Asiamet completes sale of Jelai IUP, updates Beutong IUP conversion
Tuesday, May 9 2017 - 02:00 PM WIB
TSX-listed Asiamet Resources Limited (ARS) said that with the receipt of the outstanding consideration of US$700,000, it has completed the sale of its Jelai IUP gold-silver mining project in Indonesia?s East Kalimantan Province to Ship Ocean Lte for $800,000.
The company said in a statement Tuesday that the Jelai IUP is currently in the process of being converted from an IUP Exploration to an IUP Production. Ship Ocean Lte will acquire the property from Asiamet and assume full responsibility for the ongoing processing of the Jelai IUP.
?Conversion of an IUP is an intensive process that consumes considerable time and resources and Asiamet is very pleased to now be in a position to re-direct these resources towards advancing its core KSK and Beutong projects,? Asiamet said. The Beutong gold mining project is located in Aceh.
Significant progress has also recently been made on the Beutong IUP exploration to production conversion. After completing a review of the Beutong IUP Production application documents, the Indonesian Ministry of Energy and Mineral Resources (ESDM) requested further revisions to be made. The requested documents and revisions included additional maps, modifications to the economic model, clarification on concentrate refining and conversion of the Beutong Resource model to comply with Indonesia's resource code "Komite Cadangan Mineral Indonesia" or Kode-KCMI 2011 (KCMI).
The company engaged GEOMINE Mining and Geotechnical Consultants (GEOMINE) to assist with the Resource model update. GEOMINE engineers have significant experience in the mining sector both nationally and internationally covering underground and open pit operations across most commodities. Australian Mine Design and Development Pty Ltd (AMDAD) were also engaged to complete additional refinements to the mine engineering and related infrastructure components of the study, based on GEOMINE's revised Resource model.
Asiamet said all of ESDM's revisions have been completed and the GEOMINE Competent or Qualified Person signed off on the study documents on March 6, 2017. All documents were re-submitted to ESDM on the same day. ESDM officials have advised that the updated documents will be reviewed and followed up with a plenary session / presentation tentatively set for early May. ?ARS understands that this is the final requirement prior to grant of the Beutong IUP Production license,? Asiamet said.
"Asiamet is very pleased to have completed the sale of its Jelai IUP to local Indonesian interests at a satisfactory valuation,? Asiamet CEO Peter Baird said.
Editing by Reiner Simanjuntak