QUARTERLY ACTIVITIES REPORT
For the 3 months ended 31 December 2014
Key points
• Construction recommenced at Tembang Gold-Silver Project in Sumatra, Indonesia
• Drilling activities recommenced at Berenai, Nuri, Bujang and Siamang completing 18 holes for
1,336 metres during the period
• Conversion of US$6.1 million of notes, plus capitalised interest and fees, into CDIs
• Execution of debt facility of up to US$45 million and drawdown of Tranche 1 of US$40 million
• Hedge program completed for 50% of gold and silver production for the first two years of scheduled production from Tembang Project
• Retirement of Julian Ford as Managing Director and appointment of David Fowler as Acting CEO
Tembang Gold-Silver Project
Sumatra Copper & Gold plc ("the Company") recommenced construction at its Tembang Gold-Silver Project located in southern Sumatra, Indonesia ("Tembang" or "the Project") on 21 November 2014 (ASX Announcement 9 December 2014).
Construction at Tembang had originally commenced in June 2013 and was suspended in December
2013 while the Company undertook additional drilling to redefine the Company's Mineral Resource and Ore Reserve base to enable the completion of an updated Definitive Feasibility Study and secure financing to complete the construction of the Project. Significant infrastructure, including camp, administration buildings, leach tanks, concrete foundations, warehouse, security fencing and command posts had been completed, and major equipment items purchased and warehoused with major suppliers, prior to Project suspension.
Since Project recommencement the following key milestones and activities have occurred:
• Tender of open pit mining contracts (award expected in Q1 2015);
• Tender of power supply (award expected in Q1 2015);
• Design of process plant concrete and steel largely completed;
• Majority of orders placed for key remaining infrastructure and equipment placed;
• Commencement of shipping of major components of the plant;
• Concrete for plant concrete and steel construction delivered to site and construction commenced;
• Explosives magazine and mess hall construction re-commenced.
Infill and grade control drilling has started at the open pits scheduled for commencement of mining during Q2 2015.
The Company anticipates commissioning in Q4 of 2015.
|
Directors
Steve Robinson
|
Jocelyn Waller
|
Contact
Level 1, 5 Ord Street
|
Registered Address
|
|
Non-Executive Chairman
|
Non-Executive Director
|
West Perth 6005
Western Australia
|
39 Parkside, Cambridge
United Kingdom CB1 1PN
|
|
David Fowler
Acting CEO
|
Gavin Caudle
Non-Executive Director
|
T: +61 8 6298 6200
|
Registered No. 5777015
|
|
E: [email protected]
|
|
Adi Sjoekri
Executive Director
|
ASX Code: SUM
www.sumatracoppergold.com
|
Figure 1: Construction at Tembang processing facility: January 2015
Exploration
Resource drilling and surface exploration activities commenced during the Quarter, completing 18 holes for 1,336 metres along with collection of 53 rock samples. The drilling program, "Phase 4", has a planned program of 3,675 metres in 46 holes and will focus on infill drilling at Berenai and Siamang, extension drilling at Nuri and Bujang and exploration drilling at Racambai-Jenih. Key points for the quarter:
• Infill drilling along 12.5m infill sections in shallow-south Berenai pit is aimed at increasing confidence in first year of production. Results support the resource model and may add some incremental ounces to the south end of the pit, highlights include 6m @ 4.9 g/t Au from 23m (RRC14434) and 6m @ 3.65/t Au 45m (RRC14436).
• Infill drilling to 12.5m infill sections within the complete strike length of the Siamang pit is aimed at increasing confidence in the first year of production. Visual results (presence of quartz vein) are consistent with the Resource Model along the Siamang main lode. Assay results are pending.
• Extension drilling to the south-west at Bujang is aimed at extending resources and ultimately the reserve pit in this direction. Shallow holes confirmed that the Bujang structure is weakly mineralized near surface, however typical epithermal vein textures with banded chalcedony and associated high grade mineralization encountered in deeper drilling indicate that mineralization at Bujang has a shallow plunge to the Southwest. Highlights include 2.4m @ 3.65g/t Au from 82.6m (RDD14441) and 2.2m @ 11.10g/t Au from 100.9m (RDD14445).
