Sumatra Copper: Drill rig at Tembang gold project sustains damage

By Romel S. Gurky

ASX-listed Sumatra Copper & Gold plc announced Monday that damage was sustained to one of the underground jumbo drill rigs at its Tembang gold-silver operation located in southern Sumatra.

The company said in a statement that at a shift change on the evening of December 2, a large quantity of perched water was encountered following blasting of the Level 6 East ore drive. The main pumping system was able to cope with the brief water inflow, however water damage was sustained to the single boom jumbo drill rig stationed in the Level 6 bench cut and fill (BCF) drive in the west.

?At no point of time were any personnel in danger from the incident. It is currently estimated that this single boom jumbo will be out of service for up to six weeks,? the statement said.

Sumatra Copper said there will be a short term impact on production from the interim BCF ore drives, however it is expected that there should not be any effect on 2017 production guidance, as the other twin boom jumbo drill rigs will continue the advance of the main decline unimpeded allowing for the recommencement of stoping at end of first quarter 2017 as planned.

?There are contingency measures being implemented to mitigate against the short term loss of the jumbo, including the use of airleg drills and a local contract miner. Production from the open pits remain on schedule,? the company said.

Sumatra Copper said prior production guidance for 2016 was 30,000 ? 33,000 oz AuEq. The company said it now expects production to be approximately 30,000 oz AuEq. Guidance for 2017 remains unchanged at between 45,000 and 55,000 oz AuEq.

Editing by Reiner Simanjuntak