Asiamet completes economic assessment of Beruang Kanan copper deposit
Tuesday, May 3 2016 - 09:22 AM WIB
AIM and TSX-listed Asiamet Resources Limited reported on Tuesday a highly positive Preliminary Economic Assessment (PEA) for the development of a medium scale copper mine on the Beruang Kanan Main (BKM) deposit within the company's 100 percent owned KSK CoW property located in central Kalimantan, was completed.
Results of the PEA study demonstrate excellent potential for developing a robust, low strip ratio, low capital intensity copper project with low operating costs, strong cash flow generation capacity and significant upside potential through further Resource growth
Asiamet considers target production of 25,000 tons of copper cathode per year for an initial 8 year LOM to be the most appropriate option for the PEA given the significant exploration potential already identified close to the BKM deposit. Copper mineralization at BKM remains open in several directions and locally at depth. Adjacent high potential prospects at Beruang Kanan South (BKS), Beruang Kanan West (BKW) and BKZ Polymetallic (BKZ) also represent attractive targets for additional mineralization as demonstrated by the strong surface and drilling results returned to date e.g. 10m at 2.52% Cu incl. 2m at 7.45% Cu from 19.5m at BKS (ARS NR November 16, 2015). Increasing the Mineral Resource base, and thus the potential feed available to the BKM processing facilities evaluated in the current PEA, is likely to have a strongly positive impact on the BKM Copper Project value and will be a key focus for Asiamet going forward.
Meanwhile, the 2016 program will focus on long lead time items for the bankable feasibility studies and exploration and resource drilling to increase potential mine life at BKM including:
? Additional drilling for metallurgy samples. Stage 3 short and long column copper leach and variability test work
? Infill drilling to upgrade part of the BKM Resource to measured and indicated confidence levels with the aim of demonstrating a +10 year life
? Environmental Impact Assessment for a potential mine development
? Pre-feasibility study level project option analysis, optimisation of the various inputs to further enhance project economics, and value engineering studies
? Further exploration work on high potential prospects BKS, BKW and BKZ where excellent targets for additional copper mineralization nearby BKM are demonstrated by strong surface and scout drilling results returned to date
BKM Project Preliminary Economic Assessment Results Summary
| BKM - Economic Summary | Unit | Base Case |
| Life of Mine (LOM) | Years | 8 |
| Copper Cathode Sold | Million lbs | 391.0 |
| Copper Price (LOM Average) | $US/lb | 3.25 |
| Gross Revenue | $US | 1,270.6 M |
| LOM C1 Operating Costs | $US | 499.5 M |
| LOM C1 Operating Cost (recovered copper) | $US/lb | 1.28 |
| Royalties | $US | 63.5 M |
| Off-site transport | $US | 19.8 M |
| LOM All In Operating Cost | $US | 582.8 M |
| LOM All In Operating Costs | $US/lb | 1.49 |
| Initial Capital Cost (including a 15% Contingency) | $US | 163.8 M |
| Taxes | $US | 136.6 M |
| NPV and IRR (Base Case) | ||
| Discount Rate | Percent (%) | 10 |
| Pre-Tax Net Free Cash Flow(including royalties) | $US | 524.0 M |
| Pre-Tax NPV $US 290.7 M Pre-Tax IRR | % | 47.5 |
| Pre-Tax Payback Period | Years | 2.1 |
| After-Tax Net Free Cash Flow (incl. royalties) | $US | 387.5 M |
| After-Tax NPV | $US | 204.3 M |
| After-Tax IRR | % | 38.7 |
| After Tax Payback Period | Years | 2.4 |
Editing by Johannes Simbolon