Asiamet Resources has commenced a resource definition drilling program at the Beruang Kanan Main (BKM) Copper Project in Central Kalimantan, Indonesia, with the intention of posting an updated resource estimate before the end of the third quarter.
The work forms part of a feasibility study for the BKM project and follows a positive preliminary economic assessment.
Asiamet plans to drill approximately 110 diamond drill holes totalling 9000 metres to significantly enhance resource confidence. It hopes to upgrade a majority of the current inferred resource of 49.7 million tonnes grading 0.6% copper containing 657 million pounds to the measured and indicated categories.
Indicated resources at BKM currently total 15.0 million tonnes @ 0.7% copper for 231 million pounds at a cut-off of 0.2%. Only measured and indicated resources can be considered for conversion to mineable ore reserves in the feasibility study.
Additional work programs also being initiated as part of the feasibility study include:
- Geotechnical drilling to define pit-slope stability and aid open pit mine design;
- Large diameter (PQ) drilling to collect samples from across and through the deposit for detailed metallurgical test work and mine waste characterization studies;
- Detailed metallurgical studies comprising short and long column leach tests on a suite of representative mineralized composites to determine optimum copper recoveries, assess deposit variability and provide inputs into the mine and process plant design; and
- Environmental and water resources studies and permitting applications.
Following a recently completed private placement of GBP1.5 million, Asiamet’s financial position has been further strengthened by the receipt of tax refunds totalling approximately US$1.0 million from the Indonesian Government tax department. The refunds relate to tax payments made by the company for various goods and services in 2006, 2007, 2013 and 2014.
The company says it is now in a sound financial position to significantly advance feasibility studies on the BKM project, complete drilling aimed at further expanding resources in the BKM project area and, subject to receipt of the necessary permits, drill test high grade polymetallic mineralization at the Baroi prospect.
The company’s CEO Tony Manini said, “Asiamet has initiated feasibility studies for the development of a heap leach SX-EW copper mine at the BKM project.
“Feasibility studies will cover a broad range of technical, commercial, financial, social and environmental inputs in detail and represent a major and critically important phase of de-risking for the project, the outcomes of which will be used by a wide range of stakeholders, including potential financiers, to assess the project’s viability.
“As the feasibility work programs on BKM are being progressed by the study team, exploration drilling aimed at expanding the resource base and testing some additional high grade copper and polymetallic targets will progress with high expectations for success.
“Simultaneously important corporate initiatives to further strengthen the company’s financial position and enhance shareholder value are being vigorously pursued.”