BKZ Resource Grows – Exploration Targets Highlight Further Potential Upside
Asiamet Resources Limited (“Asiamet” or the “Company”) is pleased to report an updated Mineral Resource Estimate (MRE) for the BKZ Polymetallic (“BKZ”) deposit located on the 100% owned KSK Contract of Work (CoW) in Central Kalimantan, Indonesia.
The modest 8,630 metre drilling program completed in late 2021 – early 2022 has resulted in significant increases in the 2022 reported Mineral Resources over those reported in 2018. The Mineral Resource Estimate (MRE) for BKZ is divided into the Upper Polymetallic Zone (UPZ) and Lower Copper Zone (LCZ).
Highlights :
· 50% increase in contained Zinc in the UPZ (2022 MRE : 90kt contained zinc, 2018 MRE : 60kt zinc at a 4% zinc cut-off grade)
Upper Polymetallic Zone (UPZ) Inferred Resources comprise:
· 1,050kt @ 8.6% Zinc, 3.5% Lead, 62g/t Silver and 0.31g/t Gold containing 90kt Zinc, 37kt Lead, 2,076koz Silver and 10.5koz Gold at a 4% Zinc cut-off grade; and
· An additional 600kt @ 1.5% Zinc, 0.4% Lead, 15g/t Silver and 0.21g/t Gold containing 9kt Zinc, 2kt Lead, 295koz Silver and 4.1koz Gold at a 1% Zinc cut-off grade
· 75% increase in contained Copper in the LCZ (2022 MRE : 21kt copper, 2018 MRE : 12kt copper at a 0.5% copper cut-off grade)
Lower Copper Zone (LCZ) Inferred Resources comprise:
· 1,600kt @ 1.3% Copper, 17g/t Silver and 0.14g/t Gold containing 21kt Copper, 895kt Silver and 7.2koz Gold at a 0.5% cut-off grade
· Drilling outside current UPZ and LCZ Resource confirms mineralisation remains open for further resource growth . The UPZ remains open to the north and east with outcrop to the west, while the LCZ remains open at depth. Exploration Targets are as follows:
· UPZ Exploration Target: 250,000 to 1,500,000 tonnes @ 6-9% Zn and 3-5% Pb
· LCZ Exploration Target: 100,000 to 150,000 tonnes @ 1.0-1.5% Cu and 20-50g/t Ag
· Potential for 100-220koz Gold and 10-20Moz Silver to be converted from Exploration Target to Resource with additional drilling and metallurgical test work.
· Upper Gold-Silver Exploration Target 3.0-3.8Mt @ 1.0-1.5 g/t Au and 100-150 g/t Ag
· Lower Gold-Silver Exploration Target 1.0-1.5Mt @ 0.4- 0.7 g/t Au and 20-40 g/t Ag
The Exploration Target at BKZ refers to the areas outside of the BKZ Mineral Resources. The reported potential quantity and grade of the targets are conceptual in nature. There has been insufficient exploration and evaluation to estimate a Mineral Resource for these targets and it is uncertain if further evaluation will result in the estimation of a Mineral Resource in the target areas. The Exploration Target has been prepared and reported in accordance JORC Code (2012).
Tony Manini, Asiamet Executive Chairman commented:
“The value we have been able to add through this small and focused drill program at BKZ clearly demonstrates the outstanding upside potential which exists in the Beruang Kanan District. Resources for all base and precious metals contained in the UPZ and LCZ have grown significantly and there is potential for a gold-silver deposit of up to two hundred thousand ounces of gold and 10-20 million ounces of silver. With limited additional drilling and metallurgical test work, we aim to convert a significant portion of this gold-silver Exploration Target into a resource.
Beruang Kanan has only recently been recognised as a district scale gold rich polymetallic VHMS system with many base and precious metals targets still to be explored and evaluated. As our understanding of the geology and mineralisation evolve, so does our ability to generate significant value from the drill bit.
Exploration Targets provide upside potential and which, subject to additional drilling and metallurgical test work, may add to the mineral inventory with further drilling. All targets lie in close proximity to the proposed BKM mine site infrastructure and provide outstanding future production growth options.
Separately, the diligence work with PT Delta Dunia (DOID) is proceeding to plan and is expected to complete in H1 2022. The appointed Independent Technical Expert is currently finalising its report for presentation to both DOID and the proposed lead bank for debt financing of the BKM copper mine development. Concurrently NewPro Engineering is advancing an update of the 2019 feasibility study to bankable status. We look forward to providing further updates on each of these workstreams shortly.”
2021-2022 Resource Extension Drill Program
The 2021-22 drilling extended the UPZ mineralised domain approximately 50 metres to the east for approximately 75% of the strike extent defined in the 2018 MRE domains as well as thickening of the mineralisation in the eastern portions of the domain as per figure 1 below. The LCZ mineralised domain was extended to the east and north from the domains utilised in the 2018 Resource Estimate (figure 1 below). For the Inferred Resource the drill spacing is predominately less than 50 metres intervals. Drilling at LCZ intercepted higher grade copper mineralisation which contributed to an increase in the copper grades reported in 2022 over those reported in 2018.
