TIDMARS
For Immediate Release London AIM
28 June 2017 Symbol: ARS
Vancouver, British Columbia
Asiamet Resources BKM Resource Update
Copper contained in Measured and Indicated Resources increases 207%
Asiamet Resources Limited ("ARS" or the "Company") is pleased to report
an updated Mineral Resource estimate for the Beruang Kanan Main ("BKM")
deposit within the Company's 100% owned KSK Contract of Work in
Kalimantan, Indonesia. The Resource has been 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 publication of this news release. As required under NI 43-101
Measured, Indicated and Inferred Resources are reported separately
below.
HIGHLIGHTS
-- Resource confidence significantly upgraded with contained copper in
Measured and Indicated Resources increased by 207% in comparison to the
October 21, 2015 BKM Mineral Resource estimate. The BKM Copper deposit is
now estimated to contain Measured and Indicated Resources of 49.2 million
tonnes at 0.70% copper containing 711.3MIbs (322,600 tonnes) of copper at
a 0.2% copper cut-off grade (see Table 1 for details).
-- Additional 66Mlbs (30,000 tonnes) of contained copper (0.2% copper
cut-off grade) added to the BKM Resource inventory.
-- Beruang Kanan Main Resources are now estimated as:
o Measured Resources of 20.5 million tonnes at 0.7% Cu containing
325.7MIbs (147,700 tonnes) of copper at a 0.2% copper cut-off grade
(refer Table 1). The October 21, 2015 BKM Mineral Resource estimate
contained no Measured Resources.
o Indicated Resources of 28.7 million tonnes at 0.6% Cu
containing 385.6MIbs (174,900 tonnes) of copper at a 0.2% copper cut-off
grade (refer Table 1). The October 21, 2015 BKM Mineral Resource
estimate contained 15.0 million tonnes at 0.7% Cu containing 231MIbs
(105,000 tonnes) of copper.
o Inferred Resources of 17.7 million tonnes at 0.6% Cu containing
241.0MIbs pounds (109,300 tonnes) of copper at a 0.2% copper cut-off
grade (refer Table 1). The October 21, 2015 BKM Mineral Resource
estimate contained 49.7 million tonnes at 0.6% Cu containing 657MIbs
(298,000 tonnes) of copper.
-- 73% of the copper contained in Resources is within the April 2016 BKM
Preliminary Economic Assessment ("PEA") conceptual open pit mine design.
The 2017 updated Mineral Resource estimate will be the subject of
ongoing mining engineering and metallurgical studies as part of a BKM
Feasibility Study and further optimisation of the BKM PEA open pit
design is expected.
A leachable copper model for the BKM deposit will be constructed using
sequential copper analysis data from all post 2013 drill core samples
and an initial Mineral Reserve will in turn be generated from the
Measured and Indicated component of this leachable copper Resource
model. The Company expects to complete the feasibility study in early
2018 and make a development decision at that time.
The BKM Mineral Resource estimate is based on assays from 269 diamond
drill core holes that were drilled from 1998 to 2007, from 2012 to 2013
and by ARS from 2015 to 2017. Mineralisation is contained within a
near-surface, shallow-dipping and strongly mineralised system, that
extends over an area of 1300m (N-S) and 800m (E-W) with depth extents
ranging from surface to between 100m and 400m below surface (top to
bottom). The 2015 Resource drilling programme undertaken by ARS was
designed to delineate the extent and continuity of the BKM
mineralisation and the 2016-2017 Resource drilling program designed to
test for geological and grade continuity of the BKM mineralisation.
Both programmes were completed successfully, meeting their objectives of
both expanding and increasing the robustness and integrity of the
Mineral Resource estimate.
Asiamet Resources CEO Peter Bird commented: The outcomes from the
Resource evaluation work completed on the BKM deposit over the past year
have been outstanding. Copper grades and tonnages have proven to be very
robust with a 207% increase in the higher confidence level Measured and
Indicated Resources and approximately 30,000 tonnes of copper added to
the overall copper inventory. Most importantly 75% of the contained
copper is now in high confidence Resources and 73% sits inside the PEA
pit design. As such the conversion to Mineral Reserves is anticipated to
be strong when mining and metallurgical studies are completed in coming
months. We are very pleased with the outcome of Resource work and expect
it will provide a solid base to build upon an already very robust
Preliminary Economic Assessment.
