RE: PRESENTATION TO ANNUAL GENERAL MEETING

Transcription

1 29 May 2012 The Manager Companies ASX Limited 20 Bridge Street Sydney NSW 2000 (20 pages by ) Dear Madam RE: PRESENTATION TO ANNUAL GENERAL MEETING I attach a PowerPoint presentation which is to be delivered to the shareholders present at today s Annual General Meeting which is convened to be held at am. Yours sincerely Richard Edwards Company Secretary pjn6714 SUMATRA COPPER & GOLD plc ABN Level 2, 66 Hunter Street, Sydney NSW 2000 Australia P F E info@sumatracoppergold.com W Registered in England and Wales Registered Number Registered address: 39 Parkside, Cambridge CB1 1PN United Kingdom

2 ANNUAL GENERAL MEETING 29 May 2012

3 Disclaimer This document is prepared as a presenter s aid and support. It is not a stand alone document. Best efforts have been taken to ensure the accuracy of information contained at the time of presentation. In some instances forward targets and/or assumptions have been included. All such instances are indicative only and subject to alteration and/or cancellation as and when the management of Sumatra Copper & Gold plc (ABN ) sees fit. All information contained herein is general in nature. Potential investors are cautioned against using the content of this presentation in isolation for making investment decisions. Research and the counsel of a qualified financial adviser or accountant are strongly recommended to anyone considering investing in listed company securities, including Sumatra Copper & Gold plc. The information in this report that relates to Exploration Results is based on information compiled by Matthew Farmer, geologist, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Farmer is an employee of the Company who has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Farmer has consented to the inclusion in this document of the matters based on his information in the form and context in which they appear. The information in this report that relates to Tembang Mineral Resources is based on information compiled by Mr David Stock MAusIMM who is an independent Geological Consultant to the Company and is a Competent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code 2004 Edition) and has consented to the inclusion in this report of the matters based on his information in the form and context in which they appear. In addition, the Mineral Resource Estimates were reviewed by Mr. Robert Spiers who is a member of AIG and a full time employee of Hellman & Schofield Pty Ltd. Mr. Spiers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Spiers has consented to the inclusion in this report of the matters based on their information in the form and context in which it appears. The information in this report that relates to Tembang Ore Reserves is based on information compiled by Mr Shane McLeay of Entech Pty Ltd, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr McLeay has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr McLeay consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

4 For Further Information ASX:SUM RIM Of Fire: Prolific Mineralisation World s largest gold deposit Grasberg Lowest costs producers Gosowong, Co-O, Way Linggo MIWAH 3.14 Moz Au, 8.9 Moz Ag MARTABE 6.49 Moz Au, 66.2 Moz Ag KELIAN 3.56 Moz Au, 1.44 Moz Ag MT.MURO 1.25 Moz Au, 34.6 Moz Ag Mamut Atlas Bulawan Placer Siana Kingking Sumatra projects Au deposit Cu Au deposit 500 Kms SIHAYO 1.4 Moz SONTANG TANDAI TEMBANG 1.0Moz Au 12.8 Moz Ag Cibaliung Ojolali Way Linggo AWAK MAS 1.92 Moz Au Gn.Pani ELANG 25.0 Moz Au, 16.0 lb Cu TOKA TINDUNG 1.75 Moz Au MESEL 1.83 Moz Au Tombulilato Wetar GOSOWONG 2.8 Moz Au Wabu GRASBERG 38.5 Moz Au, 35.6 lb Cu PONGKOR 3.6 Moz Au, 26.3 Moz Ag TUJUH BUKIT 14.0 Moz Au, 8.8 lb Cu BATU HIJAU 17.2 Moz Au, 14.1 lb Cu Note: The Tembang Resources shown on this page are historical resources that have been published. The detailed Tembang Resources are shown in Appendix 1

5 Our Projects in Sumatra Tembang Project (100% SUM) Brownfields gold and silver project DFS completion scheduled for July 2012 Gold and silver production scheduled for 2 nd half 2013 Tandai Project (30% SUM, 70% Newcrest) Exploration JV project with Newcrest Sontang Project (100% SUM) High-grade exploration project Other greenfield projects (100% SUM) Exploration IUPs covering more than 1,370km 2 4

