ASX Announcement 28 October 2013

Transcription

1 ASX Announcement 28 October 2013 QUARTERLY ACTIVITIES REPORT For three months ended 30 September 2013 Sumatra optimises and strengthens Tembang Project in response to market volatility Highlights Tembang Project Development New mine plan substantially progressed with over 9,000 meters drilled at the Belinau, Buluh and Asmar deposits to replace historical RC drilling and upgrade Resources to Measured and Indicated Status. Detailed Engineering 80% complete at Quarter-end. PT Contromation Electrical Services appointed as EPCM contractor. Construction activities progressed with erection of CIL tanks and fabrication of some structural steel packages largely completed, ready for transport to site. Demolition of old grinding mill footings completed; installation of new foundations to commence in October. Construction of the explosives magazine commenced in September with completion expected in the December Quarter; final approval and permitting to follow in Q Project financing expected to be completed in Q following finalisation of the new mine plan, updated Mineral Resource and sign-off by Independent Technical Engineers. Exploration and Development Drilling Results Outstanding results from in-fill drilling at key deposits, with results supporting the new mine plan. Significant intersections include: Belinau 71.2g/t Au and 602g/t Ag incl g/t Au and 217g/t Ag (RDD13282) targeting the upper levels: highest grade hit to date; and 63.67g/t Au and 388.7g/t Ag (RDD13273) in the Southern Shoot (open); Siamang (Buluh) 10.15g/t Au and 521.8g/t Ag incl g/t Au and 1,770g/t Ag (RDD13252); Buluh South 7.52g/t Au and 97.3g/t Ag (RDD13260) Directors Steve Robinson Non-Executive Chairman Julian Ford Managing Director and CEO Adi Sjoekri Executive Director Jocelyn Waller Director (Non-Executive) Gavin Caudle Director (Non-Executive) Contact Level 1, 5 Ord Street West Perth 6005 Western Australia T: E: info@scgplc.com Registered in England and Wales Registered address 39 Parkside, Cambridge United Kingdom CB1 1PN Registered Number ASX Code: SUM Strategic Board and Management changes announced ahead of the transition to production including appointment of experienced mining executive Steve Robinson as Chairman and experienced international corporate executive Gavin Caudle as a Non-Executive Director.

2 Overview During the September 2013 Quarter, Sumatra Copper & Gold plc (ASX: SUM) continued to work on a number of initiatives designed to optimise and strengthen its flagship Tembang Gold-Silver Project, located in Sumatra, Indonesia. As outlined in previous announcements and the June 2013 Quarterly Report, these strategic initiatives have been implemented in response to the significant ongoing volatility in gold and silver markets and changed conditions in credit markets seen since April this year. The proposed changes to the Tembang Project development are designed to result in a more robust Project. The changes will be underpinned by a new mine plan and development sequence which is based on mining the higher grade Buluh open pit in the early stages of the operation. As previously announced in September 2013, the timeline to production is likely to be delayed by the later than expected draw-down of debt funding. All of the activities associated with the new Life-of-Mine (LOM) mine plan and updated Mineral Resource are well advanced as at the time of writing this report and are scheduled for completion during the December 2013 Quarter, together with a detailed cost-to-completion budget. Substantial progress was achieved with in-fill and development drilling during the Quarter across all three key deposits which underpin the Tembang Mine Plan. This drilling returned some of the best results seen to date at Tembang, reinforcing the strength and fundamentals of the Project and vindicating the strategy to revise the development strategy in response to the significant change in market conditions. Board and Management Changes During the Quarter, the Company continued to make strategic changes to its Board and Management Team ahead of its transition to production in These included the appointment of experienced mining executive Mr Stephen Robinson and experienced international corporate and finance executive Mr Gavin Caudle as Independent Directors. Mr Warwick Morris resigned as a Director and was succeeded in the role of Chair by Mr Robinson. Mr Robinson is a Rhodes Scholar and an experienced Australian mining executive. He is the founding director of corporate advisory firm Lincoln Capital. Mr Caudle has over 20 years experience in the finance and investment sectors in Australia, Singapore and Indonesia. Mr Caudle is a Director of Sumatra s cornerstone shareholder, Provident Capital Partners Pte Ltd. Mr Susan Hunter was appointed as Company Secretary following the resignation of Mr Graeme Smith. 2

