TIDMARS
RNS Number : 2360O
Asiamet Resources Limited
16 May 2018
For Immediate Release London AIM
16 May 2018 Symbol: ARS
Asiamet Reports Initial Mineral Resource Estimate for BKZ
Polymetallic Deposit
Asiamet Resources Limited ("Asiamet" or the "Company") is
pleased to report a maiden Mineral Resource Estimate for the BKZ
Polymetallic ("BKZ") deposit located on the Company's 100% owned
KSK Contract of Work (CoW) in Kalimantan, Indonesia. The Statement
of Mineral Resources (Table 1) completed by Hackman &
Associates ("Hackman") is reported in accordance with the
requirements of the 2012 JORC Code.
BKZ is very strategically located adjacent to existing and
proposed infrastructure for the BKM copper project which is
currently in the final stages of a bankable feasibility study. The
high grade, shallow nature of the BKZ mineralisation coupled with
the potential to share infrastructure considerably enhances the
opportunity for Asiamet to develop a second, high value mine in the
BK district.
The initial Mineral Resource Estimate for BKZ is subdivided into
the BKZ Upper Polymetallic Zone ("BKZ-UPZ") and the BKZ Lower
Copper Zone ("BKZ-LCZ").
The BKZ Upper Polymetallic Zone displays semi-massive to
structurally controlled VMS-style lead, zinc, silver and gold
mineralisation occurring in a high-grade domain and disseminated
style mineralisation in the low-grade domain. The controls on and
styles of mineralisation has resulted in significantly different
tenors of grade between these domains and hence they are reported
separately in the 2018 Resource Estimate. The BKZ Lower Copper Zone
comprises a quartz-sulphide stockwork zone hosting chalcopyrite and
bornite copper mineralisation. Table 1 below details the BKZ
Mineral Resource as estimated in the 2018 Resource model.
Highlights - BKZ Mineral Resource Estimate (100% basis)
-- Upper Polymetallic Zone Inferred Mineral Resource comprises:
o High Grade Domain - 750,000 tonnes at 8.0% Zinc, 3.4% Lead,
50g/t Silver and 0.35g/t Gold containing 132Mlbs zinc, 57Mlbs lead,
1.2Moz silver and 8,400oz gold at 4% Zn cut-off grade
o Low Grade Domain - 590,000 tonnes at 1.6% Zinc, 0.5% Lead,
13g/t Silver and 0.15g/t Gold containing 20 Mlbs zinc, 7Mlbs lead,
247Koz silver and 2,800oz gold at 1% Zn cut-off grade
-- Lower Copper Zone Inferred Mineral Resource comprises:
o High Grade Domain - 1.1M tonnes at 1.1% Copper and 13g/t
Silver
containing 26Mlbs copper and 460,000 ounces silver at a 0.5%
copper cut-off grade
-- Mineralisation remains open in multiple directions at both
the BKZ Upper Polymetallic Zone and the BKZ Lower Copper Zone and
many targets with potential to expand the Resource base remain to
be tested.
Highlights - KSK CoW Exploration Programme
-- Exploration drilling aimed at expanding the Resource base
will continue testing extensions to mineralised domains along
strike and at depth
-- Infill drilling aimed at confirming continuity and
consistency of mineralisation types in order to convert part or all
of BKZ Resource to Measured and Indicated Resource categories is
planned
-- Metallurgical testing programme to assess performance of BKZ
Resource mineralisation to recover lead, zinc, silver, copper, gold
concentrates will be undertaken. Subject to receiving positive
results a Preliminary Economic Assessment ("PEA") will be
initiated
-- Further core studies and geophysical data have identified a
new high-priority target area where the interpretation is that a
large magnetic feature at depth may represent an untested porphyry
intrusion. This area will be targeted for deep scout drilling in
late 2018
-- Identification of eight further high priority prospects in
addition to BKW, BKS and BKZ-BKM Link zone targets warranting
aggressive follow-up exploration. These include Baroi-FEZ, Gunung
Perak, Volcano, Low Zone, Waterfall, Rinjen, Kalang and Bukit Dea.
All targets display similar surface geochemical and geophysical
signatures to that of the BKZ deposit
Peter Bird, Asiamet's Chief Executive Officer commented:
"The reporting of an initial Mineral Resource estimate for the
BKZ polymetallic deposit today represents another very important
value adding milestone for Asiamet. The BKZ polymetallic deposit
mineralisation is located close to existing roads and the proposed
infrastructure for the BKM copper project. The BKZ inventory has
the potential to significantly enhance the economics of any mine
development in the area. Our ability to discover and delineate this
high grade, near surface polymetallic deposit in such a short
timeframe clearly demonstrates the largely untapped potential of
both the BK district and the broader KSK CoW.
BKZ remains open in multiple directions and all geological
indicators suggest the BKM-BKZ corridor and multiple surrounding
targets will continue to deliver further substantial growth in the
Company's mineral inventory over the coming months and years. We
are truly excited by this opportunity and look forward to reporting
on further progress as our exploration effort continues to unlock
value at both the KSK and Beutong projects where we especially look
forward to results of recent deep drilling at the latter."
