Asiamet Resources Limited (“Asiamet or the “Company”) is pleased to provide an exploration update on its KSK Contract of Work (“CoW”) following the release of the Feasibility Study (see RNS dated 14 June 2019) for its 100% owned BKM Copper Project located in Central Kalimantan, Indonesia.
The KSK CoW as highlighted in Figure 1 is 39,443 hectares and has a number of copper, copper-gold and other polymetallic targets. The entire CoW has been under explored by the Company as focus has centred on delivery of the BKM Feasibility Study. The BKM copper project, the most advanced of all Asiamet’s projects within the KSK CoW, has the following JORC compliant reserves and resources:
BKM Project, (total Reserves Proven and Probable)
· 51.5Mt @ 0.6% Cu for 303kt of contained copper
BKM Project Resources (total Measured, Indicated and Inferred at 0.2% Cu cut-off)
· 69.6Mt @ 0.6% Cu for 451.9kt of contained copper
The Feasibility Study outlined a number of value enhancement opportunities which have the potential to significantly enhance the overall economics of the BKM copper project. Asiamet is advancing a number of these opportunities concurrently and has now designed an exploration programme focused on some of the walk-up targets in close proximity to the BKM copper project (less than 3kms).
These walk-up targets have the potential to add significant value by extending mine life beyond the initial 9 years. In addition, these targets are expected to add heap leachable copper resources to those already defined and create further opportunities for revenue enhancement. The high-priority target areas include:
· Target 1 “The Link Zone”- Extensions to the BKZ high-grade volcanic-hosted massive sulphide (“VHMS”) style Zn Pb Cu. The BKZ mineralisation has strong characteristics with Zn-Pb-Cu VHMS style mineralisation, with upper bedded stratiform Zn and Pb and a lower copper pyrite zone. The lower copper pyrite zone at BKZ is not dissimilar to the BKM copper deposit and therefore BKM and BKZ could be part of the same mineralisation. Evaluation of the exploration data between BKM and BKZ supports this interpretation and shows that there is 500 metres of untested potential, termed the “Link Zone” between BKZ and BKM.
· Target 2 “BK West”- Testing of IP chargeability highs to the North West of BKM. The BKM Copper mineralisation is associated with a geophysical Induced Polarisation (“IP”) high chargeability signature. There is also a significant high IP chargeability signatures located approximately 800 metres to the West North West of BKM. This anomalous area like BKM has coincident silica sericite alteration and copper sulphides in veining which remains untested. This North West BKM Target appears to be about 200 metres long (50% of the size of the BKM IP chargeability high).
· Target 3 “The Root Zone” – Extensions to the BKM copper mineralisation at depth target. At BKM between 31850N and 31500N there is an IP chargeability anomalous high which dips at 40 degrees to the west for at least 250 vertical metres. This IP chargeability high termed the “Root Zone” is immediately below the near-surface BKM copper mineralisation, which dips to the east. Within the context of the BKM resource drilling it has been noted that several drill holes have intersected copper mineralisation which is open at depth. For example, drill hole BKM31750-06, intersected 7m @ 1.02% Cu at end of the drill hole. It is recommended to drill test this IP chargeability high at depth to the west, as this area may in fact be the “Root Zone” for the BKM mineralisation.
· Target 4 – Near-surface oxide potential at BK South, that may be amenable to SX-EW processing.
BK South Target is located approximately 1km to the south of the BKM Resource and shows near-surface oxide copper mineralisation in previous drilling over an area of 300 metres by 300 metres. Drill intercepts include:
· BKM30500-01, 12 metres @ 2.15% Cu from 17.5 metres
· KBK028, 6.5 metres @ 0.43% Cu from 2 metres
· BKM30625-01, 10.25 metres @ 0.62% Cu from 4.25 metres.
Drill holes are broadly spaced, up to 100 metres apart.
The Company has completed and lodged all required documentation in relation to the permits required for exploration access of the above-mentioned targets and mobilisation of drilling equipment is anticipated in the next couple of weeks.
Asiamet’s CEO Peter Bird commented:
“Our technical team has defined an exploration programme to systematically explore the area surrounding our current Resources at the BKM copper project. We are currently waiting receipt of the exploration permit and once received, we anticipate drilling these four targets areas located in close proximity to the existing Resources at BKM this year. Our previous exploration work suggest that there are a number of walk-up targets in the area, a number of which are oxide dominant which allows for processing via heap-leach and SX-EW.
Any discoveries that are defined proximal to the current BKM Resource have a commercial advantage when compared with more regional discoveries as they can leverage off proposed infrastructure, logistics and technical expertise that will be already established around the BKM Mine.”
Figure1 Kalimantan Surya Kencana (KSK) Contract of Work. To view the image, please use the following link https://asiametresources.com/wp-content/uploads/2019/11/Figure1-Kalimantan-Surya-Kencana-KSK-Contract-of-Work.jpg
Figure 2 Priority Drill Targets Surrounding BKM, (Open Pit Outline in Yellow) To view the image, please use the following link https://asiametresources.com/wp-content/uploads/2019/11/Figure-2-map-showing-priority-drill-targets-surrounding-BKM-pit-outline-in-yellow.jpg
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