3 Ms Hunter has over 19 years experience in the corporate finance industry. She is the founder and Managing Director of Hunter Corporate Pty Ltd, and provides corporate governance and company secretarial services to ASX-listed entities. 1.0 Tembang Project 1.1 Permitting During the Quarter, ongoing local permitting processes continued. These included: De-watering Recommendation Approved in August Magazine Storage Building Final recommendation Fuel Hoarding Permit Application in process Electricity and Power Plant Generating Permit - Application in process Borehole Usage Permit (Water) Application in process 1.2 Cost-to-Complete The Company completed a preliminary Cost-to-Complete assessment in September 2013, which showed no material overall cost changes to the key project cost parameters. While the estimated costs for the Process Plant and Camp Infrastructure were below budget, this was offset by higher forecast Owners and EPCM costs. The budgeted production mining costs will be revised subject to completion of the final Optimised Life of Mine (LOM) Plan which is on track for November The Company expects to complete a detailed Cost-to-Complete review and assessment following the completion of the new Optimised mine plan. 1.3 Project Schedule During the Quarter, the Company completed an inspection of the Mill being manufactured in China and has confirmed the December delivery for the third and last mill component. The Mill remains the key project critical path activity. As announced on the 17 September 2013, the Company has slowed its Project commitments while the new resource drill-out is completed and other conditions required to complete debt draw-down are satisfied. The Company expects to satisfy all technical conditions and receive the final Independent Technical Engineer s Report in November Technical review and reports of the additional drilling have substantially been completed, with the final resource related reviews currently being completed. The Company expects to provide a detailed updated development schedule in November Tembang Construction The detailed design progressed well during the Quarter, allowing for fabrication of the ROM (run-ofmine) bin, structural steel for crushing and mill feed conveyor in Surabaya. Detailed design for the process plant is now 80% completed. Electrical design was well advanced and orders for MCC s and switchboards are expected to be placed in the December 2013 Quarter. 3

4 The expansion of the 300-man accommodation village is now near completion with only a new kitchen and dining hall outstanding. This is expected to be completed and operational in November The erection of the security fencing at the plant site and magazine commenced late in the Quarter and is expected to be completed in October The remaining security and fencing activities are expected to be completed in the December 2013 Quarter. The administration and construction offices were completed during the Quarter. Figure 1: September 2013, Construction progress at Tembang erection of leach tanks, construction and administration offices Civil works progressed well during the Quarter with concrete foundations underway by Quarter-end. The pre-fabricated structural steel has arrived on site and will be erected in October with completion expected in November. The de-watering pumps are on site and construction of the lime dosing facility is completed. Erection of the CIL tanks was completed at the end of September. 1.6 Community Relations The Company has ramped up Community Relations activities in line with the increase in site activities at Tembang. During the Quarter, the Company agreed the formation of an integrated local team, including both Company representatives and local government officials including police and army participants. 4

5 The integrated team was established to better co-ordinate the employment of local community people, to facilitate the award of local supply contracts and also to deal with any security activities. During the Quarter, 94 local people were employed. 2.0 Tembang Development Drilling and Exploration 2.1 Development Drilling Development drilling continued throughout the Quarter at the Buluh, Asmar and Belinau deposits. The main focus was on Buluh, where 6,700m of a 9,000m diamond drilling has been completed as part of the mine optimisation program. The program has been very successful in terms of time to completion as well as delivering some excellent results. Significant results from this drilling are summarised in the sections below. Belinau Bitu The recent discovery of the Bitu vein in hole RDD which returned 4.4 g/t Au, 8.8 g/t Ag from 70.7m including 13.4 g/t Au, 21.1 g/t Ag from 72.2m clearly demonstrated the exploration potential around the high-grade Belinau structure. Following a review of the structure, the trend of the vein has been ascertained as 330/55 SW with a true thickness of between 1-2m. A follow-up program was designed to test this hypothesis and three holes RDD 13274, 75 and 77 were completed for a total of 451.5m. 5

