Asiamet Resources Limited Lifts Beutong Copper-Gold Project Interest to 80% (3198S)

TIDMARS

RNS Number : 3198S

Asiamet Resources Limited

25 June 2018

   For Immediate Release                           London AIM 
   25 June 2018                                          Symbol: ARS 

Asiamet Lifts Beutong Copper-Gold Project Interest to 80%

Asiamet is pleased to announce that negotiations to simplify the exercise of its option agreement with PT Media Mining Resources covering the Beutong copper-gold project ("Beutong") have been completed and a single milestone payment of A$4.375million has been made to increase its effective ownership in PT Emas Mineral Mumi ("EMM") from 40% to 80% by acquiring the remaining 50% of Beutong Resources Pte Ltd. ("BRPL") that it does not already own. EMM, 80% owned by BRPL, wholly-owns the Beutong Copper-Gold Deposit in Nagan Raya Regency, Aceh, Indonesia. Beutong is held under a Mining Business License for Production Operations "IUP-OP" which provides for an initial 20 years of licence tenure which may be extended twice, each for a period of 10 years, totalling 40 years. This is the key licence required to advance the Beutong Project to the development stage.

Highlights:

-- Equity interest in Beutong increases to 80% through exercise of the option and delivery of recent milestones including the key long-term production licence required to advance project to development stage

-- Beutong is a large high-quality copper, gold, silver, molybdenum deposit outcropping at surface and remaining open laterally and at depth.

-- Resources contain 2.4Mt (5.3BIb) copper, 2.1Moz gold and 20.6Moz silver on 100% basis (1.92Mt (4.24Blb) copper, 1.68Moz gold and 16.48Moz silver on an 80% attributable basis), reported in accordance with the requirements of the JORC Code (2012).

-- Beutong very favourably located with regard to infrastructure and logistics. The project is adjacent to a sealed road and approximately 60km from a large power station and seaport

-- Significant scope to expand the mineral inventory with recent drilling intersecting 456.0m at 1.06% CuEq. (0.93% Cu, 0.15g/t Au) from 10.0m extending mineralisation beyond current the current JORC Resource envelope and remaining open to depth and laterally.

-- Recent assays suggest that a significant proportion of the Beutong East Porphyry copper mineralisation could potentially be processed by heap leach to produce cathode copper. Extensive metallurgical test work to further assess this potential is required.

Peter Bird, Asiamet's Chief Executive Officer commented:

"Asiamet is extremely pleased to substantially lift its interest in this advanced high quality copper-gold project at a time when the copper market is forecast to be moving into supply deficit and large copper development opportunities with nearby infrastructure are rare. Achieving this major milestone doubles the Company's attributable contained metal inventory in Beutong to 1.92Mt copper, 1.68Moz gold and 16.48Moz silver. The deposit remains open both laterally and at depth with recent drilling at Beutong East hole BEU0900-08 extending mineralisation beyond the current Resource envelope and terminating, due to rig depth capacity, in mineralisation grading 1.14% Cu. The Company looks forward to reporting on progress at Beutong as the recently mobilised deeper capacity drill rig ramps up and development activities incorporating evaluation drilling, metallurgy and geotechnical activities gain momentum in the second half of 2018."

Beutong Project Summary and Background

Joint Venture Agreement

On 11 February 2011, Asiamet, through its predecessor companies, entered into an Option and Joint Venture agreement on the Beutong project with PT Media Mining Resources (Media), an Indonesian private company. The Joint Venture aims to combine the exploration and development capability of Asiamet's team with the extensive in-country operating experience of Media to unlock the potential of the Beutong project through a staged work and earn-in program. Over the past 8 years, Asiamet and its predecessor Company, Tigers Realm Metals, earned a 40% interest in the Beutong project by sole funding over A$13.3 million of intensive exploration/development work and making a number of milestone payments to its Joint Venture partner. Following recent negotiations, the parties agreed to simplify the earn-in period and Asiamet lifted its interest in the Beutong project from 40% to 80% through a single, final milestone payment of A$4.375 million.

Geology and Resources

Since 1996, the Beutong project has been explored and evaluated with 164 holes for 42.3km of diamond drilling completed. While the geology is reasonably well understood, the deposit remains open in several directions and requires extensive further evaluation work to unlock its full value and potential.

