TIDMARS
RNS Number : 3096L
Asiamet Resources Limited
30 December 2022
30 December 2022
Business Update & 2022 Overview
Asiamet Resources Limited ("Asiamet" or the "Company") is
pleased to provide the following business update with respect to
the Feasibility Study for the BKM copper project located in Central
Kalimantan, Indonesia, along with a general overview of 2022.
Feasibility Study Update
The Feasibility Study Update (FS Update) for the BKM copper
project incorporates a number of technical workstreams, including
but not limited to, mine planning and design, geotechnical/
hydrogeology/hydrology, processing/metallurgy, civil earthworks
engineering, infrastructure development, transport and logistics,
power and ESG framework development and generation of operational
and capital cost estimates delivering overall economics of the
project. A number of these workstreams are either completed or in
the final review processes of being completed however several
remain ongoing at this time. There will be some impact on delivery
of information due to the holiday break over the Xmas-New Year
period with the expectation that outstanding packages of work will
be completed during January 2023. Based on the current expected
timing for finalising outstanding work, the revised timeline to
deliver the BKM copper project FS Update will be early February
2023. Whilst we are working in a high inflation backdrop, based on
key items that have been delivered to date we expect the overall
economics to the project to be robust. The market will continue to
be updated as results from workstreams are delivered and
compilation of the feasibility study document is finalised.
2022 Overview
Over the past 12 months several important milestones for the
company have been achieved:
-- Issuance of the provisional license converting BKM's forestry
concession area to the mining operational area. Several key
conditions required to convert this permit from provisional to
definitive have been completed with only one aspect remaining
outstanding. Finalisation of the requirements for converting this
permit are expected to be completed by the end of Q1, 2023 for
final submission to the Ministry of Forestry.
-- Completion of the 2021/2022 drilling program at BKM/BKZ
delivered excellent results at BKZ leading to a substantial
increase in all Mineral Resources for the deposit. High grade
gold-silver mineralization was discovered below the BKZ resource
and reported as an Exploration Target. Limited further work is
expected to convert this Exploration Target to a Mineral
Resource.
-- BKM and BKZ were recognised to be parts of a single 3.5km
long VHMS polymetallic mineral system which remains highly
prospective and requires substantial additional geological follow
up and drilling. BKZ was prioritised for the 2021/2022 drilling
program based on the outstanding results received and information
requirements for the placement of proposed mine infrastructure. The
BKZ Resource and surrounding perspectivity provide very significant
future option value for the Company post the initial development of
BKM. The extension opportunity at BKM also remains, and the Company
will explore this further in due course as resources become
available and as part of the overall development strategy for the
project area.
-- As a result of macro-economic factors, including supply
constraints and inflation, the 2022 update of the 2019 Feasibility
Study evolved into a full revision of the previous work with all
aspects of the project being re-evaluated. A high level of
technical assessment has yielded the following improvements:
o Improved life of mine physicals including a very detailed
alignment of the mining production and heap leach stacking schedule
has reduced total material movement and the overall strip
ratio.
o Significantly reduced disturbance area related to the project
most notably the Heap Leach Facility and Waste Rock Dump.
o A 50% reduction in sulphuric acid consumption over the life of
mine compared to the 2019 Feasibility Study which will have a
positive impact on operating costs and overall environmental
impact.
o Additional climate data analysis providing confidence to
reduce the project mean annual rainfall assumption by 18%, which
will result in reduced capital and operating costs in relation to
site water treatment and management. These results led to the
complete review of the approach to water management across the
site.
o Recognition that excess power being available in Central
Kalimantan leading to formal engagement with Indonesian state owned
electricity company PLN on the delivery of grid power to the KSK
site.
-- Asiamet and its subsidiary PT KSK completed its first
detailed materiality assessment related to Environmental, Social
and Governance elements in cooperation with internationally
recognised sustainability consulting group ERM. This delivered the
company's first integrated ESG implementation framework which will
be utilised to develop appropriate policies and procedures as we
transition from explorer to producer. Community engagement remained
high in 2022 with Asiamet and KSK's partner YTS conducting focus
group discussions with key stakeholder groups to provide input into
desired outcomes of KSK's community development plan and delivering
detailed contextual analysis documentation for each of the six
pillars constituting the plan.
-- DOID increased their investment and shareholding in the
Company from 15.3% to 24.2%, demonstrating their commitment to the
project and the Company longer term. As part of this investment
DOID has the option to appoint two non-executive directors to the
Asiamet board and these nominations are likely to be received in
the new year. These appointments will complement the current board
and enhance our in-country operating knowledge.
Darryn McClelland, Chief Executive Officer commented:
"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. 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.
The exploration resource development drilling completed over
2021 and 2022, culminated in the issue of an updated JORC compliant
Mineral Resource Estimate for the BKZ Lead-Zinc and Copper zones as
well as Exploration Targets for all zones including a significant
body of Gold-Silver mineralization beneath the BKZ base metals
deposit. This work adding substantial intrinsic value to the
project and clearly demonstrated the significant upside and
optionality within the Company's KSK Contract of Work. The enhanced
geological understanding gained through this program is applicable
across the entire BK district and will greatly improve our
targeting for this very high value mineralisation when exploration
drilling recommences.
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."
ON BEHALF OF THE BOARD OF DIRECTORS
Darryn McClelland, Chief Executive Officer
For further information, please contact:
-Ends-
Darryn McClelland
Chief Executive Officer, Asiamet Resources Limited
Email: darryn.mcclelland@asiametresources.com
Tony Manini
Executive Chairman, Asiamet Resources Limited
Email: tony.manini@asiametresources.com
Investor Enquiries
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: Sasha@flowcomms.com / info@asiametresources.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Bhavesh Patel / Stephen Allen
Telephone: +44 (0)20 3440 6800
Email: Bhavesh.Patel@rfcambrian.com / Stephen.Allen@rfcambrian.com
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.
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END
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