LONDON (Alliance News) - Asiamet Resources Ltd Thursday said the drilling programme being conducted on the Beraung Kenan Main deposit in Indonesia as part of the work toward the feasibility study for the asset has got off to a "flying start".
Infill and extension drilling is being undertaken on the copper deposit in Central Kalimantan and is continuing to intersect high grade copper mineralisation in the southern part of the deposit and has confirmed "good continuity of higher grades" previously reported within the zone.
Four drill rigs are being used and 25 holes have been completed so far, comprised of 2,558 metres, and a further four holes are currently in progress. Five large diameter holes collecting bulk samples for copper leaching test work have also been completed with an additional 12 holes to follow.
The latest assay results have been received for three infill holes which were drilled to extend the resource eastward.
The first hole delivered intersects of 12.0 metres at 0.93% copper and another produced an intersection of 43.0 metres at 1.16% copper, including 8.0 metres at 2.52% copper and 13.0 metres at 1.6% copper.
Another hole delivered 5.0 metres at 1.8% copper and 6.2 metres at 1.06% copper, with that hole terminating at a grade of 1.2%, confirming the extension to the east. Another intersect from that hole came in at 22.0 metres at 1.07% copper, including 3.0 metres at 5.42% copper.
Assay results for a further five holes are expected shortly.
"Consistent intersections of strong copper mineralisation grading 1% to 2% and above so close to surface is considered to be highly positive for the Beraung Kan Main project, as is the extension of mineralisation beyond the current resource envelope," said the company.
"This shallow higher grade mineralisation is easily accessible for early mining and has the potential to further improve the very low mining strip ratio generated in the Beraung Kan Main preliminary economic assessment," Asiamet added.
Lower strip ratios would likely bring the mining costs down, therefore boosting the profitability and economics of the operation.
"The Beraung Kan Main deposit feasibility study drilling program is off to a flying start with these first results providing early confirmation of continuous shallow, high grade mineralization at the BK058 Zone," said Chief Executive Tony Manini.
Asiamet shares were up 2.9% to 2.34 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Asiamet Res (ARS)