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Asiamet Resources Drill Programme Ends On A High

Assay results from the Beruang Kanan Main copper deposit in Indonesia were some of the best to date.

The final assay results from Asiamet Resources’ (LON:ARS) 71-hole drilling programme on the Beruang Kanan Main copper deposit in Indonesia have been among its best to date.

Included in this latest round was a 7.5 metre section just three metres below the ground grading 4.11% copper.

This wasn’t a one-off – the drilling programme also uncovered sections containing 3.07%, 2.37% and 2.17% copper.

“The combination of excellent copper grades, very shallow mineralisation, discrete high grade zones, promising initial metallurgical test work and further growth potential bode well for the project,” said chief executive Tony Manini.

The data will be used to update the resource.

Together with the metallurgical work that continues and mining studies, which start soon, they will also form the basis for a preliminary economic assessment (PEA) of BKM.

The study, expected to be published in the first quarter of next year, will provide the company with some guide to the economics (start-up costs and returns) of a low cost mining operation on the site.   

BKM is part of the KSK Project in Central Kalimantan.

Recent research from Optiva Securities reckons that, with 282,000 tonnes of contained copper, the KSK Project could support a 20,000 tonne a year operation.

On that basis, KSK is worth £52mln (US$79mlm), which compares to the current market capitalisation of under £9mln.

CEO Manini has big plans for Asiamet, formerly Kalimantan Gold, and has called in long-time collaborator Stephen Hughes and Mansur Geiger, discoverer of the Kalimantan project, to help.

Their task is quite straightforward – to get the BKM up and into production in the shortest possible time.

The new boss came on board at the turn of the year when Kalimantan Gold bought the Beutong copper-gold asset in Sumatra in an all share deal from private company, Tiger’s Realm Minerals, run by Manini and partner Owen Hegarty.

Beutong is a potential monster and will be part of the longer term thinking of the company.

“A strong ongoing news flow is anticipated as the various components of the PEA are advanced and the company continues to execute on its strategy for its Beutong and Jelai assets,” said Manini.

“We look forward to progressively reporting the results of this intensive programme as they come to hand."