Mineral Resource Estimate - Beruang Kanan Main Deposit
- June 2017
Table 1 - Measured, Indicated and Inferred Mineral
Resource (NI 43-101)
Measured Mineral Resources
Reporting cut Tonnes Cu Grade Contained Cu Contained Cu
(Cu %) ('000) (Cu %) ('000 tonnes) ('000,000 lbs)
0.2 20.5 0.7 147.7 325.7
0.5 15.4 0.8 126.8 279.6
0.7 8.5 1.0 85.8 189.2
Indicated Mineral Resources
Reporting cut Tonnes Cu Grade Contained Cu Contained Cu
(Cu %) ('000) (Cu %) ('000 tonnes) ('000,000 lbs)
0.2 28.7 0.6 174.9 385.6
0.5 16.9 0.8 127.7 281.6
0.7 7.7 1.0 73.8 162.7
Inferred Mineral Resources
Reporting cut Tonnes Cu Grade Contained Cu Contained Cu
(Cu %) ('000) (Cu %) ('000 tonnes) ('000,000 lbs)
0.2 17.7 0.6 109.3 241.0
0.5 12.1 0.7 86.2 190.1
0.7 4.7 0.9 41.9 92.4
Notes: Mineral Resources for the BKM deposit have been estimated in
conformity with generally accepted CIM "Estimation of Mineral Resource
and Mineral Reserves Best Practices" guidelines. In the opinion of
Duncan Hackman, the block model Resource estimate and Resource
classification reported herein are a reasonable representation of the
copper Mineral Resources found in the defined area of the BKM
mineralisation. Mineral Resources are not Mineral Reserves and do not
have demonstrated economic viability. There is no certainty that all or
any part of the Mineral Resource will be converted into Mineral Reserve.
Computational discrepancies in the table and the body of the Release are
the result of rounding.
Methodology
The Mineral Resource estimate incorporates data from ARS's drilling
programs undertaken in 1998 through to 2007, August 2012 to July 2013,
June 2015 to September 2015 and June 2016 to April 2017. Drill spacing
of westerly drilled holes across the BKM mineralisation now stands at a
nominal 50m by 50m spacing. Seventeen holes have been drilled with
easterly azimuths, two northerly, seven southerly and sixteen
vertically. Mineralisation considered for Measured Resources is
restricted to those areas where holes are drilled in multiple
orientations that confirms the geological and mineralisation continuity
in these areas. The 2017 Resource estimate dataset totals 269 drill
holes for 44,214 metres of diamond core, an increase of 124 holes and
12,614m over the dataset utilised in generating the 2015 Resource
estimate. Mr. Hackman verified components of the exploration activities
and mineralisation features during site visits conducted between the
4(th) and 6(th) September 2014, between the 21(st) and 28(th) June 2015
and again between 22(nd) and 23(rd) June 2016.
The 2017 Resource model covers the 1300m north-south strike extent and
800m width of the BKM vein style mineralised system. Mineralisation
crops out to the west, is closed-off by drilling to the north and has
some potential to be extended to the north-east and south. Three deep
holes under the main zones have failed to intersect significant copper
mineralisation, however the depth repetition of mineralisation has not
been fully tested. There are indications from the structural
interpretation that repeat systems at depth and proximal to the BKM zone
may exist.
Copper mineralisation occurs as covellite, chalcocite, bornite and
chalcopyrite replacement of pyrite in veins and less common fracture
fill settings. The copper is of both hypogene and supergene origin.
Veins and mineralisation are hosted in both blocky fractured volcanics
and sediments, mainly in the south of the prospect and, in strongly
sheared and tectonically milled breccias related to thrusting mainly in
the central and northern sections of the prospect. Phyllic-style
alteration is pervasive throughout the prospect.