Figure 1: Long section and Plan view: UPZ and LCZ domain differences between 2018 and 2022
Resource To view the image, please click on the following link https://asiametresources.com/wp-content/uploads/2022/05/Figure-1.png
Exploration Target
In addition to the Inferred Resources above, modelling of mineralisation intersected in drill holes outside the boundary of the Inferred Resource has outlined the following Exploration Targets (in accordance with the requirements of the JORC Code (2012):
· Base Metals Exploration Target outside the existing Inferred Resource at BKZ is defined by 15 drill intercepts at >50 metre spacing and located peripheral to the UPZ and LCZ Mineral Resources. The Exploration Target for UPZ and LCZ are approximated as follows:
· Zinc-Lead (UPZ) Exploration Target: 250,000 to 1,500,000 tonnes @ 6-9% Zn & 3-5% Pb
· Lower Copper (LCZ) Exploration Target: 100,000 to 150,000 tonnes @ 1.0-1.5% Cu & 20-50g/t Ag
· Gold and Silver Exploration Target at BKZ (“Precious Metal” mineralisation), is defined by 161 drill intercepts, mostly at >50 metre spacing, and in two volumes, one located peripheral and to the east of the LCZ and the second located below a footwall diorite sill to the LCZ. The Exploration Target is at 100-300 metres below surface and occurs over 300 metres of prospective strike length. This zone remains open laterally and at depth. The Exploration Target for the gold-silver zones are as follows:
· Upper Gold Silver Exploration Target 3.0-3.8Mt @ 1.0-1.5 g/t Au & 100-150 g/t Ag
· Lower Gold Silver Exploration Target 1.0-1.5Mt @ 0.4- 0.7 g/t Au & 20-40 g/t Ag
The Exploration Target at BKZ refers to the areas outside of the BKZ Mineral Resources. The reported potential quantity and grade of the targets are conceptual in nature. There has been insufficient exploration and evaluation to estimate a Mineral Resource for these targets and it is uncertain if further evaluation will result in the estimation of a Mineral Resource in the target areas.
The location of these Exploration Targets relative to the Inferred Resources are shown in figure 2 below.
Figure 2. BKZ Exploration Targets cross section
(Upper Polymetallic Zone, Lower Copper Zone, Upper Gold-Silver Zone, Lower Gold-Silver Zone) To view the image, please click on the following link https://asiametresources.com/wp-content/uploads/2022/05/Figure-2.jpg
Note all references to Exploration Targets in Text and Tables: Exploration Targets are not Mineral Resources. There has been insufficient exploration and evaluation to estimate a Mineral Resource for these targets and that it is uncertain if further evaluation will result in the estimation of a Mineral Resource.
The Company intends to test the Exploration Target zones with drilling and associated metallurgical test work, and this work program is expected to extend over the next 12-24 months
Qualified Persons
The statement of Mineral Resources (Table 1) has been completed by Hackman and Associates (“Hackman”) and is reported in accordance with the requirements of the JORC Code (2012). The statement of Exploration Target in accordance with JORC Code (2012) has been reviewed and compiled by Hackman and Patrick Creenaune. Data disclosed in this press release has been reviewed and verified by ARS’s qualified person, Patrick Creenaune, Chief Geologist, FAIG (Fellow Australian Institute of Geoscientists), an advisor to the Company and a Qualified Person within the meaning of JORC (2012) and for the purposes of the AIM Rules for Companies.
Mineral Resource Estimate (JORC 2012)
The 2022 Resource model covers 350 metres of the North-South strike extent of the mineralisation at BKZ and up to 175 metres of width and depth extent of the semi-massive sulphide and sulphide rich silicified volcanic hosted mineralisation. The UPZ mineralisation is open to the north and east and outcrops to the west, while the LCZ remains open at depth in the central area of BKZ. Up to 400 metres of depth extension and/or repetition potential of mineralisation has been tested. Gold-silver mineralisation intersected below a diorite sill, however this depth extension has not been fully tested. Areas immediately below mineralisation and volumes to the north, south and west still considered prospective.
The BKZ, UPZ and LCZ resource model is defined and underpinned by data from 72 diamond drill holes (11,427 metres) containing 6,278 metres logged and assayed, mainly 1 metre intervals. Sample data was composited to two metre intervals and flagged by the domains defined in the geological and mineralisation interpretations. Single and double passes of Inverse Distance Squared interpolation runs were employed to estimate Cu, Zn, Pb, Ag and Au grades within domains into a sub-blocked model (parent block size of 25mE x 25mN x 10mRL). High grade restrictions were applied. Tonnage factors were applied to blocks by a regression formula determined between measured dry bulk density and the total estimated Fe+Zn+Pb+Cu grade. Mineralisation was assessed with respect to having reasonable prospects for economic extraction and the resource estimate reporting cuts are supported by this evaluation. The resource estimate has been classified based on data density, data quality, confidence in the geological interpretation and confidence in the robustness of grade interpolation.
Details of the Resource data quality and analyses and the estimation process are tabulated in a JORC (2012) table 1 report which will be available on the Company website ( www.asiametresources.com ).
ON BEHALF OF THE BOARD OF DIRECTORS
Tony Manini, Executive Chairman
For further information, please contact:
-Ends-
Tony Manini
Executive Chairman, Asiamet Resources Limited
Email: [email protected]
