Asiamet Resources Limited (“ARS” or the “Company”) is pleased to report that ongoing exploration drilling at the BKZ Polymetallic (“BKZ”) prospect located on its Kalimantan Surya Kencana (“KSK”) 6th Generation Contract of Work (“CoW”), in Central Kalimantan, Indonesia continues to intersect near surface base and precious metal rich mineralisation.
Highlights to date include:
· The final eight holes are expected to be completed by mid-February for an estimated 3,500 metres in 35 holes and the maiden Resource estimate is expected to be delivered by May. Results for nine holes, including those noted below are still pending.
· At BKZ upper polymetallic zone, drill hole BKZ33750-05 intersected sphalerite, galena and pyrite in massive sulphide style mineralisation and is followed downhole by strongly silicified and brecciated rock cut by chalcopyrite-bornite veins.
· At BKZ lower copper-silver zone, drill hole BKZ33550-03 intersected a broad zone of pervasive mineralisation comprising pyrite-chalcopyrite-bornite as massive sulphides and in vein style mineralisation.
· All holes that pierced the BKZ lower copper-silver zone terminated in intensely silicified rock that is oxidised and hematite-rich. Within this zone is the first confirmation of magnetite alteration and the BK 3D magnetic inversion model shows a large magnetic feature, potentially representing a porphyry intrusion, located below the southern area of BKZ and northern area of BKM.
BKZ Drilling Update (see images at foot of page)
Resource infill drilling at BKZ is successfully confirming the continuity of mineralisation between the 50-metre spaced section lines. To date, 2,658m/27 holes of the 3,500m/35 hole delineation drill programme have been completed. Drilling is continuing to test both the upper zone of polymetallic massive sulphide and vein style mineralisation and the lower zone of vein hosted copper – silver mineralisation with two rigs currently drilling on section lines BKZ33750 and BKZ33550. The final eight holes of this programme are expected to be completed by mid-February and a maiden Resource estimate for both the BKZ Polymetallic and BKZ Copper Zones is expected during the second quarter of 2018.
Drill hole BKZ33750-05 (53.3m End of Hole “EOH”) intersected a zone of polymetallic mineralisation comprising quartz-sulphide veins to massive sphalerite (zinc), galena (lead) and pyrite (Figure 2, Left), underlain by quartz-sulphide mineralisation comprising bornite-chalcopyrite and locally sphalerite as disseminations and in veins (Figure 2, Right).
Drill hole BKZ33550-03 (122.3m EOH) intersected a 7-metre zone of massive sulphides that are dominated by pyrite with disseminated chalcopyrite (Figure 3, Top) and the mineralisation down hole of this comprises quartz veins containing sphalerite (zinc), chalcopyrite and bornite (Figure 3, Bottom), underlain by quartz-sulphide mineralisation comprising bornite-chalcopyrite in veins and sphalerite as disseminations and in veins. The final 25m of this hole is described as an intensely silicified breccia that is hematite altered and locally shows magnetite alteration in quartz veins.
The presence of magnetite alteration in a silicified and hematite altered breccia directly below the copper-zone is a significant observation, as magnetite alteration is commonly associated with skarn and porphyry associated mineralisation. A review of the 3D inversion model for BK District shows a large magnetic anomaly below BKM and BKZ (Figure 4) and the Company has designed an approximate 600m deep hole to test this feature.
Assays for these holes are expected mid-February and a drill hole location plan is provided in Figure 1.
Beutong Drilling Update
At Beutong, a site visit is being undertaken in the coming week to meet with local government and community stakeholders, and assess the condition of existing infrastructure in advance of re-commencing drilling. From the beginning of exploration activities at Beutong, the Company has continually engaged with local stakeholders (both government and community) in order to develop sound company-stakeholder relationships. These corporate social responsibility (“CSR”) initiatives will continue as we move forward with the exploration and development of the Beutong Deposit.
The Company’s AIDT 600 rig, which has a drilling capacity of at least 600m depth, is being mobilised to site. The initial drill plan is to test the lateral and vertical distribution of chalcocite, covellite, digenite and chalcopyrite mineralisation at the Beutong East Porphyry (“BEP”), by drilling across the system from west to east, which will also provide additional data to confirm internal continuity of the deposit. Half core from this hole will be utilised for heap-leach metallurgical testwork, as part of the Company’s’ commitment to meeting in-country processing requirements.
Peter Bird, Asiamet’s Chief Executive Officer commented:
“Whilst work on the feasibility study at our advanced BKM copper project continues at full pace, Asiamet continues to significantly enhance the value of its asset portfolio through focussed exploration and delineation drilling at the highly-promising BKZ polymetallic prospect and the associated BKM-BKZ structural corridor. In the near term and following completion of the initial delineation drilling phase we are looking forward to delivering a maiden Resource estimate for the BKZ Polymetallic and BKZ Copper Zones.
As testing of the BKZ – BKM mineralised corridor has progressed, our knowledge and understanding of the system continues to grow and new high-quality exploration targets are being generated. The presence of bornite-chalcopyrite mineralisation and magnetite/hematite alteration in the deeper parts of several holes is particularly encouraging as these geological features are typically associated with porphyry copper systems in Indonesia. The presence of a prominent magnetic feature in the geophysical data provides a priority target which we look forward to drill testing later in the year with some deeper holes.
With the crucial production licence now granted for our large Cu-Au-Mo porphyry deposit at Beutong, mobilisation work aimed at re-commencing drilling to fully delineate the high-grade core and test the depth potential of the Beutong East Porphyry has commenced.
Meanwhile, activity at a corporate level has been extremely busy as we progress finalising amendments to the KSK Contract of Work with the Government of Indonesia and continue to engage potential new stakeholders and partners for the development stage of the BKM copper project.
Asiamet is very active on many fronts and looks forward to keeping all stakeholders well informed on its progress. A period of strong news flow is anticipated.”
Data disclosed in this press release have been reviewed and verified by ARS’s qualified person, Stephen Hughes, P. Geo, Vice President Exploration of the Company and a Qualified Person within the meaning of NI 43-101 and for the purposes of the AIM Rules.
ON BEHALF OF THE BOARD OF DIRECTORS
Peter Bird, Deputy Chairman and CEO
Figure 1: Location map showing strong zinc in soil geochemistry over the BK district with prospects & drill collars.
Figure 2: (Left) massive sulphide mineralisation in BKZ33750-05 (32.5m depth), comprising pyrite-sphalerite-galena.
(Right) Bornite in mm-scale veins and as disseminated grains in BKZ33750-03 (50.5m depth).
Figure 3: (Top) massive sulphide mineralisation in BKZ33550-05 (51-55m interval), comprising pyrite-chalcopyrite.
(Bottom) Chalcopyrite ion cm-scale veins and as disseminated grains in BKZ33550-03 (61m depth).
Figure 4: Cross section through BKZ section line BKZ33600, showing the 3D inversion of the airborne magnetic data, displayed as iso-surfaces and modelled to a depth of 5km. The 3D inversion model shows a large magnetic feature located at approximately 500 metres depth and between the BKZ and BKM deposits.
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