Asiamet Resources Limited Asiamet's Third Quarter Results 2015

 
TIDMARS 
 
 
   VANCOUVER, British Columbia, Nov. 27, 2015 (GLOBE NEWSWIRE) -- The 
unaudited Interim Consolidated Financial Statements and the management 
discussion and analysis (the "MD&A") of Asiamet Resources Limited 
(formerly Kalimantan Gold Corporation Limited) (the "Company", "Asiamet" 
or "ARS") for the third quarter ended September 30, 2015, are available 
for viewing on www.sedar.com and www.asiametresources.com. 
 
   Overview 
 
   The strategic vision of Asiamet is to build a leading Asia Pacific 
Copper-Gold Company leveraging the collective knowledge and experience 
of the team which built junior explorer Oxiana Limited into a $6 billion 
Asia-Pacific mining company. Asiamet has, over the past nine months, put 
in place three core fundamentals for delivering on this vision: 
 
   High Quality Copper Project Pipeline - Proven Team - Supportive 
Shareholder Base 
 
   The primary assets of the Company are all in Indonesia, a country that 
hosts multiple world class mining operations and is considered one of 
the world's most prospective countries for copper and gold. 
 
   Closely aligned with the Company's strategy, its principal activity is 
evaluating the potential for the development of a medium scale copper 
mine at the Beruang Kanan ("BK") Project on the KSK Contract of Work 
("KSK CoW") in Central Kalimantan, where the Beruang Kanan Main ("BKM") 
deposit is currently the subject of an intensive Resource evaluation 
program, metallurgical test work and mining studies leading into a 
Preliminary Economic Assessment (PEA). The near surface nature of the 
copper mineralization at BKM, coupled together with a recently 
discovered high grade zone and positive results from initial copper 
leaching test work demonstrate excellent potential for the development 
of a low strip ratio open pit, heap leach copper mine on the property. 
 
 
   Complimentary to the KSK CoW property, the Beutong Izin Usaha 
Pertambangan ("Beutong IUP") in Aceh contains a large copper porphyry 
deposit with accessory gold and molybdenum, together with a smaller, 
higher grade copper-gold skarn deposit, all of which are defined Mineral 
Resources compliant with N43-101. The Beutong project has excellent 
nearby infrastructure and provides the Company with a large copper 
growth option going forward. Asiamet has lodged an application for a 
Production IUP over the property which is now in the later stages of 
processing. 
 
   The Jelai Izin Usaha Pertambangan ("Jelai IUP") epithermal gold property 
in North Kalimantan is considered to be highly prospective for a 
small-medium scale gold deposit, as evidenced by the high grade results 
returned from drilling on a number of prospects. Although the potential 
of the Jelai IUP remains high, the project is considered to be a lower 
priority than the Company's two copper projects and as such, various 
options for partnering or divestment of the property are being pursued. 
 
   Asiamet is looking forward to delivering value for its shareholders in 
the later part of 2015 through: 
 
 
   1. Completing and reporting on the results of ongoing metallurgical test 
      work to confirm heap leaching as a viable processing methodology for the 
      BKM mineralization; 
 
   2. Integrating the Resource and metallurgical test work results with mine 
      engineering and associated studies to assess the economic potential of 
      the BKM deposit and deliver a Preliminary Economic Assessment for the 
      project in early 2016; 
 
   3. Finalising the conversion of the Beutong and Jelai IUP's from exploration 
      to production licenses; 
 
   4. Securing a suitable partner or acquirer to progress the Jelai gold 
      project; and 
 
   5. Progressing discussions with potential strategic partners for the ongoing 
      development of BKM. 
 
 
   Highlights for the three-month period ended September 30, 2015, and up 
to the date of this report include: 
 
   BK Copper Project - 2015 Resource Evaluation Program 
 
   A Resource evaluation drilling program was completed, comprising 71 
holes for a total 6,186 meters. Drilling was conducted at 50m intervals 
on 100m spaced section lines in order to both expand and upgrade the 
confidence of the BKM Resource as defined in the Technical Report 
prepared by Hackman & Associates Pty Ltd. 
 