Beutong is a large porphyry copper-gold system, which comprises the Beutong East Porphyry ("BEP"), Beutong West Porphyry ("BWP") and the Beutong Skarn("BSK") as shown in Figure1. Beutong has current Resources containing 2.4Mt (5.3Blb) copper, 2.1Moz gold and 20.6Moz silver on a 100% basis (see announcement dated 08 January 2018), reported in accordance with the requirements of the JORC Code (2012). The surface mineralisation at BEP and BWP comprises chalcocite, covellite and digenite mineralisation with lesser chalcopyrite. The outcropping BSK deposit comprises a garnet - magnetite skarn with chalcocite-malachite-azurite in the upper section and chalcopyrite-bornite mineralisation at depth.

At 600m-700m depth there is a notable transition to chalcopyrite-bornite mineralisation, similar to the deeper sections of other porphyry systems in Southeast Asia such as the giant high-grade Grasberg Indonesia (Freeport-McMoRan Copper & Gold), Wafi-Golpu PNG (Newcrest Mining) and Tujah Bukit Indonesia (Merdeka Resources). At depth in the BEP, large clasts of potassic altered (biotite, potassic feldspar and magnetite) diorite porphyry with intense stockwork chalcopyrite-bornite mineralisation occur within a diatreme breccia and are interpreted to have been transported from a high-grade potassic core at depth. The BEP and BWP systems remain open in several directions and the interpreted BEP high-grade core remains untested at depth (Figure 2).

Infrastructure

The Beutong project is differentiated from many other large copper deposits by its favourable location in moderate terrain 60 kilometres from the coast and by its proximity to well-developed nearby transport and general infrastructure including roads, power and seaport. These key features have the potential to favourably impact development economics.

Tenement Status

In January 2018, the project was granted the key production licence, Izin Usaha Pertambangan Operasi Produksi "IUP-OP" following a period of two years working with the relevant Indonesian authorities, particularly with the Ministry of Energy and Mineral Resources ("ESDM") and the local government of Nagan Raya Regency. It provides for an initial 20 years of licence tenure which may be extended twice, each for a period of 10 years, totalling 40 years. This is the key licence required to advance the Beutong Project to the development stage. The support for the project from the local and central government administrations and the local community provides a firm basis for the further development of Beutong.

2018 Work Program

For 2018, the Company plans to create further value through a targeted infill and extension drilling program comprising eight holes totalling approximately 4,000 metres. This work aims to expand the boundaries of BEP and BWP deposits and test the gap between them, further assess geotechnical conditions and the potential for heap leach SX-EW processing of BEP mineralisation to produce copper cathode. To date three holes for 767.5 metres have been completed.

Figure 1: Location Map - to view the image click on the following link http://asiametresources.com/assets/img/ars1_beutong.png

Figure 2: Beutong Porphyry Deposit Resource Copper Grade Shells - to view the image click on the following link http://asiametresources.com/assets/img/ars2_beutong.png

Table of Comparable Projects - to view the image click on the following link http://asiametresources.com/assets/img/ars3_beutong.png

Qualified Person

Data disclosed in this press release have been reviewed and verified by Asiamet's Qualified Person, Stephen Hughes, P. Geo, an advisor to the Company and a Competent Person within the meaning of JORC and for the purposes of the AIM Rules for Companies.

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]

Asiamet Resources Nominated Adviser

RFC Ambrian Limited

Andrew Thomson / Stephen Allen

Telephone: [phone]

Email: [e-mail] / [e-mail]

Liberum

Neil Elliot, Clayton Bush, Kane Collings

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 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.

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").

