Asiamet initiates additional BKM Feasibility works - BK District Exploration ramping up

Asiamet is pleased to advise that additional drilling and geotechnical work as part of finalising Feasibility Studies at its 100% owned Beruang Kanan Main Copper Project (“BKM” or the “Project”) in Central Kalimantan, Indonesia is now underway. The Company is also pleased to report that it has re-commenced exploration activities on its exciting portfolio of prospects and targets in the near vicinity of BKM.

The current NI 43-101 compliant global Resource at BKM contains 432,000 tonnes copper, approximately 75% in the Measured and Indicated category. A heap leach SX-EW project with targeted production levels of up to 25,000 tonnes of LME grade copper cathode per annum over a period of up to 8 years is the subject of the current Bankable Feasibility Study (“BFS”).

Extensive and detailed studies to Bankable Feasibility standard have been completed for the BKM Copper Project over the past 15 months including:

  • Resource evaluation drilling and estimation to meet NI43-101 standards.

  • Detailed metallurgical test work and modelling which has proven the potential of the BKM ore types

    to support a commercial scale conventional SX-EW heap leach operation

  • Hydrogeology investigations

  • Mine facilities design, process plant engineering and associated infrastructure (including access,

    logistics and supply chain)

  • Non-process infrastructure and support services
  • Environmental, social impact and community baseline studies to meet IFC standards

The envisaged production profile seeks to exploit part of the delineated global Resource in an open pit mine design which is informed by a wide range of variables including operating cost inputs, metallurgical recoveries of various mineral types, geotechnical and physical characteristics of the host rocks, water management, resource confidence categories etc.

Simultaneous with this final piece of work on the BKM BFS, a targeted exploration programme is underway to work up and test a number of high impact targets in the BK district with a view to expanding and updating the BKM project Resource base, extending and further evaluating BKZ, and testing several high potential targets below and adjacent to BKM and BKW.

BKM BFS drill program status and objectives

As previously announced, detailed reviews of the BKM BFS inputs has highlighted the requirement for additional geological and geotechnical work in order to better optimise the mine design and enhance the overall robustness of the BKM project. The outcomes from this work have the potential to materially impact project financing outcomes. A targeted programme of approximately 2,500-4,500m of additional core drilling and associated study work has now been initiated to:

  • further evaluate the geological and geotechnical characteristics of the BKM deposit within the proposed pit area and surrounding host rocks in order to better optimise the open pit mine design; and
  • assess Inferred Resources currently sitting both inside and outside the pit shells with the objective of increasing tonnages available for economic evaluation and potential for conversion to Ore Reserves in the BFS.

The Company’s operational teams are being mobilised at the BKM site and two wholly owned diamond drill rigs are being used to complete the BFS related drilling programme by early 2019. Immediately upon completion of the drilling and associated test work, the key outputs will be utilised to update the BKM Resource models and to finalise the mine design and mine engineering parameters for the BFS. Financial models will then be updated using revised capital and operating cost inputs.

The results of drilling and associated study work will be reported as they become available and a steady stream of news flow pertaining to results should be expected.

KSK CoW exploration plan

Coincident with this final piece of work on the BKM BFS, a targeted exploration program is underway to work up and test a number of high impact targets in the BK district with a view to expanding and updating the Resource base on the KSK CoW, (see Figure 1 below).

Base and precious metal rich volcanogenic massive sulphide (VMS) deposits almost universally occur in multiple deposit clusters and are recognised globally for their high value potential. While always considered a possibility, the recognition of this style of mineralisation in the BK district was only confirmed by the discovery and delineation of the BKZ deposit in 2018.

This exploration initiative aims to extend and further evaluate BKM and BKZ, test the structurally controlled link zone between BKM and BKZ, and assess several high potential geochemical and geophysical targets identified in the immediate surrounds of these two deposits. This includes further evaluation of the BKW and BKS prospects where surface exploration and scout drilling has intersected potential ore grade mineralisation.

Surface exploration work is also planned for the exciting Baroi project in preparation for drilling upon receipt of a forestry permit.

A steady flow of news is anticipated as these wider KSK exploration initiatives are progressed through the remainder of 2018 and 2019.

Peter Bird, Asiamet’s Chief Executive Officer commented:

“Following thorough review of the study work undertaken to date we are clearly of the view that this additional piece of work should significantly enhance the outcomes of the BKM BFS when complete. The planned drilling is expected to substantially improve understanding of the Resource and the geological and geotechnical inputs into mine design, leading to enhanced overall project economics. A robust BFS, both in terms of quality and economics, is critical to achieving a successful project development financing outcome.

Separate from this exercise the Company will also apply energy into continuing to evaluate adjacent high priority targets within the BK district and the wider KSK Contract of Work. The very recent recognition of a potential new VMS district on our tenements in Central Kalimantan is extremely exciting as these deposits are recognised globally for their potential company maker value per tonne metrics and almost universally occur inclusters. We are looking forward to unlocking this value through our ongoing exploration effort and expect to be reporting a strong news flow from these programmes as a result”

 

Figure 1: BKM Contract of Work area with high potential targets.

Figure 2: BKM BFS – Proposed Mine Site Layout

ON BEHALF OF THE BOARD OF DIRECTORS

Peter Bird, Deputy Chairman and CEO For further information, please contact:-Ends-

Peter Bird

Deputy Chairman and CEO, Asiamet Resources Limited Telephone: +61 3 8644 1300
Email: 
[email protected]

Tony Manini

Executive Chairman, Asiamet Resources Limited Telephone: +61 3 8644 1300
Email: 
[email protected]FlowComms Limited

Sasha Sethi
Telephone: +44 (0) 7891 677 441 Email: 
[email protected]

Asiamet Resources Nominated Adviser

RFC Ambrian Limited
Andrew Thomson / Stephen Allen
Telephone: +61 8 9480 2500
Email: 
[email protected] [email protected]

Berenberg

Matthew Armitt, Sara MacGrath Telephone: +44 20 3753 3142
Email: 
[email protected]

Liberum

Clayton Bush, Kane Collings Telephone: +44 7773 322679

Optiva Securities Limited

Christian Dennis
Telephone: +44 20 3137 1903
Email: 
[email protected]

This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterised by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").

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