Sumatra verges on declaring Tembang numbersKate EmerySumatra...

Sumatra verges on declaring Tembang numbers
Kate Emery

Sumatra Copper & Gold boss Julian Ford is within weeks, if not days, of making public his vision for a gold and silver operation at the Tembang project in Indonesia.

Mr Ford, who stepped into the top job in June, believes that Sumatra should pursue a small start-up operation, bringing it into production quickly to cash in on the gold price. So it is planning a 45,000-ounce-a-year gold mine, with forecast cash costs around $US560/oz or $US340/oz after silver credits are factored in.

Instead of building infrastructure from scratch, Sumatra will use tailings dams and concrete pads from past operations to keep costs down.

A second stage would depend on Sumatra's ability to secure cheap power and could be bankrolled by cash flow from stage one.

Sumatra hopes to finalise its pre-feasibility study early in the new year but many significant numbers - such as capital expenditure and updated cash costs - are expected to be released internally this week and to the market by next week.

Sumatra is backed by Newcrest Mining, which is a 7 per cent shareholder and its partner on the less advanced Tandai project, a 15-minute helicopter ride or a 15-hour drive from Tembang.



(Source: "The West Australian", Monday November 28, 2011, WestBusiness, Spinifex p.34)