Mineral Resource Estimate
The BKZ Upper Polymetallic Zone Mineral Resource is contained
within a near-surface, shallow-dipping, strongly mineralised system
that extends over an area of 350m (N-S) and 150m (E-W) and remains
open in multiple directions. This zone is defined by a continuous
high grade domain and peripheral low grade domain. Mineralisation
in the high grade domain is characterised by semi-massive to
massive replacement style sphalerite-galena with locally very high
grades reporting up to 30.7% zinc, 17.7% lead and 158g/t silver
over 1-metre sample intervals. Mineralisation within the low grade
domain is characterised by disseminated replacement style
sphalerite-galena typically with sample grades ranging between 0.3%
to 4.0% zinc, <1.0% lead and <50g/t silver.
Mineralisation in the BKZ Lower Copper Zone (Cu-Ag) comprises
stockwork quartz-sulphide and sulphide
(pyrite-chalcopyrite-bornite) veins with assay results reporting up
to 12% copper and 20g/t Silver over 1-metre sample intervals.
The April 2018 Mineral Resource Estimate for the BKZ
Polymetallic deposit is presented in Table 1 below and a copy of
the "BKZ Polymetallic Project Resource Estimate Technical
Statement" which presents an overview of the Resource data quality,
analyses and estimation process is appended. 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 Asiamet Resources Limited website on Wednesday 16 May 2018
(www.asiametresources.com).
Table 1: BKZ Mineral Resource Estimate, April 2018 (100%
basis)
BKZ Polymetallic Deposit Inferred Resource Estimate
(JORC Code, 2012)
--------------------------------------------------------------------------------------
Upper Polymetallic Zone. High Grade Zinc, Lead,
Silver and Gold Domain.
Inferred Resources (JORC 2012) *
--------------------------------------------------------------------------------------
Reporting Tonnes Grade Contained Metal
Cut (Zn%) (kt)
----------- ------- ------------------------------ --------------------------------
Zn Pb Ag Au Zn Pb Ag Au
(%) (%) (ppm) (ppm) (kt) (kt) (koz) (koz)
----------- ------- ----- ----- ------- ------- ------ ------ ------- -------
4.0 750 8.0 3.4 50 0.35 60 26 1206 8.4
----------- ------- ----- ----- ------- ------- ------ ------ ------- -------
Upper Polymetallic Zone. Low Grade Zinc, Lead,
Silver and Gold Domain.
Inferred Resources (JORC 2012) **
--------------------------------------------------------------------------------------
Reporting Tonnes Grade Contained Metal
Cut (Zn%) (kt)
----------- ------- ------------------------------ --------------------------------
Zn Pb Ag Au Zn Pb Ag Au
(%) (%) (ppm) (ppm) (kt) (kt) (koz) (koz)
----------- ------- ----- ----- ------- ------- ------ ------ ------- -------
1.0 590 1.6 0.5 13 0.15 9 3 247 2.8
----------- ------- ----- ----- ------- ------- ------ ------ ------- -------
Lower Copper Zone. Copper and Silver Mineralisation.
Inferred Resources (JORC 2012)
--------------------------------------------------------------------------------------
Reporting Tonnes Grade Contained Metal
Cut (Cu%) (kt)
----------- ------- ------------------------------ --------------------------------
Cu (%) Ag (ppm) Cu (kt) Ag (koz)
----------- ------- ------------ ---------------- -------------- ----------------
0.5 1100 1.1 13 12 460
----------- ------- ------------ ---------------- -------------- ----------------
* Lowest estimated Zn grade in the high grade zinc domain is
4.1%Zn
** Highest estimated Zn grade in the low grade zinc domain is
4.2%Zn
Notes: Lower Zn and Cu grade reporting cuts approximate the
mineralised domains extents. Mineral Resources for the BKZ
Polymetallic Project have been estimated and reported under the
guidelines detailed in the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC Code
2012). In the opinion of Duncan Hackman, the block model, resource
estimate and resource classification reported herein are a
reasonable representation of the Mineral Resources found in the
defined area of the BKZ Polymetallic Project. Mineral Resources are
not Ore Reserves and do not have demonstrated economic viability.
There is no certainty that all or any part of the Mineral Resource
will be converted into Ore Reserve. Computational discrepancies in
the table and the body of the Release are the result of
rounding.
Methodology
The April 2018 BKZ Polymetallic Resource Estimate is based on
the KSK geological and analytical database as at 22 April 2018 and
the 2018 geological, structural and mineralisation interpretations
by Stephen Hughes who is a full-time employee of PT Kalimantan
Surya Kencana. The data analyses, triangulation domaining, block
modelling, grade interpolation and classification was undertaken by
Duncan Hackman of Hackman and Associates Pty. Ltd.
The estimate is underpinned by data from 42 diamond drill holes
(4,287m) containing 2,472 logged and assayed sample intervals
(predominantly 1m). 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 between dry bulk density and the total estimated
Fe+Zn+Pb+Cu grade. 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.
Refer "BKZ Polymetallic Project Resource Estimate Technical
Statement" for a comprehensive summary of the Mineral Resource
estimation methodology (appended).