• Extension drilling at shallow-south Nuri aimed at confirming geometry of up-dip edge of the resource model where mineralization is observed to "pinch out" abruptly. Drilling confirms that narrow structure exists where predicted. Highlights include 1m @ 4.47 /t Au from 32.5m (RDD15451) and 1m @ 7.1g/t Au from 29m (RDD15452)
• Surface mapping and sampling was completed at and around the Racambai and Jenih prospects with 53 rock samples collected with an aim to refine drilling targets. Assay results are pending.
• QAQC program ongoing with use of fields duplicates, field blanks, and standards with no issues reported for the period.
• The Geospark database management system is nearing completion and scheduled for roll out in
January 2015, which will include implementing digital drill core logging.
Page 2 of 13
Finance
During the Quarter the Company's wholly owned subsidiary PT Dwinad Nusa Sejahtera ("DNS") entered into a debt facility of up to US$45 million for the purpose of developing the Tembang Project and subsequently drew down the first tranche of US$40 million:
• DNS signed a senior secured debt facility of up to US$45 million ("Facility") with Nomura
Singapore Limited ("Nomura") and Indonesia Eximbank (ASX Announcement 22 October
2014);
• Drawdown of the Tranche 1 US$40 million of the Facility was completed (ASX Announcement
13 November 2014);
• Drawdown of the Tranche 2 US$5 million of the Facility is subject to certain conditions and the Company raising US$5 million in further equity within 6 months of initial drawdown (ASX Announcement 22 October 2014);
• A total of 222,753,201 unquoted warrants, exercisable at A$0.057 each on or before 12
November 2017, were issued to lenders, in accordance with the terms of the Facility (as approved by shareholders of the Company on 27 October 2014 and as per Appendix 3B 13
November 2014).
During the Quarter Provident Minerals Pte Ltd ("Provident") and PT Saratoga Investama Sedaya Tbk ("Saratoga") converted the full outstanding US$6.1 million of notes issued under the convertible loan facility agreement entered into with Provident on 4 December 2013 ("Provident Facility Agreement") into CHESS Depositary Interests (CDIs) of the Company (ASX Announcement 2 October 2014):
• Conversion of the notes included capitalised interest and fees and totalled A$7,536,361;
• A total of 163,833,929 new CDIs were issued to Provident and Saratoga, to which Provident had assigned US$2,000,000 of the Provident Facility (ASX Announcement 13 March 2014). The conversion price was A$0.046 per CDI.
Hedging
During the Quarter, in accordance with the terms and conditions of the finance Facility, a hedge program was completed for 50% of gold and silver production for the first two years of scheduled production from the Tembang Project (ASX Announcement 3 November 2014):
• 42,000 ounces of gold were hedged at a strike price of US$1,108.50 per ounce. Where the gold price at the time of delivery is below US$1,428.50 per ounce the Company will receive a gold price of US$1,108.50 per ounce. Where the gold price is above US$1,428.50 per ounce the Company will receive a gold price equivalent to the prevailing gold price less US$320.00 per ounce.
343,200 ounces of silver were hedged at a strike price of US$14.47 per ounce. Where the silver price at the time of delivery is below US$21.77 per ounce the Company will receive a silver price of US$14.47 per ounce. Where the silver price is above US$21.77 per ounce the Company will receive a silver price equivalent to the prevailing price less US$7.30 per ounce.
Deliveries under the hedge program will commence in November 2015 with equal monthly deliveries of gold and silver. The hedge program represents approximately 23% and 16% respectively of the Company's gold and silver Ore Reserves.
