Sumatra makes new gold discovery

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THE DRILL SERGEANT: Sumatra Copper & Gold has made a new gold discovery at the Lusang North prospect within the Tandai District, located in southwest Sumatra.

The Tandai Joint Venture is currently managed by Sumatra with Newcrest Mining, which has the right to earn a 70 per cent stake in the project by spending US$12 million.

The Tandai project is a gold and silver project with, what the company claims to be, strong potential to be a multi-million ounce district.

It is located approximately 100 kilometres north of Bengkulu and covers approximately 1,000 square kilometres.

Source: Company announcement

The project has reported historic gold production of 1.4 million ounces of gold and 15 million ounces of silver.

Current exploration at the Tandai project has targeted Glumbuk, Toko Rotan and Lusang North prospects, where drilling commenced earlier this year.

Three wide intersections were returned as follows:

–    19.7 metres at 2.62 grams per tonne gold, 5.2 grams per tonne silver from a depth of 58.8 metres;

–    21.0m at 4.74 g/t gold, 36.2 g/t silver from a depth of 86.9m, including 1.9m at 27.56 g/t gold, 28.0 g/t silver from a depth of 91.3m;

–    20.8m at 1.16 g/t gold, 3.2 g/t silver from a depth of 144.3m;

–    3.0m at 2.03 g/t gold, 30.4 g/t silver from a depth of 110.2m; and

–    1.7m at 2.23 g/t gold, 7.8 g/t silver from a depth of 123.3m.

The company said it was unable to ascertain an accurate estimate of the true thickness of the mineralisation until further drilling is completed and the results have been integrated with surface mapping and detailed down hole structural measurements.

“We targeted the program at Lusang North following recent character sampling of breccia zones earlier this year which returned bonanza values up to 104.00 grams per tonne gold and are extremely pleased to find these high grade vein breccias,” Sumatra Copper & Gold executive chairman Julian Ford said in the company’s announcement to the Australian Securities Exchange.

“We have so far completed 2,897 metres of drilling around Tandai, including activity at our other highly prospective targets at both Toko Rotan and Glumbuk to the north and south of Lusang North.

“The first phase program was recently completed and the second phase program testing other prospect areas within the Tandai district, following up intersections from the phase 1 program and testing CSAMT anomalies is now in progress.”