aim of replacing historical RC drilling with diamond drilling. Following completion of these drill programs, the Company expects to update the Mineral Resources Estimates for both the Tembang/Anang deposits and parts of the Berenai deposit to be in compliance with the JORC 2012 standards. 1.1 Permitting During the Quarter, ongoing local permitting processes continued. These included:
• Magazine Storage Building – Final recommendation • Fuel Storage Permit – Application in process • Electricity and Power Plant Generating Permit – Application in process
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• Borehole Usage Permit (Water) – Application in process • Master List Completion and Approval – Application in process
1.2 Community Relations In December, the Company’s Community Relations representatives worked closely with the local village heads and local government to manage the process of standing down local employees who were employed in construction activities at Tembang. This process went smoothly with no material issues or disruptions experienced. During the Quarter, the Company initiated reporting activities to the newly established Musi Rawas Utara Regency, under which the Tembang Project now falls. However, during the two-year transition period – which is expected to last until late 2015 – the Regency of Musi Rawas will retain technical responsibilities for the majority of the Company’s reporting and compliance requirements. 2.0 Tembang Development Drilling and Exploration
2.1 Development Drilling
The Phase 2 development drilling program was completed in October 2013 at Belinau, Buluh and Asmar as part of the mine optimisation program for a total of 2,004m. The main focus of the drill program was at Buluh, where 33 holes were completed. As part of the mine optimisation program one hole was also drilled at Asmar, which intersected a wide zone of quartz veining and stock work. Generally the program was very successful in terms of time to completion as well as delivering some excellent results which are summarised below.
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Belinau
Figure 1 -‐ Belinau drilling progress
In-fill drilling, aimed at increasing confidence in the existing resource, was completed in early October 2013. The best result was from hole RDD13312, which returned 2m @ 33.71g/t Au and 250.4g/t Ag, including 1.0m @ 65g/t Au and 412g/t Ag. This shows that the south-western shoot is open to surface.
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Figure 2: Belinau Section RDD 13312
Buluh Thirty-three (33) drill holes were completed in Buluh-Siamang area to conclude the in-fill drilling program. The holes were designed to convert Inferred to Indicated Resources, explore for shallow extensions as well as in-fill to Measured status potential resources within the preliminary pit designs. The in-fill drilling confirmed the consistent veining and grade at Siamang. In particular, excellent results were returned from Buluh South such as hole RDD13324, which returned 6m @ 17.19g/t Au, 302.8g/t Ag, including [email protected]/t Au, 448g/t Ag. The strike of the vein system was also extended to the south. Some excellent results were also returned from a high-grade vein subsidiary to the main structure at Siamang called Siamang East: two holes in particular returned strong results, namely RDD13339, which returned 3.2m @ 11.59 g/t Au and 72.2g/t Ag, and RDD 13338, which intersected 2.5m @ 16.19 g/t Au and 19.1g/t Ag. This vein system is open along strike and at depth. F
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Figure 2: Buluh Drilling Plan
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Figure 3: Buluh South RDD 13313,5 and RDD 13324 Section
Asmar One hole was drilled at Asmar, RDD13321. This hole was planned to better constrain significant mineralisation in the core part of the deposit. RDD13321 intersected a very promising 7.45m zone of quartz veining in a zone of strong shearing and quartz stockwork which returned 20m @ 2.47g/t Au and 64.7g/t Ag, including 1.9 m @ 9.69 g/t Au and 182.6 g/t Ag. This is one of the better intersections encountered at this deposit in terms of grade and width.
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Figure 4: Asmar Drilling Plan
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Figure 5: RDD 13321 Section
2.2 Phase 3 Drilling Program A Phase 3 Resource Definition drilling program was approved and started on 12th December 2013. The objective of this program is to define additional Measured and Indicated Resources in compliance with JORC 2012 standards. Drilling will be concentrated on the Asmar, Berenai (including Nuri and Central) and Tembang-Anang areas. Three rigs are currently on site to complete the program and to date, 1,318m have been drilled. Asmar Initial drilling was undertaken in holes RDD 13351 and RDD 13352, which were designed to follow up the significant mineralisation intersected in RDD13321. The remainder of the program will target upgrading Inferred to Indicated Resources in the western part of the pit.
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Figure 6: Asmar Phase 3 Drilling Plan
Anang-Tembang The planned drilling program is focused on proving up the initial 2011 resource within an optimised pit. A series of shallow holes and twin holes have been planned to achieve this aim. Six holes have been completed as part of this program. This vein system is intact and was not mined by the previous operators. Surface mapping shows the vein system to vary from 2-4m wide on surface with consistent tenor of gold mineralisation along strike with high grades up to 20.3 g/t Au and 19.2 g/t Ag. To date all holes have intersected the mineralisation where the 2011 resource model had estimated, which has been an encouraging start to the program.