   Asiamet reported an updated Mineral Resource estimate for BKM deposit in 
October, independently estimated by Duncan Hackman of Hackman & 
Associates Pty Ltd (Australia) and a technical Report compliant with NI 
43-101 will be published and available on the Company's website and 
SEDAR (www.sedar.com) within 45 days of the news release (refer Asiamet 
Release on October 21, 2015). 
 
   Highlights of the updated 2015 Resource Estimate include: 
 
 
   -- Large increase in contained copper at a cut-off of 0.2% copper. 231MIbs 
      (105,000 tonnes) of contained copper has been added as Indicated 
      Resources and 35Mlbs (18,000 tonnes) of contained copper has been added 
      as Inferred Resources for a total Indicated Resources of 231MIbs (105,000 
      tonnes) of contained copper and total Inferred Resources of 657MIbs 
      (298,000 tonnes) of contained copper. 
 
   -- Resource confidence significantly upgraded. ARS's 2015 drill program has 
      demonstrated good continuity of shallow near-surface copper 
      mineralization and successfully upgraded a significant portion of the 
      previous Inferred resource to the Indicated resource category. The 
      previous September 26, 2014 BKM Mineral Resource estimate contained no 
      Indicated Resources. 
 
 
   -- Substantial Mineral Resource inventory at a 0.5% copper cut-off grade 
      provides a solid basis for upcoming mining studies to be undertaken as 
      part of the BKM preliminary economic assessment (PEA). The larger 
      inventory of available Mineral Resource provides an opportunity to assess 
      various options relating to plant throughput and/or increased mine life 
      in the mining studies. 
 
   -- Two discrete near surface higher grade zones identified in the 2015 
      drilling provide ARS with an opportunity to assess the potential for 
      higher grade starter pit opportunities that can enhance project 
      economics. 
 
 
   As required under NI 43-10, Indicated and Inferred Resources are 
reported separately in Table 1 below. 
 
   Table 1 - BKM Updated Indicated and Inferred Mineral Resource (NI 
43-101) 
 
 
 
 
                         Indicated Mineral Resources 
------------------------------------------------------------------------------ 
                                              Contained         Contained 
 Reporting                   Cu Grade(Cu       Cu('000         Cu('000,000 
 cut(Cu %)    Tonnes('000)       %)            tonnes)             lbs) 
------------  ------------  -------------  ---------------  ------------------ 
    0.2          15,000          0.7             105               231 
------------  ------------  -------------  ---------------  ------------------ 
    0.5          12,600          0.7             88                194 
------------  ------------  -------------  ---------------  ------------------ 
    0.7          5,600           0.9             50                110 
------------  ------------  -------------  ---------------  ------------------ 
 
                          Inferred Mineral Resources 
------------------------------------------------------------------------------ 
                                              Contained         Contained 
 Reporting                   Cu Grade(Cu       Cu('000         Cu('000,000 
 cut(Cu %)    Tonnes('000)       %)            tonnes)             lbs) 
------------  ------------  -------------  ---------------  ------------------ 
    0.2          49,700          0.6             298               657 
------------  ------------  -------------  ---------------  ------------------ 
    0.5          25,300          0.7             177               390 
------------  ------------  -------------  ---------------  ------------------ 
    0.7          9,800           0.9             88                194 
------------  ------------  -------------  ---------------  ------------------ 
 
 
 
   The deposit remains open in several areas drilled as part of this 
program and the potential for the discovery of additional mineralization 
has been identified further west of current drilling where outcrops 
assaying up to 9.6% copper have been sampled. These areas represent 
priority targets during the next phase of drilling at BKM. Other targets 
are progressively being explored with surface exploration and scout 
drilling, namely Beruang Kanan South (BKS), Beruang Kanan West (BKW) and 
BKZ Polymetallic (BKZ) prospects; each within 1.5km of the BKM Inferred 
Mineral Resource. 
 
