TIDMARS
RNS Number : 4856E
Asiamet Resources Limited
18 October 2018
For Immediate Release London AIM
18 October 2018 Symbol: ARS
Asiamet plans additional drilling to enhance BKM BFS
Over the past 15 months Asiamet Resources Limited (Asiamet) has
been systematically working to deliver a high quality Bankable
Feasibility Study (BFS) for the development of an open pit mine and
heap leach solvent extraction electro-winning facility (SX-EW) to
produce LME grade copper cathode from its 100 percent owned Beruang
Kanan Main Copper Project ("BKM" or the "Project") in Central
Kalimantan, Indonesia.
While the technical work has all been completed to a high
standard, a detailed review of the BKM BFS study inputs recently
received from the various project consultants has highlighted
selected areas of the study where additional technical work is
likely to significantly enhance the robustness of the project. This
will provide important flow on benefits from a project financing
perspective.
Limited further drilling is required in the BKM pit area to
better assess geological and geotechnical components and their
impact on the open pit mine design. This drilling will also
evaluate the additional Resource tonnages that currently sit both
inside and outside the pit shells, and which are currently
classified as Inferred Resources (JORC 2012). Material classified
as Inferred Resources cannot be considered for conversion to Ore
Reserves in the BFS. This additional infill drilling, data
assessment and rework of the mine design and schedule to be
completed over the next 4-6 months is expected to increase Ore
Reserve tonnage's available for incorporation into the mine
schedule and significantly enhance project economics.
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. Surface exploration will be
undertaken at the exciting Baroi target in preparation for drilling
upon receipt of a forestry permit.
Patrick Creenaune, formerly Chief Geologist with Australia's
largest gold producer Newcrest Mining, has recently joined our
exploration team in a senior consulting capacity and is working
together with Asiamet's exploration manager Bowo Kusnanto, to
prioritise a series of targets for testing over the coming
months.
Peter Bird, Asiamet's Chief Executive Officer commented:
"The Company has given extensive consideration to the delivered
study inputs and the impact of undertaking additional work at this
late stage in the feasibility study, however the opportunity to
capture substantial additional value while further de-risking the
project is considered to potentially have material positive impacts
on project financing outcomes. So whilst from a time perspective
this additional work extends the timeframe of the Feasibility
Study, we are firmly of the opinion that all stakeholders will
significantly benefit from the impact of this additional work as we
move into the project financing stage. As this final piece of work
is being completed on the BKM BFS we are excited to be
significantly lifting the momentum of our exploration effort in the
BK district."
BKM Feasibility Study
The BKM BFS incorporates extensive and detailed studies on
mining, processing and associated infrastructure including the
access, logistics and supply chain. Detailed environmental and
socio-economic baseline studies have also been completed which
underpin a comprehensive Environmental and Social Impact Assessment
(ESIA), in line with the International Finance Corporation (IFC)
Standards.
A detailed layout of the site and associated infrastructure is
provided below (Figure 1.)
Figure 1: BKM Feasibility Study - Mine Site Layout To view the
graphic, please open the link here
http://www.asiametresources.com/assets/img/ars171018_1.png
The BKM FS covers four main work areas:
1. Mining facilities comprise an open-pit mine; waste rock dump;
mine services area (containing workshops, warehouses, offices, and
fuel storage); magazine (explosives storage); and water management
facilities (e.g. dewatering dams and ARD (acid-rock drainage)
ponds);
2. Processing facilities: The BKM process facilities (figures 2
and 3) are based on a heap leach, with SX-EW processing route
comprising:
-- Three-stage ore crushing circuit with primary and secondary
sizers and two parallel tertiary impact crushers;
-- Ore agglomeration to facilitate fines stabilisation and
pre-conditioning of ore with acid and raffinate;
-- Leach pad stacking incorporating portable ramp conveyors and a radial stacker.