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Figure 7: Tembang/Anang Phase 3 Drilling Plan
Berenai The drilling program is focused on proving up Indicated Resources within a re-optimised pit over the Berenai southern shoot and also incorporates part of the Nuri and Central link zones. Two holes have been completed and have both intersected multiple zones of quartz veining and hydrothermal breccia consistent with the previous 2011 model.
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Figure 8: Berenai Phase 3 Drilling Plan
Tables 1-3 – Tembang Resource Drilling: Significant Intersections Au >0.5g/t reported during 4th Quarter 2013
Belinau
Belinau 4th Quarter 2013 Infill Drilling Significant Intersections Au >0.5g/t
Hole No Location Type Easting Northing Elevation Depth Azimuth Dip From To Length Au g/t Ag g/t Comments
RDD 13304 Belinau 241102.5 9682394 79.124 47 330 -60 36.05 37.05 1.00 0.52 9.1 Hydrothermal brecciaRDD 13307 Belinau Vein 241285 9682582 68.253 188 120 -52.5 165.50 166.30 0.80 2.57 12.2RDD 13308 Belinau Vein 241014.2 9682441 88.476 131 171 -55 20.80 22.20 1.40 0.83 1.5
89.80 90.95 1.15 0.61 4.5 quartz stockworkRDD 13312 Belinau Vein 241154.5 9682354 80.132 108.8 330 -47 104.30 106.30 2.00 33.71 250.4 Includes 1.0 m @ 65 g/t Au, 412 g/t Ag
As of 31st December 2013
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Asmar
Asmar 4th Quarter 2013 Infill Drilling Significant Intersections Au >0.5g/t
Hole No Location Type Easting Northing Elevation Depth Azimuth Dip From To Length Au g/t Ag g/t Comments
RDD 08021 Asmar 239876.03 9683329.01 138.05 148.3 270 -45 0.00 3.00 3.00 1.20 9.1 Metallurgical hole part re-sampling, fil/colluvium5.00 11.00 6.00 0.51 0.6 Fill/Colluvium
15.00 34.00 19.00 0.94 0.9 "RDD 11188 Asmar Vein 239887.24 9683353.12 138.01 79.4 270 -50 26.00 31.00 5.00 1.20 13.5 Metallurgical hole part re-sampling
37.35 37.50 0.15 0.51 23.473.40 73.75 0.35 0.95 7.9
RDD 12201 Asmar 239607.84 9683281.07 215.20 190.2 70 -55 19.00 21.00 2.00 3.04 6.6 re- samping of hydrological hole150.50 152.80 2.30 2.84 42.0 " quartz vein and breccia
Vein 155.80 156.60 0.80 0.90 3.8159.00 160.00 1.00 0.51 53.6 Volcanic breccia
Vein 180.40 180.80 0.40 0.82 6.3RDD 12202 Asmar 239753.36 9683377.77 145.33 75.1 310 -75 46.20 47.20 1.00 0.83 8.1 re- samping of geotechnical hole, weak veiningRDD 12197 Asmar Vein 239783.61 9683285.42 154.11 60.0 190 -80 42.00 42.40 0.40 1.27 35.2 Geotechnical Hole
57.10 58.10 1.00 0.99 20.0 Brecciated dykeRDD 12198 Asmar 239807.96 9683406.87 145.52 75.1 85 -65 12.10 13.10 1.00 0.54 20.8 Geotechnical hole re-sampling
15.50 20.10 4.60 3.25 43.7 including 1.1 m @ 10.6 g/t Au, 100.2 g/t Ag, mix of vein and stockwork
23.80 24.80 1.00 0.60 30.4 peripheral veiningRDD 12199 Asmar 239884.15 9683373.92 137.39 70.0 140 -70 3.00 6.20 3.20 0.68 0.3 Quartz vein and stockwork
Vein 11.50 13.70 2.20 2.59 12.5Vein 24.90 25.30 0.40 4.30 418.0Vein 29.50 31.70 2.20 0.76 19.8