Glossary of Technical Terms

 
 "anomaly or anomalous"    something in mineral exploration that geologists 
                            interpret as deviating from what is standard, normal, 
                            or expected. 
 "assay"                   The laboratory test conducted to determine the proportion 
                            of a mineral within a rock or other material. For 
                            copper, usually reported as percentage which is 
                            equivalent to percentage of the mineral (i.e. copper) 
                            per tonne of rock. 
                          ------------------------------------------------------------------- 
 "azimuth"                 the "compass direction" refers to a geographic bearing 
                            or azimuth as measured by a magnetic compass, in 
                            true or magnetic north. 
                          ------------------------------------------------------------------- 
 "bornite"                 Bornite, also known as peacock ore, is a copper 
                            sulphide mineral with the formula Cu5FeS4. 
                          ------------------------------------------------------------------- 
 "breccia"                 Breccia is a rock classification, comprises millimetre 
                            to metre-scale rock fragments cemented together 
                            in a matrix, there are many sub-classifications 
                            of breccias. 
                          ------------------------------------------------------------------- 
 "chalcocite"              Chalcocite is a copper sulphide mineral with the 
                            formula Cu2S and is an important copper ore mineral. 
                            It is opaque and dark-gray to black with a metallic 
                            luster. 
                          ------------------------------------------------------------------- 
 "chalcopyrite"            Chalcopyrite is a copper sulphide mineral with formula 
                            CuFeS2. It has a brassy to golden yellow colour. 
                          ------------------------------------------------------------------- 
 "channel sample"          Samples collected across a mineralised rock exposure. 
                            The channel is typically orientated such that samples 
                            are collected perpendicular to the mineralised structure, 
                            if possible. 
                          ------------------------------------------------------------------- 
 "chargeability"           Chargeability is a physical property related to 
                            conductivity. Chargeability is used to characterise 
                            the formation and strength of the induced polarisation 
                            within a rock, under the influence of an electric 
                            field, suggesting sulphide mineralisation at depth. 
                          ------------------------------------------------------------------- 
 "CIM"                     The reporting standard adopted for the reporting 
                            of the Mineral Resources is that defined by the 
                            terms and definitions given in the terminology, 
                            definitions and guidelines given in the Canadian 
                            Institute of Mining, Metallurgy and Petroleum (CIM) 
                            Standards on Mineral Resources and Mineral Reserves 
                            (December 2005) as required by NI 43-101. The CIM 
                            Code is an internationally recognised reporting 
                            code as defined by the Combined Reserves International 
                            Reporting Standards Committee. 
                          ------------------------------------------------------------------- 
 "covellite"               Covellite is a copper sulphide mineral with the 
                            formula CuS. This indigo blue mineral is ubiquitous 
                            in some copper ores. 
                          ------------------------------------------------------------------- 
 "diamond drilling"        A drilling method in which penetration is achieved 
                            through abrasive cutting by rotation of a diamond 
                            encrusted drill bit. This drilling method enables 
                            collection of tubes of intact rock (core) and when 
                            successful gives the best possible quality samples 
                            for description, sampling and analysis of an ore 
                            body or mineralised structure. 
                          ------------------------------------------------------------------- 
 "digenite"                Digenite is a copper sulfide mineral with formula 
                            Cu9S5. Digenite is a black to dark blue opaque mineral. 
                          ------------------------------------------------------------------- 
 "dip"                     A line directed down the steepest axis of a planar 
                            structure including a planar ore body or zone of 
                            mineralisation. The dip has a measurable direction 
                            and inclination from horizontal. 
                          ------------------------------------------------------------------- 
 "galena"                  Galena is the natural mineral form of lead (II) 
                            sulphide, with formula PbS. It is the most important 
                            ore of lead and an important source of silver. It 
                            has a silver colour. 
                          ------------------------------------------------------------------- 
 "grab sample"             are samples of rock material collected from a small 
                            area, often just a few pieces or even a single piece 
                            of rock "grabbed" from a face, dump or outcrop or 
                            roughly 2-5kg. These are common types of rock samples 
                            collected when conducting mineral exploration. The 
                            sample usually consists of material that is taken 
                            to be representative of a specific type of rock 
                            or mineralisation. 
                          ------------------------------------------------------------------- 
 "grade"                   The proportion of a mineral within a rock or other 
                            material. For copper mineralisation this is usually 
                            reported as % of copper per tonne of rock (g/t). 
                          ------------------------------------------------------------------- 
 "g/t"                     grams per tonne; equivalent to parts per million 
                            ('ppm') 
                          ------------------------------------------------------------------- 
 "hematite"                Hematite is the mineral form of iron(III) oxide 
                            (Fe2O3), one of several iron oxides. Magnetite alteration 
                            is also typically associate with porphyry copper 
                            systems, at or close to the central core. 
                          ------------------------------------------------------------------- 
 "hypogene"                Hypogene ore processes occur deep below the earth's 
                            surface, and form deposits of primary minerals, 
                            such as chalcopyrite and bornite. 
                          ------------------------------------------------------------------- 
 "Indicated Resource"      An 'Indicated Mineral Resource' is that part of 
                            a Mineral Resource for which quantity, grade (or 
                            quality), densities, shape and physical characteristics 
                            are estimated with sufficient confidence to allow 
                            the application of Modifying Factors in sufficient 
                            detail to support mine planning and evaluation of 

                            the economic viability of the deposit. 
                            Geological evidence is derived from adequately detailed 
                            and reliable exploration, sampling and testing gathered 
                            through appropriate techniques from locations such 
                            as outcrops, trenches, pits, workings and drill 
                            holes, and is sufficient to assume geological and 
                            grade (or quality) continuity between points of 
                            observation where data and samples are gathered. 
                            An Indicated Mineral Resource has a lower level 
                            of confidence than that applying to a Measured Mineral 
                            Resource and may only be converted to a Probable 
                            Ore Reserve. 
                          ------------------------------------------------------------------- 
 "Inferred Resource"       An 'Inferred Mineral Resource' is that part of a 
                            Mineral Resource for which quantity and grade (or 
                            quality) are estimated on the basis of limited geological 
                            evidence and sampling. Geological evidence is sufficient 
                            to imply but not verify geological and grade (or 
                            quality) continuity. It is based on exploration, 
                            sampling and testing information gathered through 
                            appropriate techniques from locations such as outcrops, 
                            trenches, pits, workings and drill holes. 
 
