TIDMARS
VANCOUVER, British Columbia, Nov. 27, 2015 (GLOBE NEWSWIRE) -- The
unaudited Interim Consolidated Financial Statements and the management
discussion and analysis (the "MD&A") of Asiamet Resources Limited
(formerly Kalimantan Gold Corporation Limited) (the "Company", "Asiamet"
or "ARS") for the third quarter ended September 30, 2015, are available
for viewing on www.sedar.com and www.asiametresources.com.
Overview
The strategic vision of Asiamet is to build a leading Asia Pacific
Copper-Gold Company leveraging the collective knowledge and experience
of the team which built junior explorer Oxiana Limited into a $6 billion
Asia-Pacific mining company. Asiamet has, over the past nine months, put
in place three core fundamentals for delivering on this vision:
High Quality Copper Project Pipeline - Proven Team - Supportive
Shareholder Base
The primary assets of the Company are all in Indonesia, a country that
hosts multiple world class mining operations and is considered one of
the world's most prospective countries for copper and gold.
Closely aligned with the Company's strategy, its principal activity is
evaluating the potential for the development of a medium scale copper
mine at the Beruang Kanan ("BK") Project on the KSK Contract of Work
("KSK CoW") in Central Kalimantan, where the Beruang Kanan Main ("BKM")
deposit is currently the subject of an intensive Resource evaluation
program, metallurgical test work and mining studies leading into a
Preliminary Economic Assessment (PEA). The near surface nature of the
copper mineralization at BKM, coupled together with a recently
discovered high grade zone and positive results from initial copper
leaching test work demonstrate excellent potential for the development
of a low strip ratio open pit, heap leach copper mine on the property.
Complimentary to the KSK CoW property, the Beutong Izin Usaha
Pertambangan ("Beutong IUP") in Aceh contains a large copper porphyry
deposit with accessory gold and molybdenum, together with a smaller,
higher grade copper-gold skarn deposit, all of which are defined Mineral
Resources compliant with N43-101. The Beutong project has excellent
nearby infrastructure and provides the Company with a large copper
growth option going forward. Asiamet has lodged an application for a
Production IUP over the property which is now in the later stages of
processing.
The Jelai Izin Usaha Pertambangan ("Jelai IUP") epithermal gold property
in North Kalimantan is considered to be highly prospective for a
small-medium scale gold deposit, as evidenced by the high grade results
returned from drilling on a number of prospects. Although the potential
of the Jelai IUP remains high, the project is considered to be a lower
priority than the Company's two copper projects and as such, various
options for partnering or divestment of the property are being pursued.
Asiamet is looking forward to delivering value for its shareholders in
the later part of 2015 through:
1. Completing and reporting on the results of ongoing metallurgical test
work to confirm heap leaching as a viable processing methodology for the
BKM mineralization;
2. Integrating the Resource and metallurgical test work results with mine
engineering and associated studies to assess the economic potential of
the BKM deposit and deliver a Preliminary Economic Assessment for the
project in early 2016;
3. Finalising the conversion of the Beutong and Jelai IUP's from exploration
to production licenses;
4. Securing a suitable partner or acquirer to progress the Jelai gold
project; and
5. Progressing discussions with potential strategic partners for the ongoing
development of BKM.
Highlights for the three-month period ended September 30, 2015, and up
to the date of this report include:
BK Copper Project - 2015 Resource Evaluation Program
A Resource evaluation drilling program was completed, comprising 71
holes for a total 6,186 meters. Drilling was conducted at 50m intervals
on 100m spaced section lines in order to both expand and upgrade the
confidence of the BKM Resource as defined in the Technical Report
prepared by Hackman & Associates Pty Ltd.
Asiamet reported an updated Mineral Resource estimate for BKM deposit in
October, independently estimated by Duncan Hackman of Hackman &
Associates Pty Ltd (Australia) and a technical Report compliant with NI
43-101 will be published and available on the Company's website and
SEDAR (www.sedar.com) within 45 days of the news release (refer Asiamet
Release on October 21, 2015).
Highlights of the updated 2015 Resource Estimate include:
-- Large increase in contained copper at a cut-off of 0.2% copper. 231MIbs
(105,000 tonnes) of contained copper has been added as Indicated
Resources and 35Mlbs (18,000 tonnes) of contained copper has been added
as Inferred Resources for a total Indicated Resources of 231MIbs (105,000
tonnes) of contained copper and total Inferred Resources of 657MIbs
(298,000 tonnes) of contained copper.
