Asiamet Resources Limited Share News (ARS)

(Alliance News) - Asiamet Resources Ltd on Friday unveiled a raft of updates on the Beruang Kanan Main project, including a feasibility study showing a "robust" case for the copper mine's development.

The feasibility study means Asiamet can now begin talks with potential partners and financial institutions to develop BKM further. The project in located on the Indonesian island of Kalimantan.

The study shows an initial nine-year life for BKM, with Asiamet producing 25,000 tonnes of copper cathode a year.

This life-of-mine would bring in total revenue of USD1.27 billion, and earnings before interest, tax, depreciation, and amortisation of USD563.3 million. The initial capital requirements for BKM are USD192.0 million.

BKM, Asiamet continued, has a post-tax net present value of USD133.5 million, as well as an internal rate of return of 19.5%, excluding closure costs.

Chief Executive Peter Bird said: "Completion of the feasibility study is a major milestone for Asiamet. We are very pleased with the outputs derived as they deliver a technically and financially robust project that can be significantly further improved through a number of clearly defined initiatives."

This publication of the feasibility study comes at the same time as Asiamet both updated the copper resource at BKM and also unveiled a maiden ore reserve.

BKM now has total resources of 69.6 million tonnes at a grade of 0.6% copper, containing 451,900 ounces of copper in total.

Of this, 20.6 million tonnes at 0.7% copper are in the measured category, 34.1 million tonnes at 0.6% copper indicated, and 15 million tonnes at 0.6% copper inferred.

"We are pleased to deliver a further update of the mineral resource estimate for the BKM copper project," said Bird.

"This update incorporates our extensive historic drilling database with the latest results from the most recent resource delineation drill programmes designed to capture additional resources and hence ore blocks at the boundaries of the pit shells, as well as upgrading some inferred resources into the measured and indicated categories."

"The new mineral resource reinforces the integrity, size and scale of the BKM deposit and provides a solid foundation for our emerging mid-size BKM copper development project," he added.

The maiden ore reserve has 21.1 million tonnes at 0.6% copper proved, 30.4 million tonnes at 0.5% copper probable, and 51.5 million tonnes at 0.6% proved and probable.

CEO Bird commented: "We are very pleased to deliver a maiden ore reserve for the BKM copper project, a major milestone which assesses the economic viability of the project. Ore reserves represent that part of the resource base which can be economically extracted using the parameters defined in the BKM feasibility study and provide the underlying foundations of the project.

"The very strong conversion of resource to reserve tonnages fully validates our belief the BKM project represents a robust mid-size copper project with excellent potential for mine life extensions through further exploration and development."

Asiamet shares were 9.8% lower on Friday at a price of 4.82 pence each.