Asiamet drilling expands high grade zones in BKZ prospect

By Romel S. Gurky

TSX-listed Asiamet Resources Limited reported that follow up scout drilling at the BKZ prospect in Indonesia?s Central Kalimantan Province has intersected further near surface high grade base and precious metal rich mineralization along strike of earlier hits.

The company said in a statement Tuesday that while further drilling is still required to determine the ultimate dimensions and continuity of the mineralized body, these latest results are highly significant and provide confidence for a potential stand-alone high grade polymetallic deposit.

BKZ is located approximately 800-meter north of the company?s feasibility stage BKM Copper Project, also in Central Kalimantan. Being the most easily accessible, BKZ is the first of multiple targets outside BKM currently being tested in the wider BK district. To date, six holes (592.7meters) that have been drilled to test a zone of massive sulphide outcrops over an area of 150m x 100m have intersected polymetallic mineralization, however assay results are only yet available for two holes. Further results will be reported as assays are received.

Highlights of the results received to date include:
BKZ33700-01 3.2m at 1.15g/t Gold and 67.8g/t Silver (from 1.8 metres)
7.0m at 3.7% Zinc, 1.3% Lead, 46g/t Silver, 0.24g/t Gold,1.0% Copper (from 5.0 metres)
BKZ33700-02 39m at 7.3% zinc, 2.3% lead, 33g/t silver and 0.33g/t gold (from 41 metres)
Incl. 23m 11.1% zinc, 3.8% lead, 50g/t silver and 0.42g/t gold (from 41 metres)

The current BKZ scout drilling program is focused on expanding the Zinc-Lead-Silver-Gold mineralization intersected in historical drill holes (BKZ-1, BKZ-2, BKZ-3), where BKZ-1 (123.1m End of Hole "EOH") reported 9.47% Zn, 4.87% Pb, 0.26% Cu, 96.5g/t Ag and 0.56g/t Au over 8 meters from 6.0 meters (refer ARS Press Releases February 23, 2017).

The first hole, BKZ33700-01 (92.2m EOH), was drilled 45m northwest of BKZ-1 and intersected oxide gold mineralization from top of hole to 5 meters depth, followed by strong polymetallic sulphide mineralization to 12m depth. The host rock is a polymict breccia cut by cm-scale quartz -- sulphide veins. This hole was drilled on the western margin of the known mineralization, and drilled through the mineralized zone at approximately 15m depth into a sequence of unmineralized volcanic rocks.

The second hole BKZ33700-02 (113.9m EOH) was drilled 63m northeast of BKZ-1 and 75m east of BKZ33700-01. This hole intersected a broad zone of quartz-sulphide mineralization over a downhole interval of approximately 40 meters from 41m depth. The polymetallic mineralization intersected in this hole confirms the geometry of the mineralization seen in the adjacent historical holes BKZ-1, 2 and 3, of a quartz-sulphide body approximately 40-50 meters in true thickness. This broad intersection of polymetallic mineralization comprises quartz-sulphide veins to massive sphalerite (zinc), galena (lead), chalcopyrite (copper) and pyrite , within an interpreted low-angle thrust fault.

The strong results received to date indicate that the high-grade zinc-lead-silver-gold-copper mineralized system at BKZ has excellent potential to develop into a stand-alone deposit located less than 800m north of the company?s feasibility stage BKM Copper Project. The mineralization remains open in all directions and at depth, and drilling to date indicates the mineralization is increasing in grade to the east. The focus of the ongoing drill program is to expand the massive and semi-massive sulphides by completing step-out drilling to the north, south and east. There is currently one rig active, positioned on BKM33700-04 and testing the eastern extensions to the high-grade polymetallic mineralization intersected in BKM33700-02.

Peter Bird, Asiamet?s Chief Executive Officer commented: "Asiamet is extremely pleased with the initial follow up drill results from our BKZ prospect, the first of multiple targets to be drilled in the BK district over the coming months. The base and precious metals grades received to date are exceptional and of a similar tenor to those reported at some of the highest quality base metals mines globally.?

?While a substantial amount of further drilling is required to ultimately determine the dimensions and continuity of the mineralization, we are now more confident of BKZ developing into a stand-alone deposit discovery with the potential to share infrastructure with any proposed mine development at BKM. We have consistently stated our belief that the potential of the KSK COW is vastly greater than BKM alone and these early results re-enforce that view. Our ongoing drill programs will continue to target additional copper resources to further strengthen the BKM project and to test the numerous polymetallic targets evident in our surface exploration data, all of which we anticipate will unlock very significant value for our stakeholders.?

Editing by Reiner Simanjuntak