TIDMARS
RNS Number : 4114A
Asiamet Resources Limited
01 June 2021
1 June 2021
Business Update - BKM Copper Project
Asiamet Resources Limited ("Asiamet" or the "Company") is
pleased to provide an update with respect to several key
workstreams in progress at the BKM copper development project and
the Kalimantan Suraya Kencana Contract of Work ("KSK CoW") located
in Central Kalimantan, Indonesia.
Highlights
-- Value Enhancement works related to transitioning the BKM
copper mine development from a heap leach to tank leach processing
route is making solid progress. Capex and Opex estimates expected
in late July will be used as inputs to update the BKM project
economics.
-- Options for direct shipping of high grade, high value
polymetallic ore from the BKZ deposit is being investigated with
commodity trading companies for potential offtake or smelter feed.
Required metallurgy work will be undertaken from the upcoming
drilling programme.
-- Field Activities - IP geophysical programme results due in
July. Drilling high-priority targets for resource expansion
proximal to BKM is planned to commence in June.
-- Permitting and Community Engagement - continued strong
progress on permitting front, with conditional approval for key
Pinjam Pakai Permit expected over the next 4-6 weeks.
-- Partner Discussions - BKM as one of few shovel ready copper
projects in Asia is seeing strong interest from a number of
Indonesian, Asian and US investors. Good progress is being
made.
Value Enhancement Activities
Value engineering activities related to developing the BKM
copper mine using tank leach processing (vs Heap Leach) is making
solid progress. As part of this workstream, consultants NewPro
engineering will review the capital and operating cost estimates
for the project.
Asiamet expects to receive the revised estimates by mid-late
July 2021 and will then complete an update of the project
economics. The project team led by Andrew Neale are also reviewing
important initiatives related to logistics, reducing power and
environmental costs.
Field Activities - Drilling and IP Geophysics
Field activities have commenced at site including mobilisation
of drilling equipment and line cutting for a 30km Induced
Polarisation (IP) geophysical survey. Drilling of high potential
targets close to the planned BKM copper mine development is
expected to commence in late June overseen by Chief Consulting
Geologist, Pat Creenaune.
The IP survey will allow the Company to better target its
drilling in areas that are yet to be tested and increasing the
probability of successfully adding to the existing mineral
inventory. Results from the IP programme are expected in July, with
drilling in those areas to commence once data has been
assessed.
Increasing the mineral inventory further de-risks the BKM copper
project as part of the financing process through increased mine
life, higher annual production and stronger support for the initial
capital investment and any future expansion.
BKZ High-Grade Polymetallic Zone - Direct Ship Ore
The project team have been investigating the potential for
producing a direct ship ore (DSO) from the near surface high grade
polymetallic (Zinc, Lead, Silver +/- Gold and Copper) BKZ Resource,
located approximately 800 metres north of the BKM copper
Reserve.
Initial discussions have been undertaken with various trading
companies for a potential offtake or feed into a smelter or metals
recovery plant. As part of this assessment, metallurgical testing
to determine the processing characteristics of the BKZ
mineralization will be undertaken from the upcoming drilling
programme.
Subject to the necessary permitting, the potential benefit of
any DSO product is early cash flow generation and hence further
significant de-risking of the BKM copper mine development. BKZ is a
Polymetallic (Cu-Pb-Ag-Pb-Au) deposit located close to BKM that is
zoned from an upper zinc-lead-silver+/- gold and copper to a lower
copper-silver bearing deposit.
The deposit is open in multiple directions and can be rapidly
expanded with further drilling.
Permitting / Community Engagement
Permitting for the key Pinjam Pakai (Borrow-to-Use Forestry
Permit) is making good progress through the Ministry of Environment
and Forestry with conditional approval expected in late June/early
July. This will be a significant milestone for the project and as
it enables the first phases of development and construction to
commence subject to meeting conditional requirements.
Work on secondary permits continues to progress in accordance
with the Company's timelines. Strong support from the local
community is continuing as engagement programs for the BKM copper
mine development are rolled out. This strong local level support
greatly assists in the approvals, secondary permitting, and land
acquisitions process.
Partner Discussions
With copper prices at multiyear highs underpinned by large
infrastructure programs and a major transition to renewable energy
underway, Asiamet is very well placed with one of a few shovel
ready copper projects in Asia.
As anticipated the Company has had significant inbound interest
from a number Indonesian, Asian and US investors seeking to partner
with the Company to develop the BKM project. Confidentiality
agreements have been signed with a small number of serious
investors and discussions are progressing well.
Tony Manini, Executive Chairman of Asiamet Resources
commented
"As per our strategy, work has been progressing on a number of
important value-adding workstreams simultaneously. Significant
progress has been made by Andrew Neale's team on pre-development
and value engineering work and we should soon have some updated
capital and operating costs to enable us to evaluate the tank leach
processing option for the BKM copper mine development.
At the BKZ deposit immediately adjacent to BKM we have
identified a very attractive high-grade, high value,
zinc-lead-silver+/-copper and gold resource that presents as a DSO
opportunity with the potential to generate early cashflow. We will
be assessing this opportunity in tandem with the other value
enhancement workstreams in progress. On the permitting front our
highly capable Indonesian team expect to receive the key forestry
permit shortly, a critical de-risking milestone for financing the
development of the project.
With copper prices at multiyear highs, the Company has had
significant inbound interest from investors seeking to partner with
us to develop the BKM copper project. Discussions are being
progressed with a select number of groups who can bring substantial
capability and value add to the BKM project financing and mine
development.
We have a lot of financing and development related activity in
progress and are looking forward to updating our stakeholders as
these important de-risking milestones materialise."
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
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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