www.sumatracoppergold.com
Sumatra Copper & Gold plc (ASX:SUM) was established in 2006 to explore for, and develop, gold-silver and copper-gold mineral deposits on the Indonesian island of Sumatra. The Company has an economic interest of 92.5% in its projects. Sumatra’s assets include a mineral resource of some 2.15 million ounces of gold and 24 million ounces of silver reported to JORC Code standards, with further exploration targets identified.
Sumatra Copper & Gold and Newcrest Mining JV to continue exploring Indonesia
Sumatra Copper & Gold (ASX: SUM) has completed joint venture arrangements with major global miner Newcrest Mining (ASX: NCM) for PT Bengkulu Utara Gold, and its 100,000 hectare exploration IUP located in the Bengkulu Province, Indonesia.
Jocelyn Waller, managing director of Sumatra, said the finalisation of the Tandai joint venture arrangements mean that the envisaged exploration of this highly prospective epithermal system can now be expedited.
“We are delighted to have Newcrest fully on board as our joint venture partner."
The US$1.75 million subscription by Newcrest constitutes the minimum spend commitment by the company over the next 18 months.
After this period, Newcrest can boost equity investments up to a total of US$12 million to maintain a 70:30 ownership ratio of PT Bengkulu Utara Gold.
In regards to Tembang, Newcrest did not exercise an option to acquire a 25% stake in the project for US$10 million, of which $500,000 was a non-refundable deposit.
Sumatra Copper considers this decision by Newcrest to be an opportunity for the company.
Waller added, "As far as Tembang is concerned, we understand that this project may not satisfy Newcrest’s investment criteria but with more than one million ounces of gold resources and significant silver credits, bringing the project into production by ourselves will be the making of the company.”