Capital structure
During the Quarter a total of 169,241,471 CDIs in the Company were issued:
Page 3 of 13
• Conversion of US$6.1 million of notes, plus capitalised interest and fees, into 163,833,929
CDIs, at a deemed issue price of A$0.046 each, under the Provident Facility Agreement
(Appendix 3B 6 October 2014);
• 5,407,542 CDIs issued to Juniper Capital Partners Limited, at a deemed issue price of A$0.055 each, for services related to the Facility (as noted in 27 October 2014 Notice of General Meeting lodged on ASX on 10 October 2014 and as per Appendix 3B 9 December
2014).
• On 31 December 2014 a total of 5,109,244 performance rights lapsed. CDI Capital structure at 31 December 2014:
|
CDI Holder
|
No. of CDIs
|
%
|
|
Provident Minerals Pte Ltd
|
101,483,658
|
17.44
|
|
PT Saratoga Investama Sedaya
|
90,543,148
|
15.56
|
|
Provident Minerals Pte Ltfd
|
88,163,265
|
15.15
|
|
PT Saratoga Investama Sedaya
|
55,510,204
|
9.54
|
|
HSBC Custody Nominees (Australia) Limited
|
33,577,151
|
5.77
|
|
Goldstar Mining Asia Resources (L) BHD/C
|
32,653,061
|
5.61
|
|
Yaw Chee Siew
|
19,591,837
|
3.37
|
|
Citicorp Nominees Pty Limited
|
18,351,723
|
3.15
|
|
Goldstar Mining Asia Resources (L) BHD/C
|
11,703,595
|
2.01
|
|
UOB Kay Hian Private Limited
|
9,020,980
|
1.55
|
|
Total Top 10 CDI Holders
|
460,598,622
|
79.17
|
|
Others
|
121,183,494
|
20.83
|
|
Total CDI's on Issue as at 31 December 2014
|
581,782,116
|
100.00
|
Management Changes
Julian Ford provided notice of his resignation as Managing Director (MD) of the Company during December 2014 and David Fowler, previously CFO of the Company, was appointed Acting CEO (ASX Announcement 16 December 2014).
Mr Ford completed his contract with the Company on 31 December 2014. Having been appointed MD in June 2011, Mr Ford was instrumental in successfully transitioning the Company from junior explorer to funded project-development status.
Mr Fowler has significant experience, both in a CEO capacity and also in major project development.
Page 4 of 13
Tenement Status (January 2015)
|
Category
|
Details
|
|
Company:
|
PT Bengkulu Utara Gold
|
|
Ownership:
|
70.00% SUM Singapore (Tandai) Pte Ltd
27.75% Sumatra Copper & Gold plc
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
|
Note 1: 97.75% Sumatra Copper and Gold ownership assumes completion of Deed of Termination and Release as announced to the ASX on 30 May 2014
|
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
|
Page 5 of 13
|
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
|
The Company is recommending relinquishing an area comprising 17,350 Ha belonging to PT Nusa
Palapa Minerals, the retained area to become 7,500 Ha.
Tenement status for PT Lebong Gold is currently being discussed with the Department of Energy and
Mines and also with BKPM (Investment Board).
END
Page 6 of 13
For further information please contact:
David Fowler
Acting CEO
Sumatra Copper & Gold plc
+61 8 6298 6200
About Sumatra Copper & Gold
Sumatra Copper & Gold Plc (ASX:SUM) is an emerging gold and silver producer in southern Sumatra, Indonesia. The Company has a significant project portfolio encompassing greenfields exploration projects to brownfields, near-production opportunities. The Company's Tembang Gold Project is currently under construction and targeting production in Q4 of
2015. The 5-year LOM Project will ramp up to average annual production of 30,000oz gold and 345,000oz of silver with C1
cash costs of US$470/oz and AISC of US$745/oz net of silver credits.