53.40 56.00 2.60 2.84 188.8 Quartz vein and breccia includes 0.6m @ 9.14 g/t Au and 879 g/t Ag
RDD 13283 Asmar 239775.44 9683418.84 157.27 50 90 -60 1.00 2.00 1.00 0.50 12.4 quartz stockwork8.20 14.00 5.80 0.30 56.7 quartz stockwork
18.00 20.60 2.60 0.81 79.9 quartz stockwork includes 0.6m @ 1.58 g/t Au, 111 g/t Ag
34.50 44.00 9.50 0.93 12.3 quartz stockworkRDD 13284 Asmar 239747.79 9683391.06 154.21 50 270 -47 27.00 28.00 1.00 0.80 5.2 Hydrothermal BrecciaRDD 13286 Asmar 239749.21 9683340.22 137.99 62.7 90 -46 9.10 39.80 30.70 0.94 17.3 shear zone with quartz veining and stockwork
42.00 49.20 7.20 0.85 10.2 shear zone with quartz veining and stockwork52.20 67.70 15.50 0.99 17.3 shear zone with quartz veining and stockwork
Vein 69.50 70.55 1.05 18.60 46.8RDD 13287 239889.42 9683335.10 138.44 103 270 -52 28.80 32.70 3.90 1.04 14.4 Quartz vein and silicified andesite
39.60 54.00 14.40 1.50 28.9 Quartz vein and peripheral stockwork59.00 61.00 2.00 0.99 14.9 Peripheral veining
Vein 98.30 98.90 0.60 0.55 18.1RDD 13289 Asmar Vein 239791.50 9683442.27 154.46 60 290 -48 10.10 11.10 1.00 0.49 84.1
Vein 14.60 17.00 2.40 0.44 35.521.00 26.10 5.10 2.23 23.3 Quartz stockwork
Vein 49.00 51.00 2.00 1.19 209.0RDD 12390 Asmar 239753.41 9683369.07 144.22 75 270 -55 49.80 50.80 1.00 1.11 5.1 Quartz stockwork
70.00 70.90 0.90 2.17 11.3 Quartz stockworkRDD 13291 Asmar 239802.00 9683335.00 135.95 100 270 -55 19.10 21.70 2.60 0.90 38.3 Vein and hydrothermal breccia, includes 0.6m @ 0.12 g/tAu, 5.6 g/t Ag
30.30 32.70 2.40 0.88 9.3 Vein and hydrothermal breccia includes 1m @ 0.12 g/tAu, 6.3 g/t AgVein 37.30 37.90 0.60 1.62 53.9
39.70 41.70 2.00 1.01 22.3 Vein and hydrothermal breccia, includes 0.5m @ 0.11 g/tAu, 3 g/t AgVein 53.80 54.90 1.10 1.73 34.2
57.00 60.00 3.00 0.89 9.9shear zone with quartz veining and stockwork, includes 1m @ 0.31 g/t Au, 4.3 g/t Ag
61.00 62.20 1.20 0.79 3.4 Shear zoneVein 66.40 67.70 1.30 0.94 6.8
69.80 72.20 2.40 1.52 4.7 Quartz stockwork93.30 94.30 1.00 0.73 11.1 Hydrothermal breccia95.40 96.50 1.10 0.63 46.7 hydrothermal breccia with quartz stockwork
RDD 13292 Vein 239801.00 9683315.00 136.14 70 90 -45 6.70 12.90 6.20 0.70 32.225.90 28.00 2.10 0.72 53.4 Quartz stockwork
40.40 44.80 4.40 1.25 13.6Hydrothermal breccia and quartz veining, includes 0.4 m @ 3.83 g/t Au, 30 g/t Ag
50.20 51.30 1.10 1.06 8.8 Hydrothermal breccia and quartz veiningVein 55.20 55.50 0.30 1.98 7.4Vein 58.90 62.80 3.90 2.40 27.0
RDD 13293 239753.00 9683369.00 144.22 80 95 -50 6.90 21.40 14.50 1.59 63.9 Intercalated quartz vein and quartz stockwork23.40 67.40 44.00 1.28 10.7 Intercalated shear zone and quartz stockwork69.40 70.40 1.00 0.60 4.0 weak quartz stockwork
Vein 72.70 73.50 0.80 0.71 12.60RDD 13294 239818.35 9683389.30 136.52 74.2 90 -50 4.40 22.50 18.10 0.73 32.7 Fault zone with strong quartz veining
Vein 29.65 30.80 1.15 0.89 21.7Vein 37.20 38.90 1.70 1.53 106.2Vein 57.70 58.40 0.70 0.98 9.8
66.00 68.40 2.40 0.99 7.9 Quartz stockwork and veiningVein 68.90 72.70 3.80 0.54 14.1 Quartz stockwork and veining
