Asiamet Resources Limited Asiamet Bkm Copper Project Feasibility Study Results Enhance Mine Development Potential
March 22 2017 - 3:00AM
UK Regulatory
TIDMARS
Asiamet Resources Limited ("ARS" or the "Company") is pleased to provide
an update on the progress being made on the Beruang Kanan Main ("BKM")
feasibility studies.
-- Significant ramp-up of metallurgical activities over the past two months
-- Geotechnical program completed with no major issues identified
-- Numerous options to reduce pre-production capital and favourable
conditions to support low mining costs identified in the geotechnical
studies
-- Project Definition Study, focused on mining engineering has been
completed
-- Production capacity confirmed at 25 ktpa copper cathode with phased
approach a suitable option to lower pre-production capital and provide a
better start up risk profile for the BKM development
Resource definition and metallurgical test-work programs continue to
advance as planned, with a significant ramp-up of activities over the
past two months.
In parallel to these key project elements, the Company has progressed
the early phase feasibility studies into the engineering and design
aspects of the project. These studies utilize the information and
learnings developed by Asiamet over the past year, and build on the
positive conceptual design work conducted as part of the Preliminary
Economic Assessment (PEA).
PT Ground Risk Management (GRM) was commissioned to lead the
geotechnical program for the BKM project. A highly experienced
consultancy, GRM has completed over 100 geotechnical assignments across
the Indonesian archipelago in the past eight years, more than 50 of
which have been based in Kalimantan, where the BKM copper project is
located.
GRM completed a program of data collation, detailed mapping,
geotechnical logging and laboratory testing to develop a robust
geotechnical database for the open pit mine, including assessments and
recommendations on the location and management of waste dumps.
Geotechnical input into the infrastructure location studies and a field
survey of the site access road route was also completed.
Highlights of the work completed by GRM include:
-- Approximately 34% of material in the shallower 35-40 metres of the
proposed pit, is classified as 'easy digging', which will contribute to
relatively lower mining costs.
-- No foundation treatment is likely to be required below the proposed waste
dump locations, saving on potential pre-production costs for development
of the waste dump site.
-- There is the potential to steepen pit wall angles in the upper section of
the open pit (<40 metres depth), compared with the previous pit design.
This would lead to lower estimated operating costs through a lower strip
ratio.
-- Investigations revealed there are no large landslides that could present
a significant impact to the project. This includes both the proposed
open pit and the potential infrastructure locations.
-- The BKM copper deposit lies within an area of very low seismicity and
seismic ground vibrations are therefore expected to be insignificant in
terms of earthworks design.
-- The trafficability of the existing site access road is considered to be
good. GRM suggest that the mine development proceed with zero upgrade
work and address the potential hazards and reliability issues through
simple, operational procedures and effective road maintenance systems.
Australian Mine Design and Development (AMDAD) were engaged to undertake
the mining engineering components of the feasibility study. AMDAD's
scope of work for the initial phase included open pit optimization,
production rate assessments and development scenario analysis. AMDAD
completed a Project Definition Study (PDS) to address the scope of work,
which builds upon planning from the PEA on the BKM Project.
The PDS updates the cost and revenue assumptions from the PEA and
provides a sufficiently detailed pit design and schedule to demonstrate
the practicality of the mine plan including an updated assessment of the
site layout. This updated design and schedule potentially offers major
operational and cost benefits compared to the PEA design.
Highlights of optimization results reported by AMDAD include:
-- The production rate assessments confirmed the PEA assumption that a 25
ktpa Copper Cathode operation was the optimal name-plate capacity for
BKM.
-- The development scenario analysis identified a potential phased
development solution, with an initial project phase targeting 10 ktpa
copper cathode production, followed by an expansion to the name-plate
capacity of 25 ktpa. Such an approach would provide a number of benefits,
namely:
-- Lower up front pre-production capital costs
-- The likelihood that cash flows from production during the 10 ktpa
phase could be used to finance a substantial portion of the
expansion costs
-- A more favourable risk profile for the BKM project
-- Significant potential upside exists with the next update of the Resource
model, definition of leachable copper and improvements to the mine
sequencing to maximise early copper production, while deferring waste
mining costs.
-- The PDS indicates significant value for the project with strong positive
cash flows from the first year of operations and a project life of at
least nine years.
-- Further work is required to plan for acid drainage controls and
optimisation of the site layout.
Results of the PDS provide a high level of confidence in advancing to a
Definitive Feasibility Study.
Detailed feasibility study work is continuing as results from the
current Resource definition and metallurgical test-work programs become
available. With improved Resource knowledge, AMDAD will execute the
required work to produce feasibility level pit designs, waste rock
management and dump designs, mining equipment sizing and selection, mine
scheduling, and the estimation of capital and operating costs for the
mine.
The Resource definition drilling program is expected to be completed in
early April with an updated Resource estimate due shortly thereafter.
Peter Bird, Asiamet's Chief Executive Officer commented:
"The positive results generated from these early engineering and design
studies, coupled with the excellent results and progress being made in
our Resource definition and metallurgical test-work programs, enhances
the potential for developing a high quality medium scale copper mine at
BKM. Outputs from these studies enables the Company to accurately
define the work required to finalize the Definitive Feasibility Study
phase of the project. The work undertaken by our highly experienced
team continues to advance the BKM feasibility study in line with
best-practice and we look forward to reporting further results as they
become available."
Qualified Person
Data disclosed in this press release have been reviewed and verified by
ARS'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
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 / Mehrdad@flowcomms.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Andrew Thomson / Oliver Morse
Telephone: +61 8 9480 2500
Email: Andrew.Thomson@rfcambrian.com / Oliver.Morse@rfcambrian.com
VSA Capital Limited
Andrew Raca / Justin McKeegan
Telephone: +44 20 3005 5004 / +44 20 3005 5009
Email: araca@vsacapital.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 characterized 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 is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Asiamet Resources Limited via Globenewswire
http://www.asiametresources.com
(END) Dow Jones Newswires
March 22, 2017 03:00 ET (07:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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