REG - Asiamet Resources Ld - BKM Project Engineering Design & Execution Update

Asiamet ResourcesAnnouncement

28/03/2024 07:15

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RNS Number : 6716I  Asiamet Resources Limited  28 March 2024

28 March 2024

 

BKM Project Engineering Design and Execution Update

 

Asiamet Resources Limited ("Asiamet" or the "Company") announces a further
update in relation to the Company's wholly owned, development stage, BKM
copper project located in Central Kalimantan, Indonesia ("BKM" or the "BKM
Copper Project").

Highlights

·     Early EPC Engagement: Asiamet has engages project execution partners
for engineering, procurement, and construction, optimising project integration
and cost estimation accuracy. Specific focus on critical path project
engineering activities.

·     Execution Partners Appointed: PT Rexline Engineering Indonesia
selected for comprehensive engineering design covering materials handling and
non-process related infrastructure elements, ensuring continuity and cost
efficiency.

Beijing Research Institute of Mining and Metallurgy engaged for process
infrastructure engineering, leveraging expertise from prior successful
collaboration.

·     Further contractor Engagement and Project Management: engagement
progressing with contractor for site earthworks, pre-production development,
and mining services, prioritising early engagement for cohesive project
execution. Partnerships to strengthen project management capabilities,
enhancing efficiency in scheduling, cost estimation, and planning.

Engineering Design & Development Strategy

As previously indicated, in response to feedback from the Independent
Technical Expert (ITE) review of the 2023 Feasibility Study ("2023 FS") as
part of the debt financing process, the Company has refined its approach to
delivering engineering design, procurement and construction and implemented a
strategy of engaging partners early to deliver engineering design, procurement
and construction execution across various scopes of work for the BKM Project.

This approach enables improved integration of project execution disciplines
and an expected increase in accuracy with respect to project capex
estimation.

The Company has chosen the following preferred execution partners for delivery
of the BKM Project - the work areas referenced cover the entire site-based
scope of work:

 

PT Rexline Engineering Indonesia ("Rexline")

Rexline will complete engineering design of the crushing and ore handling
system and non-process infrastructure such as the main accommodation camp,
site offices, workshop and warehouses. Rexline have significant experience in
delivering design and construction of this type of infrastructure in the
Central Kalimantan coal industry.

Rexline will provide cost estimation for all construction execution excluding
scope related to project bulk earthworks, mine operations infrastructure
development and pre-production mine operations.

 

Beijing Research Institute of Mining and Metallurgy ("BGRIMM")

BGRIMM will deliver engineering for the Solvent Extraction, Electrowinning,
Water Treatment ("SX-EW") and Reagent Preparation process infrastructure. This
is a continuation of engagement with BGRIMM from the 2023 FS update.

The SX-EW plant is a critical component of the BKM processing facility as it
delivers the processes of metal purification and copper metal production.

The BGRIMM Group has over six decades of experience, specialising in
technology and innovation in the mining sector.  BGRIMM's core strength and
competitive advantage is in engineering design, procurement and equipment
manufacturing. Their input into this project is an important part of the
overall design and will positively impact costs through their purchasing
power. BGRIMM have provided engineering design and procurement for several
SX-EW facilities in various countries (such as Central Asian Metals' Kounrad
facility in Kazakhstan) and are familiar with engineering design requirements
of Indonesia given their association with several past and current projects in
the country.

 

Further Contractor Engagement

The Company is advancing discussions with a highly reputable contractor
capable of delivering the project site earthworks, mine pre-production
development, mine operations infrastructure and mining services at least for
the first 5 years of the project life. This strategy differs from the 2023 FS,
in that separate contractors were engaged to provide quotes for the cost of
project earthworks and mining operations. The Company is committing to an
integrated approach of project and operations earthworks to leverage the use
of common mobile equipment fleet. Further details of this contractor
engagement will be provided as they become available.

The Company is engaging with suitable partners capable of providing project
management support updating key project execution deliverables such as project
schedule, capex estimate and project execution planning.

 

BKM Copper Project Optimisation

An  improved heap leach facility location has been proposed and detailed
modelling of a new facility layout is underway through engagement of Chilean
expert heap leach design group Minera and Servicos (M&S). The outcome of
this work will be communicated in Q2 2024.

Optimisation of engineering resources and costs, along with low-cost equipment
and materials sourcing will be realised through the aforementioned project
partner engagement strategy.

A recent review of site access road earthworks and local equipment hire costs
indicates significant potential savings on this activity are possible relative
to the 2023 FS. A detailed inspection and further refinement of the cost
estimate will be undertaken in April 2024.

 

Darryn McClelland, Chief Executive Officer, commented:

"Our approach to project execution for BKM has evolved, taking into
consideration feedback from the ITE as well as the positive outcomes realised
in the 2023 FS, by engaging early with our preferred project execution
partners.

"I am pleased to be able to confirm Rexline and BGRIMM as two of our major
partners, who will be working with us to deliver a highly cost effective BKM
Copper Project. Both Rexline and BGRIMM were instrumental in delivering low
capital cost outcomes for the 2023 FS and I look forward to working with them
on delivering Indonesia's newest copper mine. News on the engagement of our
project earthworks contractor will also be provided in due course.

"Effective project execution in the mining industry remains a priority focus
and it is essential that we advance the BKM Project in a manner that optimises
management of risk for all stakeholders.. Involving EPC partners early
significantly reduces project execution risk and aligns with key requirements
outlined in the ITE feedback during the debt financing process.

 

"The positive trajectory of copper prices and growing market optimism
regarding copper's supply / demand dynamics underscore the strategic
significance and inherent value of our assets. Our advanced projects and
high-quality JORC compliant copper resources at both projects are attracting
significant inbound interest, and with the mobilisation of execution partners
the BKM copper cathode project takes a further step towards financing and
production. Shareholders should expect further updates as our efforts
intensify."

 

 

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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