6 Figure 2: Belinau Drilling Progress All holes intersected the structure over 50 metres of strike length and showed better grades at depth and closer to Belinau. The structure consists of hydrothermal breccia at surface and at depth strong clay-rich shearing adjacent to high-grade colloform banded quartz with typical fine-grained dark sulphide. RDD returned the best intercept of 8.95 g/t Au and 15 g/t Ag from 100.6m including 12 g/t Au, 19.2 g/t Ag. 6

7 Figure 3: Bitu Section RDD Two follow-up holes are planned to test the Bitu structure at depth close to its projected intersection with the main Belinau lode as well as its potential south-western extension. This will better assist in the updated resource estimation. Belinau Main Lode At Belinau, in-fill drilling has been concentrated on two objectives: firstly, to convert Inferred Resources at depth especially in areas where the deposit is open; secondly, to replace previous historical Reverse Circulation drilling which does not adequately reflect the sub-vertical geometry of the main lode and is widely spaced. During the Quarter, 12 holes were successfully completed RDD , 13282, 13285, 13288, and for a total of m. All holes successfully intersected the Belinau lode with typical banded colloform high-grade quartz. The drilling has confirmed the geometry of the lode is simpler and sub-vertical. RDD returned a spectacular result of g/t Au and g/t Ag from 227.4m down-hole. This shows that the southern shoot is open at depth with potentially greater vertical extent than previously thought given the moderate Ag/Au ratio. RDD also returned a very high-grade intercept of g/t Au and 602 g/t Ag from 100.6m down-hole which confirms the consistent near surface high grade of the southern shoot. 7

8 Figure 4: Belinau Section RDD The ongoing program will continue to in-fill and convert existing Inferred Resources both at depth and closer to surface. During this program the limits of the northern shoot, which is open at depth, will be better defined. High-grade intercepts within Belinau continue to confirm the potential of this deposit. A new optimised underground mine design is nearly complete, with access from the existing open pit, removing the previous requirement for a high strip ratio (high cost) open pit. Conversion drilling of Inferred Resources to Indicated will continue improving confidence in and certainty with regard to the mining schedule. 8

9 Figure 4 Belinau long section showing diamond holes (green) replacing historical RC drilling Buluh An in-fill drilling program was completed to upgrade the Inferred Resource at Buluh to Measured and Indicated status to allow a fully optimised Ore Reserve and mine plan to be developed. Drilling was concentrated in three main areas: Buluh South, Buluh North and Siamang. Some drilling has also been carried out on a locally high-grade peripheral vein system at Buluh North East. This program which includes both metallurgical and geotechnical drill holes has comprised of 52 holes for a total of m. The program took slightly longer than expected due to second phase follow up drilling being incorporated into the program based on high grade quartz textures backed up by preliminary significant assays. 9

10 Figure 6: Buluh Drilling Plan 10

11 The in-fill/confirmation drilling has shown the vein zone to be simpler than previously interpreted with the main Buluh vein (Buluh South and North) striking NNW and dipping to the east. The zone is characterised by vughy, occasionally colloform banded, weakly sulphidic veining intercalated with sheared stock worked host rocks and is clearly fault controlled. All assays have been received for this first phase program and have shown that, while there is a material reduction in tonnes from the previous estimation, the overall grade of the deposit is of a higher tenor. The current understanding is that the geometry of the mineralised lode systems is sub- vertical and narrower than previously thought but that the grades are significantly higher. High silver gold ratios and banded quartz veins at Siamang in particular point to considerable depth potential at this area, similar to Belinau. A second stage in-fill and step-out program of 875m is planned to supplement and add confidence to the existing resource. This program will commence early in September and completed in mid October. Buluh South Drilling has shown the structure to have a true thickness of 1.5 to 2m but high-grade over a strike of over 150m. Three separate veins have been modelled which coalesce into one main vein and another zone of peripheral veining. RDD returned 7.52 g/t Au, 97.3 g/t Ag from 65.90m down-hole and typifies the high-grade nature of the veining. The zone is open at depth. Figure 7: Buluh South RDD 13251, 60 Section 11

