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Asiamet Resources updates on BKM feasibility study as it near completion

Published: 03:08 30 Dec 2022 EST

Asiamet Resources Ltd - Asiamet Resources updates on BKM feasibility study as it near completion

Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) has updated investors on the feasibility study (FS) for its BKM copper project with the key documentation now nearing completion, due in February.

The study of the project in Central Kalimantan, Indonesia, includes a number of technical workstreams including mine planning, civil earthworks engineering, and infrastructure development, with some completed or nearing completion and others still ongoing.

The revised timeline for the study's delivery has been set for early February 2023, with expectations of robust economics despite the high inflation environment.

"Since commencing with the company in mid-June this year my focus has been primarily on understanding the conditions under which the BKM Copper Project will be developed and ensuring we deliver a project that is technically and economically robust for these conditions,” Asiamet chief executive Darryn McClelland in a statement.

“This process has led us to an in-depth re-evaluation of all aspects of the BKM Copper study and the previous underlying assumptions related to the project.

“The outcomes of this work have delivered a project of appropriate scale considering the cost inflation pressures being experienced and retains more of the BKM copper resource for future development," he added.

Asiamet highlighted in today’s statement that it has achieved a number of milestones in the past year, including securing a provisional license which converted a forestry concession area into a mining operational area, and it is expected to be converted to a definitive permit by the first quarter of 2023.

The company also completed a drilling program at BKM/BKZ, discovering high-grade gold-silver mineralization below the BKZ resource.

The BKM and BKZ deposits have been identified as part of a single 3.5 kilometres (km) long VHMS polymetallic mineral system.

The updated feasibility study has resulted in improvements to the life of mine physicals, a reduction in disturbance area and sulphuric acid consumption, and an increase in copper recovery.

The company plans to complete the FS update and submit a mining license application in 2023, with first copper production targeted for 2025.

Looking into the new year, McClelland added: “2023 will prove to be a defining year for Asiamet as we deliver the updated BKM Copper Feasibility Study and subsequently commence the next phase of financing work for mine development and construction.

“Other opportunities to deliver more value from the BKM copper resource will be explored as ways of further enhancing long-term value. The opportunity to progress work on Beutong will be a focus later in the year as we look to define an appropriate partnership model with parties interested in this outstanding copper resource.

“Other opportunities to expand the portfolio of projects within Indonesia will also be considered based on long-term value creation potential."

Asiamet talks ITE progress, offtake, permitting and third-party approaches

Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) CEO Darryn Mclelland talks through a recent comprehensive update on Asiamet's financing process and other activity including ITE due diligence for their debt finance process, progress on offtake pre-payment financing, permitting and project execution...

on 10/10/2023