Asiamet says feasibility drilling highlights key attributes of BKM project

By Romel S. Gurky

TSX-listed Asiamet Resources Limited (ARS) provided Tuesday an update on resource evaluation drilling being undertaken as part of feasibility studies on the Beruang Kanan Main (BKM) copper deposit in Central Kalimantan.

ARS said in a statement that a total 56 holes for 5,600 meters of diamond core drilling have been completed and assay results from a further ten holes drilled in the northern area of the deposit are reported below. An additional 62 holes/5400 meters are planned.

?Feasibility study resource drilling completed to date has emphasized a number of key attributes with potential to enhance BKM project economics,? the company said in the statement.

Better results from the most recent drilling include:
BKM32200-04 29.5 meters at 0.85% Cu (from 97.5 meters)
Including 11.0 meters at 1.25% Cu (from 113.5 meters)

BKM32200-05 17.0 meters at 1.57% Cu (from 1.0 meters)
Including 7.0 meters at 2.54% Cu (from 2.0 meters)
Including 3.0 meters at 1.87% Cu (from 11.0 meters)

BKM32300-02 4.0 meters at 2.02% Cu (from 6.6 meters)
19.0 meters at 1.16% Cu (from 28.6 meters)
Including 9.0 meters at 2.17% Cu (from 38.6 meters)

BKM32300-03 10.0 meters at 0.54% Cu (from 0.0 meters)
2.0 meters at 1.48% Cu (from 32.0 meters)
BKM32320-01 42.0 meters at 0.56% Cu (from 33.0 meters)
Including 7.0 meters at 1.43% Cu (from 41.0 meters)

As part of the feasibility study resource quality control and metallurgical test work programs, a series of holes are being drilled on different orientations/angles and as twin or scissor holes in order to verify the robustness of the BKM resource and provide mineralized material for detailed metallurgical test work.

BKM32200-04 (127.0m End of hole 'EOH') was drilled in the southern area of BK044 Zone to confirm the orientation of mineralization intersected in previous holes BKM32150-03 and BK048-01 (refer ARS Press Releases September 29, 2015 and June 10, 2013), and for metallurgical sampling. The upper section of this drill hole was sent for metallurgical test work (interval 14.5m - 97.5m, or 83 meters) and assays for this interval will be reported at a later date. Infill dill hole BKM32200-05 was drilled 50m west of BKM32200-04 and intersected higher grade copper mineralization from surface.

Resource infill hole BKM32300-02 (100.0m EOH) was drilled at the eastern margin of the BK044 Zone and confirmed continuous, shallow, higher grade copper mineralization hosted in quartz stockwork and pyrite veins. A mineralized section of this drill hole was sent for metallurgical test work (interval 10.6m - 28.6m or 18 meters), with assays above and below this interval confirming high grade copper mineralization. Hole BKM32300-03 (85.4m EOH) was drilled 50 meters east of BKM32300-02 and outside of BK044 Zone, intersecting low to moderate grade copper mineralization.

BKM32320-01 (137.0m EOH), drilled to confirm the orientation of mineralization intersected in previous holes on section line BKM32300, successfully confirmed near surface moderate grade copper mineralization.

The primary purposes of drill holes BKM32400-01 (189.8m EOH) and BKM32400-02 (111.5m EOH) were to provide sample for metallurgical test work.

Drill hole BKM32500-04 (41.5m EOH) did not intersect significant copper mineralization and closes off the mineralization to the west as expected.

Drill holes BKM32600-01 (102.1m EOH) and BKM32600-02 (66.5m EOH) were drilled 100 and 150 meters west of and outside the current BKM Resource envelope respectively. BKM32600-01 confirmed copper mineralization extends more than 100 meters west of the current BKM resource envelope with a broad zone of low grade mineralization intersected. BKM32600-02 intersected only spotty copper mineralization.

Tony Manini, Asiamet's Chief Executive Officer commented: "Ongoing resource evaluation drilling at BKM continues to display excellent continuity of copper grade and thickness within the existing resource and also extensions in some areas. Based on the work completed thus far, a high rate of conversion from inferred to measured and indicated resources is anticipated when the drilling and a new resource estimate is completed. This is an extremely pleasing and important outcome as the drill out and upgrade of inferred to measured and indicated resources is a major de-risking and value enhancing step for all projects.?

?Asiamet's focused strategy for the development of the Company and its projects is very much on track. Results from the BKM feasibility study have met or exceeded expectations to date and corporate activities relating to the Beutong and Jelai licence conversions, and project funding and development, have been considerably progressed,? he added.

Editing by Reiner Simanjuntak