Competent Person's Statement - Exploration Results
The information in this report that relates to Exploration Results is based on information compiled by Devin den Boer, who is a full time employee of the company and a Registered Member of the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC). Mr den Boer 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'. Mr den Boer consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Page 7 of 13
Appendix 1: Drill-hole Information Summary
Table 1 - Tembang Resource Drilling
Significant Intercepts (>0.5g/t) for holes completed between Dec 6, 2014 and Jan 6, 2015
|
Hole ID
|
Prospect
/Deposit
|
Drill type
|
Easting
(mE)
|
Northing
(mN)
|
RL (m)
|
Az
|
Incl
|
From
|
To
|
Interval
|
Au
(ppm)
|
Ag
(ppm)
|
|
RRC14432
|
Berenai
|
RC
|
239449
|
9682903
|
223
|
270
|
-55
|
17.00
|
21.00
|
4.00
|
1.39
|
3.3
|
|
RRC14432
|
Berenai
|
RC
|
239449
|
9682903
|
223
|
270
|
-55
|
25.00
|
28.00
|
3.00
|
0.56
|
5.3
|
|
RRC14432
|
Berenai
|
RC
|
239449
|
9682903
|
223
|
270
|
-55
|
34.00
|
35.00
|
1.00
|
4.83
|
36.0
|
|
RRC14433
|
Berenai
|
RC
|
239463
|
9682901
|
222
|
270
|
-75
|
51.00
|
54.00
|
3.00
|
3.98
|
62.7
|
|
RRC14434
|
Berenai
|
RC
|
239447
|
9682877
|
222
|
270
|
-55
|
13.00
|
14.00
|
1.00
|
0.79
|
3.0
|
|
RRC14434
|
Berenai
|
RC
|
239447
|
9682877
|
222
|
270
|
-55
|
18.00
|
19.00
|
1.00
|
1.27
|
3.0
|
|
RRC14434
|
Berenai
|
RC
|
239447
|
9682877
|
222
|
270
|
-55
|
23.00
|
29.00
|
6.00
|
4.90
|
135.0
|
|
RRC14435
|
Berenai
|
RC
|
239459
|
9682878
|
222
|
270
|
-80
|
33.00
|
37.00
|
4.00
|
1.17
|
3.5
|
|
RRC14435
|
Berenai
|
RC
|
239459
|
9682878
|
222
|
270
|
-80
|
44.00
|
45.00
|
1.00
|
0.58
|
37.0
|
|
RRC14436
|
Berenai
|
RC
|
239481
|
9682853
|
220
|
270
|
-60
|
40.00
|
51.00
|
11.00
|
2.34
|
78.0
|
|
RRC14437
|
Bujang
|
RC
|
240359
|
9682685
|
99
|
90
|
-60
|
50.00
|
51.00
|
1.00
|
0.50
|
2.0
|
|
RRC14437
|
Bujang
|
RC
|
240359
|
9682685
|
99
|
90
|
-60
|
58.00
|
60.00
|
2.00
|
0.66
|
2.0
|
|
RRC14438
|
Berenai
|
RC
|
239458
|
9682827
|
237
|
270
|
-55
|
36.00
|
37.00
|
1.00
|
0.56
|
4.0
|
|
RRC14438
|
Berenai
|
RC
|
239458
|
9682827
|
237
|
270
|
-55
|
39.00
|
45.00
|
6.00
|
3.38
|
11.3
|
|
RRC14438
|
Berenai
|
RC
|
239458
|
9682827
|
237
|
270
|
-55
|
47.00
|
50.00
|
3.00
|
0.57
|
5.3
|
|
RRC14438
|
Berenai
|
RC
|
239458
|
9682827
|
237
|
270
|
-55
|
53.00
|
54.00
|
1.00
|
1.29
|
6.0
|
|
RRC14439
|
Berenai
|
RC
|
239431
|
9682824
|
242
|
270
|
-55
|
18.00
|
20.00
|
2.00
|
3.34
|
19.0
|
|
RRC14439
|
Berenai
|
RC
|
239431
|
9682824
|
242
|
270
|
-55
|
55.00
|
62.00
|
7.00
|
1.22
|
71.3
|
|
RRC14440
|
Bujang
|
RC
|
239425
|
9682860
|
232
|
270
|
-55
|
0.00
|
1.00
|
1.00
|
3.10
|
32.0
|
|
RRC14440
|
Bujang
|