RDD 13295 239835.87 9683412.99 137.01 55 90 -55 7.50 9.50 2.00 0.35 80.1 peripheral quartz veining38.60 41.70 3.10 0.75 95.0 Fault zone with quartz veining
RDD 13296 239947.28 9683369.21 114.77 60 345 -50 12.15 13.40 1.25 0.88 26.9 Hydrothermal breccia with quartz veiningVein 15.20 15.80 0.60 2.62 205.0
16.80 17.80 1.00 0.55 5.2 Hydrothermal breccia39.80 40.80 1.00 1.16 46.0 Hydrothermal breccia44.05 50.15 6.10 1.01 30.0 Intercalated quartz vein, shear zone and hydrothermal breccia
RDD 13321 239769.78 9683285.31 154.25 110 320 -50 43.00 45.35 2.35 0.83 14.2 Quartz vein and hydrothermal breccia
47.00 67.00 20.00 2.47 64.7Quartz vein and shear zone including 1.9 m @ 9.69 g/t Au and 182.6 g/t Ag
As of 31 December 2013
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Buluh
Buluh 4th Quarter2013 Infill Drilling Significant Intersections Au >0.5g/t
Hole No Location Type Easting Northing Elevation Depth Azimuth Dip From To Length Au g/t Ag g/t Comments
RDD 13251 Buluh 239110 9683591 188.07 120.0 90 -80 39.90 42.40 2.50 0.66 34.9 peripheral quartz veining
RDD 13252 Buluh Vein 239102 9683565 188.04 81.1 270 -48 12.60 13.60 1.00 0.72 54.1
16.60 17.60 1.00 1.38 9.7 peripheral quartz veining
20.40 21.40 1.00 2.75 8.7 "
29.70 30.80 1.10 1.50 9.4 "
Vein 46.50 53.80 7.30 10.15 521.8 including 2m @ 29.35 g/t Au, 1770 g/t Ag
76.1 77.4 1.30 0.83 4.3RDD 13253 Buluh 239078 9683566 195.99 68.7 270 -48 11.60 13.50 1.90 0.52 1.0 peripheral quartz veining
35.00 36.00 1.00 0.60 11.9 "
50.70 51.20 0.50 0.74 16.1 "
54.20 55.00 0.80 0.88 40.6 "
56.50 58.00 1.50 0.54 3.1 "
RDD 13254 Buluh Vein 239099 9683526 180.67 85.0 270 -45 7.00 12.60 5.60 1.54 27.2
13.80 14.90 1.10 0.69 20.8 peripheral veining
Vein 15.90 17.45 1.55 5.09 63.9
Vein 19.30 22.20 2.90 1.68 49.4
Vein 23.50 29.70 6.20 3.40 38.9
RDD 13255 Buluh 239106 9683641 185.90 91.5 90 -60 10.50 11.50 1.00 2.51 7.3 peripheral veining
Vein 62.00 62.20 0.20 20.50 119.0
RDD 13256 Buluh 38.5 39.5 1.00 0.76 4.9RDD 13256 Buluh 239030 9683350 222.17 105.0 270 -60 81.10 85.10 4.00 6.73 9.3 peripheral veining, including 1.1m @ 17.5 g/t Au, 19.8 g/t Ag
87.10 88.10 1.00 4.30 54.4 peripheral veining
RDD 13257 94 95 1.00 0.66 2.5RDD 13257 Buluh Vein 238899 9683741 190.48 115.0 270 -48 99.40 106.50 7.10 2.32 25.2 includes 2m @ 0.32 g/t Au, 12 g/t Ag
RDD 13257 Buluh 108.5 109.5 1.00 0.64 2.5RDD 13258 Buluh Vein 238866 9683818 172.18 95.0 270 -53 87.30 88.00 0.70 0.93 1.3
RDD 13259 Buluh 49.8 50.8 1.00 0.59 0.5RDD 13259 Buluh Vein 239015 9683364 220.97 108.1 270 65 61.00 63.10 2.10 8.29 222.2
69.00 71.00 2.00 0.74 5.9
RDD 13260 Buluh 58.4 59.4 1.00 0.78 5.9RDD 13260 Buluh Vein 238903 9683491 167.03 90.0 90 -58 65.90 71.10 5.20 7.52 97.3 including 0.9m @ 19.6 g/t Au, 202 g/t Ag
RDD 13261 238788 9683916 115.48 50.0 270 -55 36 37 1.00 0.51 1.6RDD 13262 Buluh 10.3 10.6 0.30 2.52 85.4RDD 13262 Buluh Vein 239036 9683741 166.74 70.0 90 -55 27.30 28.30 1.00 4.62 170.0