KSK CoW Exploration Programme
Exploration drilling aimed at expanding the Resource base will
continue testing the extensions to mineralised domains along strike
and at depth. Infill drilling will also be required to confirm
continuity and consistency of mineralisation types in order to
facilitate the conversion of part or all of the BKZ Resource to the
Measured and Indicated Resource categories (JORC 2012). A
metallurgical testing programme will be undertaken to assess the
performance of both the BKZ-UPZ and BKZ-LCZ mineralisation using
conventional flotation processes to recover lead, zinc, silver,
copper and gold into concentrates and subject to receiving positive
results a PEA will be initiated.
Recent mapping immediately south of the BKZ area along the
interpreted Beruang Thrust Fault has identified a new high priority
target area close to where the 3D magnetic geophysical inversion
model highlights a large magnetic feature at depth. The discovery
of strong magnetite alteration in core from holes drilled into the
BKZ-LCZ deposit support the interpretation that the magnetic
feature may represent an untested porphyry intrusion. A 3D
inversion of induced polarisation geophysical data for the northern
BKM area also shows a large chargeability feature at depth,
coincident with the magnetic feature. This area will be targeted
for deep scout drilling in 2018.
A detailed review of the 2013 gravity geophysical and surface
geochemical data for the KSK CoW has further strengthened the
Company's view of the potential for the discovery of additional
copper and polymetallic deposits. Additional to the high priority
BKW, BKS and the BKZ-BKM Link zone targets, eight other high
priority prospects warranting aggressive follow-up exploration
include Baroi-FEZ, Gunung Perak, Volcano, Low Zone, Waterfall,
Rinjen, Kalang and Bukit Dea (Figure 2). All twelve targets display
similar surface geochemical and geophysical signatures to that of
the BKZ deposit, namely a coincident gravity high with strongly
anomalous copper-zinc-lead in soils and in streams draining these
prospect areas.
The Company plans to systematically follow-up exploration of
these priority targets as permits are received.
Qualified Person
Data disclosed in this press release have been reviewed and
verified by Asiamet's qualified person, Stephen Hughes, P. Geo,
Vice President Exploration of the Company and a Competent Person
within the meaning of JORC and for the purposes of the AIM Rules
for Companies.
The information in this report that relates to exploration
results, data collection and geological interpretation is based on
information compiled by Stephen Hughes BSc (Hons). Mr Hughes is
registered with the Association of Professional Geoscientists of
Nova Scotia and with the Australian Institute of Geoscientists. Mr
Hughes has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity that is being undertaken to qualify as Competent Person as
defined in the 2012 edition of the 'Australasian Code for Reporting
of Exploration Results, Minerals Resources and Ore Reserves' (JORC
Code). Mr Hughes consents to the inclusion in the report of the
matters based on their information in the form and context in which
it appears.
The information in this statement referring to Mineral Resources
is based on information compiled by Duncan Hackman B.App.Sc., MSc.
of Hackman & Associates, a Competent Person who is a Member of
the Australian Institute of Geoscientists. Duncan Hackman is an
independent resource consultant and has sufficient experience that
is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Duncan Hackman consents to the
inclusion in the statement of the matters based on his information
in the form and context in which it appears.
ON BEHALF OF THE BOARD OF DIRECTORS
Peter Bird, Deputy Chairman and CEO
For further information, please contact:
-Ends-
Peter Bird
Deputy Chairman and CEO, Asiamet Resources Limited
Telephone: +61 3 8644 1300
Email: peter.bird@asiametresources.com
Tony Manini
Executive Chairman, Asiamet Resources Limited
Telephone: +61 3 8644 1300
Email: tony.manini@asiametresources.com
FlowComms Limited
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: Sasha@flowcomms.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Andrew Thomson / Stephen Allen
Telephone: +61 8 9480 2500
Email: Andrew.Thomson@rfcambrian.com /
Stephen.Allen@rfcambrian.com
Liberum
Neil Elliot, Clayton Bush, Kane Collings
Telephone: +44 7773 322679
Email: Neil.Elliot@Liberum.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
This news release contains forward-looking statements that are
based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterised by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; possible variations in ore grade or
recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing; and fluctuations in metal prices. There may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on
such statements due to the inherent uncertainty therein.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
Figure 1: Location map showing strong Zinc in soil geochemistry
over the BKZ prospect and Zinc drill intersections to date. To view
the image, please click on the following link
http://asiametresources.adnetcms.com/assets/pdf/img/Figure_1_BKZ_Zinc.png
Figure 2: Location map showing twelve prospects with coincident
Gravity and Zinc-Copper geochemical anomalies within the KSK CoW.
To view the image, please click on the following link
http://asiametresources.adnetcms.com/assets/pdf/img/Figure_2_KSK.png
Appendix 1
BKZ POLYMETALLIC PROJECT RESOURCE ESTIMATE TECHNICAL
STATEMENT
Introduction:
This technical statement summarises the activities, data
observations and results of work undertaken by Hackman &
Associates Pty Ltd ("H&A") in generating the BKZ Polymetallic
2018 Block Model and Resource Estimate. The BKZ Polymetallic
Project is a base and precious metals Mineral Resource located 180
kilometres north of Palangkaraya, the capital city of Central
Kalimantan. The BKZ Polymetallic mineralisation ("BKZ") is located
within a 6th generation Contract of Work ("KSK CoW") held by PT
Kalimantan Surya Kencana ("KSK"), which through various
intermediary companies, is a 100% owned subsidiary company of
Asiamet Resources Limited ("ARS").