Modelled copper mineralisation has been intercepted in 868 nominal 3m
drill intervals (2486m) in historical drill holes, in 1920 nominal 1m
drill intervals (2377m) in holes drilled in 2015 and in 5014 nominal 1m
intervals (5131m) in holes drilled from 2016 to 2017. Topographic
control is achieved through the use of a highly detailed LIDAR generated
surface to which all drill hole collar coordinates comply. Sample data
was composited to 3m intervals and flagged by domains defined from
copper assay grades and directed by the Hackman and Associates and ARS
structural interpretation. Three passes of Ordinary Kriging grade
interpolation methodology were employed to interpolate copper grades
within domains into a sub-blocked model (parent block size of 25mE x
25mN x 10mRL). High grade copper assays were included in the
interpolation with limits to their area of influence applied. The
Mineral Resource estimate has been classified based on data density,
data quality and reliability, confidence in the geological
interpretation, confidence in the copper grade modelling and
interpolation and confidence in tonnage factors employed.
The limits of the BKM Mineral Resource are mostly defined by the
historic and ARS Resource drilling, mapping and sampling campaigns.
Pending funding, Stage IV infill and expansion drilling will focus on
confirming mineralisation and geological continuity and tonnage factors
in areas currently classified as Indicated Resources in the north and
central areas of the BKM mineralisation to facilitate the conversion of
part or all of these areas to the Measured Resource Category.
The Company is currently undertaking sequential copper analysis on all
post 2013 drill core samples which assayed above 0.1% copper to
determine the leachable copper within each sample. Approximately 8000
samples have been sent for analysis and the results, expected in late
July, will be used to create a leachable copper model for the BKM
deposit. A similar process completed for the PEA using sequential assays
undertaken in 2015-2016 estimated the average leachable copper within
the BKM Resource to be 74% of the total copper grade.
Exploration Potential
Other priority targets in the vicinity of the BKM deposit are the focus
of planned scout drilling programs, and include Beruang Kanan South
("BKS"), Beruang Kanan West ("BKW") and KSK's standalone polymetallic
BKZ (BKZ) prospect; each within 1.5km of the BKM Mineral Resource
(Figure 1). Geologic observations during field mapping and geochemical
data from drill core and/or surface rock chip samples at BKS and BKW
prospects indicate near surface and similar style copper mineralisation
to BKM. Prospect details are summarised as follows:
-- BKS prospect: Drill hole KBK-28 (151.30m end of
hole 'EOH') intersected 10.5 metres @ 0.88% Cu from 14.5 metres depth
and BKM30500-01 (63.9m EOH) intersected 10.0 metres @ 2.52% Cu from 19.5
metres depth. Drill hole KBK-28 also intersected high grade gold
mineralisation from 11.5m, returning 3m @ 11.52g/t Au, including 1.5m @
21.7g/t Au (refer ARS Release February 23, 2017)
-- BKW prospect: Multiple copper mineralised sheeted
vein zones with wide spread alteration similar to BKM are observed
within a 2.5 sqkm area, and three well defined copper in soil anomalies
occur coincident with these sheeted vein zones, the largest measuring
1.7km x 1km. Historic rock chip sampling yielded highly anomalous copper
values, with individual rock chip samples assaying up to 7.1% Cu.
-- BKZ Polymetallic prospect: A continuous 15m rock
channel sample averaged 19.5% Zinc, 8.1% Lead, 121g/t Silver, 0.69g/t
Gold and 0.50% Copper (refer ARS Release June 9, 2017). Drill hole
BKZ-1 (300.0m deep) tested outcropping massive sulphide style
mineralisation and intersected 16m @ 5.75% Zn, 2.78% Pb, 0.64g/t Au,
57.5g/t Ag and 0.16% Cu, including 6m @ 11.63% Zn, 5.99% Pb, 0.71g/t Au,
98g/t Ag and 0.32% Cu (refer ARS Release February 23, 2017) A
grid-based soil sampling program defined a 400m by 200m anomalous zone
of Pb-Zn soil geochemistry, which remains untested.
To view the graphic, please click here
http://ww4.fscwire.com/sites/default/files/NR/792/17363_ARSIMG1.png
Figure 1: Beruang Kanan District project location map, showing copper in
soils
KSK Contract of Work
The Beruang Kanan project is located within the KSK Contract of Work.