-- Resource confidence significantly upgraded. ARS's 2015 drill program has
demonstrated good continuity of shallow near-surface copper
mineralization and successfully upgraded a significant portion of the
previous Inferred resource to the Indicated resource category. The
previous September 26, 2014 BKM Mineral Resource estimate contained no
Indicated Resources.
-- Substantial Mineral Resource inventory at a 0.5% copper cut-off grade
provides a solid basis for upcoming mining studies to be undertaken as
part of the BKM preliminary economic assessment (PEA). The larger
inventory of available Mineral Resource provides an opportunity to assess
various options relating to plant throughput and/or increased mine life
in the mining studies.
-- Two discrete near surface higher grade zones identified in the 2015
drilling provide ARS with an opportunity to assess the potential for
higher grade starter pit opportunities that can enhance project
economics.
As required under NI 43-10, Indicated and Inferred Resources are
reported separately in Table 1 below.
Table 1 - BKM Updated Indicated and Inferred Mineral Resource (NI
43-101)
Indicated Mineral Resources
------------------------------------------------------------------------------
Contained Contained
Reporting Cu Grade(Cu Cu('000 Cu('000,000
cut(Cu %) Tonnes('000) %) tonnes) lbs)
------------ ------------ ------------- --------------- ------------------
0.2 15,000 0.7 105 231
------------ ------------ ------------- --------------- ------------------
0.5 12,600 0.7 88 194
------------ ------------ ------------- --------------- ------------------
0.7 5,600 0.9 50 110
------------ ------------ ------------- --------------- ------------------
Inferred Mineral Resources
------------------------------------------------------------------------------
Contained Contained
Reporting Cu Grade(Cu Cu('000 Cu('000,000
cut(Cu %) Tonnes('000) %) tonnes) lbs)
------------ ------------ ------------- --------------- ------------------
0.2 49,700 0.6 298 657
------------ ------------ ------------- --------------- ------------------
0.5 25,300 0.7 177 390
------------ ------------ ------------- --------------- ------------------
0.7 9,800 0.9 88 194
------------ ------------ ------------- --------------- ------------------
The deposit remains open in several areas drilled as part of this
program and the potential for the discovery of additional mineralization
has been identified further west of current drilling where outcrops
assaying up to 9.6% copper have been sampled. These areas represent
priority targets during the next phase of drilling at BKM. Other targets
are progressively being explored with surface exploration and scout
drilling, namely Beruang Kanan South (BKS), Beruang Kanan West (BKW) and
BKZ Polymetallic (BKZ) prospects; each within 1.5km of the BKM Inferred
Mineral Resource.
BK Copper Project - Drilling Results
A summary of the better intersections received for each of the sections
drilled to date in 2015 follows below. A drill hole location plan and a
table of full assay results are provided in Figure 1 and Table 1
respectively.
Section Line BKM31800
BKM31800-01 21.0 meters at 1.77% Cu, (from 9.0 meters
depth)
-- Including 11.0 meters at 2.53 % Cu (from 9.0 meters)
-- Includes 5.0 meters at 3.46% Cu (from 10.0 meters)
BKM31800-01 29.5 meters at 0.95% Cu, (from 35.0 meters
depth)
-- Including 9.0 meters at 1.33% Cu (from 45.0 meters)
-- Including 2.0 meters at 2.90% Cu (from 58.5 meters)
Section Line BKM32200
BKM32200-03 46.4 meters at 1.69% Cu, (from 1.6 meters
depth)
-- Including 3 meters at 5.00% Cu (from 9.0 meters)
-- Including 2 meters at 4.70% Cu (from 26.0 meters)
-- Including 10 meters at 3.49% Cu (from 38.0 meters)
BKM32200-03 4.5 meters at 1.22% Cu (from 53.5 meters depth)
Section Line BKM32250
BKM32250-03 51.9 meters at 1.36% Cu, (from 50 meters depth)
(MORE TO FOLLOW) Dow Jones Newswires
November 27, 2015 02:00 ET (07:00 GMT)
-- Including 13.0 meters at 1.46% Cu (from 64 meters)
-- Including 7.0 meters at 2.15% Cu (from 85 meters)
-- Including 7.9 meters at 2.61% Cu (from 94 meters)
BKM32550-06 7.5 meters at 4.11% Cu (from 3.0 meters depth)
BKM32550-07 92.0 meters at 0.90% Cu (from 10 meters depth)