Figure 1: Location map - KSK Contract of Work containing the BKZ
Polymetallic Mineralisation. To view the image, please click on the
following link
http://asiametresources.adnetcms.com/assets/pdf/img/Figure_1_KSK.png
The 2018 BKZ Polymetallic Resource Estimate is based on the KSK
geological and analytical database as at 22 April 2018 and the 2018
geological, structural and mineralisation interpretations by
Stephen Hughes who is a full-time employee of KSK. The data
analyses, triangulation domaining, block modelling, grade
interpolation and classification was undertaken by Duncan Hackman
of H&A.
The 2018 BKZ Resource Estimate is the maiden Resource estimate
for the BKZ Project and estimates the mineralisation within both
the Upper Polymetallic Zone and the Lower Copper Zone which define
the deposit. The estimate incorporates information and data from 6
scout diamond holes drilled in 1999 and 36 diamond holes drilled to
delineate the extent of the mineralisation in 2017-18.
The 2018 resource model covers 350m of the N-S strike extent of
the mineralisation at BKZ and up to 150m of width and depth extent
of the semi-massive sulphide and sulphidic silicified volcanic
hosted mineralisation. Mineralisation is open to the north, south
and east and outcrops to the west. The potential depth repetition
of mineralisation is untested.
The model is underpinned by data from 42 diamond drill holes
(4,287m) containing 2,472 logged and assayed, mainly 1m 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
between 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.
Results:
The resource is reported between 768850mE and 769050mE,
9933450mN and 9933850mN and above 130mRL (150m vertical extent).
Table 1 details the BKZ Mineral Resource as estimated in the April
2018 Resource model.
Table 1: BKZ Polymetallic Mineral Resource, April 2018
BKZ Polymetallic Deposit Inferred Resource Estimate
(JORC Code, 2012)
--------------------------------------------------------------------------------------
Upper Polymetallic Zone. High Grade Zinc, Lead,
Silver and Gold Domain.
Inferred Resources (JORC 2012) *
--------------------------------------------------------------------------------------
Reporting Tonnes Grade Contained Metal
Cut (Zn%) (kt)
----------- ------- ------------------------------ --------------------------------
Zn Pb Ag Au Zn Pb Ag Au
(%) (%) (ppm) (ppm) (kt) (kt) (koz) (koz)
----------- ------- ----- ----- ------- ------- ------ ------ ------- -------
4.0 750 8.0 3.4 50 0.35 60 26 1206 8.4
----------- ------- ----- ----- ------- ------- ------ ------ ------- -------
Upper Polymetallic Zone. Low Grade Zinc, Lead,
Silver and Gold Domain.
Inferred Resources (JORC 2012) **
--------------------------------------------------------------------------------------
Reporting Tonnes Grade Contained Metal
Cut (Zn%) (kt)
----------- ------- ------------------------------ --------------------------------
Zn Pb Ag Au Zn Pb Ag Au
(%) (%) (ppm) (ppm) (kt) (kt) (koz) (koz)
----------- ------- ----- ----- ------- ------- ------ ------ ------- -------
1.0 590 1.6 0.5 13 0.15 9 3 247 2.8
----------- ------- ----- ----- ------- ------- ------ ------ ------- -------
Lower Copper Zone. Copper and Silver Mineralisation.
Inferred Resources (JORC 2012)
--------------------------------------------------------------------------------------
Reporting Tonnes Grade Contained Metal
Cut (Cu%) (kt)
----------- ------- ------------------------------ --------------------------------
Cu (%) Ag (ppm) Cu (kt) Ag (koz)
----------- ------- ------------ ---------------- -------------- ----------------
0.5 1100 1.1 13 12 460
----------- ------- ------------ ---------------- -------------- ----------------
* Lowest estimated Zn grade in the high grade zinc domain is
4.1%Zn
** Highest estimated Zn grade in the low grade zinc domain is
4.2%Zn
Notes: Lower Zn and Cu grade reporting cuts approximate the
mineralised domains extents. Mineral Resources for the BKZ
Polymetallic Project have been estimated and reported under the
guidelines detailed in the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC Code
2012). In the opinion of Duncan Hackman, the block model, resource
estimate and resource classification reported herein are a
reasonable representation of the mineral resources found in the
defined area of the BKZ Polymetallic Project. Mineral Resources are
not Ore Reserves and do not have demonstrated economic viability.
There is no certainty that all or any part of the Mineral Resource
will be converted into Ore Reserve. Computational discrepancies in
the table and the body of the Release are the result of
rounding.
Contributing Experts:
Expert Person / Area of Expertise and Contribution
Company of Expert
-------------------------- -----------------------------------------------
Duncan Hackman B.App.Sc., Exploration and Resource Geology
MSc, MAIG. - 32yrs experience. Data validation,
Hackman & Associates quality analysis and evaluation,
Pty. Ltd. resource domaining, block modelling,
grade interpolation, resource classification.
-------------------------- -----------------------------------------------
Stephen Hughes BSc. Exploration and Resource Geology
(Hons). AIG. APGNS. - 23yrs experience. Data validation
PT Kalimantan Surya and quality assurance, geological
Kencana and mineralisation interpretation.