The holder of the KSK Contract of Work ("KSK CoW") is PT Kalimantan
Surya Kencana ("KSK"). ARS holds 100% of the shares of Indokal Limited
("Indokal"). KSK is owned 75% by Indokal and 25% by PT Pancaran Cahaya
Kahayan ("PCK"). Indokal owns 100% of PCK.
On February 16, 2017, the Company formally established with the
Government of the Republic of Indonesia that the KSK CoW has now entered
the Feasibility Study Period which runs for not less than two years, is
extendable, and provides time to complete studies and identify the area
for mining. The KSK CoW has a total of 30+ years remaining for
exploration, development and operations.
The Company has previously signed a non-binding Memorandum of
Understanding ("MOU") with the Government of the Republic of Indonesia
("GOI") covering amendments to its KSK CoW. KSK continues discussions
with the GOI regarding possible amendments to some of the KSK CoW terms
in order to achieve closer alignment with the current Law No. 4/2009.
Qualified Person
Duncan Hackman (B. App.Sc., MSc., MAIG) of Hackman & Associates Pty Ltd
(Australia) is the independent Qualified Person within the meaning of NI
43-101 and the AIM Rules for Companies for the purposes of Mineral
Resource estimates contained within this press release. Data disclosed
in this press release have been reviewed and verified by ARS's qualified
person, Stephen Hughes, P. Geo. a director of ARS and a Qualified Person
within the meaning of NI 43-101 and the AIM Rules for Companies.
ON BEHALF OF THE BOARD OF DIRECTORS
Peter Bird, Deputy Chairman and CEO, Asiamet Resources Limited
For further information, please contact:
-Ends-
Peter Bird
Deputy Chairman and CEO, Asiamet Resources Limited
Telephone: +61 3 8644 1300
Email: peter.bird@asiameteresources.com
Tony Manini
Executive Chairman, Asiamet Resources Limited
Telephone: +61 3 8644 1300
Email: tony.manini@asiameteresources.com
FlowComms Limited
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: Sasha@flowcomms.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Andrew Thomson / Stephen Allen
Telephone: +61 8 9480 2500
Email: Andrew.Thomson@rfcambrian.com / Stephen.Allen@rfcambrian.com
VSA Capital Limited
Andrew Raca / Justin McKeegan
Telephone: +44 20 3005 5004 / +44 20 3005 5009
Email: araca@vsacapital.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
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").
Glossary of Technical Terms
"cut-off" the grade threshold above which a mineral material
is considered potentially economic
"g/t" grams per tonne; equivalent to parts per million ('ppm').
"Mineral A "Mineral Resource" is a concentration or occurrence
Resource" of diamonds, natural solid inorganic material, or
natural solid fossilized organic material including
base and precious metals, coal, and industrial minerals
in or on the Earth's crust in such form and quantity
and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity,
grade, geological characteristics and continuity of
a Mineral Resource are known, estimated or interpreted
from specific geological evidence and knowledge.
"Inferred An "Inferred Mineral Resource" is that part of a Mineral
Resource" Resource for which quantity and grade or quality can
be estimated on the basis of geological evidence and
limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based
on limited information and sampling gathered through
appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes.
"Indicated An "Indicated Mineral Resource" is that part of a
Resource" Mineral Resource for which quantity, grade or quality,
densities, shape and physical characteristics, can
be estimated with a level of confidence sufficient
to allow the appropriate application of technical
and economic parameters, to support mine planning
and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration
and testing information gathered through appropriate
techniques from locations such as outcrops, trenches,
pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably
assumed.
"Measured A "Measured Mineral Resource" is that part of a Mineral
Resource" Resource for which quantity, grade or quality, densities,
shape, and physical characteristics are so well established
that they can be estimated with confidence sufficient
to allow the appropriate application of technical
and economic parameters, to support production planning
and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration,
sampling and testing information gathered through
appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are
spaced closely enough to confirm both geological and
grade continuity.
"CIM" The reporting standard adopted for the reporting of
the Mineral Resources is that defined by the terms
and definitions given in the terminology, definitions
and guidelines given in the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Standards on
Mineral resources and Mineral Reserves (December 2005)
as required by NI 43-101. The CIM Code is an internationally
recognised reporting code as defined by the Combined
Reserves International Reporting Standards Committee
"Kriging" an interpolation method for assigning values from
samples to ore blocks that minimizes the estimation
error.
