Asiamet Resources Limited’s (LON:ARS) pending feasibility study represents a major de-risking phase for the Beruang Kanan Main (BKM) copper project in Indonesia, the company has highlighted in its interim results statement.
The AIM quoted group recently began work on the feasibility study which follows on from a positive preliminary economic assessment (PEA).
Completing the PEA, released in April, was the highlight of the half year according to Asiamet which emphasised that the study had demonstrated “excellent potential” for developing a robust low-cost project.
Assessment on the project feasibility level is the next logical step.
“The feasibility study represents a major de-risking phase 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,” Asiamet said in the statement.
As part of these efforts the company kicked off a new drill programme at the end of May, and operations are still ongoing. Two rigs are currently working on site, and so far results have been released for the first 12 holes.
The intention is to upgrade the majority of the project’s current inferred resources up into measured and indicated resource categories. Presently BKM is estimated to host some 49.7mln tonnes of inferred resources, with a grade 0.6% copper for 657mln pounds of copper.
Asiamet highlights that drill results have shown “excellent thickness” and a continuity of near surface high grade (1-3%) copper mineralisation.
“The delineation of these discrete zones of continuous, shallow, higher grade mineralization that is easily accessible for early mining has the potential to lower operating costs and further enhance project economics,” it added.
The pre-revenue company reported a US$808,752 loss for the six months ended June 30, and it had US$1.96mln of cash at the close of the six month period.