KSK Prospects

Asiamet’s Surya Kencana (‘KSK’) Contract of Work (“CoW”) is wholly-owned by Asiamet and is located northwest of Palangkaraya, the regional capital of Central Kalimantan. The KSK license covers circa 390km². Asiamet has identified a significant number of copper, gold and polymetallic targets in addition to the BKM and BKZ deposit

The Beruang Kanan Main (“BKM”) project is not an isolated occurrence but rather the first prospect with defined Resources within a large, approximately 15km² area, of anomalous copper mineralisation in rocks and soils. Zinc, and to a lesser extent lead, form broad anomalous geochemical halos around the Main Zone, and massive northeast trending zone of polymetallic mineralisation outcrop to the north (at BKZ) and south of the Main zone.

Geological, geochemical, and geophysical surveys delineate other centres of possible porphyry-style alteration and mineralisation at Beruang Kanan South (“BKS”) and Beruang Kanan West (“BKW”), both of which are in close proximity (<1km) to the BKM copper project.

The BKS prospect comprises a well-defined high tenor copper in soil anomaly measuring 800m x 600m and is located less than 1km south of BKM. The soil anomaly is coincident with copper mineralised sheeted veins and a strong near surface IP geophysical anomaly of similar intensity to the near surface signature at BKM. Historic rock chip sampling reported highly anomalous gold, silver and copper values, including a rock chip outcrop sample assaying 12.3% Cu, 18.2g/t Au and 41g/t Ag. BKS scout drill results include 10m at 2.52% copper from 19.5m depth, and 11m at 0.9% copper from 14.5m. Near surface, high grade gold mineralisation has also been intersected, with hole KBK-28 returning 3m @ 11.52g/t gold from 11.5m.

The BKW copper prospect comprises multiple copper mineralised sheeted vein zones with wide spread alteration similar to BKM are observed within a 2.5km² area, including exposures along the BKM access road. Three well defined copper in soil anomalies occur coincident with these sheeted vein zones, the largest measuring 1.7km x 1km. Copper in soil anomalies are coincident with chargeability anomalies identified in Induced Polarisation (“IP”) geophysical surveys. The most prominent chargeability anomaly which replicates the BKM signature is greater than 1km in strike length. Historic rock chip sampling of these sheeted vein zones yielded highly anomalous copper values, with individual rock chip samples assaying up to 7.1% copper.

Systematic mapping and rock chip sampling in the northern part of BKW was undertaken by the Company in 2017. Results confirmed the copper in soil anomaly in the northern part of BKW is associated with a zone of copper sulphide bearing outcrops within a zone of mineralised quartz veins covering 600m x 150m in the northern part of BKW. Highlights from this recent work include a rock grab sample collected from a 30-cm wide quartz-sulphide vein assayed 26.1% copper and 57.1g/t silver. These recent results from the northern part of BKW coupled with the fact that the mineralisation is similar in style to BKM highlights the significant potential that exists in the greater BK area.

The true width and thickness of the high-grade copper mineralisation has not yet been determined and follow up mapping and sampling will be undertaken. This area and any others generated from ongoing mapping and sampling at BKW and BKS represent high priority drill targets for testing. Any targets with potential to add mine life and enhance the already attractive economics (outlined in the PEA) of BKM will be rapidly advanced.

More regionally, a number of other prospects within the KSK CoW have geological, geochemical and alteration characteristics that are consistent with mineralisation being associated with porphyry intrusives and intrusive related vein systems. Mineralisation has been identified at all of these prospects and they are the target of ongoing exploration.

The Baroi prospect is located in the southwest portion of the KSK CoW, 17km from BKM. It is a proven example of the district scale potential of the CoW. Historical work on the Baroi prospect has yielded the most extensive and intense mineralisation discovered in the more than 30 years of exploration in the KSK region. No other prospect has generated such consistent, high-grade assays (gold, copper, silver, lead and zinc) over an area of its size.

The Baroi prospect is a polymetallic (Cu-Ag-Pb-Au) system that has hydrothermally altered the country rock over an area of more than 40km². Within this area, four zones of mineralisation have been identified. These comprise a Central copper-gold-silver zone, an East base metal zone, a South base metal zone, and a Far East copper-gold-silver zone. These zones cover a total area of 6 x 5km and remain open to the east and south.

The highest grade vein systems occur over 4km, with individual veins up to 15 metres wide mapped over a total strike length of 1,000 metres. Veined material consistently returns copper grades of 1 to 5% with samples grading up to over 10% copper with elevated Zn, Ag and Pb. The Central zone also contains elevated Au grades (1 to 3g/t). Drilling in the Far East Zone has intersected high-grade mineralisation from surface, such as hole BF30 which returned 41.85m at 3.18% copper and 101 g/t silver from 1m, including 11m at 11.05% copper and 296 g/t silver from 1m. The forestry permit for Baroi has been submitted and a full scout drilling programme is planned to commence upon completion of permitting..

In addition to the Baroi prospect the KSK CoW hosts a number of drill advanced exploration prospects, including the Eastern (Au, Cu) and Western (Au) Prospects at Beruang Tengah, and many exploration targets not yet drill tested. Beruang Tengah is 4km from BKM. Previous diamond drill holes have intersected low-grade copper-gold mineralisation (e.g. BT2 – 240 metres @ 0.19% copper and 0.12 g/t gold) and together with the mapped alteration at surface, have indicated the presence of a porphyry copper-gold system with significant potential for more extensive and higher grade gold-copper at depth. The Gold Zone to the west is characteristic of quartz-sulphide vein systems that typically form at the margins of Southwest pacific porphyry systems. The Company looks forward to delivering further value from the exploration and development of its assets at a time when quality copper and base metals projects are in short supply.