Drilling at Asiamet Resources Limited's (LON:ARS) Beruang Kanan Main (BKM) copper deposit in Indonesia continues to throw up good results, the firm told investors.
The work is part of the feasibility study and continues to hit high grade copper mineralisation in the southern part of the deposit and has confirmed good continuity of higher grades previously reported within the BK058 Zone, the company said.
Four rigs are operating with 25 diamond drill holes completed to date and four holes are currently in progress.
Notably, one hole was drilled outside the BKM Resource and encountered moderate grade mineralization from near surface, confirming copper mineralization continues eastward.
Highlight results included 5 meters at 1.80% copper, from 10.5 meters and 43 meters at 1.16% copper, from 15 metres, which included eight metres at 2.52% copper, from 23 meters.
Intersections of strong mineralisation grading 1-2% and above so close to the surface is considered to be highly positive for the project, as is the extension of mineralization beyond the current resource envelope.
Chief executive Tony Manini said: "The BKM deposit feasibility study drilling program is off to a flying start with these first results providing early confirmation of continuous shallow, high grade mineralization at the BK058 Zone.
"This presents Asiamet with an opportunity to assess selective mining and scheduling of this higher grade mineralization early in the mine life, potentially enhancing project economics and shortening the capital payback period for the project.
"As the momentum of the feasibility study builds over the coming months, Asiamet looks forward to reporting the results from ongoing drilling, metallurgical testing, mining, infrastructure and environmental studies."
Broker VSA repeated a 'speculative buy' and 6.2p a share price target. "The number and consistency of these high grade holes near surface, as well as the frequency of repeated high grade zones in the same hole, will directly impact the payback period of the future mine. This is a great start to this year’s program and we remain bullish on the outcome of the program and the DFS," it said. Shares were unchanged at 2.3p each.