-------------------------- -----------------------------------------------
Compliance with the JORC code assessment criteria and Competent
Persons Consent:
This Mineral Resource statement has been compiled in accordance
with the guidelines defined in the Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves (The
JORC Code, 2012 Edition).
Duncan Hackman of Hackman & Associates (H&A) is a member
of the Australian Institute of Geoscientists and has sufficient
experience relevant to the style of mineralisation and type of
deposit under consideration and to the activity undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (The JORC Code, 2012 Edition). Neither
Duncan Hackman nor H&A have any material present or contingent
interest in the outcomes of the BKZ Polymetallic Project Resource
Estimate or the Public Release Statement, nor do they have any
pecuniary or other interest that could be reasonably regarded as
being capable of affecting their independence. H&A's fee for
completing this Resource Estimate and authoring this Technical
Resource Statement is based on its normal professional daily rates
plus reimbursement of incidental expenses. The payment of the
professional fee is not contingent upon the outcome of the estimate
or wording of the statement.
Duncan Hackman has reviewed the Asiamet Resources Limited
Statement dated 16(th) May 2018 titled "Asiamet Reports Initial
Mineral Resource Estimate for BKZ Polymetallic Deposit" and
consents for the inclusion in the Asiamet Resources Limited Public
Release Statement of the matters based on his information and for
Asiamet Resources Limited or their agents to use this statement in
the form and context in which it appears.
The opinions and recommendations provided by Duncan Hackman are
in response to requests by Asiamet Resources Limited and based on
data and information provided by Asiamet Resources Limited or their
agents. Duncan Hackman and H&A therefore accept no liability
for commercial decisions or actions resulting from any opinions or
recommendations offered within.
Duncan Hackman
B.App.Sc., MSc, MAIG
Consulting Geologist
Hackman & Associates
Pty. Ltd.
Key points relating to the BKZ Polymetallic 2018 Resource
Estimate:
1. BKZ mineralisation is centred on 768950E, 9933700N (UTM, Zone
49S). The mineralisation has been delineated over a strike length
of 350m (towards 000(O) ), across a width of 150m and to a depth of
150m below surface. Mineralisation is open to the north, south and
east. There is limited potential to extend Resources to the west as
mineralisation outcrops. The potential for depth repetition of
mineralisation is not yet tested.
2. The BKZ Polymetallic 2018 Resource Estimate encompasses the
two mineralised bodies within the BKZ Project Area, the Upper
Polymetallic Mineralised Zone (Zn, Pb, Ag and Au) and the Lower
Copper Mineralised Zone (Cu and Ag). Mineralisation in the Upper
Polymetallic Zone is semi-massive in nature and hosted by andesitic
volcanics (interpreted as being associated with low angle thrusts
similar to those at the Beruang Kanan Main deposit (BKM) located
800m to the south of BKZ). Replacement and fracture fill
chalcopyrite and bornite mineralisation in the Lower Copper Zone is
hosted in pyritic and silicified volcanics.
3. The deposit is delineated by 42 diamond core (4,287m) drill
holes, drilled on nominal 50m sections. Angled holes are drilled
between -55 and -70 degrees and 11 are drilled towards 270(O) grid,
11 holes towards 090(O) , 3 holes are drilled towards 000(O) and 3
drilled towards 180(O) . A further 14 holes are drilled vertically.
One pair of twin holes in the Lower Copper Zone supports
mineralisation continuity over short ranges as do two crossed-hole
pairs in the Upper Polymetallic Zone.
4. Sampling of mineralisation is at a nominal 1m length. Gold
and multi-element assays from 2,472 half-HQ3 diamond core samples
populate the BKZ Database. Length core recovery through
mineralisation is good (>90% in all domains) however degradation
of core is significant where selective recovery/loss is suspected
through the scrubbing and washing away of material during the
drilling process. 25% of samples in the high grade zinc domain, 31%
in the low grade zinc domain and 14% in the Lower Copper
Mineralisation domain are affected however it is not yet
determinable if this selectivity has introduced a bias into the
assay dataset as relative biases differ between high and low
recovery samples for each element in each of the three mineralised
domains. The observed relative biases diminish confidence in sample
representivity and assay reliability and future drilling must focus
on improving core recovery to improve reliability and Resource
classification. An appropriate sample preparation and analytical
quality control programme confirms that the assay values are of
acceptable quality to underpin Inferred Resources at BKZ (JORC
Code, 2012 Edition). Further investigations and inter-lab check
assays are required before resources at BKZ can be considered for
Indicated and Measured Resources classification.
5. High grade mineralised domains were modelled at >=4%
combined Zn+Pb cutoff and >=0.2% Cu cutoff (established from
data analysis studies) and directed by the geological and
structural interpretation. An outer >=1% Zn+Pb domain was
generated to estimate peripheral disseminated mineralisation.
Geological and mineralisation continuity is largely inferred from
the broad drill spacing. Infill drilling will result in upgrading
the Resource to Indicated and Measured classification categories
(data quality and reliability dependent).
6. Cu, Zn, Pb, Ag and Au grades were estimated by inverse
distance squared (ID2) interpolation methods. Interpolation is
guided and constrained by solid TIN (triangulated) boundaries.