                            An Inferred Mineral Resource has a lower level of 
                            confidence than that applying to an Indicated Mineral 
                            Resource and must not be converted to an Ore Reserve. 
                            It is reasonably expected that the majority of Inferred 
                            Mineral Resources could be upgraded to Indicated 
                            Mineral Resources with continued exploration. 
                          ------------------------------------------------------------------- 
 "Induced Polarisation     Induced polarisation (IP) is a geophysical survey 
  Geophysics"               used to identify the electrical chargeability of 
                            subsurface materials, such as sulphides. The survey 
                            involves an electric current that is transmitted 
                            into the subsurface through two electrodes, and 
                            voltage is monitored through two other electrodes. 
                          ------------------------------------------------------------------- 
 "intercept"               Refers to a sample or sequence of samples taken 
                            across the entire width or an ore body or mineralised 
                            zone. The intercept is described by the entire thickness 
                            and the average grade of mineralisation. 
                          ------------------------------------------------------------------- 
 JORC                      The Australasian Code for Reporting of Exploration 
                            Results, Mineral Resources and Ore Reserves ('the 
                            JORC Code') is a professional code of practice that 
                            sets minimum standards for Public Reporting of minerals 
                            Exploration Results, Mineral Resources and Ore Reserves. 
                            The JORC Code provides a mandatory system for the 
                            classification of minerals Exploration Results, 
                            Mineral Resources and Ore Reserves according to 
                            the levels of confidence in geological knowledge 
                            and technical and economic considerations in Public 
                            Reports. 
                          ------------------------------------------------------------------- 
 "lbs"                     Pounds (measure of weight) 
                          ------------------------------------------------------------------- 
 "Mlbs"                    Million pounds (measure of weight) 
                          ------------------------------------------------------------------- 
 "magnetite"               Magnetite is main iron ore mineral, with chemical 
                            formula Fe3O4. Magnetite is ferromagnetic, and it 
                            is attracted to a magnet and can be magnetised to 
                            become a permanent magnet itself. 
                          ------------------------------------------------------------------- 
 "massive"                 In a geological sense, refers to a zone of mineralisation 
                            that is dominated by sulphide minerals. The sulphide-mineral-rich 
                            material can occur in centimetre-scale, metre-scale 
                            or in tens of metres wide veins, lenses or sheet-like 
                            bodies containing sphalerite, galena, and / or chalcopyrite 
                            etc. 
                          ------------------------------------------------------------------- 
 "Measured Resource"       A 'Measured Mineral Resource' is that part of a 
                            Mineral Resource for which quantity, grade (or quality), 
                            densities, shape, and physical characteristics are 
                            estimated with confidence sufficient to allow the 
                            application of Modifying Factors to support detailed 
                            mine planning and final evaluation of the economic 
                            viability of the deposit. 
 