-- Including 9.0 meters at 1.31% Cu (from 32 meters)
-- Including 3.0 meters at 3.07% Cu (from 44 meters)
-- Including 14.0 meters at 1.15% Cu (from 50 meters)
-- Including 20.5 meters at 1.13% Cu (from 68 meters)
BKM32550-07 5.0 meters at 1.16% Cu (from 107 meters depth)
-- Including 2.0 meters at 2.10% Cu (from 107 meters)
Section Line BKM32350
BKM32350-02 35.0 meters at 1.73% Cu, (from 20 meters depth)
-- Including 11 meters at 3.49% Cu (from 20 meters)
-- Includes 2 meters at 10.15% Cu (from 20 meters)
BKM32350-02 14.0 meters at 1.42% Cu, (from 65 meters depth)
-- Including 6 meters at 2.53% Cu (from 72 meters)
Section Line BKM32500
BKM32500-01 44.0 meters at 0.91% Cu, (from 25 meters depth)
-- Including 4 meters at 2.11% Cu (from 25.0 meters)
-- Including 3 meters at 1.53% Cu (from 35.0 meters)
-- Including 2 meters at 2.61% Cu (from 41.0 meters)
BKM32500-02 76.0 meters at 0.81% Cu, (from 3.0 meters
depth)
-- Including 6.0 meters at 1.61% Cu (from 3.0 meters)
-- Including 8.5 meters at 1.09% Cu (from 50.0 meters)
-- Including 7.0 meters at 1.35% Cu (from 67.0 meters)
BKM32500-03 17.1 meters at 1.05% Cu (from 90.9 meters
depth)
-- Including 10.0 meters at 1.29% Cu (from 92.5 meters)
Section Line BKM32650
BKM32650-01 30.0 meters at 0.82% Cu (from 11.0 meters
depth)
-- Including 12.0 meters at 1.43% Cu (from 17.0 meters)
BKM32650-01 11.0 meters at 1.35% Cu (from 57.0 meters
depth)
-- Including 5.0 meters at 2.37% Cu (from 63.0 meters)
BKM32650-01 7.0 meters at 0.97% Cu (from 85.0 meters depth)
-- Including 2.0 meters at 2.17% Cu (from 85.0 meters)
BK Copper Project - Metallurgical Testwork
An initial program of metallurgical characterization test work commenced
to assess the potential for producing copper metal from the BKM through
the application of heap leach processing technology.
Asiamet engaged Graeme Miller (Miller Metallurgical Services Pty Ltd,
Brisbane, Australia), an expert metallurgical consultant, to oversee the
technical work program. PT Intertek Utama Services, in Jakarta,
Indonesia are conducting the test-work for the initial phase of
metallurgical testing.
Current leaching and physical tests have been designed to evaluate
whether the heap leach "solvent extraction and electrowinning" ("SX-EW")
process is a suitable processing route for BKM mineralization. Programs
comprising sequential analysis, column leach, agitated leach and bottle
roll tests are aimed at providing process design criteria suitable for
input into a scoping level study.
Two metallurgical samples, each composited from three individual holes
drilled into the northern and southern part of the deposit, were
collected from intervals within 60 meters from surface that were
considered to be representative of the deposit geology and
mineralization style.
Sequential assay is a method of allowing straightforward assessment of
the maximum acid/ferric leaching recovery. The sequential assays on one
composite confirmed +97% of the copper in the sample is potentially
leachable, with 24% acid soluble and 73% cyanide soluble. With less than
3% residue copper, there is little or no copper in silicates. This
reflects an almost total sulphide copper mineralogy and the availability
of copper for leaching.
The level of standard acid consuming minerals is very low. Both calcium
0.07% and magnesium 0.04% are expected to have little impact on acid
consumption. Manganese at 0.005% is very low and is not expected to have
an impact on the leach-SX-EW chemistry.
The leach tests conducted in Indonesia have not taken full advantage of
the potential copper recovery, due to restricted access to leach
technology and equipment. However some information can be obtained from
the current results.
-- Standard bottle roll recoveries strongly reflect the 24% acid soluble
copper content of the ore.
-- The ground ore agitated leach test recoveries at 65% are well above the
expectation from the acid soluble copper.
-- The acid balance on the columns, bottle rolls and agitation tests are not
yet finalized, however it appears that acid is being generated rather
than consumed. This is positive from an operating cost as acid is
generally the largest single cost item in a leach project.