1,470 two metre composites inform the grade interpolation within
domains. Parent cell estimates (25mE x 25mN x 10mRL) were written
to a sub-blocked model. High grade restrictions were employed to
spatially constrain extreme grades from informing block grades at
distance from sample locations (thresholds and distance
restrictions being domain dependent). Tonnage factors were applied
to the model by a regression formula determined between measured
DBD (2,025 readings taken from BKZ) and the total Fe+Zn+Pb+Cu
grade. Tonnage factors in the Upper Polymetallic Zone average
3.18g/cc and average 3.01g/cc in the Lower Copper Zone.
7. As assessed, and in accordance with the guidelines outlined
in the JORC Code (2012 Edition), the mineralisation reported in the
2018 Resource estimate for the BKZ Polymetallic Project has
reasonable prospects for eventual economic extraction. Assessment
was undertaken by applying economic parameters sourced from the
Mining Cost Service, Mine & Mill Equipment Estimator's Guide
(2017), publicly available BFS studies of similar scale projects
and preliminary values being determined for use in the nearby BKM
copper BFS study (scheduled for completion in Q2 2018). Plant and
Mill capital cost, mining (ore and waste costs, loss and dilution),
processing (costs, recoveries and concentrate grades), transport
(road, barge, port and sea freight costs), smelter treatment and
refining costs (excluding participation and deleterious element
charges), general/admin costs, royalties, concentrate payable metal
percentages and spot metal prices were applied on a cost and
revenue per tonne of mineralisation basis. In order to access the
high grade zinc mineralisation and Lower Copper Mineralisation a
significant portion of the low grade zinc mineralisation will need
to be mined, thus the economic cut-off grade for the low grade zinc
mineralisation was assessed with mining costs excluded. The
proximity of the BKZ polymetallic mineralisation to the BKM copper
deposit is a favourable feature with respect to sharing of capital
and general/admin costs as well as providing processing
opportunities for treating the copper mineralisation at BKZ. A zinc
and lead smelter is current under construction at Kotawaringan
Barat in Central Kalimantan and reports state that this smelter is
open to receive ores from all sources offering in-country
processing options for treatment of BKZ material.
8. The estimate is assigned an Inferred Mineral Resource
classification under the guidelines outlined in the Australasian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (JORC Code, 2012 Edition). Drilling or data density,
geological and grade continuity and data quality/reliability
(particularly core recovery) are the key risk inputs in determining
the Resource classification. The significant difference in
mineralisation style and grade tenor between the low and high grade
domains in the BKZ Upper Polymetallic Zone is considered of
material importance to the project and therefor in accordance with
the JORC Code (2012) principles the Resources for these domains are
reported separately.
Glossary of Technical Terms
"anomaly or anomalous" something in mineral exploration
that geologists interpret
as deviating from what is
standard, normal, or expected.
---------------------------- -----------------------------------------------
The laboratory test conducted
"assay" to determine the proportion
of a mineral within a rock
or other material. For copper,
usually reported as percentage
which is equivalent to percentage
of the mineral (i.e. copper)
per tonne of rock.
---------------------------- -----------------------------------------------
"azimuth" the "compass direction" refers
to a geographic bearing or
azimuth as measured by a magnetic
compass, in true or magnetic
north.
---------------------------- -----------------------------------------------
"bornite" Bornite, also known as peacock
ore, is a copper sulphide
mineral with the formula Cu5FeS4.
---------------------------- -----------------------------------------------
"breccia" Breccia is a rock classification,
comprises millimetre to metre-scale
rock fragments cemented together
in a matrix, there are many
sub-classifications of breccias.
---------------------------- -----------------------------------------------
"chalcocite" Chalcocite is a copper sulphide
mineral with the formula Cu2S
and is an important copper
ore mineral. It is opaque
and dark-gray to black with
a metallic luster.
---------------------------- -----------------------------------------------
"chalcopyrite" Chalcopyrite is a copper sulphide
mineral with formula CuFeS2.
It has a brassy to golden
yellow colour.
---------------------------- -----------------------------------------------
"channel sample" Samples collected across a
mineralised rock exposure.
The channel is typically orientated
such that samples are collected
perpendicular to the mineralised
structure, if possible.
---------------------------- -----------------------------------------------
"chargeability" Chargeability is a physical
property related to conductivity.
Chargeability is used to characterise
the formation and strength
of the induced polarisation
within a rock, under the influence
of an electric field, suggesting
sulphide mineralisation at
depth.
---------------------------- -----------------------------------------------
"CIM" The reporting standard adopted
for the reporting of the Mineral
Resources is that defined
by the terms and definitions
given in the terminology,
definitions and guidelines
given in the Canadian Institute
of Mining, Metallurgy and
Petroleum (CIM) Standards
on Mineral Resources and Mineral
Reserves (December 2005) as
required by NI 43-101. The
CIM Code is an internationally
recognised reporting code
as defined by the Combined
Reserves International Reporting
Standards Committee.
---------------------------- -----------------------------------------------
"covellite" Covellite is a copper sulphide
mineral with the formula CuS.
This indigo blue mineral is
ubiquitous in some copper
ores.
---------------------------- -----------------------------------------------
"diamond drilling" A drilling method in which
penetration is achieved through
abrasive cutting by rotation
of a diamond encrusted drill
bit. This drilling method
enables collection of tubes
of intact rock (core) and
when successful gives the
best possible quality samples
for description, sampling
and analysis of an ore body
or mineralised structure.
---------------------------- -----------------------------------------------
"digenite" Digenite is a copper sulfide
mineral with formula Cu9S5.
Digenite is a black to dark
blue opaque mineral.
---------------------------- -----------------------------------------------
"dip" A line directed down the steepest
axis of a planar structure
including a planar ore body
or zone of mineralisation.
The dip has a measurable direction
and inclination from horizontal.
---------------------------- -----------------------------------------------
"galena" Galena is the natural mineral
form of lead (II) sulphide,
with formula PbS. It is the
most important ore of lead
and an important source of
silver. It has a silver colour.
---------------------------- -----------------------------------------------
"grab sample" are samples of rock material
collected from a small area,
often just a few pieces or
even a single piece of rock
"grabbed" from a face, dump
or outcrop or roughly 2-5kg.
These are common types of
rock samples collected when
conducting mineral exploration.
The sample usually consists
of material that is taken
to be representative of a
specific type of rock or mineralisation.
---------------------------- -----------------------------------------------
"grade" The proportion of a mineral
within a rock or other material.
For copper mineralisation
this is usually reported as
% of copper per tonne of rock
(g/t).
---------------------------- -----------------------------------------------
"g/t" grams per tonne; equivalent
to parts per million ('ppm')
---------------------------- -----------------------------------------------
"hematite" Hematite is the mineral form
of iron(III) oxide (Fe2O3),
one of several iron oxides.
Magnetite alteration is also
typically associate with porphyry
copper systems, at or close
to the central core.
---------------------------- -----------------------------------------------
"hypogene" Hypogene ore processes occur
deep below the earth's surface,
and form deposits of primary
minerals, such as chalcopyrite
and bornite.
---------------------------- -----------------------------------------------
"Indicated Resource" An 'Indicated Mineral Resource'
is that part of a Mineral
Resource for which quantity,
grade (or quality), densities,
shape and physical characteristics
are estimated with sufficient
confidence to allow the application
of Modifying Factors in sufficient
detail to support mine planning
and evaluation of the economic
viability of the deposit.
Geological evidence is derived
from adequately detailed and
reliable exploration, sampling
and testing gathered through
appropriate techniques from
locations such as outcrops,
trenches, pits, workings and
drill holes, and is sufficient
to assume geological and grade
(or quality) continuity between
points of observation where
data and samples are gathered.
An Indicated Mineral Resource
has a lower level of confidence
than that applying to a Measured
Mineral Resource and may only
be converted to a Probable
Ore Reserve.
---------------------------- -----------------------------------------------
"Inferred Resource" An 'Inferred Mineral Resource'
is that part of a Mineral
Resource for which quantity
and grade (or quality) are
estimated on the basis of
limited geological evidence
and sampling. Geological evidence
is sufficient to imply but
not verify geological and
grade (or quality) continuity.
It is based on exploration,
sampling and testing information
gathered through appropriate
techniques from locations
such as outcrops, trenches,
pits, workings and drill holes.
An Inferred Mineral Resource
has a lower level of confidence
than that applying to an Indicated
Mineral Resource and must
not be converted to an Ore
Reserve. It is reasonably
expected that the majority
of Inferred Mineral Resources
could be upgraded to Indicated
Mineral Resources with continued
exploration.
---------------------------- -----------------------------------------------
"Induced Polarisation Induced polarisation (IP)
Geophysics" is a geophysical survey used
to identify the electrical
chargeability of subsurface
materials, such as sulphides.
The survey involves an electric
current that is transmitted
into the subsurface through
two electrodes, and voltage
is monitored through two other
electrodes.
---------------------------- -----------------------------------------------
"intercept" Refers to a sample or sequence
of samples taken across the
entire width or an ore body
or mineralised zone. The intercept
is described by the entire
thickness and the average
grade of mineralisation.
---------------------------- -----------------------------------------------
JORC The Australasian Code for
Reporting of Exploration Results,
Mineral Resources and Ore
Reserves ('the JORC Code')
is a professional code of
practice that sets minimum
standards for Public Reporting
of minerals Exploration Results,
Mineral Resources and Ore
Reserves. The JORC Code provides
a mandatory system for the
classification of minerals
Exploration Results, Mineral
Resources and Ore Reserves
according to the levels of
confidence in geological knowledge
and technical and economic
considerations in Public Reports.
---------------------------- -----------------------------------------------
"lbs" Pounds (measure of weight)
---------------------------- -----------------------------------------------
"Mlbs" Million pounds (measure of
weight)
---------------------------- -----------------------------------------------
"magnetite" Magnetite is main iron ore
mineral, with chemical formula
Fe3O4. Magnetite is ferromagnetic,
and it is attracted to a magnet
and can be magnetised to become
a permanent magnet itself.
---------------------------- -----------------------------------------------
"massive" In a geological sense, refers
to a zone of mineralisation
that is dominated by sulphide
minerals. The sulphide-mineral-rich
material can occur in centimetre-scale,
metre-scale or in tens of
metres wide veins, lenses
or sheet-like bodies containing
sphalerite, galena, and /
or chalcopyrite etc.