-- Single-stage heap leaching utilising raffinate from the
solvent extraction (SX) plant irrigate ore. The Pregnant Leach
Solution (PLS) is collected in sumps and pumped to the SX
plant;
-- Solvent extraction, where the PLS and electrolyte from the
electrowinning plant are contacted with an organic extractant that
selectively transfers copper from the PLS to the electrolyte and
increases its concentration. Raffinate is recycled to the heap
leach;
-- Electrowinning where a direct electrical current is applied
to the circulating electrolyte in cells containing multiple lead
anodes and stainless-steel cathode mother-plates. Oxygen is formed
at the anode and copper metal is plated on the stainless steel
mother-plates. This copper deposit is stripped from the cathode
mother-plates, bundled and strapped for sale.
Feasibility Study level metallurgical testwork and modelling has
proven the potential of the Beruang Kanan Main ore types to support
a commercial scale conventional heap leach operation. The ore types
show typical column leach responses, based on the mineral
assemblages and host rock.
Figure 2 - Mine and Process Area Layout To view the graphic,
please open the link here
http://www.asiametresources.com/assets/img/ars181018_2.png
Figure 3 - Processing Facilities To view the graphic, please
open the link here
http://www.asiametresources.com/assets/img/ars181018_3.png
3. On-site non-process infrastructure and support services
(NPI): The NPI areas comprise power generation facilities; water
management infrastructure (both civil facilities such as dams,
diversion channels, etc., and mechanical facilities such as
transfer pumps and the site water neutralization plant); general
site infrastructure (e.g. offices, warehouses and storage areas,
accommodation facilities, and waste management services); and site
roads. Water management will utilise a series of capture ponds (top
soil environmental pond, raincoat pond, underdrain pond and
environmental pond after waste water treatment) (see Figures 1 and
6) following which water is sampled and analysed before being
released into the environment where quality meets water release
guidelines.
Power requirements for the site are expected to be approximately
20 megawatts per annum. The BFS assumes owner operated power
generation using a series of conventional diesel power plants.
Figure 4 - Waste Water Treatment Facilities To view the graphic,
please open the link here
http://www.asiametresources.com/assets/img/ars181018_4.png
4. Off-site non-process infrastructure and support services
comprises the primary access road from Tumbang Manggu to the BKM
site (unsealed, all-weather access route) and transportation
services by road, to and from, the main importation and exportation
facility at Banjarmasin Port, in South Kalimantan. The Banjarmasin
port is one of the largest coal export and general freight
terminals across Indonesia, with sufficient capacity for a project
of this size.
BKM Project Feasibility Study - Environment and Community
Detailed environmental and socio-economic baseline studies were
completed for the BFS and to meet Indonesian permitting
requirements. A comprehensive Environmental and Social Impact
Assessment (ESIA) aligned with the International Finance
Corporation (IFC) Standards was completed for the Project. Based on
these environmental, social and engineering studies, the Project is
not expected to have significant negative impacts on the
environment or communities. Engineering controls, such as the waste
water treatment plant have been developed as part of the BFS to
minimise environmental impacts.
BKM Project - Permitting
The four key approvals in support of project development
permitting are well advanced and include:
1) Government of Indonesia Feasibility Study;
2) Environmental and Social Impact Assessment (AMDAL);
3) Mandatory 5-Year Reclamation and Mine Closure Plans; and,
4) Forestry Borrow-to-Use Permit.
BKM Project Feasibility Study - Summary of Key Outputs (to
date).
-- Project economics indicate a commercially viable project;
-- Additional geotechnical and infill drilling work is expected
to significantly enhance project economics;
-- Write-up of all feasibility study chapters is complete, with
results of the additional drilling programs to be incorporated when
available;
-- No untested technology or equipment has been assumed to be
used, with all processes and components having been extensively
employed in existing mining operations; and
-- A stand-alone owner operated diesel generated power supply
with associated infrastructure is assumed in the Project capital
plan for the BFS.
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: peter.bird@asiametresources.com
Tony Manini
Executive Chairman, Asiamet Resources Limited
Telephone: +61 3 8644 1300
Email: tony.manini@asiametresources.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
Berenberg
Matthew Armitt, Sara MacGrath
Telephone: +44 20 3753 3142
Email: Matthew.Armitt@berenberg.com
Liberum
Clayton Bush, Kane Collings
Telephone: +44 7773 322679
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").
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END
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October 18, 2018 06:45 ET (10:45 GMT)
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