RDD 13263 Buluh 38 39 1.00 0.78 4.1RDD 13263 Buluh 238959 9683666 213.47 75.0 270 -70 46.00 47.00 1.00 0.57 11.6 Metallurgical hole, quartz stockwork
50.00 50.90 0.90 2.37 32.1
58 59 1.00 1.33 8.0RDD 13265 Buluh Vein 239078 9683567 195.99 75.0 90 -70 18.50 19.50 1.00 16.60 13.6 Metallurgical Hole
45 45.6 0.60 0.58 35.0Vein 59.00 59.70 0.70 22.00 352.0
59.7 60.7 1.00 0.63 6.5RDD 13266 Buluh Vein 239102 9683525 180.64 60.0 270 -54 7.20 13.20 6.00 5.88 34.2 Metallurgical Hole, including 1m @ 16.3 g/t Au, 32.3 g/t Ag
31.50 34.50 3.00 1.25 2.4 peripheral veining
RDD 13267 Buluh 238901 9683694 204.51 120.0 270 -57 82.80 83.80 1.00 1.44 4.8
85.30 87.30 2.00 0.77 2.7
92.50 92.90 0.40 2.10 4.1
94.20 95.30 1.10 1.23 13.7
103.90 107.60 3.70 3.05 22.3
RDD 13268 Buluh Vein 238924 9683640 198.91 113.7 270 -54 3.10 5.60 2.50 2.52 26.7
Vein 26.90 27.50 0.60 2.87 148.0
Vein 74.60 74.90 0.30 0.54 16.0
Vein 79.85 80.80 0.95 2.04 18.8
Vein 82.80 83.80 1.00 1.15 5.0
84.80 85.80 1.00 1.69 4.2 quartz stockwork
Vein 86.80 91.80 5.00 6.80 7.2 including 1m @ 14.4 g/t Au, 11.80 g/t Ag
94.10 95.10 1.00 0.74 4.4Vein 96.10 108.50 12.40 4.22 86.8 including 1m @ 10.5 g/t Au, 8.60 g/t Ag
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RDD 13271 Buluh 238950 9683726 191.45 60.0 263 -58 16.00 19.00 3.00 4.75 40.5 quartz stockwork
RDD 13272 Buluh Vein 239041 9683642 200.16 90.0 90 -60 48.40 54.40 6.00 2.00 44.3Vein 61.80 63.80 2.00 0.88 11.4
RDD 13297 Buluh 239039 9683485 216.68 90.0 90 -65 38.90 39.90 1.00 2.91 3.0 DykeRDD 13298 Buluh 239118 9683521 180.22 31.0 225 -60 4.50 7.20 2.70 3.07 21.1 Mixture of quartz vein and rubble
Vein 15.50 16.90 1.40 1.06 20.0Vein 25.70 26.70 1.00 8.62 5.8 Quartz stockwork
RDD 13299 Buluh Vein 239105 9683610 189.51 72.0 270 -50 44.00 45.00 1.00 1.50 9.1Vein 53.00 55.00 2.00 4.83 47.0Vein 59.00 60.00 1.00 1.21 72.5Vein 66.60 68.00 1.40 1.51 54.6
RDD 13300 Buluh 239102 9683546 188.29 70 256 -48 8.00 9.00 1.00 1.52 2.8 Peripheral veiningVein 26.1 31.4 5.3 1.19 33.9Vein 33.25 33.6 0.35 1.98 36.2 "Vein 35.7 39 3.3 5.62 305.9Vein 52.2 53.6 1.4 0.93 23.1Vein 67.6 67.9 0.3 1.04 7.0
RDD#13309 Buluh 238925.9 9683466 167.77 55 90 350 16.4 19 2.6 3.45 7.7 Quartz vein and shear zoneVein 37.3 37.6 0.3 1.10 25.2
RDD#13310 Buluh 238935.5 9683418 168.88 68 90 347 28 29 1 0.63 1.3 peripheral veiningVein 50.4 52.3 1.9 1.20 9.8Vein 65 65.5 0.5 4.22 95.0
RDD#13311 Buluh 238911.9 9683361 165.37 50 90 345 18 19 1 0.97 76.6 peripheral veining
RDD#13313 Buluh Vein 238898 9683516 165.92 75 90 347 0.7 1.3 0.6 1.95 116.07.7 11.4 3.7 1.06 10.9 Quartz vein and shear zone, includes 1 m @ 0.2 g/t Au, 3.3 g/t Ag
25 27 2 3.01 64.9 Quartz brecciaVein 28.7 31.6 2.9 21.25 271.3 Includes 0.9m @ 49.5 g/t Au, 599 g/t Ag
RDD#13314 Buluh 239023.6 9683352 222.23 90 270 346 35.1 36.1 1 0.92 1.9 breccia
RDD#13315 Buluh 238898 9683516 165.92 102 90 360 1.6 6.8 5.2 0.67 18.8 peripheral veining67 70 3 0.92 4.7 quartz stockwork74 76 2 0.82 5.7 breccia84 94 10 0.89 3.4 quartz stockwork96 100 4 1.32 6.5 quartz stockwork
