More significant gold drilling results reported from Tandai project

Australia-listed firm Sumatra Copper & Gold plc announced on Monday more significant drilling results from the second hole drilled into the Lusang North Prospect within the Tandai District, located in southwest Sumatra. Newcrest Mining Limited is currently earning an equity interest in the Tandai joint venture.

Sumatra CEO Julian Ford was highly encouraged that the early stage drilling program had resulted in further significant intersections and commented ?what is encouraging is both the high grade gold intercepts and width of mineralisation. It is important to note that this discovery is very close to the historic Tandai Lode and yet remained undiscovered by previous explorers. Our current understanding suggests the mineralisation is mostly blind and does not outcrop except in an artisanal working.?.

The Tandai project is an under explored, high grade gold and silver project. Located approximately 100 kilometres north of Bengkulu and covering approximately 1,000 km2, the project has reported historic gold production of 1.4 million ounces Au and 15 million ounces Ag. Current exploration has targeted Glumbuk, Toko Rotan and Lusang North prospects,where drilling commenced earlier this year.

Newcrest has the right to earn a 70% stake in the Tandai joint venture, which is currently being managed by Sumatra, by spending US$12 million. Newcrest initially committed $1.75 million to the project in November 2010 and a budget in excess of $4.2 million has been finalised for the 2011/2012 period.(romel)