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LONDON (Alliance News) - Asiamet Resources Ltd Wednesday said the preliminary economic assessment of the Beruang Kanan Main deposit in Indonesia is "well underway" and on track to be delivered before the end of the first quarter of 2016.
The assessment is evaluating the economics of the deposit and whether it is viable for the company to kickstart an operation focused on near surface copper which would include an open pit and a heap leach SX-EW processing facility.
Conducting an assessment of this kind is normal within the industry and is used to justify projects and forecast the performance and costs of building and operating it.
The assessment will involve a conceptual mining study to best evaluate how to extract resources, a forecast of how much capital expenditure will be needed to build the project, an operating plan for when the mine is up and running along with associated operating cost estimates, the potential value of the project, a development plan, risk assessment and it will also outline any further work needed to be completed before moving on to the bankable feasibility study.
A bankable feasibility study is used to confirm estimates and information gathered in other documents like the preliminary economic assessment and is then used in order to obtain financing to progress the project.
"We are now well underway on some of the longer lead items of the studies and the momentum of activities is accelerating. The preliminary economic assessment is one of the most important milestones in Asiamet's history to date and we look forward to providing regular news flow as the various studies are progressed during the first quarter of 2016," said Chief Executive Tony Manini.
Asiamet shares were trading up 1.8% to 1.30 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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