RDD#13316 Buluh 238947 9683418 169.17 50 90 345 5.7 7 1.3 0.68 5.8 shear zone13 14 1 0.72 4.9 shear zone
18.4 19.5 1.1 1.04 58.2 shear zone35.5 38.8 3.3 0.88 58.8 quartz stockwork
Vein 44.3 46.4 2.1 6.73 193.9 including 0.5 m @ 12.1 g/t Au, 370 g/t Ag
RDD13317 Buluh 238922.8 9683642 199.04 140 270 363 0 4.4 4.4 1.63 8.6 peripheral veiningVein 73.6 74.8 1.2 11.40 138.0
96.6 97.6 1 2.47 3.6 peripheral veiningVein 122 124.15 2.15 1.99 6.1 including 0.5m @ 4.68 g/t Au, 9.35 g/t Ag
RDD#13318 Buluh 239017.8 9683310 191.07 66 270 370 4.6 5.9 1.3 15.10 33.2 peripheral veining42.2 45.1 2.9 1.38 47.0 Quartz vein and stockwork
Vein 53.1 56.6 3.5 6.67 195.3
RDD#13319 Buluh Vein 238930.2 9683440 168.61 85 90 355 56.1 60.8 4.7 13.28 83.5 including 1.9m @ 25.84 g/t Au, 81.6 g/t Ag
Vein 63.6 65.1 1.5 1.10 9.7
RDD#13320 Buluh 238922.8 9683642 199.04 150 295 360 1 5.7 4.7 1.15 5.0 peripheral veining76.7 78.2 1.5 0.58 2.3 quartz stockwork
Vein 82.65 85 2.35 5.57 9.3Vein 128.8 132 3.2 2.95 3.3
RDD#13322 Buluh Vein 238903.3 9683491 167.08 65 90 351 51.4 55.4 4 4.25 129.3 includes 1 m @ 12.6 g/t Au, 218 g/t Ag F
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RDD#13323 Buluh 238922.8 9683642 199.04 135 245 259 0 4.4 4.4 1.38 2.9 Colluvium and quartz vein18 19 1 1.28 6.0 peripheral veining30 31 1 1.37 20.8 quartz stockwork
Vein 52.7 53 0.3 6.36 24.689.4 90.4 1 2.33 4.2
Vein 103.75 104.75 1 3.56 7.5
RDD#13324 Buluh Vein 238897.8 9683516 165.87 60 90 253 44.3 50.3 6 17.19 302.8 including 3.8m @ 26.6 g/t Au, 448 g/t Ag
RDD#13325 Buluh 238944.7 9683666 213.53 147.4 270 248 22.1 25.9 3.8 1.79 10.5 quartz vein and silicified zone34.5 35.2 0.7 0.69 11.6 minor veining
Vein 135.2 135.45 0.25 0.74 3.3Vein 139.55 142.6 3.05 0.95 4.6
RDD#13327 Buluh Vein 238891.7 9683602 165.43 65 270 276 41.1 41.7 0.6 3.18 41.7
RDD#13328 Buluh 239014.4 9683310 190.62 45 270 245 18.3 19.7 1.4 0.78 27.8 Quartz vein and silicified wallrockVein 31.3 31.75 0.45 2.56 44.3
RDD#13330 Buluh Vein 239055.6 9683538 208.66 70 90 260 33 33.5 0.5 1.18 14.138.45 38.6 0.15 0.64 14.8 quartz breccia
Vein 44.6 45.65 1.05 8.24 30.9 including 0.2m @ 34.6 g/t Au and 76.5 g/t Ag
Vein 49.3 49.8 0.5 4.40 10.9
53.2 54.1 0.9 0.59 3.0 hydrothermal breccia
RDD#13331 Buluh 238891 9683602 165.42 65 305 249 41.5 42.5 1 2.23 4.5 Quartz brecciaVein 45.3 47.2 1.9 8.79 129.7 including 0.9m @ 17.1 g/t Au and 1230 g/t Ag
RDD#13332 Buluh Vein 239055.3 9683566 205.37 52 90 260 37.75 44.5 6.75 1.74 73.4
RDD#13333 Buluh Vein 239016 9683309 190.95 55 270 259 23.9 24.4 0.5 1.87 19.426.4 27.6 1.2 1.58 7.9 quartz stockwork29.9 31.4 1.5 3.98 8.5 weak veining
Vein 39.5 40.5 1 1.46 35.3
RDD#13335 Buluh Vein 239030.2 9683349 222.17 115 270 270 41.7 42 0.3 0.76 10.9Vein 44.15 46.8 2.65 2.52 202.0
49.8 51 1.2 0.55 4.5 shear zoneVein 83.5 84.5 1 3.26 8.5
98.4 99.4 1 1.15 2.1 Peripheral veining
RDD#13336 Buluh 238920.3 9683466 168.12 61.6 90 255 33.7 36.2 2.5 0.10 140.4 Quartz vein and brecciaVein 39.3 40.3 1 0.31 165.0Vein 43.1 51.1 8 3.08 40.4
