Asiamet Resources Limited Regulatory News (ARS)

14 May 2024 

BKM Heap Leach Facility Earthworks Optimisation

Asiamet Resources Limited ("Asiamet" or the "Company") is pleased to report positive results flowing from recent optimisation work completed for the BKM heap leach project in Central Kalimantan, Indonesia ("BKM" or the "BKM Copper Project").

Detailed optimisation work on BKM by heap leap experts, Mineria & Servicos SPA, Chile ("M&S") has been focused on a progressive development of the Heap Leach Facility ("HLF") to reduce upfront project capital cost. The HLF is the single largest capital cost item in the 2023 Feasibility Study ("FS") and is the critical path activity for project construction.

Highlights

· Optimisation Results: a revised location for the BKM HLF was assessed with updated HLF pad designs completed by M&S. The overall bulk earthworks volumes for the new pad are less than half that of the 2023 design. Critically, the revised location allows the HLF pad to be constructed in two stages, with the first stage development to enter production delivering a bulk earthworks volume of approximately one-third of that required for the 2023 FS design. 

· Implications: the considerable reduction in bulk earthworks to achieve first production results in a substantial decrease in the upfront capital cost of this critical phase of the project. A substantial reduction in bulk earthworks volumes is also expected to reduce construction timeline and move the HLF construction off the critical path in the project development schedule.

BKM Project Heap Leach Facility Design Optimisation

On completion of the BKM 2023 FS, several project opportunities were identified by the Company. The first and most significant opportunity identified was the potential for construction of the BKM HLF in a revised location, with the opportunity described in the 2023 FS as such:

"An expected 25% to 30% reduction in earthworks volume associated with Heap Leach Pad construction. A more straightforward location to build with an expected reduction in costs, material movement and an overall reduction in construction time."

The location of the HLF presented in the 2023 FS was chosen due to the proposed operational parameters of the project, namely copper production rate and time to leach/dissolve the copper from the BKM ore. When compared to the 2019 BKM FS, the updated 2023 FS approach to developing the HLF significantly reduced the cleared area required, driven primarily by a reduction in ore volume stacked and the processing rate being reduced. The total excavated earthworks volume for the BKM HLF was 3.2 million cubic metres, however the location of the facility and its design necessitated all bulk earthworks for the final pad design be completed at the time of project construction with no opportunity to defer capital expenditure to later in the mine life.

A review of previous work was undertaken to assess the potential for better alternatives for the BKM HLF. As part of this work, an area previously considered to be too small for the proposed production rate and leach cycle, was re-evaluated using updated parameters and demonstrated the opportunity to build the HLF in two stages, thus reducing the volume of earthworks and ultimately the initial capital cost to get BKM into production. The overall earthworks volumes for the new HLF are as follows:

· Stage 1: Excavated Volume - 1.1M cubic metres, Fill Volume - 1.3M cubic metres

· Final Stage: Incremental Excavated Volume - 1.0M cubic metres; Fill Volume - 0.74M cubic metres

Additional fill to balance the earthworks for Stage 1 will be supplied from excess excavated material elsewhere on the project.

The greatly reduced overall excavation volumes will be very positive from a cost and construction schedule perspective, and the revised location is easier to complete construction works on. In addition, several key aspects, including water management and the close proximity of excavation/fill materials, deliver a lower overall construction risk profile for the new HLF design.

Darryn McClelland, Chief Executive Officer, commented:

"I am pleased to share the outcomes of the work we have been pursuing to optimise the development of the Heap Leach Facility, one of the most critical elements of the BKM project infrastructure. This work has delivered a far more optimal approach to BKM's development from both a physical and financial perspective.

We can now pursue development of a smaller, initial stage heap leach facility to get into production and defer capex to later in the project life. The revised design for the HLF will also deliver lower construction risk compared to our original project design.

The full impact of this optimisation work in terms of construction schedule and capital cost will flow through from the detailed design and engineering currently underway for BKM. This coincides with the appointment of Rexline Engineering and BGRIMM Technologies for engineering design work and ultimately revisions to the capital cost estimate for the BKM Project. The Company looks forward to providing regular updates from ongoing works as they become available."

ON BEHALF OF THE BOARD OF DIRECTORS

Darryn McClelland, Chief Executive Officer

-Ends-

For further information, please contact:

Darryn McClelland Chief Executive Officer, Asiamet Resources LimitedEmail: darryn.mcclelland@asiametresources.com

Tony Manini Executive Chairman, Asiamet Resources LimitedEmail: tony.manini@asiametresources.com

Investor Enquiries

Sasha Sethi

Telephone: +44 (0) 7891 677 441

Email: Sasha@flowcomms.com / info@asiametresources.com

Nominated & Financial Adviser Strand Hanson Limited

James Spinney / James Dance / Rob Patrick

Telephone: +44 20 7409 3494

Email: asiamet@strandhanson.co.uk

Broker

Optiva Securities Limited Christian Dennis

Telephone: +44 20 3137 1903

Email: Christian.Dennis@optivasecurities.com

Follow us on twitter @AsiametTweets

FORWARD-LOOKING STATEMENT

This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.