12 Buluh North Drilling has shown the main structure widens considerably at surface over at least 150m of strike and is open at depth. Hole RDD returned 6.80 g/t Au and 7.2 g/t Ag from 86.8m down-hole and 4.22 g/t Au and 86.8 g/t Ag from 99.10m down-hole. In-fill drilling will confirm the strike extent of these near surface high-grade zones. Siamang Figure 8: Buluh North RDD Section Siamang is part of a vein system with a true thickness of from 2-4m and extending over a strike length of more than 150m. One main vein has been delineated striking NNW with a steep dip to the west and a subsidiary vein occurring to the east in a similar orientation. The vein systems are open along strike to the north and the south as well as at depth. There is also the possibility of a cross-cutting structure oblique to the main vein which was intersected in hole RDD 13266, which returned 5.88 g/t Au and 34.2 g/t Ag from 7.2m down-hole. Siamang is typified by zones of banded, sulphide rich quartz veins, which have locally high grades not too dissimilar to Belinau. The Ag/Au ratios also indicate there is depth potential to the vein systems and previous drilling by SCG has shown high grade mineralisation at least 50m below the limit of current drilling. The best intercept from the current program was returned from RDD 13252, which intersected g/t Au and g/t Ag from 46.5m down-hole including g/t Au, 1,770 g/t Ag. 12

13 It should be noted that the current drilling is targeting the main veins and not the peripheral sheeted veins ( PSV ) which are clearly evident at Siamang. Buluh North East Figure 9: Siamang RDD Section This is a subsidiary structure to the east of Buluh with locally very high grades hosted by zones of quartz stockwork and veining. In particular, Hole RDD intersected g/t Au, 18.8 g/t Ag from 40.5m down-hole including 45.5 g/t Au, 24.5 g/t Ag in a zone of weak quartz stockwork. There are three outcropping sub-parallel vein zones in this area, mined by artisanals, over a strike length of at least 75m. 13

14 Figure 10: Buluh North East RDD 13240, 63 Section Asmar Further in-fill drilling has targeted the near-surface portions of the deposit to obtain a better understanding of the near-surface geometry of the vein zones and grade distribution. Fifteen holes, RDD RDD 13296, for a total of 1,180.2m have been completed in the Quarter. The geology is complex with a number of intersecting quartz vein zones trending both NE and EW transecting a porphyritic stock which has been extensively brecciated. However, in-pit geological mapping combined with earlier SCG mapping, has been able to outline key vein zones, which dominantly dip to the west different from the previous model, which had an easterly dip. These zones lie with a +5% quartz model shape, which has been generated from surface mapping and drilling to provide a framework for the resource modelling. 14

15 Figure 11: Asmar Drill Plan Assay results have been received for all the holes. Initial holes RDD 13276, intersected significant mineralisation. RDD intersected a high-grade vein of 6.16 g/t Au, 59.8 g/t Ag from 29.60m down-hole. RDD intersected multiple zones of moderate grade throughout its length including 1.64 g/t Au, 98.3 g/t Ag from 79m down-hole including 2.67 g/t Au, 187 g/t Ag in a similar sulphidic vein. Further results confirmed the core area of stockworking in the central part of the deposit to have continuous thick, low-grade gold intercepts with occasional high grade banded quartz veins hosted by andesite volcanics and volcaniclastics. In particular, RDD returned multiple intercepts with the thickest being 1.28 g/t Au and 10.7 g/t Ag from 23.4m down-hole. RDD intersected g/t Au and 46.8 g/t Ag which attests to the high-grade nature of the veining. 15

16 Figure 12: Asmar RDD Section Drilling has also confirmed a shallow extension the east of the main deposit. RDD returned multiple low to moderate grade intercepts, the widest of which was 1.01 g/t Au and 30 g/t Ag from 44.05m down-hole. 16

