TIDMARS
RNS Number : 0077T
Asiamet Resources Limited
22 March 2021
22 March 2021
Positive Results from Metallurgical Value Enhancement Work
Asiamet Resources Limited ("Asiamet" or the "Company") is
pleased to report on the results from metallurgical test work
undertaken as part of value enhancement initiatives for the BKM
copper project located in Central Kalimantan, Indonesia. Results
from the work completed to date are highly promising and indicate
significant potential benefits from a concentrate tank leach
process flowsheet verses heap leach processing as per the 2019
feasibility study.
Key highlights:
Use of a concentrate tank leach process has potential to:
-- Increase total copper recoveries by up to 40% on a relative basis.
-- Maintain copper production at full capacity of 25Ktpa for a
full 8 years, exclusive of any further exploration and resource
conversion.
-- Further enhance current robust project economics via earlier
copper production and significantly stronger life of mine cash
flow.
-- Produce a secondary pyrite concentrate for sale into the Indonesian laterite nickel industry.
One of the key value enhancement initiatives identified in the
2019 BKM Feasibility study was to further increase the value of the
BKM copper project through improved metallurgical recovery and
process/mine flowsheet optimisation coupled with a review of
capital and operating costs. The 2019 feasibility study assumed a
conventional heap leach and solvent extraction-electrowinning
process
(SX-EW) delivering 172kt of copper from 303kt of contained
copper in current Ore Reserves, resulting in a 51% recovery of
total copper. The metallurgical value enhancement work has
investigated the use of a concentrate-tank leaching option that
increases overall total copper recoveries to greater than 70%, a
relative improvement of approximately 40% over the 2019 feasibility
study results.
The assessed tank leaching option involves a conventional
crushing, grinding, and froth flotation of the BKM ore to produce a
copper-pyrite concentrate. A fraction of the concentrate is fed
through a small autoclave for conditioning, and then recombined
with the bulk of the concentrate in an atmospheric tank leach
process. The leached copper, after an appropriate solid-liquid
separation process, is recovered via conventional SX-EW to produce
LME Grade-A copper cathode. The assessed flowsheet is similar to
that used in other highly successful copper tank leach operations
such as Sepon in Laos. Other advantages of the concentrate tank
leach process include:
-- A significant reduction in residence time to achieve higher
copper recoveries i.e. 48 hours processing cycle time compared to
circa 300 days to recover approximately 80% of the soluble copper
(50% of the total copper) from the heap leach as reported in the
2019 Feasibility Study.
-- Increase in the number of years operating at full capacity of
25ktpa contributing to greater life of mine copper production.
-- Extension of the life of mine from 9 to 11 years before
conversion of existing Inferred Resources and the discovery of
additional resources through exploration.
-- A smaller project footprint resulting in reduced costs
associated with earthworks and lower environmental impact.
-- A processing plant suitable for future processing of sulphide
resources already identified on the KSK Contract of Work, when they
become better defined.
-- The potential to recover a saleable pyrite concentrate for the Indonesian HPAL nickel market.
A detailed review of capital and operating costs is still
required to fully ascertain the economic benefits of a concentrate
tank leach process and this work, along with further detailed
flowsheet design and associated mining studies, will be the subject
of the next phase of work commencing immediately.
Initial desktop review of operating costs suggests a marginally
higher cost base with the inclusion of grinding, flotation, tank
leaching and tailings management, however the project team led by
Andrew Neale are investigating ways to minimise these impacts
through a number of initiatives around power supply and overall
mining costs. Capital cost estimates for the tank leach option also
requires detailed assessment. Initial analysis indicates that the
cost of additional processing equipment and tailings can be largely
offset by a reduction in capital costs associated with the
extensive civil works required for the heap leach pad and
associated treatment ponds. Environmental impacts associated with
the concentrate tank leach option are also significantly reduced
due to a smaller overall site footprint. The environmental and
economic benefit of a smaller site footprint will be further
quantified in the next phase of value enhancement work.
Tony Manini, Executive Chairman of Asiamet Resources
commented
Asiamet is very pleased with the outcomes of the metallurgical
value enhancement work completed to date. While we still have
further work to do to refine the process flowsheet and fully assess
the capital and operating costs, the opportunity to recover
significantly more copper, faster from the same volume of material
clearly has the potential to significantly improve the already
strong project economics. Cashflows come earlier and faster,
production is maintained at full capacity for longer and more
copper is produced over the life of mine. These benefits together
with a reduced environmental footprint would all serve to enhance
the robustness of the project as we enter the final stages of
permitting and commence the process of engaging debt and equity
providers for project financing. We look forward to reporting
further on this important piece of work as it continues
simultaneous with project financing activities and additional
drilling to further expand resources and mine life.
ON BEHALF OF THE BOARD OF DIRECTORS
Tony Manini, Executive Chairman
For further information, please contact:
-Ends-
Tony Manini
Executive Chairman, Asiamet Resources Limited
Email: tony.manini@ asiametresources .com
Investor Enquiries
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: Sasha@flowcomms.com / info@asiametresources.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Bhavesh Patel / Stephen Allen
Telephone: +44 (0)20 3440 6800
Email: Bhavesh.Patel@rfcambrian.com / Stephen.Allen@rfcambrian.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
Blytheweigh Communications Limited
Tim Blythe/Megan Ray
Telephone: +44 (0)20 7138 3204
Email: Tim.Blythe@blytheweigh.com /
Megan.Ray@blytheweigh.com
Follow us on twitter @AsiametTweets
FORWARD-LOOKING STATEMENT
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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