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General mining & base metals

Asiamet Resources considering options for Indonesian gold deposit

Copper miner is considering selling Jelai gold deposit or putting it into a partnership

Asiamet Resources (LON:ARS) is considering selling or hiving off a gold project in Indonesia as it focuses on two core copper projects.

Asiamet said it was studying various options for divesting the Jelai epithermal gold scheme in North Kalimantan or putting it into a partnership.

It said it considered Jelai to be highly prospective for a small to medium-sized gold deposit.

But it added: "Although the potential of the Jelai project remains high, is considered to be a lower priority than the company's two copper projects."

Asiamet said it mainly focused in the first half on evaluating the potential to develop a medium-scale copper mine at the Beruang Kanan project in Central Kalimantan, where the Beruang Kanan Main (BKM) deposit is undergoing an intensive resource evaluation drilling program, metallurgical test work and mining studies.

The near surface nature of the copper mineralization at BKM, coupled together with a recently discovered high grade zone and positive test results demonstrate excellent potential for developing a copper mine, it said.

Complimentary to BKM, the Beutong porphyry deposit in Aceh contains a large copper deposit with accessory gold and molybdenum, together with a smaller, higher grade copper-gold skarn deposit.

"The Beutong project has excellent nearby infrastructure and provides the company with a large copper growth option going forward," the group said.

"Half-year activities have focused on processing the company's application for a production licence."

Asiamet incurred a loss and comprehensive loss for the half-year to June 30 of $5,402,953 against $234,495 a year earlier.

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