17 Tables 1-3 Tembang Resource Drilling Significant Intersections Au >0.5g/t reported during 3rd Quarter 2013 Belinau Belinau 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 Belinau Vein RDD Belinau Vein Includes 8.19 g/t Au, 46.6 g/t Ag RDD Belinau Vein Infill sampling of geotechnical hole RDD Belinau Vein Footwall vein, Includes 6.77 g/t Au, 14.5 g/t Ag RDD Belinau Vein RDD Belinau Vein RDD Belinau Vein RDD Belinau Vein Includes g/t Au, 21.1 g/t Ag RDD Belinau Vein RDD Belinau Vein RDD Belinau Vein Hole ended in mineralisation RDD Belinau Vein Hanging wall vein, metallurgical hole RDD Belinau Vein RDD Belinau Vein Infill sampling of geotechnical hole RDD Belinau Vein Infill sampling of geotechnical hole RDD Belinau Vein Infill sampling of geotechnical hole RDD Belinau Vein minor quartz vein RDD Belinau Vein weak quartz stockwork RDD Belinau Vein RDD Belinau Vein Includes 5.31 g/t Au, 67.3 g/t Ag RDD Bitu peripheral veining peripheral veining quartz stockwork dyke RDD Bitu Vein Includes 12 g/t Au, 19.2 g/t Ag RDD Bitu Vein Includes 4.61 g/t Au, 7 g/t Ag RDD Belinau Vein RDD Belinau Vein Includes.1.0m.@.104.g/t.Au,.217.g/t.Ag RDD Belinau Vein RDD Belinau Vein Mixture of vein and colluvium Vein Vein RDD 13302Belinau Vein RDD Belinau peripheral veining RDD 13305Belinau Vein quartz stockwork 17

18 Asmar Asmar 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 RDD13209 Asmar Colluivum RDD13209 Asmar Colluivum RDD13209 Asmar Vein addition RDD13209 Asmar Vein RDD13209 Asmar Vein Includes 0.30m at <0.5 g/t Au RDD13209 Asmar Vein RDD13209 Asmar Vein RDD13209 Asmar Halo RDD13209 Asmar Vein Includes 0.75m at <0.5 g/t Au RDD13209 Asmar Vein Includes 1m at <0.5 g/t Au Includes 1.0m <0.50 g/t Au. Includes 5.60 RDD13209 Asmar Vein g/t Au, 27.6 g/t Ag RDD13209 Asmar Vein Includes 0.9 m at <0.5 g/t Au RDD13210 Asmar Vein RDD13210 Asmar Vein Includes 1m at <0.5 g/t Au RDD13210 Asmar Vein RDD13210 Asmar Vein RDD13210 Asmar Vein RDD13210 Asmar Vein RDD13210 Asmar Vein RDD13210 Asmar Vein RDD13210 Asmar Vein RDD13210 Asmar Vein RDD13210 Asmar Vein Includes 14.6 g/t Au, 112 g/t Ag RDD13210 Asmar Vein RDD13211 Asmar Vein Includes 12.3 g/t Au, 18.4 g/t Ag RDD13211 Asmar Vein RDD13212 Asmar Vein RDD13212 Asmar Vein RDD Asmar Vein Includes 3.3m at <0.5 g/t Au RDD Asmar Vein RDD Asmar Vein RDD Asmar Vein RDD Asmar Vein RDD Asmar Vein RDD Asmar Vein Includes 0.7 m at <0.5 g/t Au RDD Asmar Vein Colluvium RDD Asmar Vein RDD Asmar Vein Includes 2.3m at <0.5 g/t Au RDD Asmar Vein RDD Asmar Vein RDD Asmar Vein Includes 2.9m at <0.5 g/t Au RDD Asmar Vein RDD Asmar Vein RDD Asmar RDD Asmar Vein RDD Asmar Vein RDD Asmar Hydrothermal breccia RDD Asmar Vein RDD Asmar Hydrothermal breccia RDD Asmar Vein Includes 2.67 g/t Au, 187 g/t Ag RDD Asmar Hydrothermal breccia 18

