REG - Asiamet Res Ltd - BKM Copper Project FS Activities Update

Asiamet ResourcesAnnouncement

10/02/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230210:nRSJ5661Pa&default-theme=true

RNS Number : 5661P  Asiamet Resources Limited  10 February 2023

10 February 2023

 

Asiamet Resources - BKM Copper Project FS Activities Update

 

Asiamet Resources Limited ("Asiamet" or "the Company") is pleased to provide
an update on recent works undertaken to finalise various components of the
Feasibility Study Update (FS Update) for the BKM Copper Project, located in
Central Kalimantan, Indonesia.

During the latter part of December 2022 and through to the current year to
date these activities include:

 

1.   Logistics & Site Access

The Asiamet CEO and members of BUMA's 1  (#_ftn1) Infrastructure Construction
team completed a week-long visit to Central Kalimantan to undertake the
following activities:

·    Site assessment of the main container port facility at Bagendang on
the Mentaya river and meeting with Port Management.

·    A full assessment of roads for the proposed logistics route from the
container port to the proposed BKM mine-site.

·    Assessment of several site areas related positioning of
infrastructure.

·    Inspection and assessment of the main access road with
representatives of the forestry contractor responsible for road corridor
construction and maintenance.

·    Inspection of national highway road construction on key sections that
will form part of the logistics corridor to the BKM site.

These assessments have provided a strong level of confidence in the proposed
approach to transport and logistics for the project.

 

2.   Site Survey

KSK's survey services partner PT Enmintech have completed two key scopes of
survey work.

·    Unmanned Aerial Vehicle ("UAV") LIDAR survey of the Heap Leach
Facility and Non-Process Infrastructure area to update the current LIDAR
survey for detailed design and to confirm current topography to ensure
accuracy of current earthworks designs.

·    Geophysical study using non-invasive Passive Seismic
Horizontal-to-Vertical Spectral Ratio ("HVSR") across the Heap Leach Facility
and Non-Process Infrastructure area. This study will provide detail of
subsurface geology across the entire area related to key infrastructure
development. Importantly this work delivers more detailed information on the
ground conditions to be encountered during earthworks on the project.

 

3.   Capital Cost Estimate

This critical workstream utilised specialist service providers based in
Australia, China and Indonesia for initial inputs. In early January
comparative proposals were received from an additional in-country service
provider capable of delivering several key packages within the BKM Processing
Plant flowsheet. High-confidence estimates were received in a short space of
time, and these have been very positive for the capital cost of the project
relative to original inputs. Final cost information is expected shortly, and
once received these will complete the BKM Copper Project capital cost update,
a key requirement for completion of the Feasibility Study economics.

 

4.   Power

·    PLN (the Indonesian State Electricity Company) delivered an
assessment of the powerline route, capital costs and possible tariff
arrangements for connection of the BKM Project to the Kalimantan grid network.
The proposal is currently being reviewed and a final meeting will be held to
close out any outstanding items.

·    Further discussions were held with the providers of a Biomass Power
Station option for the supply of power to the BKM project via a dedicated
transmission line. Some additional data has been requested, however overall,
the study into the feasibility of this power option has provided attractive
economics. Power generation via biomass is common at Palm Oil Mills across
Indonesia.

 

Remaining workstreams of a technical nature have also been completed or are in
the process of being completed to close out requirements in the relevant
Feasibility Study chapters. Key outcomes from technical studies that could
have impacted Capital or Operating Cost estimates have been completed such
that these will not hold up completion of financial modelling.

The Company expects to be able to present the full outcomes of the FS Update
soon upon completion and collation of these final workstreams.

 

Darryn McClelland, Chief Executive Officer commented:

"The back end of December, through the Christmas-New Year period and into 2023
has been an extremely busy period for the BKM Copper Feasibility Study update.
A number of activities continued through the holiday period which has enabled
earlier completion of several key inputs. Our early engagement with the bank
Independent Technical Expert ("ITE") helped focus a number of work streams and
the level of work performed by our engineering teams and consulting partners
is delivering very robust feasibility study outcomes. We are making excellent
use of new data available and generating improved information and
interpretations via current work programs to deliver a high confidence level
study.

The final updates and reviews of the pre-production Capital Cost for the
project are expected to be finalised shortly. Engaging a new in-country group
capable of supplying and installing major parts of the BKM processing plant
at highly competitive pricing at this time has meant a short extension to
our delivery date, however, from what we are seeing, it is clear the
outcomes from this additional engagement have delivered significant benefits
in terms of savings to the capital cost estimate and
has helped mitigate the inflationary pressures being experienced by
projects globally.

The final aspect of the operating cost inputs for the Feasibility Study
economics is the Mining Operational Services scope which is being undertaken
by BUMA and the first draft of these cost estimates is imminent. This final
piece of the overall cost model will need to be reviewed thoroughly with BUMA
prior to input into the BFS financial model. At the completion of these
reviews and following board approvals, we look forward to sharing the
financial outcomes of the BKM Copper FS.

We are very pleased with the way the BKM Copper Project FS update has
progressed over the last 6 months and are looking forward to presenting the
outcomes and forward plans for the project on release of the FS Executive
Summary, which will be accompanied by a Webinar with a Q&A session."

 

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
(mailto:darryn.mcclelland@asiametresources.com)

 

Tony Manini
Executive Chairman, Asiamet Resources Limited

Email: tony.manini@asiametresources.com
(mailto:tony.manini@asiametresources.com)

 

Investor Enquiries

Sasha Sethi

Telephone: +44 (0) 7891 677 441

Email: Sasha@flowcomms.com (mailto: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 (mailto:Bhavesh.Patel@rfcambrian.com)  /
Stephen.Allen@rfcambrian.com (mailto:Oliver.Morse@rfcambrian.com)

 

Optiva Securities Limited
Christian Dennis

Telephone: +44 20 3137 1903

Email: Christian.Dennis@optivasecurities.com
(mailto: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.

 

 

 

 1  (#_ftnref1) BUMA ("PT Bukit Makmur Mandiri Utama") is an operating
subsidiary of publicly-listed Indonesian company, PT Delta Dunia Makmur Tbk
("DOID")

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDQBLBFXLLEBBQ