TIDMARS
RNS Number : 9246M
Asiamet Resources Limited
19 September 2019
19 September 2019
Public infrastructure upgrades improve BKM project transport and
logistics
Asiamet ("ARS" or the "Company") is pleased to announce that a
number of recent government infrastructure initiatives and planned
upgrades to bridges and roads within Central Kalimantan is expected
to significantly improve transport and logistics options for the
BKM Copper project and result in reduced operating costs relating
to the transport of supplies in and copper cathode out of the
proposed BKM mine site.
Post completion of the BKM feasibility study, the Company is
currently reviewing a number of options and alternatives to add
significant further value to the BKM copper project, (as announced
on 14 June 2019). The assessment of planned public infrastructure
works was undertaken as part of these value enhancement
studies.
A review of the logistics and transport section of the study
yielded some potential high value alternatives, one being the use
of the Bagendang Port (Sampit Port) compared with the Banjarmasin
Port used in the BKM Feasibility Study. Recent infrastructure
initiatives and planned upgrades to government bridges and roads
have now allowed the study team to review this alternative route as
a preferred logistical hub.
This revised option would result in:
-- a more efficient turnaround time for the transport of
supplies and copper cathode in and out of site.
-- a saving of approximately 140 kilometres per one way trip or
280 kilometres per round trip. The distance from the BKM site to
Banjarmasin Port is approximately 495 kilometres compared with
approximately 350 kilometres from site to the Sampit Port. A map
comparing the two logistical routes is shown in Figure 1.
-- improvement in project operating costs by several millions of
dollars over the initial life of mine due to the shorter logistics
distance. As the detailed costings are finalised the outcomes will
be reported.
The Sampit Port as shown in Figure 2, is an established
container terminal for smaller vessels and cargo and would suit the
operations of the BKM project. Included in recent upgrades is a
major new bridge being constructed at Samba as per Figure 3
below.
Peter Bird, Asiamet's CEO commented:
"Following completion of the BKM Feasibility Study the Asiamet
team has continued to focus on further enhancing the value of the
BKM Copper project through the assessment of a number of
opportunities identified and reported on as part of the study. The
refinement of the logistics route to Sampit Port and the associated
reduction in operating costs over the life of mine is an excellent
example of the value expected to be delivered from this process.
Our team along with our technical service providers are
systematically working through the 15 identified opportunities and
expect to report further positive results as they come to hand.
The BKM Copper project remains one of the most advanced copper
projects in Asia at a time when global mine supply is forecast to
move into deficit. The delivery of a robust Feasibility Study and
the opportunity for further significant upside through value
engineering and exploration has increased awareness of the BKM
project amongst a number of strategic investors and potential
partners with whom discussions are continuing."
Figure 1 Insert Map of site to Banjarmasin Port and Bagendang
Port. To view the image, click on the link below
http://asiametresources.com/assets/img/ars_1_180919.png
Figure 2 Bagendang Port in Sampit. To view the image, click on
the link below
http://asiametresources.com/assets/img/ars_2_180919.png
Figure 3 Bridge Construction at Samba. To view the image, click
on the link below
http://asiametresources.com/assets/img/ars_3_180919.png
Value Enhancement Program - Background details
The Value Enhancement (VE) program was reported in the
Feasibility Study for the BKM project (announced 14 June 2019).
This process identified and ranked 20 opportunities ranging in
value delivery and ease of implementation. These VE opportunities
were risk adjusted and totalled an estimated $35M (excludes
exploration success) in additional value that can be added to the
BKM project value. Larger impact initiatives include:
-- pre-treatment of the currently discarded, less-leachable heap
leach ore types such as chalcopyrite by utilising the Albion
Leaching technology ($20M);
-- improved mineralisation geological controls by incorporating
detailed structural geology model ($5M);
-- an electricity supply scope change from gas supply to local coal supply ($4M);
-- further refining the methodology of ore block classification
to enhance metal and commercial returns ($3.5M);
-- reducing construction earthworks costs by sourcing locally
and delivering synergies by working with the mining contractor
($3M); and
Over and above these VE initiatives, review of near mine
exploration for targets proximal (less than 3km) to the BKM
Resource that have the potential to add significant value was also
considered. These targets may add treatable copper resources to
that already defined or create further opportunities for revenue
enhancement through direct shipping of ore. The high priority
targets to be investigated immediately include:
-- BKM 'link zone target' the immediate zone between BKM and BKZ;
-- Testing of IP chargeability highs approximately 800m to the north-west if BKM;
-- BKM depth extensions through deeper drilling to follow up IP chargeability at depth; and
-- BK-South near surface oxide targets, maybe amenable to SX-EW
process and augment the current mine life at BKM.
The Company has completed and lodged all required documentation
in relation to the permits required for exploration access of the
abovementioned targets and mobilisation of drilling equipment is
anticipated in early-mid Q4 2019.
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
Berenberg
Matthew Armitt, Detlir Elezi
Telephone: +44 20 3207 7800
Email: Matthew.Armitt@berenberg.com /
Detlir.Elezi@berenberg.com
Liberum
Clayton Bush, Kane Collings
Telephone: +44 7773 322679
Email: Clayton.Bush@liberum.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
Follow us on twitter @AsiametTweets
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").
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END
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