BKM Maiden Ore Reserve
14/06/2019 07:00
RNS Number : 2894C
Asiamet Resources Limited
14 June 2019
14 June 2019
BKM Maiden Ore Reserve
Asiamet Resources Limited ("Asiamet", "ARS", or the "Company") is pleased to announce a maiden Ore Reserve for the Beruang Kanan Main ("BKM") copper deposit located in Central Kalimantan, Indonesia. Asiamet holds a 100% interest in BKM project through its operating subsidiary PT Kalimantan Suraya Kencana (PT KSK). The Statement of Ore Reserves in Table 1 completed by Australian Mine Design and Development Pty Ltd ("AMDAD") is reported in accordance with the requirements of the 2012 JORC Code.
Highlights:
· BKM 2019 Ore Reserves (JORC Code 2012) comprise:
· 21.1Mt @ 0.6% Cu for 137k contained tonnes of copper in the Proved category
· 30.4Mt @ 0.5% Cu, for 166k contained tonnes of copper in the Probable category
· 51.5Mt @ 0.6% Cu, for 303k contained tonnes of copper in the Proved and Probable category
· Ore Reserves are for the extraction by open-pit mining and processing by heap-leach and Solvent Extraction - Electrowinning ("SX-EW")
· Very strong conversion of Measured and Indicated Resource to Reserve highlights positive attributes and robustness of the BKM deposit.
· 94% conversion of Measure and Indicated Resource tons to Proven and Probable Ore Reserve (tonnes) and 74% conversion of Total Resource to Total Ore Reserves (tonnes)
Peter Bird, Asiamet's Chief Executive Officer commented:
"We are very pleased to deliver a maiden Ore Reserve for the BKM copper project, a major milestone which assesses the economic viability of the project. Ore Reserves represent that part of the Resource base which can be economically extracted using the parameters defined in the BKM Feasibility Study and provide the underlying foundations of the project. The very strong conversion of Resource to Reserve tonnages fully validates our belief that the BKM project represents a robust mid-size copper project with excellent potential for mine life extensions through further exploration and development.
The BKM project lies in a very prospective mineral district and is one of a few copper development projects close to the main consumer markets in Asia, at a time when the copper market is forecast to move into a supply deficit due to a lack of investment in exploration and development over the past 10 years. The BKM Copper project remains strongly positioned to capitalise on its proposed development timeline."
Table 1. The BKM Ore Reserve Estimate is summarised in the table below, June 2019 (100% Basis)
| Ore Reserve Category | Volume | Tonnes | Total | Soluble | Contained Copper | |
| Copper | Copper | Total | Soluble | |||
| Mbcm | Mt | % | % | kt | kt | |
| Proved Ore | ||||||
| Chalcocite dominant | 5.2 | 14.9 | 0.7 | 0.5 | 103 | 77 |
| Covellite/Bornite dominant | 1.6 | 4.4 | 0.5 | 0.5 | 24 | 20 |
| Chalcopyrite dominant | 0.6 | 1.9 | 0.6 | 0.2 | 11 | 3 |
| Total Proved Ore | 7.4 | 21.1 | 0.6 | 0.5 | 137 | 101 |
| Probable Ore | ||||||
| Chalcocite dominant | 5.8 | 15.4 | 0.6 | 0.4 | 88 | 63 |
| Covellite/Bornite dominant | 2.9 | 7.8 | 0.5 | 0.4 | 40 | 31 |
| Chalcopyrite dominant | 2.7 | 7.2 | 0.5 | 0.1 | 38 | 11 |
| Total Probable Ore | 11.4 | 30.4 | 0.5 | 0.3 | 166 | 105 |
| Proved + Probable Ore | ||||||
| Chalcocite dominant | 11.0 | 30.2 | 0.6 | 0.5 | 190 | 140 |
| Covellite/Bornite dominant | 4.5 | 12.2 | 0.5 | 0.4 | 64 | 51 |
| Chalcopyrite dominant | 3.3 | 9.1 | 0.5 | 0.2 | 49 | 14 |
| Total Proved and Probable Ore | 18.8 | 51.5 | 0.6 | 0.4 | 303 | 206 |
| Waste Rock | 33.1 | 85.0 | ||||
| Waste : Ore Ratio | 1.8 | 1.7 | ||||
| "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. |
| "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 Geophysics" | Induced polarisation (IP) is a geophysical survey 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 Economic Assessment" | NI 43-101 defines a PEA as "a study, other than 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 chip samples" | Rock chip samples approximately 2kg in size that 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. |