   BK Copper Project - Drilling Results 
 
   A summary of the better intersections received for each of the sections 
drilled to date in 2015 follows below. A drill hole location plan and a 
table of full assay results are provided in Figure 1 and Table 1 
respectively. 
 
   Section Line BKM31800 
 
   BKM31800-01              21.0 meters at 1.77% Cu, (from 9.0 meters 
depth) 
 
 
   -- Including 11.0 meters at 2.53 % Cu (from 9.0 meters) 
 
   -- Includes 5.0 meters at 3.46% Cu (from 10.0 meters) 
 
 
 
   BKM31800-01              29.5 meters at 0.95% Cu, (from 35.0 meters 
depth) 
 
 
   -- Including 9.0 meters at 1.33% Cu (from 45.0 meters) 
 
   -- Including 2.0 meters at 2.90% Cu (from 58.5 meters) 
 
 
   Section Line BKM32200 
 
   BKM32200-03              46.4 meters at 1.69% Cu, (from 1.6 meters 
depth) 
 
 
   -- Including 3 meters at 5.00% Cu (from 9.0 meters) 
 
   -- Including 2 meters at 4.70% Cu (from 26.0 meters) 
 
   -- Including 10 meters at 3.49% Cu (from 38.0 meters) 
 
 
   BKM32200-03              4.5 meters at 1.22% Cu (from 53.5 meters depth) 
 
   Section Line BKM32250 
 
   BKM32250-03              51.9 meters at 1.36% Cu, (from 50 meters depth) 
 
 

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   -- Including 13.0 meters at 1.46% Cu (from 64 meters) 
 
   -- Including 7.0 meters at 2.15% Cu (from 85 meters) 
 
   -- Including 7.9 meters at 2.61% Cu (from 94 meters) 
 
 
   BKM32550-06              7.5 meters at 4.11% Cu (from 3.0 meters depth) 
 
   BKM32550-07              92.0 meters at 0.90% Cu (from 10 meters depth) 
 
 
   -- Including 9.0 meters at 1.31% Cu (from 32 meters) 
 
   -- Including 3.0 meters at 3.07% Cu (from 44 meters) 
 
   -- Including 14.0 meters at 1.15% Cu (from 50 meters) 
 
   -- Including 20.5 meters at 1.13% Cu (from 68 meters) 
 
 
   BKM32550-07              5.0 meters at 1.16% Cu (from 107 meters depth) 
 
 
   -- Including 2.0 meters at 2.10% Cu (from 107 meters) 
 
 
   Section Line BKM32350 
 
   BKM32350-02              35.0 meters at 1.73% Cu, (from 20 meters depth) 
 
 
   -- Including 11 meters at 3.49% Cu (from 20 meters) 
 
   -- Includes 2 meters at 10.15% Cu (from 20 meters) 
 
 
 
   BKM32350-02              14.0 meters at 1.42% Cu, (from 65 meters depth) 
 
 
   -- Including 6 meters at 2.53% Cu (from 72 meters) 
 
 
   Section Line BKM32500 
 
   BKM32500-01              44.0 meters at 0.91% Cu, (from 25 meters depth) 
 
 
   -- Including 4 meters at 2.11% Cu (from 25.0 meters) 
 
   -- Including 3 meters at 1.53% Cu (from 35.0 meters) 
 
   -- Including 2 meters at 2.61% Cu (from 41.0 meters) 
 
 
   BKM32500-02              76.0 meters at 0.81% Cu, (from 3.0 meters 
depth) 
 
 
   -- Including 6.0 meters at 1.61% Cu (from 3.0 meters) 
 
   -- Including 8.5 meters at 1.09% Cu (from 50.0 meters) 
 
   -- Including 7.0 meters at 1.35% Cu (from 67.0 meters) 
 
 
   BKM32500-03              17.1 meters at 1.05% Cu (from 90.9 meters 
depth) 
 