RC
|
239425
|
9682860
|
232
|
270
|
-55
|
5.00
|
6.00
|
1.00
|
0.53
|
13.0
|
|
RDD14446
|
Siamang
|
RC
|
239054
|
9683527
|
209
|
90
|
-65
|
38.00
|
45.00
|
7.00
|
3.73
|
14.0
|
|
RDD14447
|
Siamang
|
RC
|
239050
|
9683549
|
210
|
80
|
-76
|
37.00
|
38.00
|
1.00
|
0.64
|
1.0
|
|
RRC14448
|
Siamang
|
RC
|
239050
|
9683549
|
210
|
80
|
-76
|
48.00
|
50.00
|
2.00
|
0.89
|
44.5
|
|
RRC14448
|
Siamang
|
RC
|
239050
|
9683549
|
210
|
80
|
-76
|
75.30
|
76.00
|
0.70
|
3.06
|
27.0
|
|
RDD14449
|
Siamang
|
RC
|
239033
|
9683580
|
210
|
90
|
-52
|
56.00
|
60.00
|
4.00
|
2.60
|
26.2
|
|
RDD14449
|
Siamang
|
RC
|
239033
|
9683580
|
210
|
90
|
-52
|
83.00
|
85.00
|
2.00
|
3.64
|
54.0
|
|
RDD14441
|
Bujang
|
DC
|
240312
|
9682689
|
104
|
90
|
-65
|
82.60
|
85.00
|
2.40
|
3.65
|
54.1
|
|
RDD14441
|
Bujang
|
RC
|
240312
|
9682689
|
104
|
90
|
-65
|
10.00
|
12.00
|
2.00
|
0.82
|
4.0
|
|
RDD14444
|
Bujang
|
DD
|
240313
|
9682626
|
106
|
90
|
-65
|
101.60
|
102.80
|
1.20
|
0.54
|
3.0
|
|
RDD14445
|
Bujang
|
DD
|
240305
|
9682658
|
106
|
90
|
-65
|
100.90
|
103.10
|
2.20
|
11.10
|
18.0
|
|
RDD14446
|
Siamang
|
DD
|
239054
|
9683527
|
209
|
90
|
-65
|
52.30
|
53.70
|
1.40
|
7.59
|
pending
|
|
RDD14446
|
Siamang
|
DD
|
239054
|
9683527
|
209
|
90
|
-65
|
76.40
|
83.60
|
7.20
|
2.10
|
pending
|
|
RDD14447
|
Siamang
|
DD
|
239050
|
9683549
|
210
|
80
|
-76
|
66.00
|
75.10
|
9.10
|
1.45
|
pending
|
|
RDD14449
|
Siamang
|
DD
|
239033
|
9683580
|
210
|
90
|
-52
|
92.00
|
93.00
|
1.00
|
2.54
|
pending
|
|
RDD15450
|
Siamang
|
DD
|
239032
|
9683579
|
210
|
90
|
-70
|
84.35
|
87.90
|
3.55
|
6.79
|
pending
|
|
RDD15451
|
Nuri
|
DD
|
239587
|
9682895
|
174
|
270
|
-60
|
32.50
|
33.45
|
0.95
|
4.47
|
pending
|
|
RDD15452
|
Nuri
|
DD
|
239587
|
9682895
|
174
|
295
|
-55
|
29.00
|
30.00
|
1.00
|
7.10
|
pending
|
Page 8 of 13
Appendix 2:
JORC Code, 2012 Edition - TABLE 1: The information in this table is relevant to all exploration and drilling activities currently taking place at taking place at the Tembang Project
Section 1: Sampling Techniques and Data
|
Criteria
|
JORC Code explanation
|
Commentary
|
|
Sampling techniques
|
Nature and quality of sampling (e.g. cut channels, random chips, or specific
specialised industry standard measurement
tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
|
• Drill hole samples of Reverse Circulation (RC), Diamond Core (DC) and surface rock chip samples have been collected
• Recently, magnetic susceptibility
measurements have been collected with a hand held KT-6 Portable Kappameter
|
|
Sampling techniques
|
Include reference to measures taken to ensure sample representivity and the
appropriate calibration of any measurement
tools or systems used.
