LONDON (Alliance News) - Asiamet Resources Ltd on Wednesday said it has secured an updated mineral resource estimate for the Beruang Kana Main deposit in Indonesia, giving the company its first indicated resource for the area.
The updated resource has shown a large increase in contained copper, with 105,000 tonnes of copper being added to its maiden indicated resources and another 18,000 tonnes being added to its existing inferred resources.
The indicated resource now stands at 15.0 million tonne of ore at 0.7% copper, containing those 105,000 tonnes of copper. Previously, the company did not have any indicated resource at the project.
The inferred resource stands at 49.7 million tonnes of ore at a grade of 0.6% copper, containing a total of 298,000 tonnes of copper.
"Resource confidence significantly upgraded. Asiamet's 2015 drill program has demonstrated good continuity of shallow near-surface copper mineralization and successfully upgraded a significant portion of the previous inferred resource to the Indicated resource category," Asiamet said in a statement.
The updated resource means the company can assess various options relating to the processing plant at the project, which could see production levels push higher than originally thought or the additional resource could be used to extend the project's mine life.
Two "discrete" near-surface higher grade zones were identified in the 2015 drilling programme, and provide Asiamet with an opportunity to assess the potential for higher grade starter pit opportunities that can enhance project economics.
Other priority targets for additional copper mineralization have been identified at the Beruang Kanan South, Beruang Kanan West and BKZ Polymetallic prospects, all of which lie nearby the existing deposit.
Asiamet shares were down 10% to 1.41 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Asiamet Res (ARS)