Asiamet drilling hits continuous higher grade copper mineralization at BKM

By Romel S. Gurky

TSX-listed Asiamet ResourcesLimited said that resource infill and extension drilling at the BeruangKanan Main (BKM) copper deposit in Central Kalimantan, continues to display excellent continuity of shallow high grade copper mineralization within the BK058 Zone.

The company said in a statement Wednesday that a total 33 holes for 3,400 meters of diamond core drilling have now been completed and three holes are currently in progress. The results from five holes are reported below. Four holes were drilled in the southern part of the BKM deposit and one hole at the far north end. A further 87 holes/7,700 meters are planned.

Hole BKM31775-01 (141m End of hole 'EOH') was collared 25m north of BKM31750-02 (85.0m EOH) which intersected a broad zone of high grade near surface copper assaying 54 meters at 1.10% Cu (from 16.5 meters depth) including 16 meters at 1.67% Cu (from 17.5 meters) refer ARS Press Release May 13, 2015. Assay results confirm the high grades within BK058 Zone and the continuity of the mineralization intersected in BKM31750-02. Better results include:

BKM31775-01 31.0 meters at 1.57% Cu (from 12.0 meters)
? Including 5.0 meters at 4.74% Cu (from 16.0 meters)
o Includes 2.0 meters at 8.48% Cu (from 17.0 meters)
? Including 2.0 meters at 2.76% Cu (from 22.0 meters)
? Including 2.0 meters at 3.19% Cu (from 28.0 meters)
13.0 meters at 1.16% Cu (from 128.0 meters)
? Including 3.0 meters at 2.27% Cu (from 128.0 meters)
? Including 3.0 meters at 2.24% Cu (from 133.0 meters)

Drill hole BKM31755-01 (168m EOH) is a scissor hole to BKM31750-03 (75m EOH) which intersected high grade near surface copper mineralization, including 5.0 meters at 1.60% Cu (from 8.0 meters) and 8.0 meters at 1.16% Cu (from 15.0 meters), refer ARS Press Release June 11, 2015. Assay results from drill hole BKM31755-01 confirm the style, width, and continuity of mineralization intersected previously and the high grade tenor of the BK058 Zone. Better results include:

BKM31755-01 55.1 meters at 0.74% Cu (from 7.9 meters)
? Including 12.0 meters at 1.08% Cu (from 12.0 meters)
? Including 14.0 meters at 1.10% Cu (from 49.0 meters)

Infill holes BKM31700-06 (91m EOH) and BKM31700-07 (74m EOH) were drilled west of the BK058 Zone and confirm continuous shallow, moderate grade covellite - chalcocite copper mineralization in quartz stockwork and pyrite veins. Better results include:

BKM31700-06 19.0 meters at 0.81% Cu (from 3.0 meters)
? Including 3.0 meters at 2.86% Cu (from 14.0 meters)
12.0 meters at 0.50% Cu (from 29.0 meters)
14.0 meters at 0.47% Cu (from 65.0 meters)
BKM31700-07 31.0 meters at 0.60% Cu (from 7.5 meters)
? Including 2.0 meters at 2.98% Cu (from 28.5 meters)

Delineation drilling at BK058 Zone continues to confirm the thickness and continuity of near surface higher grade copper mineralization and it is anticipated that these results will further reduce the already low strip ratio of the potential open pit in the southern part of the BKM deposit.

Drilling in the northern part of the BKM deposit is focused on upgrading Resource confidence from Inferred to Indicated and Measured categories (NI43-101), and fully defining the northern limit of the mineralization. Hole BKM32705-01 (90.1m EOH) was collared on the most northern section line and intersected a broad zone of moderate to high grade copper mineralization that extends 20 meters outside of the resource envelope. The hole was terminated in strong copper mineralization at 90.1 meters after reaching the depth capacity of the Company's RB drill rig, with the final 1.1-meter sample interval assaying 4.38% copper. Better results include:

BKM32705-01 36.1 meters at 0.64% Cu (from 54.0 meters)
? Including 4.0 meters at 2.25% Cu (from 69.0 meters)

Tony Manini, Asiamet's Chief Executive Officer commented: "Resource evaluation drilling at BKM continues to meet or exceed our expectations. The grade and continuity of mineralization appears to be very consistent and we are seeing higher grade mineralization shallower than anticipated within the BK058 zone. A lower strip ratio zone like BK058, coupled with higher grades has the potential to lower operating costs early in the mine life and further enhance the already strong economics of the BKM project as outlined in the preliminary economic assessment. The feasibility study on BKM is ramping up with mine engineering and infrastructure studies about to commence in addition to the Resource drilling, metallurgy, geo-technical and environmental studies currently in progress. We anticipate a strong news flow over the coming months and look forward to progressively updating all stakeholders as the study activity ramps up and corporate initiatives are advanced towards key milestones".

Editing by Reiner Simanjuntak