Increasing the resource at its Beruang Kanan Main copper project in Indonesia to feed the processing plant is a key target of Asiamet Resources Limited (LON:ARS, CVE:ARS).
It came as the firm filed a technical report supporting its April PEA (preliminary economic assessment), which underscored the potential for a robust, low cost project.
Asiamet reckons production of 25,000 tonnes of copper cathode per year for an initial eight year life of mine is the way forward.
"Copper mineraliation at BKM remains open in several directions and locally at depth.
"Adjacent high potential prospects at Beruang Kanan South ("BKS"), Beruang Kanan West ("BKW") and BKZ Polymetallic ("BKZ") also represent attractive targets for additional mineralization as demonstrated by the strong surface and drilling results returned to date," it added.
Based on an eight year life, the PEA showed the project could generate gross revenue of US$1.27bn, assuming an average copper price of US$3.25 per pound.
On that basis, the post-tax net present value works out at US$204.3 mln and the post-tax internal rate of return (IRR) rings in at 38.7%.
Adjusting for a weaker copper price of US$2.75 per pound and the NPV drops to US$74.6 mln and the IRR to 21.6%, all at a 10% discount.
Read more on the PEA in the article HERE.