Asiamet Resources Limited (LON:ARS, CVE:ARS) has kicked off a 9,000m resource definition drill programme at the Beruang Kanan Main (BKM) copper project in Indonesia with a view to posting an updated estimate before the end of the third quarter of 2016.
It follows a positive preliminary economic assessment for the copper project and is part of the feasibility study process.
Chief executive Tony Manini told investors on Wednesday: "Asiamet has initiated feasibility studies for the development of a heap leach SX-EW copper mine at the BKM project.
"Feasibility studies will cover a broad range of technical, commercial, financial, social and environmental inputs in detail and represent a major and critically important phase of de-risking for the project, the outcomes of which will be used by a wide range of stakeholders, including potential financiers, to assess the project's viability.
"As the feasibility work programs on BKM are being progressed by the study team, exploration drilling aimed at expanding the resource base and testing some additional high grade copper and polymetallic targets will progress with high expectations for success."
Only higher confidence measured and indicated resources can be considered for conversion to mineable reserves for the feasibility study and the firm plans to upgrade a majority of the current inferred resource of 49.7million tonnes grading 0.6% copper containing 657 million pounds of copper at 0.2% to those categories.
As well as the recently completed £1.5mln placing, Asiamet coffers have been further strengthened by the receipt of tax refunds totaling around US$1mln from the Indonesian Government tax department.
These relate to tax payments (VAT) made by the firm for various goods and services in the years 2006, 2007, 2013 and 2014, it said.
Alongside work at BKM, and subject to receipt of the necessary permits, the group also wants to drill test the high grade polymetallic Baroi prospect, it added. Read more on BKM here..