Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) chief executive Darryn McClelland told investors the company has been “extremely busy” preparing the feasibility study (FS) update for its BKM copper project.
McClelland and the construction team visited the site in Central Kalimantan, Indonesia to complete an assessment of the local port and road infrastructure, while mine site surveys were completed by contractors via a drone LIDAR survey and passive seismic horizontal-to-vertical spectral ratio study.
Capital cost estimates are expected to be completed shortly, after comparative proposals were received from an additional local service provider and Indonesian state electricity company PLN delivered an assessment of costs and possible tariff arrangements.
McClelland said engagement with the bank's independent technical expert, work by in-house engineering teams and consulting partners “is delivering very robust FS outcomes”, with final updates and reviews of the pre-production capital cost for the project “expected to be finalised shortly”.
Last month, Asiamet signed up China-based contractors BGRIMM Technology Group to plan and execute engineering and procurement of the solvent extraction and electrowinning plant.
“Engaging a new in-country group capable of supplying and installing major parts of the BKM processing plant at highly competitive pricing at this time has meant a short extension to our delivery date,” McClelland said. “However, from what we are seeing, it is clear the outcomes from this additional engagement have delivered significant benefits in terms of savings to the capital cost estimate and has helped mitigate the inflationary pressures being experienced by projects globally.”
Final aspects of the economics for the FS are being undertaken and the first draft of these cost estimates is “imminent”, he said. Adding: “This final piece of the overall cost model will need to be reviewed thoroughly with BUMA prior to input into the BFS financial model. At the completion of these reviews and following board approvals, we look forward to sharing the financial outcomes of the BKM Copper FS.”
When the FS update is published, outcomes and forward plans for the project will also be presented via a webinar with a Q&A session, McClelland said.