TIDMARS
RNS Number : 3198S
Asiamet Resources Limited
25 June 2018
For Immediate Release London AIM
25 June 2018 Symbol: ARS
Asiamet Lifts Beutong Copper-Gold Project Interest to 80%
Asiamet is pleased to announce that negotiations to simplify the
exercise of its option agreement with PT Media Mining Resources
covering the Beutong copper-gold project ("Beutong") have been
completed and a single milestone payment of A$4.375million has been
made to increase its effective ownership in PT Emas Mineral Mumi
("EMM") from 40% to 80% by acquiring the remaining 50% of Beutong
Resources Pte Ltd. ("BRPL") that it does not already own. EMM, 80%
owned by BRPL, wholly-owns the Beutong Copper-Gold Deposit in Nagan
Raya Regency, Aceh, Indonesia. Beutong is held under a Mining
Business License for Production Operations "IUP-OP" which provides
for an initial 20 years of licence tenure which may be extended
twice, each for a period of 10 years, totalling 40 years. This is
the key licence required to advance the Beutong Project to the
development stage.
Highlights:
-- Equity interest in Beutong increases to 80% through exercise
of the option and delivery of recent milestones including the key
long-term production licence required to advance project to
development stage
-- Beutong is a large high-quality copper, gold, silver,
molybdenum deposit outcropping at surface and remaining open
laterally and at depth.
-- Resources contain 2.4Mt (5.3BIb) copper, 2.1Moz gold and
20.6Moz silver on 100% basis (1.92Mt (4.24Blb) copper, 1.68Moz gold
and 16.48Moz silver on an 80% attributable basis), reported in
accordance with the requirements of the JORC Code (2012).
-- Beutong very favourably located with regard to infrastructure
and logistics. The project is adjacent to a sealed road and
approximately 60km from a large power station and seaport
-- Significant scope to expand the mineral inventory with recent
drilling intersecting 456.0m at 1.06% CuEq. (0.93% Cu, 0.15g/t Au)
from 10.0m extending mineralisation beyond current the current JORC
Resource envelope and remaining open to depth and laterally.
-- Recent assays suggest that a significant proportion of the
Beutong East Porphyry copper mineralisation could potentially be
processed by heap leach to produce cathode copper. Extensive
metallurgical test work to further assess this potential is
required.
Peter Bird, Asiamet's Chief Executive Officer commented:
"Asiamet is extremely pleased to substantially lift its interest
in this advanced high quality copper-gold project at a time when
the copper market is forecast to be moving into supply deficit and
large copper development opportunities with nearby infrastructure
are rare. Achieving this major milestone doubles the Company's
attributable contained metal inventory in Beutong to 1.92Mt copper,
1.68Moz gold and 16.48Moz silver. The deposit remains open both
laterally and at depth with recent drilling at Beutong East hole
BEU0900-08 extending mineralisation beyond the current Resource
envelope and terminating, due to rig depth capacity, in
mineralisation grading 1.14% Cu. The Company looks forward to
reporting on progress at Beutong as the recently mobilised deeper
capacity drill rig ramps up and development activities
incorporating evaluation drilling, metallurgy and geotechnical
activities gain momentum in the second half of 2018."
Beutong Project Summary and Background
Joint Venture Agreement
On 11 February 2011, Asiamet, through its predecessor companies,
entered into an Option and Joint Venture agreement on the Beutong
project with PT Media Mining Resources (Media), an Indonesian
private company. The Joint Venture aims to combine the exploration
and development capability of Asiamet's team with the extensive
in-country operating experience of Media to unlock the potential of
the Beutong project through a staged work and earn-in program. Over
the past 8 years, Asiamet and its predecessor Company, Tigers Realm
Metals, earned a 40% interest in the Beutong project by sole
funding over A$13.3 million of intensive exploration/development
work and making a number of milestone payments to its Joint Venture
partner. Following recent negotiations, the parties agreed to
simplify the earn-in period and Asiamet lifted its interest in the
Beutong project from 40% to 80% through a single, final milestone
payment of A$4.375 million.
Geology and Resources
Since 1996, the Beutong project has been explored and evaluated
with 164 holes for 42.3km of diamond drilling completed. While the
geology is reasonably well understood, the deposit remains open in
several directions and requires extensive further evaluation work
to unlock its full value and potential.
