Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) chief executive Darryn McClelland told investors in a year-end project update that 2023 has seen a new baseline for the BKM copper heap leach project.
The key achievement in the year was a fully updated feasibility study which has put the company on a path to deliver its main strategic goal – to establish a copper mine as part of a larger energy transition metals business in the Asian region.
“The study has been reviewed by an independent technical expert with the outcomes establishing the technical base for the project financing process,” McClelland said in a statement.
In regard to financing, the company has been actively engaged with a lead bank to progress toward first-stage credit approval, which is targeted “as early as possible” in the New Year.
“Importantly, we have also formally introduced the BKM Copper project to a leading Indonesian bank with a view to progressing more detailed engagement early in 2024.
“An area of recent focus has been the engagement of engineering resources for the next phase of BKM project execution. This has to some degree been born from the outcomes of the ITE review and engagement with prospective Lead Bank relating to increasing levels of project confidence and accuracy as we advance project financing.”
A shortlist of preferred engineering companies has been compiled, and the company expects to advise the market of its key appointments once they have been formalised.
McClelland added: “Whilst aspects of the project have not advanced to the extent we initially intended at the start of 2023, we have made substantive progress in all areas related to the development of BKM copper project.
“The path forward to deliver Asia's newest copper mine is clear and we intend to continue advancing towards that primary goal in 2024.”
Project updates
The company told investors that its project optimisation efforts are continuing, including reviews of alternative heap leach facility locations and open pit mine designs. This work is nearing completion, it noted.
Its permitting processes are continuing also, with ongoing discussions with the Ministry of Environment and Forestry to finalise terms for the shared use of the forestry access road to the BKM site.
This is described as a significant step towards the completion of the forestry concession change required for the project.
On the environmental side of the planning process, Asiamet has engaged a consultant to update the project's environmental and social impact assessment report which will include necessary changes to align with updated project design and regulations.
Also, the assessment of suitable biomass sources for the project’s power supply has seen significant advancement, the company noted, with multiple site visits conducted to identify adequate biomass material volumes.
A final report on biomass supply is expected early in the next quarter.
Meanwhile, an internal scoping study is underway for the anticipated truck and river barge haulage for the project’s concentrate product.
It promises to be another active and important year for Asiamet.