Asiamet strengthens finances and initiates BKM feasibility study

By Romel S. Gurky

AIM and TSX-listed firm Asiamet Resources Limited announced on Wednesday that it has commenced a Resource definition drilling program at the Beruang Kanan Main (BKM) copper deposit in Central Kalimantan as part of the BKM Feasibility Studies.

The company plans to drill approximately 110 diamond drill holes totaling 9,000 meters to significantly enhance resource confidence and upgrade a majority of the current Inferred Resource of 49.7million tons grading 0.6 percent Cu containing 657 million pounds of copper at 0.2 percent reporting cut, to the Measured and Indicated Resource categories. Indicated Resources at BKM currently contain 231MIbs in 15.0M tons grading 0.7 percent Cu at a 0.2 percent reporting cut.

Only Measured and Indicated Resources can be considered for conversion to Mineable Ore Reserves in the Feasibility Study. Results will be reported progressively as they become available and an updated Resource estimate is expected before the end of Q3, 2016.

Additional work programs also being initiated as part of the Feasibility Studies include:
? geotechnical drilling to define pit-slope stability and aid open pit mine design
? large diameter (PQ) drilling to collect samples from across and through the deposit for detailed metallurgical test work and mine waste characterization studies.
? detailed metallurgical studies comprising short and long column leach tests on a suite of representative mineralized composites to determine optimum copper recoveries, assess deposit variability and provide inputs into the mine and process plant design;
? environmental and water resources studies and permitting applications

Asiamet also advised that following on from a recently completed private placement of GBP 1.5 million (approximately C$2.7 million), the company's financial position has been further strengthened by the receipt of tax refunds totaling approximately US$1.0 million from the Indonesian Government tax department. The refunds relate to tax payments (VAT) made by the Company for various goods and services in the years 2006, 2007, 2013 and 2014. Payments were received on April 26 and May 19, 2016, respectively.

The company is now in a sound financial position to significantly advance feasibility studies on the BKM copper project, complete drilling aimed at further expanding Resources in the BKM project area and subject to receipt of the necessary permits, drill test high grade polymetallic mineralization at the Baroi prospect. A number of corporate initiatives aimed at further strengthening the company's project delivery capability and financial position are being advanced simultaneously with the project work programs.

Asiamet Resources CEO Tony Manini commented : "Following completion of a highly positive preliminary economic assessment (PEA) for the BKM project and recent initiatives that strengthen our financial position, Asiamet has initiated feasibility studies for the development of a heap leach SX-EW copper mine at the BKM project. Feasibility studies will cover a broad range of technical, commercial, financial, social and environmental inputs in detail and represent a major and critically important phase of de-risking for the project, the outcomes of which will be used by a wide range of stakeholders, including potential financiers, to assess the project's viability. As the feasibility work programs on BKM are being progressed by the study team, exploration drilling aimed at expanding the Resource base and testing some additional high grade copper and polymetallic targets will progress with high expectations for success. Simultaneously important corporate initiatives to further strengthen the Company's financial position and enhance shareholder value are being vigorously pursued. We look forward to providing all our stakeholders with regular updates and a strong news flow during this exciting next stage of the Company's development"

Editing by Johannes Simbolon