Asiamet Res Regulatory News (ARS)

 

 

For Immediate Release London AIM

 

6 October 2017 Symbol: ARS

 

 

 

Asiamet BKM Copper Project Feasibility Study Advancing

 

Excellent progress continues to be made on the Beruang Kanan Main ("BKM") Feasibility Study, encompassing all technical, commercial, environmental and community disciplines.

Focus in the period since our recent successful capital raising has been as follows:

Mining and metallurgical engineering activity has been advancing through design and analytical work, utilising the recently updated BKM Resource information The metallurgical test-work program has significantly advanced through the column leaching phase and complementary laboratory work including physical (hydrodynamic) leach pad modelling to support leach pad optimisation has been initiated Shortlisted service providers covering the process engineering, power supply, and water management components of the BFS are being evaluated. Preferred vendors will be engaged shortly to accelerate these aspects of the study

Mine Engineering

Mine engineering activities ramping-up: Australian Mine Design and Development ("AMDAD") were engaged in 2016 to undertake the mining engineering components of the Feasibility Study. AMDAD has extensive and relevant experience working in Indonesia and in early 2017 completed a Project Definition Study ("PDS") for the BKM project (see RNS dated 22 March 2017) which built upon the planning from the Preliminary Economic Assessment ("PEA") to provide better definition for the Feasibility Study scope of work. The results of the AMDAD PDS provided a high level of confidence in advancing to a Bankable Feasibility Study ("BFS").

AMDAD are now developing new mining cost models and re-running a series of pit optimisations based on the updated BKM Resource (see RNS dated 28 June 2017) and utilising more refined metallurgical and project planning information.

Metallurgical Engineering

Metallurgical test-work program continuing optimisation activities: David Readett from MWorx, the lead metallurgical consultant for the BKM Feasibility Study, has continued to oversee the leach column program being undertaken at CORE laboratories in Brisbane. Column tests have been running since January 2017 and the short (2 metre) columns are currently progressing through the scheduled closure process. Results in relation to this work are anticipated before the end of October. The longer columns (6 metre) will continue operating as planned, through to the 4th quarter of 2017.

The study team have also recently initiated a hydrodynamic testing program which is being conducted at the world-leading HydroGeoSense ("HGS") facility in Arizona. The hydrodynamic testing is a critical input to the heap-leach design and focuses heavily on the physical behaviour of fluid-flow within the heap.

Key data generated from these programs will allow the project team to develop a robust and optimised set of design criteria for the heap-leach pads and overall process engineering work.

Geochemistry

Kinetic test-work focused on the behaviour of the proposed waste dump materials to environmental conditions overtime is underway and will support the geochemical analysis being completed by our environmental team at PT Lorax.

Vendor Selection

Additional contractors and consultants continue to be engaged to support ramp-up of activities.

The selection of a process engineering service provider is well advanced, with proposals having been submitted to the Company from seven international engineering consultancies. Engagement of the preferred process engineering contractor will be made shortly along with service providers covering the following key study components:

Power supply: Based upon the PEA it is anticipated that approximately 20MW of electricity will be required to support operations at BKM. The study will determine the most appropriate technical and commercial approach to supply power to the BKM operation.

 

Water Management: Asiamet, supported by PT Lorax's Indonesian and international experts, is developing site-wide water and load balances using custom-built water management models. This is a key area for the BKM Project to be initiated early this month.

 

Site Infrastructure layout: Asiamet will shortly commence a limited drilling program to confirm the suitability of key areas for locating mine-site infrastructure from a mineralisation and geotechnical perspective. This work is planned to be completed in the 4th quarter of 2017.

 

Peter Bird, Asiamet's Chief Executive Officer commented:

"Following on from an intensive Resource evaluation drilling programme and subsequent significant upgrade in the BKM copper Resource estimate, we are pleased to report a significant ramp up of activity relating to the engineering and design aspects of the BKM Bankable Feasibility Study.

The Bankable Feasibility Study is very focused on fine tuning the outcomes of the PEA. We are really pleased with the positive results generated from the early phase engineering and design studies, coupled with the excellent results from our exploration and metallurgical test-work programs. Work to date reaffirms the potential for developing a high-quality copper mine at BKM. The detailed engineering and design is a large package of work which will significantly advance the progress and robustness of the BKM BFS and we look forward to progressively reporting results as they become available."

 

Qualified Person

Data disclosed in this press release have been reviewed and verified by Asiamet's qualified person, Stephen Hughes, P. Geo, Vice President Exploration of the Company and a Qualified Person within the meaning of NI 43-101 and for the purposes of the AIM Rules

 

ON BEHALF OF THE BOARD OF DIRECTORS

Peter Bird, Deputy Chairman and CEO

-Ends-

For further information, please contact:

Peter BirdDeputy Chairman and CEO, Asiamet Resources LimitedTelephone: +61 3 8644 1300Email: peter.bird@asiametresources.com

 

Tony ManiniExecutive Chairman, Asiamet Resources LimitedTelephone: +61 3 8644 1300Email: tony.manini@asiametresources.com

 

FlowComms Limited

Sasha Sethi

Telephone: +44 (0) 7891 677 441

Email: Sasha@flowcomms.com 

Asiamet Resources Nominated AdviserRFC Ambrian Limited

Andrew Thomson / Stephen Allen

Telephone: +61 8 9480 2500

Email: Andrew.Thomson@rfcambrian.com / Stephen.Allen@rfcambrian.com

 

Optiva Securities LimitedChristian Dennis

Telephone: +44 20 3137 1903

Email: Christian.Dennis@optivasecurities.com

 

 

 

Forward looking statements

This announcement includes "forward-looking statements" which include all statements other than statements of historical facts, including, without limitation, those regarding the Company's business strategy, plans and objectives of management for future operations, or any statements proceeded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by applicable law or the AIM Rules.