"covellite" Covellite is a copper sulfide mineral with the formula
CuS. This indigo blue mineral is ubiquitous in some
copper ores
"chalcocite" Chalcocite is a copper sulfide mineral with the formula
Cu2S, and is an important copper ore mineral. It is
opaque and dark-gray to black with a metallic luster.
"bornite" Bornite, also known as peacock ore, is a copper sulfide
mineral with the formula Cu5FeS4
"chalcopyrite" Chalcopyrite is a copper sulfide mineral with formula
CuFeS2. It has a brassy to golden yellow color
"hypogene" Hypogene ore processes occur deep below the earth's
surface, and form deposits of primary minerals, such
as chalcopyrite and bornite.
"supergene" Supergene ore processes occur near surface, and form
deposits of secondary minerals, such as malachite,
azurite, chalcocite, covellite, digenite, etc.
"breccia" Breccia is a rock classification, comprises millimeter
to meter-scale rock fragments cemented together in
a matrix, there are many subclassifications of breccias.
"veins" A vein is a sheet-like or anastomosing fracture that
has been infilled with mineral ore (chalcopyrite,
covellite etc) or mineral gangue (quartz, calcite
etc) material, within a rock. Veins form when minerals
carried by an aqueous solution within the rock mass
are deposited through precipitation and infill or
coat the fracture faces.
"volcanics" Volcanic rock such as andesite or basalt that is formed
from magma erupted from a volcano, or hot clastic
material that erupts from a volcano and is deposited
as volcaniclastic or pyroclastics
"sediments" Sedimentary rocks formed by the accumulation of sediments.
There are three types, Clastic, Chemical and Organic
sedimentary rocks
"surface rock Rock chip samples approximately 2kg in size that are
chip samples" typically collected from surface outcrops exposed
along rivers and mountain ridgelines
azimuth the "compass direction" refers to a geographic bearing
or azimuth as measured by a magnetic compass, in true
or magnetic north
"diamond A drilling method in which penetration is achieved
drilling" through abrasive cutting by rotation of a diamond
encrusted drill bit. This drilling method enables
collection of tubes of intact rock (core) and when
successful gives the best possible quality samples
for description, sampling and analysis of an ore body
or mineralised structure.
"grade" The proportion of a mineral within a rock or other
material. For copper mineralisation this is usually
reported as % of copper per tonne of rock (g/t)
The laboratory test conducted to determine the proportion
"assay" of a mineral within a rock or other material. For
copper, usually reported as percentage which is equivalent
to percentage of the mineral (i.e. copper) per tonne
of rock
"sequential Sequential copper analysis is a technique to semi-quantitatively
assays" define the zonations associated with some copper deposits.
The method is based on the partial dissolution behavior
displayed by the prevalent copper minerals to solutions
containing sulfuric acid and sodium cyanide. Results
from sequential analyses can theoretically determine
the amounts of leachable oxide minerals, leachable
secondary sulfide minerals, and primary copper minerals,
respectively.
"dip" A line directed down the steepest axis of a planar
structure including a planar ore body or zone of mineralisation.
The dip has a measurable direction and inclination
from horizontal
"open pit A method of extracting minerals from the earth by
mining" excavating downwards from the surface such that the
ore is extracted in the open air (as opposed to underground
mining)
"Resource A 3-Dimensional model of the ore/mineralised body
block" containing a Mineral resource estimation
"intercept" Refers to a sample or sequence of samples taken across
the entire width or an ore body or mineralized zone.
The intercept is described by the entire thickness
and the average grade of mineralisation
"channel Samples collected across a mineralised rock exposure.
sample" The channel is typically orientated such that samples
are collected perpendicular to the mineralised structure,
if possible
"lbs" Pounds (measure of weight)
"Mlbs" Million pounds (measure of weight)
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Asiamet Resources Limited via Globenewswire
http://www.asiametresources.com
(END) Dow Jones Newswires
June 28, 2017 05:30 ET (09:30 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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