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Asiamet Resources reasserts validity of Beutong project permit

Last updated: 09:34 18 Oct 2018 EDT, First published: 07:34 18 Oct 2018 EDT

Asiamet drill
More drilling is planned

Asiamet Resources Ltd (LON:ARS) is planning to perform additional drilling to enhance the bankable feasibility study (BFS) at its Beruang Kanan Main (BKM) copper project.

The company said limited further drilling is required in the BKM pit area to better assess geological and geotechnical components and their impact on the open pit mine design. This drilling will also evaluate the additional resource tonnages that currently sit both inside and outside the pit shells, and which are currently classified as inferred resources.

READ: Asiamet boss praises “strong first-half performance” as delivery of BKM bankable feasibility study draws near

This additional infill drilling, data assessment and rework of the mine design and schedule are expected to be completed over the next four to six months. Asiamet said the work is expected to increase ore reserve tonnages available for incorporation into the mine schedule and significantly enhance project economics.

Asiamet plans to test a number of high impact targets in the Beruang Kanan district

At the same time as it ploughs on towards the BKM BFS, a targeted exploration programme is underway to work-up and test a number of high impact targets in the BK district.

The aim of this work is to expand and update the BKM project resource base, extend and further evaluate the BKZ polymetallic prospect in Indonesia BKZ and to test several high potential targets below and adjacent to BKM and Beruang Kanan West (BKW).

Surface exploration will be undertaken at the Baroi target in preparation for drilling upon receipt of a forestry permit.

Peter Bird conceded that the additional work was taking place at a late stage in the feasibility study but said it offered the opportunity to capture substantial additional value while further de-risking the project.

“So, whilst from a time perspective this additional work extends the time-frame of the feasibility study, we are firmly of the opinion that all stakeholders will significantly benefit from the impact of this additional work as we move into the project financing stage. As this final piece of work is being completed on the BKM BFS we are excited to be significantly lifting the momentum of our exploration effort in the BK district," he added.

Latest assay results from Beutong give plenty of causes for optimism

In a separate announcement, the company said the latest assay results from the drilling recently completed at its 80%-owned Beutong copper-gold porphyry project in Indonesia indicated that the drilling had intersected broad copper intervals.

Results from hole BEU1450-01 drilled at the Beutong West Porphyry include:

  • 596.6 metres (m) at 0.53% CuEq (copper equivalent) from 153.4m
    • Including 79.0m at 0.84% CuEq from 155m
    • Including 54.5m at 0.73% CuEq from 245.5m
    • Including 62m at 0.75% CuEq from 540m

Extensive oxide gold mineralisation was also intersected from near surface above the copper mineralisation, including 136.0m at 0.46 g/t gold from 2.0m. The potential of this shallow gold mineralisation atop the BWP will be assessed with further drilling, Asiamet said.

Asiamet said the 2018 drill programme has proven highly successful with all seven holes drilled to date intersecting wide intervals of porphyry copper-gold-molybdenum mineralisation, which has significantly increased confidence in the Beutong Resource model and identified targets with potential to significantly expand the size of the current deposit.

As the drilling programme has progressed and the potential for a coalescence of the Beutong East Porphyry (BEP) and Beutong West Porphyry (BWP) at depth has been recognised, further modelling of ground magnetic data has been completed and selected drill holes have been re-logged, the mine developer revealed.

A strongly magnetic body has been modelled immediately beneath the central core of the system, overlapping with the base of the BEP, it added.

READ: Arden praises Asiamet’s “world class” Beutong copper asset as it sets bullish 24p target

“The 2018 drilling programme at Beutong has consistently met or exceeded expectations and provided greatly improved definition across the Beutong East and Beutong West porphyry deposits. The two systems remain open in multiple directions with recent drilling suggesting they may coalesce at depth,” Bird said.

“Strong copper, gold and molybdenum grades and the presence of highly mineralised magnetite bearing breccia clasts proximal to a large magnetic feature modelled below current drilling are very exciting as such features are often associated with the high-grade cores of world-class porphyry systems such as Newcrest's Wafi-Golpu and Solgold's Cascabel.

“As such Asiamet is evaluating various options including partnering to test this deeper potential and more rapidly progress the development of Beutong in the near term," he added.

Asiamet comments on social media item

Asiamet has issued a response to an article published in serambinews.com with respect to protests in the Nagan Raya area, saying that the Beutong project permit is in good standing and in full compliance with all rules and regulations set by the Indonesian Ministry of Energy and Mineral Resources.

Furthermore, the company asserted it has strong working relationships with local communities, stakeholders and governments across all its projects in Indonesia.

Shares in Asiamet were down 1.25p at 8.65p.

Liberum suggested the reports of the protests were responsible for the poor share price performance today.

The broker, which rates the shares a ‘buy’, reckons Asiamet will require additional funding to complete the BFS at BKM.

“As such dilution is expected, but whether this comes at an asset or company level is unknown and size is likely to be small – less than US$5mlnm (less than 5%),” said Liberum, which is joint-broker to the company.

--- adds comment on Beutong from the company and Liberum Capital Markets ---

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