Name and Location
Tembang gold/silver project, Sumatra, Indonesia.

Client
Sumatra Copper & Gold.

Project Description
The Tembang project has Joint Ore Reserves Committee-compliant proven reserves of 2.4-million tonnes at 2.5 g/t gold and 38.7 g/t silver for 200 000 oz of gold and three-million ounces of silver; and probable reserves of 3.1-million tonnes at 2.1 g/t of gold and 25.6 g/t of silver, for a total of 200 000 oz of gold and 2.5-million ounces of silver.

The Stage 1 production plan is a low-cost, high-grade operation, targeting a 400 000 t/y process capacity to produce 30 000 oz/y of gold and 200 000 oz/y of silver.

Stage 2 will increase throughput to 900 000 t/y and production to 50 000 oz/y of gold and 500 000 oz/y of silver.

The project has a 7.5-year mine life, based on current resource inventory.

Value
$68.14-million.

Duration
Not stated.

Latest Developments
The optimised Tembang mine plan and updated mineral resources are on track to be completed in the fourth quarter of 2013, to allow for the finalisation and drawdown of the project debt-funding package.

The optimised mine plan is being developed in response to lower gold and silver prices and changed conditions in credit markets.

The aim is to bring the mining of the higher-grade Buluh openpit ahead of the lower-grade Asmar openpit. This reschedule is expected to materially improve openpit head grades to the mill and to result in a material increase in yearly gold and silver production rates.

Sumatra reports that in-fill drilling is nearing completion at Buluh (openpit), Belinau (underground) and Asmar (openpit) to meet more stringent debt-funding conditions. Drill results received to date support the new mine plan and include some outstanding intersections.

Further, significant early progress has been made with site construction activities, with the planned site infrastructure, accommodation and road infrastructure upgrades to be substantially completed by the end of the third quarter.

An updated capital budget and timeline to commissioning will be provided following the completion of the optimised mine plan and detailed engineering.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sumatra Copper & Gold, tel +61 8 9389 2111, fax +61 8 9389 2199 or email info@sumatracoppergold.com.