REG - Asiamet Res Ltd - Business Update & 2022 Overview

Asiamet ResourcesAnnouncement

30/12/2022 07:00

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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
(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.

 

 

 

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