TIDMARS
RNS Number : 2952J
Asiamet Resources Limited
20 August 2021
20 August 2021
Business Update
Asiamet Resources Limited ("Asiamet" or the "Company") is
pleased to provide the following update with respect to its BKM
copper development project and the Kalimantan Suraya Kencana
Contract of Work ("KSK CoW") located in Central Kalimantan,
Indonesia.
COVID-19 Update
Over the past two months there has been a very significant and
rapid increase in the number of COVID-19 infections across
Indonesia. As a result, the Government of Indonesia has implemented
a series of lockdowns and extensive travel restrictions with many
businesses and government departments working at a reduced
capacity, remotely or from home. Infection has directly impacted a
number of our staff and contractors, and travel restrictions have
slowed progress on our various workstreams.
The health and safety of our staff, contractors, local
communities, and all stakeholders to the project remains of the
highest priority to the Company and we have implemented strict
COVID-19 protocols with respect to testing, isolation and medical
treatment for anyone associated with site-based activities.
Value Engineering Activities
Value engineering activities are progressing to plan. A first
pass detailed report has been received from NewPro Consulting and
Engineering Services which provides capital and operating cost
estimates for both tank leach and copper rich pyrite concentrate
processing options compared with the heap leach option in the 2019
Feasibility Study. An internal review of this report is in progress
and an update of the economic models for the BKM copper project are
being run.
Metallurgical test work results indicate copper recoveries of
75-80% demonstrated for the tank leach process, however this comes
with an increase in capital and operating costs. Simplifying this
process flowsheet to produce a copper rich pyrite concentrate for
sale into the very large Indonesian nickel laterite industry or
metals recovery plants appears to be the most attractive
alternative to heap leaching as it would also enable deeper
sulphide and polymetallic ores from BKM and BKZ to be processed
through the same plant.
Trade off economic studies are currently being run and once
complete a final decision on the preferred project route to take
forward into development will be made.
In parallel with this work, continued refinements on the
logistics and port access are being progressed with good support
from the relevant authorities, local businesses, and communities.
Evaluation of various power supply alternatives for the project are
being advanced including a renewable energy solution utilising a
BOOT (build, own, operate, transfer) model. Discussions with third
party suppliers of renewables power plants indicates this to be an
economically feasible option that would also improve the
environmental credentials of the project and enhance development
financing alternatives.
Drilling and IP Geophysics
Mobilizing personal and heavy equipment for site preparation and
drilling has been delayed due the COVID-19 restrictions in place
across Indonesia as a result of the pandemic, however we have
managed to get the program underway with the first hole of a 3,000
metre program completed.
As previously announced (see press release 1 June 2021) the
Company completed a total of
34.4-line kms of geophysical IP survey which has now been
processed and the results used to inform the upcoming drill
program.
The planned 3,000 metre drilling program designed by Chief
Geologist Patrick Creenaune aims to significantly expand the copper
and polymetallic Mineral Resources at both the BKM and BKZ deposits
which remain open in multiple directions. Several highly promising
targets generated from a review of previous work combined with the
geophysical survey data will also be tested. A full overview of the
program will be provided shortly.
Permitting Update / Community Engagement
Following consultation with Ministry of Environment and
Forestry, the Company has made a decision to delay progressing the
borrow to use forestry permit (Pinjam Pakai) to the conditional
approval stage, until the current drilling and value engineering
programs are completed. This will enable all results and any
adjustments to be incorporated into the BKM project footprint prior
to issue of the Pinjam Pakai, following which no amendments are
able to be made prior to the commencement of mining.
The Company's local CSR teams in partnership with Yayasan
Tambuhak Sinta (YTS) continued to roll out engagement programs with
local communities, local government, and enterprise in Central
Kalimantan in preparation for a mine development. Support from all
stakeholders for the project continues to be strong.
Financing/Partnering
Solid progress is being made for a project development
partnership with a small group of high calibre investors. Five
parties have signed non-disclosure agreements and are at various
stages of due diligence. Commercial partnering discussions are
being advanced simultaneously for a deal construct aimed at seeing
the project funded through to construction.
Discussions with several European and Asian mining finance banks
were progressed. Initial feedback is positive with solid interest
in lending to mining projects with strong ESG credentials.
Asiamet's comprehensive long term community development partnership
with YTS and high industry standard environmental studies see the
project well positioned.
Tony Manini, Executive Chairman of Asiamet Resources
commented
"While we have had some very real challenges with COVID 19
impacts in Indonesia, Asiamet is very pleased with the substantive
progress being made on its development path for the BKM copper
project. With a strong focus on the health and wellbeing of our
employees and contractors as our first priority, financing and
development related activities are continuing at pace and closing
in on a number of important project enabling milestones.
Drilling underway to expand the BKM and BKZ Resources is
expected to demonstrate the potential for significant production
growth and mine life upside at this important time for project
financing and partner discussions. We look forward to keeping
stakeholders updated on our progress at this exciting time for the
Company"
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
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