Asiamet Res Ltd - Asiamet Business Update
Asiamet Business Update
Asiamet confirms that all licences and tenure for its KSK Contract of Work (CoW) and Mining Business Licence (Izin Usaha Pertambangan - 'IUP') for the Beutong project are in compliance with Indonesian regulations and in good standing
1. The KSK Contract of Work (CoW) covering 39,443 hectare in
2. The Beutong project covers over 10,000 hectares held under a Mining Business Licence in Nagan Raya Regency,
A feasibility study completed in
· An initial 9 year life of mine producing up to 25,000 tonnes of copper cathode per annum;
· Life of mine revenue of
· Post Tax NPV8 of
· C1 cash cost of
· Additional value to be generated through clearly identifiable value enhancements to improve the feasibility study NPV by a minimum of
The BKM copper project is demonstrably commercial with significant upside potential through 'quick win' exploration targets adjacent to the proposed mine development area providing opportunity to add further mineral resources to the existing resource base. Exploration success may extend the initial life of mine by several years and significantly further improve the underlying economics of the project.
As part of its stated value enhancement plan, Asiamet has identified four key "near mine" targets, notably the BKM-BKZ 'Link' Zone, IP geophysical targets at BKW, the BKM 'Deep' Zone, and the BK 'South' Zone.
In order to commence drilling, the Company is currently awaiting a renewal of its forestry exploration permit, to be approved by the
The very strong conversion of Resource to Reserve tonnages fully validates our belief that the BKM project represents a robust mid-size copper project with excellent potential for mine life extensions through conversion of existing Inferred Resources to Ore Reserves and ongoing exploration success.
BKM 2019 Ore Reserves (JORC Code 2012) comprise:
· 21.1Mt @ 0.6% Cu for 137k contained tonnes of copper in the Proved category
· 30.4Mt @ 0.5% Cu, for 166k contained tonnes of copper in the Probable category
· 51.5Mt @ 0.6% Cu, for 303k contained tonnes of copper in the Proved and Probable category
As part of the Feasibility Study the Company also updated its Mineral Resource Estimate as part of JORC Code 2012. The BKM 2019 Mineral Resources (JORC 2012) at a 0.2% Cu cut-off grade comprise:
Total Resources of 69.6Mt @ 0.6% Cu for 451.9k of contained copper:
· 20.6Mt @ 0.7% Cu for 148.5kt of contained copper in Measured Resource
· 34.1Mt @ 0.6% Cu for 212.6kt of contained copper in Indicated Resource
· 15Mt @ 0.6% Cu, for 90.8kt of contained copper in Inferred Resource
The BKM project lies in a very prospective mineral district and is one of very few copper development projects close to the end-user consumer markets in
The Company is engaged in advanced discussions with a number of potential Asian strategic partners who recognise the rare opportunity presented by the KSK CoW, commencing with development of the BKM copper project. It is the Company's intent to finalise these partnering discussions as soon as is practically possible.
BEUTONG COPPER GOLD PROJECT
Beutong is a large, high-quality, globally significant copper-gold porphyry with current JORC compliant Resources containing 2.43Mt (5.3Blb) copper, 2.11Moz gold and 20.9Moz silver on a 100% basis.
The Beutong project covers 10,000 hectares in Nagan Raya Regency,
Beutong is a large high-quality copper, gold, silver, molybdenum deposit which outcrops at surface and remains open in several directions including to depth. Potential to increase the size of the deposits with further drilling is considered very high.
Strong copper, gold and molybdenum grades and the presence of highly mineralised chalcopyrite-bornite-magnetite bearing breccia clasts proximal to a large magnetic body modelled at depth below current drilling highlight excellent potential for the discovery of a high grade core similar to that seen in world class porphyry systems such as Wafi Golpu, PNG (
Highlighted intercepts from previous drilling campaigns at Beutong include:
· BEU0500-01 : 445.0m @ 0.54% Cu, 0.17g/t Au from 7m
· BEU0900-08 : 456.0m @ 0.93% Cu, 0.15g/t Au from 10m
· BEU0800-01 : 215.8m @ 1.20% Cu, 0.20g/t Au from 4.8m
· BEU0800-02 : 320.4m @ 1.11% Cu, 0.19g/t Au from 6.6m
· BEU0700-03 : 384.2m @ 0.68% Cu, 0.21g/t Au from 71.5m
At Beutong, the strategy remains to test the deeper targets and the higher grade copper-gold zones of the porphyry system, and to undertake metallurgical test work aimed at assessing the potential for a staged development via heap leach or alternative mining and processing methods.
The Beutong project represents a rare advanced development stage copper opportunity given its scale and location close to the coast, proximity to excellent infrastructure, production licence tenure and proximity to the key Asian consumer markets.
"While the copper market continues to be impacted by a number of macro factors including the US-China trade war and more immediately the Corona-virus outbreak, the longer-term fundamentals remain very strong.
Almost universally major and mid-tier base metals mining companies globally are actively pursuing new copper opportunities through exploration and business development activity.
The simple fact remains that there has been a lack of investment in the copper sector over a long period of time while demand has been growing at a steady rate. The supply from existing projects is projected to be unable to meet future demand enhanced by green energy and electric vehicle applications.
With two of the best undeveloped copper projects in the Asian region, Asiamet is extremely well placed to take advantage of this projected deficit in copper supply and the level of interest we have had in our projects from strategic investors in recent times clearly reflects this thematic.
The high-quality group of potential partners we are engaged with remain focused on these longer-term fundamentals and are looking to secure development ready copper projects at or near the bottom of the market.
The Asiamet board and management, as significant and aligned shareholders, consider the Company and its assets to be highly undervalued and are determined to bridge this value gap as quickly as possible through ongoing development of the assets in partnership with likeminded strategic investors. The Company will provide an update when a position is formalised."
ON BEHALF OF THE BOARD OF DIRECTORS
For further information, please contact:
Telephone: +44 (0) 7891 677 441
Email: [email protected]
Telephone: +44 (0)20 7138 3204
Asiamet Resources Nominated Adviser
Telephone: +44 (0)20 3440 6800
Telephone: +44 20 3207 7800
Telephone: +44 20 3100 2000
Email: [email protected]
Telephone: +44 20 3137 1903
Email: [email protected]
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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.
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