Sumatra Copper & Gold plc  is pleased to advise that fresh high-grade gold and silver assays point to the possible discovery of a new zone of mineralisation at its Tembang Gold-Silver Project in South Sumatra, Indonesia. The results are considered significant because any additional resources which stemmed from this zone would be easily and economically accessed via the planned Belinau underground decline development. Mining at Belinau is expected start during the December 2013 quarter.
 Two exploration holes, RDD 13218 and RDD 1319, were completed in April 2013 to test a potential northerly vein intersection or flat lying splay of the main lode.  Assays have been received for the first of these holes.

Hole RDD 13218 was drilled to a depth of 125 metres and intersected a zone of typical high grade banded epithermal quartz veining from 71.2 metres to 72.64 metres down-hole. A wide interval of quartz-calcite stockworks was also intersected from 72.64 metres to 105 metres. The hole has ended in mineralisation (quartz veined polymictic breccia).  Hole RDD 13219 was drilled approximately 50 metres to the north-west of RDD13218 to a depth of 143.8 metres and intersected two narrow zones of quartz-calcite stockworks from 84.25 to 84.70 metres and from 88.75 to 89.35 metres (assays pending). This indicates mineralisation is possibly decreasing to the north, however, this requires further validation through additional drilling.

With the recognition of potential splits or hanging wall zones peripheral to the main vein system, further infill sampling of previous geotechnical/metallurgical drill holes in 2011/2012 have been completed with the following intervals: Hole RDD 11180, a metallurgical hole, intersected 2 metres @ 13.02 g/t Au and 71.5 g/t Ag from 39.2 to 41.2 metres and RDD 11193 a geotechnical hole intersected 2.4 metres @ 4.19 g/t Au and 9.3 g/t Ag from 101.1 to 103.50 metres downhole. While the geometry of this recent intersection in hole RDD 13218, as well as the recent re-sampling of previous holes, is not fully understood, the results highlight the continued high-grade exploration potential around the Belinau vein system. The company plans a review of the structural controls of gold mineralisation followed by further diamond drilling in June 2013.

Sumatra Managing Director Julian Ford said the results highlighted the strong potential to increase the resource inventory at Tembang. “These results suggest we may have a new zone of mineralisation at Tembang which could not only supply additional ounces but would also be economically attractive given its close location to the planned decline at Belinau. The mineralisation remains open at depth and along strike. “We will undertake another round of drilling in this area in June to establish its full potential and then we can determine how or whether to accommodate it in the decline plan.”