 
   -- Including 10.0 meters at 1.29% Cu (from 92.5 meters) 
 
 
   Section Line BKM32650 
 
   BKM32650-01              30.0 meters at 0.82% Cu (from 11.0 meters 
depth) 
 
 
   -- Including 12.0 meters at 1.43% Cu (from 17.0 meters) 
 
 
   BKM32650-01              11.0 meters at 1.35% Cu (from 57.0 meters 
depth) 
 
 
   -- Including 5.0 meters at 2.37% Cu (from 63.0 meters) 
 
 
   BKM32650-01              7.0 meters at 0.97% Cu (from 85.0 meters depth) 
 
 
   -- Including 2.0 meters at 2.17% Cu (from 85.0 meters) 
 
 
   BK Copper Project - Metallurgical Testwork 
 
   An initial program of metallurgical characterization test work commenced 
to assess the potential for producing copper metal from the BKM through 
the application of heap leach processing technology. 
 
   Asiamet engaged Graeme Miller (Miller Metallurgical Services Pty Ltd, 
Brisbane, Australia), an expert metallurgical consultant, to oversee the 
technical work program. PT Intertek Utama Services, in Jakarta, 
Indonesia are conducting the test-work for the initial phase of 
metallurgical testing. 
 
   Current leaching and physical tests have been designed to evaluate 
whether the heap leach "solvent extraction and electrowinning" ("SX-EW") 
process is a suitable processing route for BKM mineralization. Programs 
comprising sequential analysis, column leach, agitated leach and bottle 
roll tests are aimed at providing process design criteria suitable for 
input into a scoping level study. 
 
   Two metallurgical samples, each composited from three individual holes 
drilled into the northern and southern part of the deposit, were 
collected from intervals within 60 meters from surface that were 
considered to be representative of the deposit geology and 
mineralization style. 
 
   Sequential assay is a method of allowing straightforward assessment of 
the maximum acid/ferric leaching recovery. The sequential assays on one 
composite confirmed +97% of the copper in the sample is potentially 
leachable, with 24% acid soluble and 73% cyanide soluble. With less than 
3% residue copper, there is little or no copper in silicates. This 
reflects an almost total sulphide copper mineralogy and the availability 
of copper for leaching. 
 
   The level of standard acid consuming minerals is very low. Both calcium 
0.07% and magnesium 0.04% are expected to have little impact on acid 
consumption. Manganese at 0.005% is very low and is not expected to have 
an impact on the leach-SX-EW chemistry. 
 
   The leach tests conducted in Indonesia have not taken full advantage of 
the potential copper recovery, due to restricted access to leach 
technology and equipment. However some information can be obtained from 
the current results. 
 
 
   -- Standard bottle roll recoveries strongly reflect the 24% acid soluble 
      copper content of the ore. 
 
   -- The ground ore agitated leach test recoveries at 65% are well above the 
      expectation from the acid soluble copper. 
 
   -- The acid balance on the columns, bottle rolls and agitation tests are not 
      yet finalized, however it appears that acid is being generated rather 
      than consumed. This is positive from an operating cost as acid is 
      generally the largest single cost item in a leach project. 
 
   -- The low/positive acid balance will allow long term (years) heap leaching 
      without reaching an economic limit, and thus potentially allowing higher 
      recoveries to be achieved. 
 
 
   Three composites have now been prepared to represent the BKM deposit at 
calculated head grades of 3.13% Cu (High Grade), 0.96% Cu (Medium Grade), 
and 0.55% Cu (Low Grade). The samples consisted of breccia cut by 
sheeted / stockwork ore. Asiamet is seeking approvals from the Ministry 
of Energy and Mining Resources ("MEMR") and Ministry Of Trade to send 
the samples for further metallurgical test work in Australia. 
 