---------------------------- -----------------------------------------------
"Measured Resource" A 'Measured Mineral Resource'
is that part of a Mineral
Resource for which quantity,
grade (or quality), densities,
shape, and physical characteristics
are estimated with confidence
sufficient to allow the application
of Modifying Factors to support
detailed mine planning and
final evaluation of the economic
viability of the deposit.
Geological evidence is derived
from detailed and reliable
exploration, sampling and
testing gathered through appropriate
techniques from locations
such as outcrops, trenches,
pits, workings and drill holes,
and is sufficient to confirm
geological and grade (or quality)
continuity between points
of observation where data
and samples are gathered.
A Measured Mineral Resource
has a higher level of confidence
than that applying to either
an Indicated Mineral Resource
or an Inferred Mineral Resource.
It may be converted to a Proved
Ore Reserve or under certain
circumstances to a Probable
Ore Reserve.
---------------------------- -----------------------------------------------
"Mineral Resource" A "Mineral Resource" is a
concentration or occurrence
of diamonds, natural solid
inorganic material, or natural
solid fossilised organic material
including base and precious
metals, coal, and industrial
minerals in or on the Earth's
crust in such form and quantity
and of such a grade or quality
that it has reasonable prospects
for economic extraction. The
location, quantity, grade,
geological characteristics
and continuity of a Mineral
Resource are known, estimated
or interpreted from specific
geological evidence and knowledge.
---------------------------- -----------------------------------------------
"mineralisation" In geology, mineralisation
is the deposition of economically
important metals (copper,
gold, lead, zin etc) that
in some cases can be in sufficient
quantity to form mineral ore
bodies.
---------------------------- -----------------------------------------------
"open pit mining" A method of extracting minerals
from the earth by excavating
downwards from the surface
such that the ore is extracted
in the open air (as opposed
to underground mining).
---------------------------- -----------------------------------------------
"outcrop" A section of a rock formation
or mineral vein that appears
at the surface of the earth.
Geologists take direct observations
and samples from outcrops,
used in geologic analysis
and creating geologic maps.
In situ (in place) measurements
are critical for proper analysis
of the geology and mineralisation
of the area under investigation.
---------------------------- -----------------------------------------------
"polymetallic" three or more metals that
may occur in magmatic, volcanogenic,
or hydrothermal environments;
common base and precious metals
include copper, lead, zinc,
silver and gold.
---------------------------- -----------------------------------------------
"polymict" A geology term, often applied
to breccias or conglomerates,
which identifies the composition
as consisting of fragments
of several different rock
types.
---------------------------- -----------------------------------------------
"porphyry" Porphyry copper deposits are
copper +- gold +- molybdenum
orebodies that are formed
from hydrothermal fluids that
originate from a voluminous
magma chamber below the deposit
itself.
---------------------------- -----------------------------------------------
"Preliminary Economic NI 43-101 defines a PEA as
Assessment" "a study, other than a pre-feasibility
study or feasibility study,
which includes an economic
analysis of the potential
viability of mineral Resources".
---------------------------- -----------------------------------------------
"propylitic alteration" Propylitic alteration is the
chemical alteration of minerals
within a rock, caused by hydrothermal
fluids. This style of alteration
typically results in epidote-chlorite+-albite
alteration and veining or
fracture filling, commonly
altering biotite or amphibole
minerals within the rock groundmass.
It typically occurs along
with pyrite.
---------------------------- -----------------------------------------------
"sediments" Sedimentary rocks formed by
the accumulation of sediments.
There are three types, Clastic,
Chemical and Organic sedimentary
rocks.
---------------------------- -----------------------------------------------
"sequential assays" Sequential copper analysis
is a technique to semi-quantitatively
define the zonations associated
with some copper deposits.
The method is based on the
partial dissolution behaviour
displayed by the prevalent
copper minerals to solutions
containing sulphuric acid
and sodium cyanide. Results
from sequential analyses can
theoretically determine the
amounts of leachable oxide
minerals, leachable secondary
sulphide minerals, and primary
copper minerals, respectively.
---------------------------- -----------------------------------------------
"sphalerite" Sphalerite is a zinc sulphide
in crystalline form but almost
always contains variable iron,
with formula (Zn,Fe)S. It
can have a yellowish to honey
brown or black colour.
---------------------------- -----------------------------------------------
"supergene" Supergene ore processes occur
near surface, and form deposits
of secondary minerals, such
as malachite, azurite, chalcocite,
covellite, digenite, etc.
---------------------------- -----------------------------------------------
"surface rock chip samples" Rock chip samples approximately
2kg in size that are typically
collected from surface outcrops
exposed along rivers and mountain
ridgelines.
---------------------------- -----------------------------------------------
"veins" A vein is a sheet-like or
anastomosing fracture that
has been infilled with mineral
ore (chalcopyrite, covellite
etc) or mineral gangue (quartz,
calcite etc) material, within
a rock. Veins form when minerals
carried by an aqueous solution
within the rock mass are deposited
through precipitation and
infill or coat the fracture
faces.
---------------------------- -----------------------------------------------
"volcanics" Volcanic rock such as andesite
or basalt that is formed from
magma erupted from a volcano,
or hot clastic material that
erupts from a volcano and
is deposited as volcaniclastic
or pyroclastics.
---------------------------- -----------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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