REG - Asiamet Resources Ld - BKM Heap Leach Facility Earthworks Optimisation

Asiamet ResourcesAnnouncement

14/05/2024 07:00

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RNS Number : 2569O  Asiamet Resources Limited  14 May 2024

14 May 2024

 

BKM Heap Leach Facility Earthworks Optimisation

 

Asiamet Resources Limited ("Asiamet" or the "Company") is pleased to report
positive results flowing from recent optimisation work completed for the BKM
heap leach project in Central Kalimantan, Indonesia ("BKM" or the "BKM Copper
Project").

Detailed optimisation work on BKM by heap leap experts, Mineria & Servicos
SPA, Chile ("M&S") has been focused on a progressive development of the
Heap Leach Facility ("HLF") to reduce upfront project capital cost. The HLF is
the single largest capital cost item in the 2023 Feasibility Study ("FS") and
is the critical path activity for project construction.

Highlights

·     Optimisation Results: a revised location for the BKM HLF was assessed
with updated HLF pad designs completed by M&S. The overall bulk earthworks
volumes for the new pad are less than half that of the 2023 design.
Critically, the revised location allows the HLF pad to be constructed in two
stages, with the first stage development to enter production delivering a bulk
earthworks volume of approximately one-third of that required for the 2023 FS
design.

·     Implications: the considerable reduction in bulk earthworks to
achieve first production results in a substantial decrease in the upfront
capital cost of this critical phase of the project. A substantial reduction in
bulk earthworks volumes is also expected to reduce construction timeline and
move the HLF construction off the critical path in the project development
schedule.

BKM Project Heap Leach Facility Design Optimisation

On completion of the BKM 2023 FS, several project opportunities were
identified by the Company. The first and most significant opportunity
identified was the potential for construction of the BKM HLF in a revised
location, with the opportunity described in the 2023 FS as such:

"An expected 25% to 30% reduction in earthworks volume associated with Heap
Leach Pad construction. A more straightforward location to build with an
expected reduction in costs, material movement and an overall reduction in
construction time."

The location of the HLF presented in the 2023 FS was chosen due to the
proposed operational parameters of the project, namely copper production rate
and time to leach/dissolve the copper from the BKM ore. When compared to the
2019 BKM FS, the updated 2023 FS approach to developing the HLF significantly
reduced the cleared area required, driven primarily by a reduction in ore
volume stacked and the processing rate being reduced. The total excavated
earthworks volume for the BKM HLF was 3.2 million cubic metres, however the
location of the facility and its design necessitated all bulk earthworks for
the final pad design be completed at the time of project construction with no
opportunity to defer capital expenditure to later in the mine life.

A review of previous work was undertaken to assess the potential for better
alternatives for the BKM HLF. As part of this work, an area previously
considered to be too small for the proposed production rate and leach cycle,
was re-evaluated using updated parameters and demonstrated the opportunity to
build the HLF in two stages, thus reducing the volume of earthworks and
ultimately the initial capital cost to get BKM into production. The overall
earthworks volumes for the new HLF are as follows:

·    Stage 1: Excavated Volume - 1.1M cubic metres, Fill Volume - 1.3M
cubic metres

·    Final Stage: Incremental Excavated Volume - 1.0M cubic metres; Fill
Volume - 0.74M cubic metres

Additional fill to balance the earthworks for Stage 1 will be supplied from
excess excavated material elsewhere on the project.

The greatly reduced overall excavation volumes will be very positive from a
cost and construction schedule perspective, and the  revised location is
easier to complete construction works on. In addition, several key aspects,
including water management and the close proximity of excavation/fill
materials, deliver a lower overall construction risk profile for the new HLF
design.

 

Darryn McClelland, Chief Executive Officer, commented:

"I am pleased to share the outcomes of the work we have been pursuing to
optimise the development of the Heap Leach Facility, one of the most critical
elements of the BKM project infrastructure. This work has delivered a far more
optimal approach to BKM's development from both a physical and financial
perspective.

We can now pursue development of a smaller, initial stage heap leach facility
to get into production and defer capex to later in the project life. The
revised design for the HLF will also deliver lower construction risk compared
to our original project design.

The full impact of this optimisation work in terms of construction schedule
and capital cost will flow through from the detailed design and engineering
currently underway  for BKM. This coincides with the appointment of Rexline
Engineering and BGRIMM Technologies for engineering design work and ultimately
revisions to the capital cost estimate for the BKM Project. The Company looks
forward to providing regular updates from ongoing works as they become
available."

 

ON BEHALF OF THE BOARD OF DIRECTORS

Darryn McClelland, Chief Executive Officer

-Ends-

 

For further information, please contact:

 

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

Nominated & Financial Adviser
Strand Hanson Limited

James Spinney / James Dance / Rob Patrick

Telephone: +44 20 7409 3494

Email: asiamet@strandhanson.co.uk (mailto:asiamet@strandhanson.co.uk)

 

Broker

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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