6 Tembang and Surrounding Infrastructure 5

7 Tembang Project Management Team Adi Sjoekri BSc,MSc, MBA (Management) Director (Gov t Liaison, Permitting, Forestry) Don Harper B.Eng (Mining Engineering), B.Surv (Surveying) Mine Manager Mr Sjoekri has over 17 years corporate experience, working for major companies such as CSR and Newmont. More recently he was a consultant for the mining industry. Mr Harper is qualified mining engineer with more than 21 years industry experience. Don has a strong track-record of project management and taking resources projects from pre-feasibility stage into production. Grant Harding B.AppSc, FAusIMM Project Manager Matthew Farmer BSc (Hons) Geology, MAusIMM, FGS Exploration Manager Mr Harding is a qualified extractive metallurgist with more than 25 years experience in the mining industry. He has extensive senior operational, engineering and project management experience, principally in Indonesia. Mr Farmer has over 27 years experience in exploration and mining mostly focused in South East Asia. His experience spans a mix of major and junior companies including BP Minerals and Newmont. 6

8 Tembang 403,000 oz Gold and 5.5M oz Silver JORC Reserve 7

9 Tembang Project Overview Production timeline Total Reserves (1) Total mine life Gold and silver production 2 nd half ,000 oz gold 5.5M oz silver 10 years Infrastructure Mine type De-risked by previous mining in Open pit and underground Upside 201,000 oz Au in PSV and three deposits open at depth Aerial view of the Tembang Project Note 1: Refer to Appendix 1 for full Statement of Reserves and Resources 8

10 Tembang 2 Stage Development Strategy STAGE 1 STAGE 2 9

11 Stage 1 Belinau and Asmar Asmar Open Pit Stage 1 Berenai/Central Area Stage Processing Plant Stage Workshop 11 Proposed Tailings dam Stage 2 8 Magazine 10 Camp Site Haulage Road Belinau Underground Deposit Stage 1 Belinau Open Pit Stage 1

12 Stage 1 PFS and Optimisation Update PFS Belinau Deposit (March 2012) LOM Production Plan 134,000 oz AuEq (1) PFS Optimisation Belinau & Asmar (April 2012) Target LOM Production Plan 186,000 oz AuEq (1) C1- Cash Operating Costs (incl. silver credits) US$551/oz Au C1- Target Cash Operating Costs (incl. silver credits) US$350 to US$450/ oz Au Mining Pre-Production Capital US$22m Mining Pre-Production Capital US$10m Mine life 3 years (stage 1) Mine life 5 years (stage 1) Production rate 200,000 tpa Production rate 400,000 tpa Gold Recovery Silver Recovery 90% 80% Target Gold Recovery Target Silver Recovery 90% 80% Reserve in Stage 1 Production Plan 13% of Resource Reserve in Stage 1 Production Plan 18% of Resource Note 1: Refer to Appendix 1 for gold equivalent calculation 11

13 Stage 1 Development Strategy DFS Complete DFS in July 2012 Hydrological and geotechnical drilling currently underway Mining and processing studies nearing completion Permitting underway Mining Start with open pit mining at Belinau and Asmar de-risk and reduce pre-production capital Hire all open pit equipment but owner operate reduce upfront capital Develop portal access from within Belinau pit early access to high grade ore (in-pit adits) Sublevel-stoping with benching and backfill maximum gold recovery... keep it simple Owner operator with majority local workforce... follow other successful operator s methods Processing Build a conventional CIL 400,000tpa gold plant... keep the process simple and costs down Secured design for previous plant enabling use of existing concrete foundations significant savings Historical production confirmed gold recoveries greater than 90% Test work using oxygen to improve silver recoveries to greater than 85% underway Option to upgrade existing tails dam to be confirmed in the DFS... reduce upfront capex and regulatory issues 12

14 Belinau Open Pit Cutback Optimised Belinau Pit Design Existing Pit New Pit The two stage Belinau open pit cutback provides for up to 12 month s ore supply before underground high grade feed is required for the mill.

