Asiamet Resources Limited Asiamet Bkm Copper Project Feasibility Study Results Enhance Mine Development Potential

 
TIDMARS 
 
 
   Asiamet Resources Limited ("ARS" or the "Company") is pleased to provide 
an update on the progress being made on the Beruang Kanan Main ("BKM") 
feasibility studies. 
 
 
   -- Significant ramp-up of metallurgical activities over the past two months 
 
   -- Geotechnical program completed with no major issues identified 
 
   -- Numerous options to reduce pre-production capital and favourable 
      conditions to support low mining costs identified in the geotechnical 
      studies 
 
   -- Project Definition Study, focused on mining engineering has been 
      completed 
 
   -- Production capacity confirmed at 25 ktpa copper cathode with phased 
      approach a suitable option to lower pre-production capital and provide a 
      better start up risk profile for the BKM development 
 
 
   Resource definition and metallurgical test-work programs continue to 
advance as planned, with a significant ramp-up of activities over the 
past two months. 
 
   In parallel to these key project elements, the Company has progressed 
the early phase feasibility studies into the engineering and design 
aspects of the project.  These studies utilize the information and 
learnings developed by Asiamet over the past year, and build on the 
positive conceptual design work conducted as part of the Preliminary 
Economic Assessment (PEA). 
 
   PT Ground Risk Management (GRM) was commissioned to lead the 
geotechnical program for the BKM project.  A highly experienced 
consultancy, GRM has completed over 100 geotechnical assignments across 
the Indonesian archipelago in the past eight years, more than 50 of 
which have been based in Kalimantan, where the BKM copper project is 
located. 
 
   GRM completed a program of data collation, detailed mapping, 
geotechnical logging and laboratory testing to develop a robust 
geotechnical database for the open pit mine, including assessments and 
recommendations on the location and management of waste dumps. 
Geotechnical input into the infrastructure location studies and a field 
survey of the site access road route was also completed. 
 
   Highlights of the work completed by GRM include: 
 
 
   -- Approximately 34% of material in the shallower 35-40 metres of the 
      proposed pit, is classified as 'easy digging', which will contribute to 
      relatively lower mining costs. 
 
   -- No foundation treatment is likely to be required below the proposed waste 
      dump locations, saving on potential pre-production costs for development 
      of the waste dump site. 
 
   -- There is the potential to steepen pit wall angles in the upper section of 
      the open pit (<40 metres depth), compared with the previous pit design. 
      This would lead to lower estimated operating costs through a lower strip 
      ratio. 
 
   -- Investigations revealed there are no large landslides that could present 
      a significant impact to the project.  This includes both the proposed 
      open pit and the potential infrastructure locations. 
 
   -- The BKM copper deposit lies within an area of very low seismicity and 
      seismic ground vibrations are therefore expected to be insignificant in 
      terms of earthworks design. 
 
   -- The trafficability of the existing site access road is considered to be 
      good. GRM suggest that the mine development proceed with zero upgrade 
      work and address the potential hazards and reliability issues through 
      simple, operational procedures and effective road maintenance systems. 
 
 
   Australian Mine Design and Development (AMDAD) were engaged to undertake 
the mining engineering components of the feasibility study.  AMDAD's 
scope of work for the initial phase included open pit optimization, 
production rate assessments and development scenario analysis. AMDAD 
completed a Project Definition Study (PDS) to address the scope of work, 
which builds upon planning from the PEA on the BKM Project. 
 
   The PDS updates the cost and revenue assumptions from the PEA and 
provides a sufficiently detailed pit design and schedule to demonstrate 
the practicality of the mine plan including an updated assessment of the 
site layout.  This updated design and schedule potentially offers major 
operational and cost benefits compared to the PEA design. 
 
   Highlights of optimization results reported by AMDAD include: 
 
 
   -- The production rate assessments confirmed the PEA assumption that a 25 
      ktpa Copper Cathode operation was the optimal name-plate capacity for 
      BKM. 
 