55 56 1 1.20 8.0 Peripheral veining
RDD#13337 Buluh 238976.7 9683412 175.99 50 200 275 7 8 1 1.17 104.0 Peripheral veiningVein 39.7 42.7 3 10.38 82.8 Including 1m @ 27.6 g/t Au, 104 g/t Ag
RDD#13338 Buluh Vein 239098.5 9683691 165.88 68 90 260 55.4 57.9 2.5 16.19 19.1
RDD#13339 Buluh Vein 239134.7 9683619 178.31 50 90 265 35.1 38.3 3.2 11.59 75.2 Including 1m @ 25.1 g/t Au, 103 g/t Ag
41.5 43.9 2.4 1.47 10.7 Hydrothermal breccia and quartz vein zone
RDD#13340 Buluh 239111.5 9683665 181.20 70 90 260 37.9 38.9 1 1.27 74,8 peripheral veiningVein 57.1 57.3 0.2 8.31 91.0
RDD#13341 Buluh 239134.9 9683591 177.23 60 90 265 45.3 46.8 1.5 4.49 187.7 Includes 0.5m @ 12.2 g/t Au, 271 g/t Ag
RDD#13343 Buluh 239128.1 9683496 180.86 35 45 268 0.9 7.4 6.5 2.44 13.8 Quartz vein and quartz fragments in argillised breccia
RDD#13344 Buluh 239027.5 9683263 163.08 50 282 250 13.35 14.4 1.05 3.95 109.0 Quartz vein32.85 33.85 1 6.16 27.2 Polymictic volcanic breccia
RDD#13345 Buluh Vein 239008.6 9683267 162.22 25 282 250 9.9 10.1 0.2 1.43 17.4
RDD#13346 Buluh 239012.1 9683241 157.01 21 270 248 12.4 13.4 1 0.45 137.0 Polymictic volcanic breccia
RDD#13347 Buluh Vein 239043.9 9683235 162.05 70 280 248 63.55 63.9 0.35 0.54 5.3 Quartz vein
RDD#13348 Buluh 238874.1 9683767 192.42 110 270 250 83 84.1 1.1 0.63 2.5 peripheral veiningVein 87.85 89.5 1.65 1.19 11.0
RDD13349 Buluh 238895.1 9683816 166.70 40 90 275 29.1 30.1 1 1.15 23.9 Polymictic volcanic breccia39 40 1 0.97 4.3 Polymictic volcanic breccia
RDD13350 Buluh 239066.3 9683491 205.00 50 90 260 27 28 1 0.54 7.5 Quartz veinlet < 1%
As of 31st December 2013
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2.3 Tandai Exploration The Tandai Project is located within the northern part of the Bengkulu Utara IUP, in the Kabupaten area of Bengkulu Utara, approximately 100km north of Bengkulu. Tandai has a long history of formal mining dating from the early part of the 20th century until after World War II. The Company’s tenements cover a district in which at least three Dutch companies worked portions of the system. The old Dutch mining town at Tandai still remains, and was refurbished (when the mine was redeveloped and worked between 1985 and 1995). Under the arrangements agreed with Newcrest Mining Limited (‘Newcrest’) in August 2010, Newcrest has the right to earn a 70% interest in the Tandai tenement by spending US$12 million on the project over 5 years.
The Company understands that Newcrest are currently reviewing their participation in the Tandai Joint Venture. Under the terms of the joint venture agreement, in the event that Newcrest withdraws from the Tandai Joint Venture, then Sumatra must acquire the 70% Newcrest interest in the Joint Venture Company for a nominal consideration.
Figure 10 – Tandai District and Prospects The Tandai Project is on care and maintenance for the foreseeable future while the Company’s resources and activities are focused on the Tembang Project development.