Beutong is a large porphyry copper-gold system, which comprises
the Beutong East Porphyry ("BEP"), Beutong West Porphyry ("BWP")
and the Beutong Skarn("BSK") as shown in Figure1. Beutong has
current Resources containing 2.4Mt (5.3Blb) copper, 2.1Moz gold and
20.6Moz silver on a 100% basis (see announcement dated 08 January
2018), reported in accordance with the requirements of the JORC
Code (2012). The surface mineralisation at BEP and BWP comprises
chalcocite, covellite and digenite mineralisation with lesser
chalcopyrite. The outcropping BSK deposit comprises a garnet -
magnetite skarn with chalcocite-malachite-azurite in the upper
section and chalcopyrite-bornite mineralisation at depth.
At 600m-700m depth there is a notable transition to
chalcopyrite-bornite mineralisation, similar to the deeper sections
of other porphyry systems in Southeast Asia such as the giant
high-grade Grasberg Indonesia (Freeport-McMoRan Copper & Gold),
Wafi-Golpu PNG (Newcrest Mining) and Tujah Bukit Indonesia (Merdeka
Resources). At depth in the BEP, large clasts of potassic altered
(biotite, potassic feldspar and magnetite) diorite porphyry with
intense stockwork chalcopyrite-bornite mineralisation occur within
a diatreme breccia and are interpreted to have been transported
from a high-grade potassic core at depth. The BEP and BWP systems
remain open in several directions and the interpreted BEP
high-grade core remains untested at depth (Figure 2).
Infrastructure
The Beutong project is differentiated from many other large
copper deposits by its favourable location in moderate terrain 60
kilometres from the coast and by its proximity to well-developed
nearby transport and general infrastructure including roads, power
and seaport. These key features have the potential to favourably
impact development economics.
Tenement Status
In January 2018, the project was granted the key production
licence, Izin Usaha Pertambangan Operasi Produksi "IUP-OP"
following a period of two years working with the relevant
Indonesian authorities, particularly with the Ministry of Energy
and Mineral Resources ("ESDM") and the local government of Nagan
Raya Regency. It provides for an initial 20 years of licence tenure
which may be extended twice, each for a period of 10 years,
totalling 40 years. This is the key licence required to advance the
Beutong Project to the development stage. The support for the
project from the local and central government administrations and
the local community provides a firm basis for the further
development of Beutong.
2018 Work Program
For 2018, the Company plans to create further value through a
targeted infill and extension drilling program comprising eight
holes totalling approximately 4,000 metres. This work aims to
expand the boundaries of BEP and BWP deposits and test the gap
between them, further assess geotechnical conditions and the
potential for heap leach SX-EW processing of BEP mineralisation to
produce copper cathode. To date three holes for 767.5 metres have
been completed.
Figure 1: Location Map - to view the image click on the
following link
http://asiametresources.com/assets/img/ars1_beutong.png
Figure 2: Beutong Porphyry Deposit Resource Copper Grade Shells
- to view the image click on the following link
http://asiametresources.com/assets/img/ars2_beutong.png
Table of Comparable Projects - to view the image click on the
following link
http://asiametresources.com/assets/img/ars3_beutong.png
Qualified Person
Data disclosed in this press release have been reviewed and
verified by Asiamet's Qualified Person, Stephen Hughes, P. Geo, an
advisor to the Company and a Competent Person within the meaning of
JORC and for the purposes of the AIM Rules for Companies.
ON BEHALF OF THE BOARD OF DIRECTORS
Peter Bird, Deputy Chairman and CEO
For further information, please contact:
-Ends-
Peter Bird
Deputy Chairman and CEO, Asiamet Resources Limited
Telephone: +61 3 8644 1300
Email: peter.bird@asiametresources.com
Tony Manini
Executive Chairman, Asiamet Resources Limited
Telephone: +61 3 8644 1300
Email: tony.manini@asiametresources.com
FlowComms Limited
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: Sasha@flowcomms.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Andrew Thomson / Stephen Allen
Telephone: +61 8 9480 2500
Email: Andrew.Thomson@rfcambrian.com /
Stephen.Allen@rfcambrian.com
Liberum
Neil Elliot, Clayton Bush, Kane Collings
Telephone: +44 7773 322679
Email: Neil.Elliot@Liberum.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
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.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
Glossary of Technical Terms
"anomaly or anomalous" something in mineral exploration that geologists
interpret as deviating from what is standard, normal,
or expected.