|
• Diamond core samples are split with Diamond saw and 50% collected for sampling
• Reverse Circulation samples are collected and split at the drill with triple tiered sample splitter resulting in a 12.5% or 1/8 split with an approximate sample weight of 2-3 kg
• Drilling samples are collected continuously with minimum/maximum sample size of 0.5m and
2.0m respectively
• All visual mineralization is sampled including sampling past the perceived zone of mineralization and into fresh rock
• Surface samples are collected to best represent the trend of perceived mineralization ie. across the vein
|
|
Sampling techniques
|
Aspects of the determination of mineralisation that are Material to the Public
Report. In cases where 'industry standard'
work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3
kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as
where there is coarse gold that has inherent
sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.
|
• Mineralization is associated to quartz vein lodes and 1m average sample size is collected (min/max sample sizes are 0.5m/2.0m)
• All drill samples are analysed for gold and silver with 50g fire assay for Au and 2-acid digestion with AAS finish for Ag
• Gold samples >50g/t Au are reanalysed with gravimetric method
• Silver samples >100g/t Ag are reanalysed with
4-acid digestion with AAS finish
• Surface samples are being collected for Au and a standard multi-element ICP OES package
that includes silver and common pathfinder minerals in epithermal systems
|
|
Drilling techniques
|
Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger,
Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of
Diamond tails, face-sampling bit or other
type, whether core is oriented and if so, by what method, etc).
|
• Diamond drilling uses HQ3 sized Diamond drill core, triple-tube and 1.5m core barrels where required to improve recoveries
• Digital core orientation techniques are used
(Reflex-ACT and Pathfinder-Ori-Fnder)
• Reverse Circulation drilling uses standard double walled drill pipe and face sampling hammer
|
|
Drill sample recovery
|
Method of recording and assessing core and chip sample recoveries and results
assessed.
|
• For Diamond drilling, standard core recovery and RQD data is collected at the drill rig and based on drill runs (meter blocks)
|
Page 9 of 13
|
Criteria
|
JORC Code explanation
|
Commentary
|
|
• For Reverse Circulation drilling, complete samples are weighed at the drill with a conventional balance
|
|
Measures taken to maximise sample recovery and ensure representative nature
of the samples.
|
• Triple/Split tubes are used along with 1.5m (short) drill runs with Diamond drilling to improve sample recoveries
• Drilling mud and additives professionals have been to site to plan suitable mud mixes and recommend techniques and materials to improve recoveries in low recovery zones
|
|
Whether a relationship exists between sample recovery and grade and whether
sample bias may have occurred due to preferential loss/gain of fine/coarse
material.
|
• Diamond core recoveries of quartz vein lodes is lower than in fresh rocks but generally the recoveries have been acceptable at >90% on average and no evidence of a grade bias due to variation in core recovery has been detected
|
|
Logging
|
Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral
Resource estimation, mining studies and
metallurgical studies.
|
• Geotechnical and recovery data is collected at the drill with whole core and prior to transporting core to logging facility
• Reverse circulation chips samples are collected and logged at the drill by a geologist
• Logging is of a suitable standard to allow for detailed geological and resource modelling
|
|
Logging
|
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
|
• Core logging is completed at a suitable facility (on waist high inclined benches, in dry conditions and with sufficient natural light)
• Drill core is logged for Lithology, alteration, oxide, structure, veining and mineralization
• Standard nomenclature is used for logging and codes or abbreviations are used to input into a database
• Historically, core logging has been collected manually on A3 paper sheets and is currently transitioning to digital data collection with a commercially available software, GeoSpark
|
|
Logging
|
The total length and percentage of the relevant intersections logged.
|
• 100% of drill holes are logged
• Selective sampling is utilized based on geological descriptions and presence or lack of visual mineralization
• All mineralized intervals are sampled
• Complete mineralized / hydrothermally altered zone is sampled both before and after (start and finish sample run in "fresh" rock)
|
|
Sub-sampling techniques and sample
preparation
|
If core, whether cut or sawn and whether quarter, half or all core taken.
|
• HQ diameter Diamond drill core is sawn and
50% collected for sampling.
