TIDMARS
RNS Number : 6936W
Asiamet Resources Limited
27 April 2021
27 April 2021
Asiamet Appoints GM - KSK Project. Project Development
Activities Ramping Up
Asiamet Resources Limited ("Asiamet" or the "Company") is
pleased to announce the appointment of Andrew Neale as General
Manager for the KSK Project and to provide an update on the various
workstreams underway on the BKM copper development ("BKM") project
located in Central Kalimantan, Indonesia.
Highlights
-- Andrew Neale, a highly experienced metallurgist with
extensive experience in studies, mine design, construction and
operations. He has worked on numerous copper and gold projects in
Indonesia and globally with Freeport McMoran, Merdeka Copper Gold
and Bumi Resources. Andrew is based in Jakarta and will manage all
aspects of the pre-development technical works and permitting
required to prepare the BKM project for construction and
operations.
-- NewPro Consulting and Engineering Services Pty Ltd based in
Perth, Australia have been retained to complete an assessment of
capital and operating cost estimates for an alternate concentrate -
tank leach process flowsheet (refer press release 22 March 2021).
NewPro are working together with the developers of the Galvanox(R)
tank leaching technology to evaluate a similar process to that
which has been used very successfully at the Sepon Copper Mine in
Laos over the past 15 years.
A number of pre-development workstreams are underway or
commencing shortly as part of the on-going value enhancement works
including:
-- Updating capital and operating cost estimates for the 2019
BKM feasibility study in preparation for debt financing
discussions
-- Review of all opportunities to reduce the life-of-mine power
costs (estimated to be 20% of overall costs). Discussions have been
initiated with:
-- potential suppliers of natural gas to the project site
-- designers and constructers of gas pipelines, and
-- suppliers of modular on-site gas-turbine power plants.
Discussions have also been initiated with third parties
interested in financing the supply of power as a stand-alone
project, separate from the mining and processing operations. This
will determine the best overall option for power supply to the
project.
-- Assessment of long-term tailings and waste rock management
options with a view to significantly reducing the project
footprint, environmental impacts and cost. PT Ground Risk
Management and PT Lorax Indonesia have been engaged on the
geotechnical and environmental impacts respectively.
-- Additional drilling aimed at adding mining inventory to the
BKM copper deposit. Confirming the potential to maintain full
production of 25ktpa copper for 10+ years will significantly
benefit the debt carrying capacity of the project in the project
financing. A ground-based geophysical program comprising
approximately 30 line-kilometres of ground-based IP (Induced
Polarization) will also be completed to better define and extend
several of the high potential drill targets in the near vicinity of
the BKM copper deposit prior to drilling. Preparations for the
geophysics and drilling are well advanced and expected to commence
in early June 2021.
Project Economics and Financing
The 2019 feasibility study was prepared with a long-term
consensus copper price of $3.30/lb delivering an NPV(8) $125
million and an IRR of 19.1%. Applying a range of long term copper
price sensitivities to the 2019 study parameters clearly
demonstrates the upside potential to price prior to completing the
value enhancement works.
LT Copper Price NPV(8) ($M) IRR %
$3.50/lb 169 22.6
------------ ------
$3.75/lb 223 26.4
------------ ------
$4.00/lb 276 30.0
------------ ------
On the project financing front, a small group of interested
parties have commenced diligence and discussions with the Company
and an update will be provided as these discussions progress to a
logical conclusion. Asiamet is also evaluating the potential to
list its local operating subsidiary on the Indonesian Stock
Exchange and discussions with Investment Banks and professional
firms in Indonesia are being initiated.
Simultaneous with the above equity financing initiatives, the
Company is progressively updating its financial models with the new
capital and operating cost inputs coming through the value
enhancement works and commencing debt financing discussions with
various financial institutions.
Covid-19
Covid 19 remains a very significant health issue in Indonesia
and extensive restrictions remain in place to control its impact.
The health and safety of our employees, contractors and all
stakeholders is our highest priority at this time. Aligned with
government guidance on the movement of its staff and contractors
the Company continues to implement systems and protocols to reduce
the potential for exposure to Covid 19 amongst its work force.
Tony Manini, Executive Chairman of Asiamet Resources
commented:
"Asiamet formally welcomes Andrew Neale to the Company. Andrew
is very well placed to lead the BKM copper development at our KSK
project given his extensive background and experience in copper and
gold in Indonesia and having managed the most recent value
enhancement metallurgical studies for us. Despite the highly
challenging operating environment resulting from Covid 19, we are
very pleased with the progress being made both on the
pre-development activities by Andrew and our Indonesian based team
and corporately on the financing front. While a lot of work remains
to be done as we transition Asiamet from an explorer to a copper
mine developer and operator, the macro-environment for copper is a
very positive tail wind which is being reflected in the level of
investor interest we are seeing after five years of downturn. The
value inherent in the BKM project is clearly demonstrated in copper
price sensitivities applied to the 2019 feasibility study
parameters and positive outcomes from the pre-production value
enhancement works currently being progressed are expected to
provide further significant upside to the project economics. We
look forward to reporting further on this work and its impact on
our project economics and financing activities over the course of
2021."
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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