Asiamet Resources Limited (LON:ARS) continues to be encouraged by feasibility study drilling at the Beruang Kanan Main (BKM) in Indonesia, which could lead to stronger economics than the preliminary economic assessment showed.
The firm said 38 holes had now been completed, while two are now in progress. Results show shallow grade mineralisation continues.
Asiamet's chief executive Tony Manini told investors the firm was "very pleased" with the drill results received to date.
"We are seeing excellent continuity of copper grade and thickness within the existing Resource and extensions beyond the boundaries in some areas.
"While extensive study work remains to be completed, the consistently shallower nature of the mineralisation intersected to date is expected to translate to an even lower strip ratio, and potentially stronger economics, than outlined in the preliminary economic assessment."
He added that the feasibility study was progressing to plan and first results from detailed heap leach test work are expected shortly.
"We look forward to progressively updating all stakeholders as the study advances and our other corporate initiatives reach important milestones".
Among the drill highlights, one hole hit 20.4 metres at 1.75% copper from 1.6 metres depth. Another showed 5.3 meters at 1.27% copper, including 1 metre at an impressive grade of 4.34% copper.
Asiamet is optimistic that a significant upgrade of the project's resource to higher confidence levels will be realised through this drilling.
"More importantly, it is anticipated that these results will further reduce the already low strip ratio in the southern part of the BKM deposit," it said.
Shares added 4.3% to 2.425p in early deals.