                            Geological evidence is derived from detailed and 
                            reliable exploration, sampling and testing gathered 
                            through appropriate techniques from locations such 
                            as outcrops, trenches, pits, workings and drill 
                            holes, and is sufficient to confirm geological and 
                            grade (or quality) continuity between points of 
                            observation where data and samples are gathered. 
                            A Measured Mineral Resource has a higher level of 
                            confidence than that applying to either an Indicated 
                            Mineral Resource or an Inferred Mineral Resource. 
                            It may be converted to a Proved Ore Reserve or under 
                            certain circumstances to a Probable Ore Reserve. 
                          ------------------------------------------------------------------- 
 "Mineral Resource"        A "Mineral Resource" is a concentration or occurrence 
                            of diamonds, natural solid inorganic material, or 
                            natural solid fossilised organic material including 
                            base and precious metals, coal, and industrial minerals 
                            in or on the Earth's crust in such form and quantity 
                            and of such a grade or quality that it has reasonable 
                            prospects for economic extraction. The location, 
                            quantity, grade, geological characteristics and 
                            continuity of a Mineral Resource are known, estimated 
                            or interpreted from specific geological evidence 
                            and knowledge. 
                          ------------------------------------------------------------------- 
 "mineralisation"          In geology, mineralisation is the deposition of 
                            economically important metals (copper, gold, lead, 
                            zinc etc) that in some cases can be in sufficient 
                            quantity to form mineral ore bodies. 
                          ------------------------------------------------------------------- 
 "open pit mining"         A method of extracting minerals from the earth by 
                            excavating downwards from the surface such that 
                            the ore is extracted in the open air (as opposed 
                            to underground mining). 
                          ------------------------------------------------------------------- 
 "outcrop"                 A section of a rock formation or mineral vein that 
                            appears at the surface of the earth. Geologists 
                            take direct observations and samples from outcrops, 
                            used in geologic analysis and creating geologic 
                            maps. In situ (in place) measurements are critical 
                            for proper analysis of the geology and mineralisation 
                            of the area under investigation. 
                          ------------------------------------------------------------------- 
 "polymetallic"            three or more metals that may occur in magmatic, 
                            volcanogenic, or hydrothermal environments; common 
                            base and precious metals include copper, lead, zinc, 
                            silver and gold. 
                          ------------------------------------------------------------------- 
 "polymict"                A geology term, often applied to breccias or conglomerates, 
                            which identifies the composition as consisting of 
                            fragments of several different rock types. 
                          ------------------------------------------------------------------- 

 "porphyry"                Porphyry copper deposits are copper +- gold +- molybdenum 
                            orebodies that are formed from hydrothermal fluids 
                            that originate from a voluminous magma chamber below 
                            the deposit itself. 
                          ------------------------------------------------------------------- 
 "Preliminary              NI 43-101 defines a PEA as "a study, other than 
  Economic Assessment"      a pre-feasibility study or feasibility study, which 
                            includes an economic analysis of the potential viability 
                            of mineral Resources". 
                          ------------------------------------------------------------------- 
 "propylitic alteration"   Propylitic alteration is the chemical alteration 
                            of minerals within a rock, caused by hydrothermal 
                            fluids. This style of alteration typically results 
                            in epidote-chlorite+-albite alteration and veining 
                            or fracture filling, commonly altering biotite or 
                            amphibole minerals within the rock groundmass. It 
                            typically occurs along with pyrite. 
                          ------------------------------------------------------------------- 
 "sediments"               Sedimentary rocks formed by the accumulation of 
                            sediments. There are three types, Clastic, Chemical 
                            and Organic sedimentary rocks. 
                          ------------------------------------------------------------------- 
 "sequential assays"       Sequential copper analysis is a technique to semi-quantitatively 
                            define the zonations associated with some copper 
                            deposits. The method is based on the partial dissolution 
                            behaviour displayed by the prevalent copper minerals 
                            to solutions containing sulphuric acid and sodium 
                            cyanide. Results from sequential analyses can theoretically 
                            determine the amounts of leachable oxide minerals, 
                            leachable secondary sulphide minerals, and primary 
                            copper minerals, respectively. 
                          ------------------------------------------------------------------- 
 "sphalerite"              Sphalerite is a zinc sulphide in crystalline form 
                            but almost always contains variable iron, with formula 
                            (Zn,Fe)S. It can have a yellowish to honey brown 
                            or black colour. 
                          ------------------------------------------------------------------- 
 "supergene"               Supergene ore processes occur near surface, and 
                            form deposits of secondary minerals, such as malachite, 
                            azurite, chalcocite, covellite, digenite, etc. 
                          ------------------------------------------------------------------- 
 "surface rock             Rock chip samples approximately 2kg in size that 
  chip samples"             are typically collected from surface outcrops exposed 
                            along rivers and mountain ridgelines. 
                          ------------------------------------------------------------------- 
 "veins"                   A vein is a sheet-like or anastomosing fracture 
                            that has been infilled with mineral ore (chalcopyrite, 
                            covellite etc) or mineral gangue (quartz, calcite 
                            etc) material, within a rock. Veins form when minerals 
                            carried by an aqueous solution within the rock mass 
                            are deposited through precipitation and infill or 
                            coat the fracture faces. 
                          ------------------------------------------------------------------- 
 "volcanics"               Volcanic rock such as andesite or basalt that is 
                            formed from magma erupted from a volcano, or hot 
                            clastic material that erupts from a volcano and 
                            is deposited as volcaniclastic or pyroclastics. 
                          ------------------------------------------------------------------- 
 

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June 25, 2018 02:00 ET (06:00 GMT)