• The remaining 50% is stored on site in a core storage facility
|
|
Sub-sampling techniques and sample
preparation
|
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or
dry.
|
• Reverse circulation samples are collected on a per meter basis and split at the drill with a manual triple tired sample splitter resulting in a
12.5% or 1/8 split (2-3 kg sample)
|
|
Sub-sampling techniques and sample
preparation
|
For all sample types, the nature, quality and appropriateness of the sample preparation
technique.
|
• Sample size aims at a 2-3kg representative sample
• Samples are sent to Intertek Labs (Jakarta) where the sample prep package includes; drying at 105°C'
|
Page 10 of 13
|
Criteria
|
JORC Code explanation
|
Commentary
|
|
• crushing (jaw crusher to 95%
• Pulverising (LM2 pulveriser to 95%
|
|
Quality control procedures adopted for all sub-sampling stages to maximise
representivity of samples.
|
• Standard industry practice Quality Assurance- Quality Control procedure includes insertion of;
• Field Blanks (1/30)
• Field Duplicates (1/30)
• Standards (1/30)
|
|
Measures taken to ensure that the sampling is representative of the in situ material
collected, including for instance results for field duplicate/second-half sampling.
|
• Lab results include analyses for replicates and duplicates
• Historically, procedure included re-analysis of sample pulps at primary Lab (~5%)
• Future procedure will include re-analysis of sample pulps at an Umpire Lab (~5%)
|
|
Whether sample sizes are appropriate to the grain size of the material being
sampled.
|
• Gold mineralization in low sulfidation deposits is typically erratic (high grade - narrow vein)
• Tembang mineralization is not considered to have a high nugget effect
|
|
Quality of assay data
and
laboratory tests
|
The nature, quality and appropriateness of the assaying and laboratory procedures
used and whether the technique is
considered partial or total.
|
• Sample analysis is completed at a commercial analytical laboratory; Intertek Testing Services laboratory (Jakarta)
• Au is analysed by 50g fire assay technique and considered total
• Ag is analysed by 2-acid digestion with AAS
finish and considered total
|
|
Quality of assay data
and
laboratory tests
|
For geophysical tools, spectrometers, handheld XRF instruments, etc, the
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors
applied and their derivation, etc.
|
• Not Applicable
|
|
Quality of assay data
and
laboratory tests
|
Nature of quality control procedures
adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.
|
• Standard industry practice Quality Assurance- Quality Control procedure includes insertion of;
• Field Blanks (1/30)
• Field Duplicates (1/30)
• Standards (1/30)
• Results of certified reference material
"standards" indicate no lab bias
|
|
Verification of sampling and
assaying
|
The verification of significant intersections by either independent or alternative
company personnel.
|
• Calculations of significant intersections are carried out by qualified geology professional and reviewed by Competent Person Devin den Boer (P.Geo.) Geology Manager and full time employee of Sumatra Copper and Gold plc
|
|
Verification of sampling and
assaying
|
The use of twinned holes.
|
• I8 twin holes were completed in 2008 to compare historical RC data with recent Diamond drilling
|
|
Verification of sampling and
assaying
|
Documentation of primary data, data entry procedures, data verification, data storage
(physical and electronic) protocols.
|
• Historically, data has been collected via MS
excel tables and MS Access database
• More recently, a commercially available data collection and management software; GeoSpark has been purchased and is in process of being deployed
• Data is backed-up on hard discs at the project and the Jakarta head office
• A Server has been installed on site and is in process of being implemented
|
Page 11 of 13