Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) has set the estimated capital costs at the BKM copper project in Indonesia at US$236.5mln, including a US$26.6mln buffer.
The new cost estimate is only slightly above the US$223.4mln laid out in 2019.
Given the current highly inflationary environment for mining projects globally, the company considers the new number to be very encouraging.
BKM is forecast to generate more than US$1.3bn in revenues over its mine life.
The full BKM feasibility study is now nearing completion, pending delivery of full operating cost model.
"An enormous amount of high-quality work has been completed to deliver this capital cost estimate with the final outcome being only marginally above the 2019 pre-production capex,” said chief executive Darryn McClelland in a statement.
“The widespread industry cost inflation seen across the global mining industry, especially in the latter half of 2022 required us to revisit every aspect of the project in considerable detail. As a result, we have been able to deliver a capex estimate which we are confident will support a robust and commercially viable project - one that is well timed for a forecast major uptick in the copper cycle two-to-three years from now," he added.
Chairman Tony Manini noted that completion of the updated feasibility study will provide the backbone for securing finance for the initial mine development at BKM.