"assay" The laboratory test conducted to determine the proportion
of a mineral within a rock or other material. For
copper, usually reported as percentage which is
equivalent to percentage of the mineral (i.e. copper)
per tonne of rock.
-------------------------------------------------------------------
"azimuth" the "compass direction" refers to a geographic bearing
or azimuth as measured by a magnetic compass, in
true or magnetic north.
-------------------------------------------------------------------
"bornite" Bornite, also known as peacock ore, is a copper
sulphide mineral with the formula Cu5FeS4.
-------------------------------------------------------------------
"breccia" Breccia is a rock classification, comprises millimetre
to metre-scale rock fragments cemented together
in a matrix, there are many sub-classifications
of breccias.
-------------------------------------------------------------------
"chalcocite" Chalcocite is a copper sulphide mineral with the
formula Cu2S and is an important copper ore mineral.
It is opaque and dark-gray to black with a metallic
luster.
-------------------------------------------------------------------
"chalcopyrite" Chalcopyrite is a copper sulphide mineral with formula
CuFeS2. It has a brassy to golden yellow colour.
-------------------------------------------------------------------
"channel sample" Samples collected across a mineralised rock exposure.
The channel is typically orientated such that samples
are collected perpendicular to the mineralised structure,
if possible.
-------------------------------------------------------------------
"chargeability" Chargeability is a physical property related to
conductivity. Chargeability is used to characterise
the formation and strength of the induced polarisation
within a rock, under the influence of an electric
field, suggesting sulphide mineralisation at depth.
-------------------------------------------------------------------
"CIM" The reporting standard adopted for the reporting
of the Mineral Resources is that defined by the
terms and definitions given in the terminology,
definitions and guidelines given in the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM)
Standards on Mineral Resources and Mineral Reserves
(December 2005) as required by NI 43-101. The CIM
Code is an internationally recognised reporting
code as defined by the Combined Reserves International
Reporting Standards Committee.
-------------------------------------------------------------------
"covellite" Covellite is a copper sulphide mineral with the
formula CuS. This indigo blue mineral is ubiquitous
in some copper ores.
-------------------------------------------------------------------
"diamond drilling" A drilling method in which penetration is achieved
through abrasive cutting by rotation of a diamond
encrusted drill bit. This drilling method enables
collection of tubes of intact rock (core) and when
successful gives the best possible quality samples
for description, sampling and analysis of an ore
body or mineralised structure.
-------------------------------------------------------------------
"digenite" Digenite is a copper sulfide mineral with formula
Cu9S5. Digenite is a black to dark blue opaque mineral.
-------------------------------------------------------------------
"dip" A line directed down the steepest axis of a planar
structure including a planar ore body or zone of
mineralisation. The dip has a measurable direction
and inclination from horizontal.
-------------------------------------------------------------------
"galena" Galena is the natural mineral form of lead (II)
sulphide, with formula PbS. It is the most important
ore of lead and an important source of silver. It
has a silver colour.
-------------------------------------------------------------------
"grab sample" are samples of rock material collected from a small
area, often just a few pieces or even a single piece
of rock "grabbed" from a face, dump or outcrop or
roughly 2-5kg. These are common types of rock samples
collected when conducting mineral exploration. The
sample usually consists of material that is taken
to be representative of a specific type of rock
or mineralisation.
-------------------------------------------------------------------
"grade" The proportion of a mineral within a rock or other
material. For copper mineralisation this is usually
reported as % of copper per tonne of rock (g/t).
-------------------------------------------------------------------
"g/t" grams per tonne; equivalent to parts per million
('ppm')
-------------------------------------------------------------------
"hematite" Hematite is the mineral form of iron(III) oxide
(Fe2O3), one of several iron oxides. Magnetite alteration
is also typically associate with porphyry copper
systems, at or close to the central core.
