Asiamet: High grade copper zone identified in C. Kalimantan

By Ruli Setiawan

TSX-listed Asiamet Resources Limited (formerly known as Kalimantan Gold Corp Ltd) said that recent drilling as part of the resource evaluation program in progress on its flagship Beruang Kanan copper project in Central Kalimantan, has identified a high grade copper zone within the current resource envelope that has the potential to significantly enhance project economics.

The company provided Wednesday updates in the following statement.

Hole BKM31850-02 (69.6m end of hole (EOH)) on section line 31850 intersected very shallow high grade copper mineralization similar to that reported approximately 125m south in hole BK058 i.e. 64.9m at 1.24% Cu, including 9 meters at 7.35% Cu, from 11.7 meters. Better results include:
BKM31850-02 11.0 meters at 2.96% Cu, (from 6 meters depth)
? Including 2.0 meters at 9.26% Cu (from 6.0 meters)

Follow up drilling is now underway in the immediate area of these intersections to increase drill density and improve resource confidence. The high grade, shallow copper mineralisation with limited overburden waste outlined on section lines BKM31850 and BKM31750 provides the opportunity to enhance project economics through the potential development of a very low strip ratio, high grade starter pit early in the project life.

In total, 53 holes and 4424.5 meters of the planned 80 hole/ 6500 meter resource evaluation drilling program have been completed and three holes are currently in progress. Drilling is complete on section lines BKM31550, 31650, 31750, 31950, 32050, 32200 and 32450, and drilling is in progress on section lines BKM31800, 31850, 32150 and 32350.

Final assay results were received for an additional 1444.6 meters in twenty drill holes aimed at increasing confidence and expanding the BKM Resource.

All holes drilled to date on section line BKM32550 intersected copper mineralization. Significantly, the continuity of strong near-surface mineralization previously reported in historical drill holes BK02 (93m @ 0.75% Cu, including 24m @ 0.92% Cu and 15m @ 1.73% Cu) and BK03 (79m @ 0.89% Cu, including 22m @ 1.25% Cu and 39m @ 0.99% Cu) has been confirmed in drill holes BKM32550-03 (125.8m end of hole ("EOH")) and BKM32550-04, drilled 100m and 200m east of the BK02 and BK03 collars, respectively. Drill hole BKM32550-03 reported a wide interval of copper mineralization in two individual intersections and drill hole BKM32550-04 (125.3m EOH) reported three individual intersections of moderate to high grade copper mineralization. Better results include:
BKM32550-03 53.20 meters at 0.73% Cu, (from 6.0 meters depth)
?mIncluding 29.20 meters at 1.02% Cu (from 30.0 meters)
BKM32550-04 42.40 meters at 1.00% Cu, (from 1.6 meters depth)
? Including 5.9 meters at 1.55% Cu (from 1.60 meters)
? Including 14.0 meters at 1.45% Cu (from 9.50 meters)

Assay results received for drill holes on section lines BKM32550 and BKM31850 confirm the moderate to high grade copper mineralization previously outlined in wide spaced drilling.

As drilling rates have exceeded expectations, all of the planned BKM infill and expansion drilling planned for 2015 is expected to be completed by mid-September, almost two months ahead of schedule. Rather than a two stage Resource estimate update as originally planned, all results will now be incorporated into a single update which is expected to be completed in late September or early October. Scout drilling of the BKS, BKW and BKZ targets will be undertaken with a single drill rig during September.

Tony Manini, Kalimantan Gold's Chief Executive Officer commented: "Asiamet is successfully delivering on its plan and achieving the milestones set for itself in 2015. The identification of a discrete zone of shallow, high grade copper mineralization within the current BKM Resource envelope presents an excellent opportunity to assess the potential for developing a very low strip ratio, high grade starter pit early in the project life which would be expected to significantly enhance project economics. We look forward to reporting further results from ongoing evaluation drilling of this zone over the coming weeks"

Editing by Reiner Simanjuntak