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Asiamet Resources (LON:ARS) has followed up a significant resource upgrade with some highly encouraging drill results from a potential satellite deposit to its main copper target at Beruang Kanan in central Kalimantan, Indonesia.
The imaginatively named Beruang Kanan South, the area is around a kilometre from the Beruang Kanan Main (BKM) that contains and estimated 887mln pounds of copper.
One hole yielded 10 metres at 2.52% copper from less than 20 metres below surface. Within this was a two-metre section grading 7.45% copper.
Grades across the other four holes drilled, which were fairly widely spaced, ranged between 0.67% at the low end to 3.83% at the upper end.
They were found over thicknesses of one to 3.5 metres and occurred at between 7.5 metres and 58.5 metres below surface.
"With receipt of these highly promising results from wide spaced scout drilling at BKS, Asiamet has met its objectives for the current programme,” said chief executive Tony Manini.
“The combination of solid first pass drill results associated with widespread copper in soils and some very high grade copper rock chip results clearly demonstrates excellent potential for adding further tonnages of higher grade copper mineralization close to the BKM deposit.”
The next major catalyst will be the preliminary economic assessment of BKM, which is expected to be published in the first quarter of next year.
This will provide the company with some guide to the economics (start-up costs and returns) of a low-cost mining operation on the site.
The figures will be helped by a 43% increase to the resource base, which weighs in at just over 400,000 tonnes.
The resource confidence has also been significantly upgraded with 26% now in indicated category. There were indicated resources in the maiden statement.
Asiamet reckons there is a ‘substantial inventory’ of further copper at a 0.5% cut-off grade that provides a ‘solid basis’ for the upcoming mining studies.
The shares marked time at 1.34p each. Earlier VSA repeated its ‘speculative buy’ advice and 3.5p price target.