-- The low/positive acid balance will allow long term (years) heap leaching
without reaching an economic limit, and thus potentially allowing higher
recoveries to be achieved.
Three composites have now been prepared to represent the BKM deposit at
calculated head grades of 3.13% Cu (High Grade), 0.96% Cu (Medium Grade),
and 0.55% Cu (Low Grade). The samples consisted of breccia cut by
sheeted / stockwork ore. Asiamet is seeking approvals from the Ministry
of Energy and Mining Resources ("MEMR") and Ministry Of Trade to send
the samples for further metallurgical test work in Australia.
Beutong Project
During the second quarter of 2015, a second comprehensive presentation
was requested by MEMR officials, detailing all aspects of the
Feasibility Study and related Environmental Studies for the Beutong
Project. Asiamet holds a 40% interest in PT Emas Mineral Murni ("PT
EMM"), the holder of the Beutong exploration IUP, and has been advised
that the IUP Production application process is likely to be completed
before end 2015. Upon approval being obtained, the IUP Production
license secures long term mining title that will be valid for 20 years,
extendable for two subsequent periods each of 10 years duration.
PT EMM was granted a one year suspension of the Beutong IUP exploration
license on June 5, 2015, and as such, extended the term of the IUP
Exploration license for an additional one year to June 5, 2016.
Jelai Project
PT Jelai Cahaya Minerals ("JCM"), the Asiamet subsidiary holding the
Jelai IUP, lodged an application to upgrade the Jelai IUP Exploration
License to an IUP Production license. The application is under process
and is expected to be completed before end of Q4 2015, assuming no
further documents / changes are requested by MEMR. Upon approval being
obtained, the IUP Production license secures long term mining title that
will be valid for 20 years, extendable for two subsequent periods each
of 10 years duration.
JCM has been granted a one year suspension of the IUP exploration
license on June 24, 2015 and as such extended the IUP Exploration
license for an additional one year to June 24, 2016.
Asiamet has progressed discussions with several mining and exploration
companies regarding potential partnering or part/whole acquisition of
the Jelai IUP. One of the interested parties has advanced to the final
stage of due diligence and discussions are continuing.
Results of Operations
Results of operations for the three and nine month periods ended
September 30, 2015:
The Company incurred a loss and comprehensive loss for the nine month
period ended September 30, 2015, of $6,654,442 (2014 - $493,900). Of
this loss, $3,866,813 was as a result of an impairment on the
acquisition of the Beutong copper-gold project in Indonesia. See Note 9
to the financial statements.
-- Consultants and shared office costs: September 30, 2015 - $682,267; (2014
- $156,069) With the acquisition of TC Sing, the raising of $3.0 million
in equity, and the commencement of active work programs, the Company
resumed incurring expenditures relating to CEO, staff and office
costs. During the first quarter of 2014, after Freeport ceased funding
the KSK CoW, CEO costs had been reduced to $15,000 per quarter. The
Company recommenced activities in early 2015 and is now expending fees of
approximately $120,000 per quarter for the newly-appointed CEO and Vice
President of Exploration. Shared office costs for the nine months ended
September 30, 2015 were $237,409 inclusive of several support
staff. Consulting fees to Golden Oak Corporate Services Ltd. ("Golden
Oak") are paid in Canadian dollars and the year over year change reflects
the variance in exchange rates at $62,969 (2014 - $72,167) for the nine
month period.
-- Directors fees: September 30, 2015 - $nil; (2014 - $3,500) During the
current nine month period ended September 30, 2015, the Company's
Directors have continued to agree to waive their fees until such time as
the Company is adequately funded.
-- Exploration costs: September 30, 2015 - $1,705,999; (2014 - $275,508
(net))Gross exploration expenditures in the current nine month period
were $1,705,999 compared to net exploration expenditures of $275,508 in
the comparative 2014 period. In the comparative period the gross
explorations expenditures were $1,735,648 before recoveries from Freeport
of $1,460,140 to result in net exploration expenditures of $275,508.
Expenses at the KSK CoW in the current period included mobilization of
staff and equipment in preparation for the drilling campaign at BKM.
-- Investor relations: September 30, 2015 - $9,757; (2014 - $1,747) We
expect this line item to increase in fiscal 2015 as we re-commence field
activities and re-energize the Company's presence in the market.
(MORE TO FOLLOW) Dow Jones Newswires
November 27, 2015 02:00 ET (07:00 GMT)
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