Volume 9 Edition 3 2012 - The ASIA Miner

IndonesiaTembang environmental permitting approvedTHE critical environmental permitting (AMDAL)for Sumatra Copper & Gold’s Tembang Gold-Silver Project in central Sumatra is complete.AMDAL is an extremely important element ofthe project’s permitting and feasibility studies.The local authority, the Regency of MusiRawas in the pr ovince of South Sumatra,granted AMDAL permitting, approving theenvironmental management plan/RKL andenvironmental impact assessment/RPL(EIS) for both stages of the T embang project.This was expected to be followed byapproval of the conversion of the IUP fr omexploration to exploitation.Sumatra’s managing director Julian Fordsaid the approval of AMDAL permitting wasa significant milestone for the pr oject’s development,which is targeted for productionin 2013. “The company will now progress tofull project permitting thr oughout 2012,which will include forestry, manpower andoperational permits.”Tembang has a JORC-compliant resourceof 976,000 ounces of gold and 12.8 millionounces of silver. The stage 1 production planis for a low-cost, high-grade operation, annuallytargeting 200,000-400,000 tonnes.The company continues to receive significantresults from geotechnical drilling at the Belinaudeposit within the Tembang project. Julian Fordsays that the r esults continue to outline thehigh-grade nature and exploration potential ofthe Belinau vein system, which is a key componentof the stage 1 development plan.Highlights include 4.9 metr es @ 21.25grams/tonne gold and 28.6 grams/tonne silverfrom the northern shoot, 1.3 metr es @ 9.69grams/tonne gold and 88.5 grams/tonne silver;and 2.0 metres @ 5.59 grams/tonne gold and7.9 grams/tonne silver.The results were from the remaining threegeotechnical holes drilled during the third quarterof 2011 as part of the r ecently concludedpre-feasibility study (PFS), which indicated thatBelinau is a robust and profitable project. Theresults will improve the overall resource.Julian Ford says, “The company will resumeextension and infill drilling of the T embangprospects once it is in a position to fund thisexploration from cash flow. The company alreadyhas an extensive resource base and willbe looking to leverage of f this asset in thecurrent attractive gold market. It is encouragingthat all the geotechnical drill holes intersectedsignificant mineralization.”The PFS delivered a positive outcome forstage 1, which just involves the Belinau deposit.The remaining resource base will be developedduring stage 2 of T embang. “The PFSdemonstrated the robust project economicsof Belinau as a standalone mine, however weare confident that we will be able to further improveBelinau’s economics through additionalopen pit tonnage from satellite deposits andoptimization studies,” Julian Ford says.The current JORC-compliant resource forBelinau consists of total measured, indicatedand inferred resources of 127,000 ounces ofgold and 1.13 million ounces of silver.First step towards Gunung Rosa acquisitionPARAMOUNT Mining Corporation’ s 85%-owned Indonesian subsidiary, PT Paramindo,has finalized acquisition of an initial 10% interestin the Gunung Rosa Gold Project in WestJava. The company is focused on rapid developmentof the project, which compares favourablyto Kingsrose Mining’s Way Linggo Projectin South Sumatra, which had a starting baseof less than 200,000 ounces of gold resources.The 2475 hectare Gunung Rosa project is125km southeast of Jakarta, in W est JavaProvince. It is accessible by sealed road andserviced by State grid electricity.Paramindo acquired the initial inter est bypaying PT Cikondang Kancana Prima US$1million in staged payments since it enter edthe agreement in early August last year.Paramount’s chief executive of ficer TerryHolohan says the 10% marks the first step ofthe agreed 85% purchase of the project andParamount’s Gunung Rosa project is along the same arc as other significant Indonesian gold projects.has triggered the re-development of the existingmine using more efficient mining practiceswith moder n metallurgical pr ocesses.“The engineers and geologists can now focuson delineation of the or e body, metallurgicaltestwork and the design of both a trial miningas well as a full scale mining operation.”Early trial mining will extract mineralized wallrock left behind by poor early mining practicesin the upper levels while, in parallel, newunmined high grade areas below will be developedfor full production.Gunung Rosa has an historical JORC r e-source of 799,348 tonnes @ 13.96 grams pertonne gold and 3.38% zinc for 358,832 ouncesof contained gold and 26,998 tonnes ofzinc. It also contains proven and probable reservesof 400,000 tonnes @ 11.4 grams/tonnegold and 3.03% zinc for 146,690 ounces ofcontained gold and 12,130 tonnes of zinc.A new drilling program has confirmed the extensionof mineralization to 200-250 metr esfrom surface, with the mineralization remainingopen at depth. An earlier 13-hole due diligencedrilling program intersected a broad width of18.3 metres @ 3.57 grams/tonne gold, 4.22grams/tonne silver and 0.4% copper.40 | ASIA Miner | May/June 2012