19 RDD Asmar Hydrothermal breccia " " " " Vein " RDD Asmar Fill/Colluvium Vein quartz stockwork RDD Asmar peripheral veining peripheral veining shear and quartz vein zone shear zone peripheral veining, includes g/t Au, 230 g/t Ag RDD Asmar quartz stockwork quartz stockwork quartz stockwork includes 1.58 g/t Au, 111 g/t Ag quartz stockwork RDD Asmar Hydrothermal Breccia RDD Asmar shear zone with quartz veining and stockwork shear zone with quartz veining and stockwork shear zone with quartz veining and stockwork Vein RDD Quartz vein and silicified andesite Quartz vein and peripheral stockwork Peripheral veining Vein RDD Asmar Vein Vein Quartz stockwork Vein RDD Asmar Quartz stockwork Quartz stockwork Vein and hydrothermal breccia, includes 0.12 RDD Asmar g/tau, 5.6 g/t Ag Vein and hydrothermal breccia includes g/tau, 6.3 g/t Ag Vein Vein and hydrothermal breccia, includes g/tau, 3 g/t Ag Vein shear zone with quartz veining and stockwork, includes g/t Au, 4.3 g/t Ag Shear zone Vein Quartz stockwork Hydrothermal breccia hydrothermal breccia with quartz stockwork RDD Vein Quartz stockwork Hydrothermal breccia and quartz veining, includes g/t Au, 30 g/t Ag Hydrothermal breccia and quartz veining Vein Vein RDD Intercalated quartz vein and quartz stockwork Intercalated shear zone and quartz stockwork weak quartz stockwork Vein RDD Fault zone with strong quartz veining Vein Vein Vein Quartz stockwork and veining Vein Quartz stockwork and veining RDD peripheral quartz veining Fault zone with quartz veining RDD Hydrothermal breccia with quartz veining Vein Hydrothermal breccia Hydrothermal breccia Intercalated quartz vein, shear zone and hydrothermal breccia 19

20 Buluh Buluh 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 Buluh shear zone RDD Buluh Vein peripheral quartz stockwork RDD Buluh Vein peripheral quartz stockwork RDD Buluh quartz stockwork Vein Includes g/t Au, 1400 g/t Ag RDD Buluh Vein RDD Buluh Vein minor quartz vein RDD Buluh Vein RDD Buluh peripheral quartz stockwork RDD RDD Buluh Includes 29.7 g/t Au, 460 g/t Ag RDD Buluh Vein minor quartz vein RDD Buluh Vein RDD Buluh Vein Includes 9.35 g/t Au, g/t Ag RDD Buluh Vein Includes 0.3 g/t Au RDD Buluh minor quartz vein RDD Buluh breccia Buluh Includes 4.90 g/t Au, 437 g/t Ag Buluh quartz stockwork Buluh Vein RDD Buluh RDD Buluh peripheral quartz stockwork Buluh peripheral quartz stockwork Buluh peripheral quartz stockwork Buluh peripheral quartz stockwork Includes 45.5 g/t Au, 24.5 g/t Ag RDD Buluh Vein includes 0.61 g/t Au, 1.5 g/t Ag RDD Buluh Vein RDD Buluh Silicified breccia RDD Buluh Vein shear zone RDD Buluh peripheral quartz stockwork peripheral quartz stockwork Vein Vein Vein RDD Buluh Silicified breccia Vein RDD Buluh Vein peripheral quartz stockwork, includes 0.16 g/t Au Vein Vein Vein Including 29 g/t Au, 664 g/t Ag Hydrothermal Breccia includes 0.14 g/t Au Hydrothermal Breccia Vein RDD Buluh Oxidised Andesite Vein peripheral quartz veining peripheral quartz stockwork peripheral quartz veining Vein including 11.2 g/t Au, 398 g/t Ag peripheral quartz veining peripheral quartz veining Vein

21 RDD Buluh Vein Vein Vein Vein RDD Buluh peripheral quartz veining RDD Buluh Vein peripheral quartz veining " " Vein including g/t Au, 1770 g/t Ag RDD Buluh peripheral quartz veining " " " " RDD Buluh Vein peripheral veining Vein Vein Vein RDD Buluh peripheral veining Vein RDD Buluh RDD Buluh peripheral veining, including 17.5 g/t Au, 19.8 g/t Ag peripheral veining RDD RDD Buluh Vein includes 0.32 g/t Au, 12 g/t Ag RDD Buluh RDD Buluh Vein RDD Buluh RDD Buluh Vein RDD Buluh RDD Buluh Vein including 19.6 g/t Au, 202 g/t Ag RDD RDD Buluh RDD Buluh Vein RDD Buluh RDD Buluh Metallurgical hole, quartz stockwork RDD Buluh Vein Metallurgical Hole Vein RDD Buluh Vein Metallurgical Hole, including 16.3 g/t Au, 32.3 g/t Ag peripheral veining RDD Buluh RDD Buluh Vein Vein Vein Vein quartz stockwork Vein including 14.4 g/t Au, g/t Ag Vein including 10.5 g/t Au, 8.60 g/t Ag RDD Buluh quartz stockwork RDD Buluh Vein Vein RDD Buluh Dyke RDD Buluh Mixture of quartz vein and rubble Vein Vein Quartz stockwork RDD Buluh Vein Vein Vein Vein RDD Buluh Peripheral veining Vein Vein " Vein Vein Vein