   Beutong Project 
 
   During the second quarter of 2015, a second comprehensive presentation 
was requested by MEMR officials, detailing all aspects of the 
Feasibility Study and related Environmental Studies for the Beutong 
Project. Asiamet holds a 40% interest in PT Emas Mineral Murni ("PT 
EMM"), the holder of the Beutong exploration IUP, and has been advised 
that the IUP Production application process is likely to be completed 
before end 2015. Upon approval being obtained, the IUP Production 
license secures long term mining title that will be valid for 20 years, 
extendable for two subsequent periods each of 10 years duration. 
 
   PT EMM was granted a one year suspension of the Beutong IUP exploration 
license on June 5, 2015, and as such, extended the term of the IUP 
Exploration license for an additional one year to June 5, 2016. 
 
   Jelai Project 
 
   PT Jelai Cahaya Minerals ("JCM"), the Asiamet subsidiary holding the 
Jelai IUP, lodged an application to upgrade the Jelai IUP Exploration 
License to an IUP Production license. The application is under process 
and is expected to be completed before end of Q4 2015, assuming no 
further documents / changes are requested by MEMR. Upon approval being 
obtained, the IUP Production license secures long term mining title that 
will be valid for 20 years, extendable for two subsequent periods each 
of 10 years duration. 
 
   JCM has been granted a one year suspension of the IUP exploration 
license on June 24, 2015 and as such extended the IUP Exploration 
license for an additional one year to June 24, 2016. 
 
   Asiamet has progressed discussions with several mining and exploration 
companies regarding potential partnering or part/whole acquisition of 
the Jelai IUP. One of the interested parties has advanced to the final 
stage of due diligence and discussions are continuing. 
 
   Results of Operations 
 
   Results of operations for the three and nine month periods ended 
September 30, 2015: 
 
   The Company incurred a loss and comprehensive loss for the nine month 
period ended September 30, 2015, of $6,654,442 (2014 - $493,900). Of 
this loss, $3,866,813 was as a result of an impairment on the 
acquisition of the Beutong copper-gold project in Indonesia. See Note 9 
to the financial statements. 
 
 
   -- Consultants and shared office costs: September 30, 2015 - $682,267; (2014 
      - $156,069) With the acquisition of TC Sing, the raising of $3.0 million 
      in equity, and the commencement of active work programs, the Company 
      resumed incurring expenditures relating to CEO, staff and office 
      costs. During the first quarter of 2014, after Freeport ceased funding 
      the KSK CoW, CEO costs had been reduced to $15,000 per quarter. The 
      Company recommenced activities in early 2015 and is now expending fees of 
      approximately $120,000 per quarter for the newly-appointed CEO and Vice 
      President of Exploration. Shared office costs for the nine months ended 
      September 30, 2015 were $237,409 inclusive of several support 
      staff. Consulting fees to Golden Oak Corporate Services Ltd. ("Golden 
      Oak") are paid in Canadian dollars and the year over year change reflects 
      the variance in exchange rates at $62,969 (2014 - $72,167) for the nine 
      month period. 
 
   -- Directors fees: September 30, 2015 - $nil; (2014 - $3,500) During the 
      current nine month period ended September 30, 2015, the Company's 
      Directors have continued to agree to waive their fees until such time as 
      the Company is adequately funded. 
 
   -- Exploration costs: September 30, 2015 - $1,705,999; (2014 - $275,508 
      (net))Gross exploration expenditures in the current nine month period 
      were $1,705,999 compared to net exploration expenditures of $275,508 in 
      the comparative 2014 period. In the comparative period the gross 
      explorations expenditures were $1,735,648 before recoveries from Freeport 
      of $1,460,140 to result in net exploration expenditures of $275,508. 
      Expenses at the KSK CoW in the current period included mobilization of 
      staff and equipment in preparation for the drilling campaign at BKM. 
 
   -- Investor relations: September 30, 2015 - $9,757; (2014 - $1,747) We 
      expect this line item to increase in fiscal 2015 as we re-commence field 
      activities and re-energize the Company's presence in the market. 
 

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