Asiamet files PEA report for Beruang Kanan prospect

By Romel S. Gukry

Canadian firm Asiamet Resources Limited (ARS) announced on Friday that it has filed a technical report supporting the independently prepared Preliminary Economic Assessment (PEA) study of the Beruang Kanan Main Zone in Central Kalimantan. The PEA has been finalized in compliance with the guidelines of Canadian National Instrument 43-101.

As announced on April 5, 2016, the highlights of the PEA are: The PEA is the first study undertaken to evaluate the economics of developing an open pit mine and heap leach solvent extraction electro-winning facility (SX-EW) to directly produce copper cathode based on the near surface copper deposit reported in the 2015 BKM Resource estimate (ARS October 21, 2015). 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. 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.

Please click here for details of the PEA Report

Editing by Johannes Simbolon