22 3.0 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 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 re-furbished (when the mine was redeveloped and worked between 1985 and 1995). Under 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 Reconnaissance exploration of Asa Prospect continues to show good progress with a NE-SW trending corridor of mineralisation defined over 2km with particular emphasis on the northern part of the corridor where large silicified outcrops have been discovered and sampled. Figure 13 Tandai District and Prospects 22

23 3.1 Asa Prospect During the Quarter, exploration activities were reduced due to the re-assignment of geological personnel to Tembang. Further channel sampling was conducted at the Nokan North silicified outcrops which showed moderate gold anomalism with results of up to 1.65 g/t Au and 21.8 g/t Ag returned in a zone of quartz veining. Base metal values are low which indicates that this zone is distal to the high-grade mineralisation discovered at the Kokoi river approximately 800m to the south. Geological mapping has shown there is a clear association of mineralisation with the emplacement of andesitic-dacitic dykes, which is similar to Tandai. These dykes also appear to be more magnetic than the surrounding andesitic host rocks. Gridding is well advanced, with over 2.9km cut, for an upcoming ground magnetic program to better delineate the zones of mineralisation and associated dykes. Figure 14: Geological Map of Asa Prospect with gold assay highlights 23

24 2.1.1 Geological Mapping and Sampling Channel sampling has been focused on the Nokan Ridge outcrop. The sampling has shown bands of massive milky quartz veining in porphyritic andesite in the footwall and quartz vein breccias at the hangingwall contact, hosted by interbedded silicified sandstone and siltstone. This zone can be traced for over 200 metres and forms a significant topographic feature. The best result from the sampling was 1.65 g/t Au and 21.8 g/t Ag. This zone is higher topographically and more distal from the more base metal rich mineralisation in the Kokoi river Forward Plans The project will remain on care and maintenance for the foreseeable future as geological activities are focused on the Tembang Project. For further information please contact: Julian Ford Nicholas Read / Paul Armstrong Managing Director Read Corporate Sumatra Copper & Gold plc T: M: Nicholas@readcorporate.com.au 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 covering an area of more than 3,200km 2 and encompassing a pipeline of projects ranging from greenfields exploration projects to brownfields, nearproduction opportunities. Sumatra s flagship asset, the 100%-owned Tembang Gold-Silver Project, is on track for production during Tembang has Proven Reserves of 2.4Mt at 2.5 g/t Au and 38.7 g/t Ag for a total of 0.2Moz of gold and 3Moz of silver and Probable Reserves of 3.1Mt at 2.1 g/t Au and 25.6 g/t Ag for a total of 0.2Moz of gold and 2.5Moz of silver (total of 0.4Moz of gold and 5.5Moz of silver) which are compliant with the 2004 JORC Code. The Stage 1 production plan is a low-cost, high-grade operation targeting 400,000 tonnes per annum (tpa) process capacity to produce 30,000oz per annum of gold and 200,000oz per annum of silver. Sumatra plans to fund the Stage 2 upgrade from cash flow, increasing throughput to 900,000tpa and production to 50,000oz of gold per annum and silver production to 500,000oz per annum. The ramp-up is expected to take place over a one year period. The current life-ofmine plan is for 7.5 years based on the current resource inventory. Under a joint venture with Newcrest Mining Ltd, Sumatra is currently exploring the Tandai project (30% Sumatra; 70% Newcrest). Newcrest has already met its minimum expenditure position of US$1.75 million and has an option to earn a 70% interest by spending US$12 million over 5 years. Sumatra has identified significant gold mineralisation at Tandai, which has historic high-grade production of 1.4Moz ounces gold. Sumatra also has the 100%-owned Sontang Project, which is an early-stage, high-grade zinc, gold and silver exploration project. 24

25 Competent Person s Statement Mineral Resources 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 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Competent Person s Statement Ore Reserves The information in this report that relates to Open Pit and Underground Ore Reserves is based on information compiled by Mr Shane McLeay of Entech Pty Ltd, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr McLeay 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 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr McLeay consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. 25