   -- The development scenario analysis identified a potential phased 
      development solution, with an initial project phase targeting 10 ktpa 
      copper cathode production, followed by an expansion to the name-plate 
      capacity of 25 ktpa.  Such an approach would provide a number of benefits, 
      namely: 
 
          -- Lower up front pre-production capital costs 
 
          -- The likelihood that cash flows from production during the 10 ktpa 
             phase could be used to finance a substantial portion of the 
             expansion costs 
 
          -- A more favourable risk profile for the BKM project 
 
   -- Significant potential upside exists with the next update of the Resource 
      model, definition of leachable copper and improvements to the mine 
      sequencing to maximise early copper production, while deferring waste 
      mining costs. 
 
   -- The PDS indicates significant value for the project with strong positive 
      cash flows from the first year of operations and a project life of at 
      least nine years. 
 
   -- Further work is required to plan for acid drainage controls and 
      optimisation of the site layout. 
 
 
   Results of the PDS provide a high level of confidence in advancing to a 
Definitive Feasibility Study. 
 
   Detailed feasibility study work is continuing as results from the 
current Resource definition and metallurgical test-work programs become 
available. With improved Resource knowledge, AMDAD will execute the 
required work to produce feasibility level pit designs, waste rock 
management and dump designs, mining equipment sizing and selection, mine 
scheduling, and the estimation of capital and operating costs for the 
mine. 
 
   The Resource definition drilling program is expected to be completed in 
early April with an updated Resource estimate due shortly thereafter. 
 
   Peter Bird, Asiamet's Chief Executive Officer commented: 
 
   "The positive results generated from these early engineering and design 
studies, coupled with the excellent results and progress being made in 
our Resource definition and metallurgical test-work programs, enhances 
the potential for developing a high quality medium scale copper mine at 
BKM.  Outputs from these studies enables the Company to accurately 
define the work required to finalize the Definitive Feasibility Study 
phase of the project.  The work undertaken by our highly experienced 
team continues to advance the BKM feasibility study in line with 
best-practice and we look forward to reporting further results as they 
become available." 
 
   Qualified Person 
 
   Data disclosed in this press release have been reviewed and verified by 
ARS's qualified person, Stephen Hughes, P. Geo, Vice President 
Exploration of the Company and a Qualified Person within the meaning of 
NI 43-101 and for the purposes of the AIM Rules. 
 
   ON BEHALF OF THE BOARD OF DIRECTORS 
 
   Peter Bird, Deputy Chairman and CEO 
 
   For further information, please contact: 
 
 
 
   -Ends- 
 
   Peter Bird 
 
   Deputy Chairman and CEO, Asiamet Resources Limited 
 
   Telephone: [phone] 
 
   Email: [e-mail] 
 
   Tony Manini 
 
   Executive Chairman, Asiamet Resources Limited 
 
   Telephone: [phone] 
 
   Email: [e-mail] 
 
   FlowComms Limited 
 
   Sasha Sethi 
 
   Telephone: [phone] 
 
   Email: [e-mail] / [e-mail] 
 
 
 
 
 
   Asiamet Resources Nominated Adviser 
 
   RFC Ambrian Limited 
 
   Andrew Thomson / Oliver Morse 
 
   Telephone: [phone] 
 
   Email: [e-mail] / [e-mail] 
 
   VSA Capital Limited 
 
   Andrew Raca / Justin McKeegan 
 
   Telephone: [phone] 
 
   Email: [e-mail] 
 
   Optiva Securities Limited 
 
   Christian Dennis 
 
   Telephone: [phone] 
 
   Email: [e-mail] 
 
   This news release contains forward-looking statements that are based on 
the Company's current expectations and estimates. Forward-looking 
statements are frequently characterized 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. 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Asiamet Resources Limited via Globenewswire 
 
 
  http://www.asiametresources.com 
 

(END) Dow Jones Newswires

March 22, 2017 03:00 ET (07:00 GMT)

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