Sumatra Copper & Gold seek to restart mining in Indonesia


Sumatra Copper & Gold seek to restart mining in Indonesia

Sumatra Copper & Gold plc is a gold and silver emerging producer with a suite of highly prospective tenements in the Indonesian island of Sumatra. The Company’s most advanced project is its 100% owned historic gold and silver mining Tembang Project in South Sumatra, Indonesia which is being fast-tracked into production and is scheduled to commence production during 2015.

Challenge:

In order to obtain bank finance to complete construction of the Tembang Project, Sumatra Copper & Gold needed to update all Mineral Resources. As part of this process, there was a requirement to redrill significant portions of the resource using diamond drilling in order to provide increased confidence and convert inferred resources to indicated for the development of Ore Reserves. The new data from the diamond program would allow the company to produce a JORC 2012 compliant resource which could then feed into a new Definitive Feasibility Study (DFS). The company had exploration geologists on the ground in Indonesia, but no in-house resource capability in Perth where the DFS was being undertaken.

Within the Tembang Project, five different deposits were modelled, each requiring an individual approach due to differing geological characteristics.

Solution:

Sumatra Copper & Gold engaged Cube Consulting to undertake an independent resource estimate suitable for public reporting. Using both ordinary and multiple indicator kriging methods, Cube modelled the various deposits in the Tembang Project.

An important criterion was the ability for Cube Consulting to work closely with the Chief Operating Officer in West Perth, whilst providing a professional result. The outcome has been a close relationship between engineering and geology producing a quality resource model and reports suitable for the financing process.

Benefits:

West Perth location

Practical mining geologists with extensive resource experience

Indonesian and epithermal gold experience

Sumatra Copper Gold case study