15 Belinau Underground Mine 14

16 Asmar and Belinau Further Potential ASMAR DEEP 15.2 g/t Au, 24.0 g/t Ag BERENAI DEEP 4.94 g/t Au, 5.0 g/t Ag BELINAU DEEP g/t Au, g/t Ag 15

17 Tembang 2012 Milestones AMDAL Environmental Management Plan Environmental Impact Assessment Mining Licence Conversion of IUP from exploration to mining PERMITTING Operational Technical head Masterlists Electricity Generation Explosives Local permitting Forestry In-principle approval Borrow and Use - Pinjam Pakai Manpower Collaborative Agreement Decision to Mine Q Q1/Q Q2/Q Q Q Q Q Q Pre- Feasibility Stage 1 Resource to Reserve Optimisation Report Definitive Feasibility Stage 1 Sumatra has met all its 2012 milestones to date TECHNICAL 16

18 Summary Emerging Gold and Silver producer Gold and silver production targeted for second half of 2013 Two-stage strategy allows early profitability with reduced financial exposure Tembang Project Excellent early (within 6 months) cash producing asset Low initial capital outlay Production costs targeted for 1 st quartile Brownfields project means lower technical risk Major competitive advantage in Sumatra Large tenement position and projects Demonstrated capacity and ability to acquire projects, attract quality JV partners Experienced operators on the ground Adi Sjoekri...director and geologist...permitted several projects prior joining Sumatra Grant Harding...process engineer...20 years in Indonesia 17

19 1A: Tembang Project Resources Tembang Mineral Resource August 2011 Reported to JORC Code Standards BELINAU VEIN OTHER VEINS PSV ALL Belinau Vein Above 2.78g/t Au Underground Cut Off Category Ktonnes Au g/t Ag g/t Au koz Ag koz Measured Indicated Inferred Sub Total ,130 All Veins Excluding Belinau Above 0.5g/t Au Open Pit Cut Off Category Ktonnes Au g/t Ag g/t Au koz Ag koz Measured 2, ,156 Indicated 4, ,637 Inferred 3, ,319 Sub Total 10, ,112 PSV Material Above 0.3g/t Au Open Pit Cut Off Category Ktonnes Au g/t Ag g/t Au koz Ag koz Measured Indicated 11, ,523 Inferred Sub Total 11, ,552 Combined Total Resource Open Pit + Underground Category Ktonnes Au g/t Ag g/t Au koz Ag koz Measured 2, ,517 Indicated 16, ,741 Inferred 3, ,536 Total 22, ,794 Note: Rounding errors may occur, reporting cut offs as indicated, significant figures do not imply any added level of precision. 18

20 1B: Tembang Project Reserves Deposit Reserve Category Tonnes (kt) Grade Au (g/t) Contained Gold (oz) Grade Ag (g/t) Contained Silver (oz) Asmar Berenai Buluh Aidit Bujang Belinau_OP Belinau_UG Total Proven , ,000 Probable 1, , ,000 Proven , ,195,000 Probable , ,000 Proven , ,000 Probable , ,000 Proven Probable , ,000 Proven , ,000 Probable , ,000 Proven , ,000 Probable , ,000 Proven , ,000 Probable , ,000 Proven 2, , ,991,000 Probable 3, , ,547,000 Total 5, , ,539,000 Gold Equivalent Reporting Gold Equivalent = gold assay + (silver assay / 50) where the number 50 represents the ratio where 50 g/t Ag = 1 g/t Au. This ratio was calculated from the average of the 12 months of Financial Year 2011 from July 2010 to June 2011 taken from published World Bank Commodity Price Data and rounded up from 47 to 50. ( XTDEC/EXTDECPROSPECTS/0,,contentMDK: ~menuPK: ~pagePK: ~piPK: ~theSitePK:476883,00.html). The metal prices thus used in the calculation are the average gold price of US$1,500 per ounce and average silver price of US$30 per ounce. Metal recoveries assumptions are 90% for gold and 80% recovery for silver for Belinau. 19