-------------------------------------------------------------------
"hypogene" Hypogene ore processes occur deep below the earth's
surface, and form deposits of primary minerals,
such as chalcopyrite and bornite.
-------------------------------------------------------------------
"Indicated Resource" An 'Indicated Mineral Resource' is that part of
a Mineral Resource for which quantity, grade (or
quality), densities, shape and physical characteristics
are estimated with sufficient confidence to allow
the application of Modifying Factors in sufficient
detail to support mine planning and evaluation of
the economic viability of the deposit.
Geological evidence is derived from adequately detailed
and reliable exploration, sampling and testing gathered
through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill
holes, and is sufficient to assume geological and
grade (or quality) continuity between points of
observation where data and samples are gathered.
An Indicated Mineral Resource has a lower level
of confidence than that applying to a Measured Mineral
Resource and may only be converted to a Probable
Ore Reserve.
-------------------------------------------------------------------
"Inferred Resource" An 'Inferred Mineral Resource' is that part of a
Mineral Resource for which quantity and grade (or
quality) are estimated on the basis of limited geological
evidence and sampling. Geological evidence is sufficient
to imply but not verify geological and grade (or
quality) continuity. It is based on exploration,
sampling and testing information gathered through
appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes.
An Inferred Mineral Resource has a lower level of
confidence than that applying to an Indicated Mineral
Resource and must not be converted to an Ore Reserve.
It is reasonably expected that the majority of Inferred
Mineral Resources could be upgraded to Indicated
Mineral Resources with continued exploration.
-------------------------------------------------------------------
"Induced Polarisation Induced polarisation (IP) is a geophysical survey
Geophysics" used to identify the electrical chargeability of
subsurface materials, such as sulphides. The survey
involves an electric current that is transmitted
into the subsurface through two electrodes, and
voltage is monitored through two other electrodes.
-------------------------------------------------------------------
"intercept" Refers to a sample or sequence of samples taken
across the entire width or an ore body or mineralised
zone. The intercept is described by the entire thickness
and the average grade of mineralisation.
-------------------------------------------------------------------
JORC The Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves ('the
JORC Code') is a professional code of practice that
sets minimum standards for Public Reporting of minerals
Exploration Results, Mineral Resources and Ore Reserves.
The JORC Code provides a mandatory system for the
classification of minerals Exploration Results,
Mineral Resources and Ore Reserves according to
the levels of confidence in geological knowledge
and technical and economic considerations in Public
Reports.
-------------------------------------------------------------------
"lbs" Pounds (measure of weight)
-------------------------------------------------------------------
"Mlbs" Million pounds (measure of weight)
-------------------------------------------------------------------
"magnetite" Magnetite is main iron ore mineral, with chemical
formula Fe3O4. Magnetite is ferromagnetic, and it
is attracted to a magnet and can be magnetised to
become a permanent magnet itself.
-------------------------------------------------------------------
"massive" In a geological sense, refers to a zone of mineralisation
that is dominated by sulphide minerals. The sulphide-mineral-rich
material can occur in centimetre-scale, metre-scale
or in tens of metres wide veins, lenses or sheet-like
bodies containing sphalerite, galena, and / or chalcopyrite
etc.
-------------------------------------------------------------------
"Measured Resource" A 'Measured Mineral Resource' is that part of a
Mineral Resource for which quantity, grade (or quality),
densities, shape, and physical characteristics are
estimated with confidence sufficient to allow the
application of Modifying Factors to support detailed
mine planning and final evaluation of the economic
viability of the deposit.
Geological evidence is derived from detailed and
reliable exploration, sampling and testing gathered
through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill
holes, and is sufficient to confirm geological and
grade (or quality) continuity between points of
observation where data and samples are gathered.
A Measured Mineral Resource has a higher level of
confidence than that applying to either an Indicated
Mineral Resource or an Inferred Mineral Resource.
It may be converted to a Proved Ore Reserve or under
certain circumstances to a Probable Ore Reserve.
-------------------------------------------------------------------
"Mineral Resource" A "Mineral Resource" is a concentration or occurrence
of diamonds, natural solid inorganic material, or
natural solid fossilised organic material including
base and precious metals, coal, and industrial minerals
in or on the Earth's crust in such form and quantity
and of such a grade or quality that it has reasonable
prospects for economic extraction. The location,
quantity, grade, geological characteristics and
continuity of a Mineral Resource are known, estimated
or interpreted from specific geological evidence
and knowledge.