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3.0 Tenement Status Category Details Company: PT Bengkulu Utara Gold
Ownership: 70.00% Newcrest Mining 27.75% Sumatra Copper & Gold 2.25% PT Nusa Palapa Minerals
Type of Permit: Mining Business Permit – IUP for Exploration
Permit Number: Decree of Bengkulu Utara Regent Nr. 390 of 2012
Total Area: 16,688 Ha
Location: Subdistrict : Napal Putih, Padang Jaya, and Arga Makmur Regency : Bengkulu Utara Province : Bengkulu
Date Issued: 29 December 2012
Permit Period: 3 years to 22 December 2015 Category Details Company: PT Dwinad Nusa Sejahtera
Ownership: 99.95% Sumatra Copper & Gold 00.05% Adi Adriansyah Sjoekri
Type of Permit: Mining Business Permit – IUP for Operation Production
Permit Number: Decree of Musi Rawas Regent Nr. 263/KPTS/DISTAMBEN/2012
Total Area: 9,979 Ha
Location: Village : Suka Menang Subdistrict : Karang Jaya Regency : Musi Rawas (Now is Musi Rawas Utara) Province : Sumatera Selatan
Date Issued: 04 April 2012
Permit Period: 20 years to 03 April 2032
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Category Details Company: PT Musi Rawas Gold
Ownership: 92.50% Sumatra Copper & Gold 07.50% PT Nusa Palapa Minerals
Type of Permit: Mining Business Permit – IUP for Exploration
Permit Number: Decree of Musi Rawas Regent Nr. 657/KPTS/DISTAMBEN/2012
Total Area: 9,848 Ha
Location: Subdistrict : Karang Jaya Regency : Musi Rawas (Now is Musi Rawas Utara) Province : Sumatera Selatan
Date Issued: 28 December 2012
Permit Period: 5 years to 27 December 2017 Category Details Company: PT Nusa Palapa Minerals
Ownership: 99.95% Sumatra Copper & Gold 00.05% Adi Adriansyah Sjoekri
Type of Permit: Mining Business Permit – IUP for Exploration
Permit Number: Decree of Pasaman Regent Nr. 188.45/933/BUP-PAS/2012
Total Area: 24,850 Ha
Location: Subdistrict : Duo Koto, Rao, and Rao Selatan Regency : Pasaman Province : Sumatera Barat
Date Issued: 13 November 2012
Permit Period: 3 years to 24 March 2015 During the previous six months the Company relinquished the following tenements:
• PT Jambi Gold • PT Kotanopan Mining • PT Mandailing Mining
Tenement status for PT Lebong Gold is currently being discussed with the Department of Energy and Mines and also with BKPM (Investment Board). F
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4.0 Material Developments Subsequent to 31 December 2013 4.1 Phase 3 Drilling Program The Phase 3 drilling program commenced on 12 December 2013 utilising two conventional diamond drill rigs and one multi-purpose drill rig arriving in early January 2014. As of 22 January 2014, a total of 3,203m of a planned 6,000m diamond drilling program had been completed. The initial in-fill drilling campaign targeted the Berenai and Anang/Tembang veins together with a limited program at Asmar. During February 2014 drilling at Belinau and Siamang is expected to commence with the objective of converting Inferred Resources to Indicated Resource classification. At this stage the Company expects to complete all planned drilling by the end of February 2014.
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For further information please contact: Julian Ford Nicholas Read / Paul Armstrong Managing Director Read Corporate Sumatra Copper & Gold plc T: +61 8 9388 1474 +61 8 6298 6200 M: +61 419 929 046 [email protected] About Sumatra Copper & Gold
Sumatra Copper & Gold plc (ASX: SUM) is an emerging gold and silver producer and the pre-‐eminent precious metals explorer in southern Sumatra, Indonesia. The Company has a significant project portfolio, which encompasses a pipeline of projects ranging from greenfields exploration projects to brownfields, near-‐production opportunities. Competent Person’s Statement – Mineral Resources Buluh and Belinau
The information in the report to which this statement is attached that relates to the Mineral Resource estimate for Buluh and Belinau, is based on information compiled by Mr Robert Spiers who is a member of AIG and a full time employee of H & S Consultants Pty Ltd. Mr Robert Spiers has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australian code for reporting of Exploration Results, Mineral Resource and Ore Reserves'. Mr Robert Spiers consents to the inclusion in the report of the matter based on his information in the form and context in which it appears. Competent Person’s Statement – Mineral Resources Asmar
The information in the report to which this statement is attached that relates to the Mineral Resource estimate for Asmar, is based on information compiled by Mr Chris Black who is a member of AIG and a full time employee of Cube Consulting. Mr Chris Black has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australian code for reporting of Exploration Results, Mineral Resource and Ore Reserves'. Mr Chris Black consents to the inclusion in the report of the matter based on his information in the form and context in which it appears. Competent Person’s Statement – Mineral Resources at AsmarTembang/Anang
The information relating to Mineral Resources is based on information compiled by Mr David Stock MAusIMM who is an independent Geological Consultant to the Company and is a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and has consented to the inclusion in this report of the matters based on his information in the form and context in which they appear. In addition, the Mineral Resource estimates were reviewed by Mr Robert Spiers who is a member of AIG and a full time employee of Hellman & Schofield Pty Ltd. Mr Spiers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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'.
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