Copper junior Asiamet Resources (LON:ARS) is optimistic a preliminary economic assessment (PEA) on its BKM deposit in Kalimantan, Indonesia, will demonstrate its viability even at the current low metal price.
Work on the conceptual study began in January to assess the economics of developing an open pit mine and heap leach SX-EW processing facility at BKM.
Adoption of these widely used methods would greatly enhance the economics of the project even with the fall in the metal price recently, Asiamet believes.
The report is due by the end of the quarter and will be the most important milestone in the life of the company to date said Tony Manini, Asiamet’s chief executive.
“The combination of a good grade, heap leachable, low stripping ratio copper deposit in a low cost operating environment like Indonesia is highly compelling.
“While we still have studies to complete, results to date indicate that the company has good reason to be optimistic on the PEA outcomes.”
He added developing BKM would a platform to grow its copper and gold production base through the large Beutong copper-gold project and further exploration of the surrounding areas.