-------------------------------------------------------------------
"mineralisation" In geology, mineralisation is the deposition of
economically important metals (copper, gold, lead,
zinc etc) that in some cases can be in sufficient
quantity to form mineral ore bodies.
-------------------------------------------------------------------
"open pit mining" A method of extracting minerals from the earth by
excavating downwards from the surface such that
the ore is extracted in the open air (as opposed
to underground mining).
-------------------------------------------------------------------
"outcrop" A section of a rock formation or mineral vein that
appears at the surface of the earth. Geologists
take direct observations and samples from outcrops,
used in geologic analysis and creating geologic
maps. In situ (in place) measurements are critical
for proper analysis of the geology and mineralisation
of the area under investigation.
-------------------------------------------------------------------
"polymetallic" three or more metals that may occur in magmatic,
volcanogenic, or hydrothermal environments; common
base and precious metals include copper, lead, zinc,
silver and gold.
-------------------------------------------------------------------
"polymict" A geology term, often applied to breccias or conglomerates,
which identifies the composition as consisting of
fragments of several different rock types.
-------------------------------------------------------------------
"porphyry" Porphyry copper deposits are copper +- gold +- molybdenum
orebodies that are formed from hydrothermal fluids
that originate from a voluminous magma chamber below
the deposit itself.
-------------------------------------------------------------------
"Preliminary NI 43-101 defines a PEA as "a study, other than
Economic Assessment" a pre-feasibility study or feasibility study, which
includes an economic analysis of the potential viability
of mineral Resources".
-------------------------------------------------------------------
"propylitic alteration" Propylitic alteration is the chemical alteration
of minerals within a rock, caused by hydrothermal
fluids. This style of alteration typically results
in epidote-chlorite+-albite alteration and veining
or fracture filling, commonly altering biotite or
amphibole minerals within the rock groundmass. It
typically occurs along with pyrite.
-------------------------------------------------------------------
"sediments" Sedimentary rocks formed by the accumulation of
sediments. There are three types, Clastic, Chemical
and Organic sedimentary rocks.
-------------------------------------------------------------------
"sequential assays" Sequential copper analysis is a technique to semi-quantitatively
define the zonations associated with some copper
deposits. The method is based on the partial dissolution
behaviour displayed by the prevalent copper minerals
to solutions containing sulphuric acid and sodium
cyanide. Results from sequential analyses can theoretically
determine the amounts of leachable oxide minerals,
leachable secondary sulphide minerals, and primary
copper minerals, respectively.
-------------------------------------------------------------------
"sphalerite" Sphalerite is a zinc sulphide in crystalline form
but almost always contains variable iron, with formula
(Zn,Fe)S. It can have a yellowish to honey brown
or black colour.
-------------------------------------------------------------------
"supergene" Supergene ore processes occur near surface, and
form deposits of secondary minerals, such as malachite,
azurite, chalcocite, covellite, digenite, etc.
-------------------------------------------------------------------
"surface rock Rock chip samples approximately 2kg in size that
chip samples" are typically collected from surface outcrops exposed
along rivers and mountain ridgelines.
-------------------------------------------------------------------
"veins" A vein is a sheet-like or anastomosing fracture
that has been infilled with mineral ore (chalcopyrite,
covellite etc) or mineral gangue (quartz, calcite
etc) material, within a rock. Veins form when minerals
carried by an aqueous solution within the rock mass
are deposited through precipitation and infill or
coat the fracture faces.
-------------------------------------------------------------------
"volcanics" Volcanic rock such as andesite or basalt that is
formed from magma erupted from a volcano, or hot
clastic material that erupts from a volcano and
is deposited as volcaniclastic or pyroclastics.
-------------------------------------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQLLFIRRRISFIT
(END) Dow Jones Newswires
June 25, 2018 02:00 ET (06:00 GMT)
Asiamet Resources (LSE:ARS)
Historical Stock Chart
From Apr 2024 to May 2024
Asiamet Resources (LSE:ARS)
Historical Stock Chart
From May 2023 to May 2024