The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region
Issue link: https://asiaminer.epubxp.com/i/830355
20 | ASIA Miner | Volume 14 • Issue 2 | 2017 Indonesia RECENT results from the Lerokis deposit of Finders Resources' Wetar Copper Project signify potential to expand existing resourc- es. Lerokis will be the second open pit mine at the project following completion of the first phase of development at Kali Kuning deposit. Finders says the geotechnical and metallurgical drill results are likely to expand the resource in the southwest and northeast por- tions of Zone 5, and in the north and west of Zone 1S. Best intersections from Zone 1S were: 18 metres from 6 metres @ 5.39% copper, 0.97 g/t gold, 56.8 g/t silver, 0.64% zinc and 0.55% lead; 26.2 metres from 4 metres @ 8.01% copper, 1.35 g/t gold, 73 g/t silver, 2.6% zinc and 0.69% lead; and 34 metres from 10 metres @ 5.28% copper, 1.09 g/t gold, 75 g/t silver, 3.59% zinc and 0.84% lead. Best intersections from Zone 5 were: 12 metres from 26 metres @ 3.8% copper, 0.63 g/t gold, 19.4 g/t silver, 2.41% zinc and 0.17% lead; 24 metres from 12 metres @ 5.84% copper, 0.48 g/t gold, 25.3 g/t silver, 0.39% zinc and 0.16% lead; and 18.4 metres from 15.6 metres @ 2.22% copper, 0.79 g/t gold, 20 g/t silver, 0.65% zinc and 0.15% lead. Finders intends to prepare an updated resource estimate and is conducting a 2000 metre RC drilling program. Managing director Barry Cahill said, "Our focus has now turned to pre-development activities associated with the second open pit mine at Lerokis following the completion of the first phase of devel- opment at Kali Kuning. "The additional assay data acquired from the geotechnical and metallurgical cores from Lerokis suggests that there is potential to expand the resource inventory. Any future incremental increase to the existing ore reserve from this work has the ability to translate directly to the bottom line for all shareholders." During the December quarter Finders mined and stacked 949,269 tonnes of ore and stripped 6159 tonnes of copper cathode at Wetar. The company achieved a 54% increase in copper cathode stripping, compared to 3987 tonnes during the September 2016 quarter. The project comprises open pit mining and processing of the high-grade sulphide deposits at Kali Kuning and Lerokis within 3km of the coast. The company operates two copper cathode solvent extraction plants with a combined annual production capacity of 28,000 tonnes of copper cathode. THE processing of low-cost stope ore from the Belinau under- ground mine at the Tembang Gold-Silver Project in South Sumatra has been brought forward. Sumatra Copper & Gold has made the decision due to a shortfall of ore scheduled to be mined from Ber- enai open pit. During dewatering of the former Berenai open pit, the pre-2007 survey of the pit surface was found to be inaccurate and appeared to include portions of backfilled and rilled material resulting in a shortfall of ore scheduled to be mined from Berenai during the March quarter. While this issue only affected a small percentage of the overall ore reserve at the boundaries of the former pit and planned pit, it had a significant impact of approximately 3000 gold equivalent ounces in-situ on open pit production during the quarter as mine develop- ment advanced through this material. To mitigate the open pit shortfall, Sumatra said the Belinau un- derground mine would commence the stoping panel from Level 9, instead of the planned Level 11, in order to bring forward low cost stope ore. The revised mine plan will require a sill pillar below Level 9 and an extra sublevel to be developed during 2018, and will allow the recovery of approximately 90% of the sill pillar at the end of the Be- linau mine life to minimise ore loss. The company's production guidance for 2017 remains unchanged at between 45,000 and 55,000 ounces gold equivalent. In 2016 the operation met the full year guidance with 30,509 gold equivalent ounces produced. Meantime, the company completed the Security Purchase Plan (SPP) in which the company offered eligible holders of CHESS De- positary Interests (CDIs) the opportunity to subscribe for new CDIs, up to a maximum value of $15,000 per eligible CDI holder. The SPP raised proceeds of $241,000. In early April the company announced it was in the process of drawing down the final US$1 million of its VAT facility. It had drawn down a total of US$3.2 million at the date. The shortfall of ore from the Berenai pit and delays in the return of refined metal due to equipment issues at the PT Antam (Persero) refinery in Jakarta led to the company borrowing US$1 million from major shareholders, Provident Minerals and PT Saratoga Investama Sedaya, to fund working capital and interest payments. Tembang production schedule altered Copper cathode production at Finders Resources Wetar Copper Project on Wetar Island. Results expand Lerokis copper potential