TIDMARS
RNS Number : 8367G
Asiamet Resources Limited
18 November 2022
18 November 2022
Asiamet BKM Copper Project - 2022 FS Update Life of Mine
Production Physicals
Asiamet Resources Limited ("Asiamet" or the "Company") is
pleased to announce key production parameters for the updated
feasibility study (2022 FS) being completed on its BKM copper heap
leach SX-EW project located in Central Kalimantan, Indonesia. BKM
plans to produce copper cathode for sale into the fast growing
local Asian markets.
The mining and production Life of Mine (LOM) physicals represent
the most significant change in the 2022 FS Update relative to the
previously reported 2019 study. Considerable time has been taken to
redesign and develop an optimised plan which helps to mitigate the
impacts of the cost inflation being experienced across the entire
industry.
Key highlights of the 2022 LOM physicals relative to the 2019 FS
outcomes are provided in the table below. Additional key points of
note include:
-- Improved strip ratio and 33% higher soluble copper grade processed.
-- Processing 32% less ore whilst delivering 89% of the LOM copper cathode production.
-- Total material mined (ore + waste) is reduced by 33%,
reducing total mining costs and providing significant environmental
benefits through a reduced footprint.
-- Significant reduction in maximum ore treatment rate allows
optimisation of heap leach footprint and reduces cost of all
materials handling equipment.
-- Generates greater LOM revenue based on current consensus
copper pricing of between $3.75-3.85/lb.
Optimisation studies for the FS update were undertaken by the
Company in conjunction with its FS consultants NewPro Consulting
and mining engineering consultants AMDAD. This important work was
focussed on reducing the overall mine footprint through more
efficient mining of the most readily accessible ore in order to
deliver a higher-margin mine plan and heap leach stacking
operation. Studies have also taken into consideration
recommendations from the bank endorsed Independent Technical Expert
engaged to review the BKM project at an initial stage in the
project financing process.
Table 1: 2022 FS Life of Mine Physicals
Project Physical 2022 FS Update 2019 FS
Ore Mined Mt 38.4 56.6
------- --------------- --------
Waste Mined Mt 52.5 79.9
------- --------------- --------
Total Material Mined Mt 90.9 136.5
------- --------------- --------
Strip Ratio # 1.37 1.41
------- --------------- --------
Maximum Ore Treatment
Rate Mt/Yr 4.5 8.0
------- --------------- --------
Soluble Copper grade % Cu 0.51 0.39
------- --------------- --------
Ore Stacking Period Years 9.0 8.8
------- --------------- --------
LOM Cathode Produced kt 154.1 172.6
------- --------------- --------
Results from further 2022 FS workstreams such as pit
geotechnical assessments, site water balance/water management
strategy, transport and logistics strategy, power supply and
critically, project capex cost estimation are beginning to be made
available to the Company and will be announced as they become
available culminating with the delivery of the completed 2022
FS.
Darryn McClelland, Chief Executive Officer commented:
"I am pleased to be able to announce the results of the most
significant piece of work undertaken in relation to the 2022 update
of the BKM Copper Project feasibility study.
Delivering 89% of copper production for only 67% of the total
material movement relative to the 2019 study demonstrates a focus
on quality over quantity when comparing the study scenarios.
The value proposition of this LOM model has been focused on
delivering ore which is most suited for heap leaching. The lower
volume of total material mined significantly reduces the footprint
of the project particularly with respect to the Heap Leach and
Waste Rock Dump facilities. This has positive effects in relation
to capital expenditure, environmental management, operational
efficiency and mine closure requirements. It also preserves more of
the BKM primary copper resource for future development
opportunities.
The 2022 FS Update for the BKM Copper project has not been a
simple review and update of the costs reported for the 2019 study.
In order to mitigate the input cost increases being experienced
industry wide and thus maintain robust and attractive economics,
the project has been reshaped in terms of scope and mine plan.
Extensive modelling has been required to produce the final pit
designs and the integrated mining and heap leach production
schedules.
Detailed operating cost models are being prepared using the
updated production schedule and processing plant design work has
continued in parallel with over 90% of new equipment packages
issued for pricing and evaluations completed.
Significant momentum has been building and work is progressing
as quickly as possible to bring the required information together
to conclude the 2022 FS Update. Given the criticality of this study
for project financing we must deliver this 2022 FS update to the
necessary standard and quality required by the banks. We will
continue to update the market as results from multiple workstreams
are delivered and compiled into the final study documents."
Appendix:
BKM Copper Open Pit Design:
Early work by NewPro Consulting on processing operating costs
and a review of previous study mining costs led mine engineering
consultant AMDAD to commence work on establishing a new open pit
optimisation model for the BKM copper project. The full details of
the inputs to the optimisation and decisions made with respect to
pit shell selection will be provided in the detailed FS report
however the outcome of this work showed that the footprint of the
project was not going to be consistent with the 2019 FS. The
operational cost structures used in the 2022 FS optimisation were
considered reflective of the mining costs in the BKM environment
with more suitable mining equipment and processing costs as they
were understood by NewPro at the time of optimisation. The
selection of the optimisation inputs were considered reasonable and
appropriate to set the basis for ongoing FS work through
finalisation of the pit optimisation.
The selected optimisation pit shell became the basis for mine
and heap leach stacking scheduling to understand the interactions
and limitations between these two processes. The estimated volume
of ore from the optimisation, being reduced compared to the
previous study allowed for a complete review of the heap leach
facility design due to reduced ore containment requirements. This
review led to some significant changes to the heap leach facility
footprint and addressed some of the feedback from the early 2022
ITE review. Very detailed, integrated mining and heap leach
stacking schedules were developed in order to assess the impact of
ore treatment rates, leach recovery and total project mine life
based on new heap leach facility design. This work led to the
development of the overall mining and stacking schedule physicals
derived from a final pit design as described in the
announcement.
A detailed pit design has been completed using the chosen
optimised pit shell as its basis. The final design takes into
account practicalities of in pit infrastructure including access
roads, water management requirements and interactions with waste
dumps and ore delivery to processing facilities.
**S**
ON BEHALF OF THE BOARD OF DIRECTORS
Darryn McClelland, Chief Executive Officer
For further information, please contact:
-Ends-
Darryn McClelland
Chief Executive Officer, Asiamet Resources Limited
Email: darryn.mcclelland@asiametresources.com
Tony Manini
Executive Chairman, Asiamet Resources Limited
Email: tony.manini@asiametresources.com
Investor Enquiries
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: Sasha@flowcomms.com / info@asiametresources.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Bhavesh Patel / Stephen Allen
Telephone: +44 (0)20 3440 6800
Email: Bhavesh.Patel@rfcambrian.com / Stephen.Allen@rfcambrian.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
Follow us on twitter @AsiametTweets
FORWARD-LOOKING STATEMENT
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.
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