Asiamet Resources Limited (LON:ARS, CVE:ARS) shares jumped today on news it has been granted a production licence for its 40%-owned Beutong copper project in Indonesia.
Beutong is a large high-quality copper, gold, silver and molybdenum deposit which outcrops at surface and remains open in several directions including at depth.
READ: Asiamet reports positive results from copper leach testing
The current JORC-compliant resource amounts to 2.4mln tonnes of copper, 2.1mln ounces of gold and 20.6mln ounces of silver.
What’s more, the geology indicates potential for the discovery of a deep high-grade copper-gold zone similar to that seen in some of the giant Asia-Pacific porphyry systems
Subject to meeting certain expenditure commitments, Asiamet’s interest could increase to 80%.
A drill rig will soon be mobilised to advance development of the project. The object of the drilling is to provide critical information on the structure and distribution of high-grade near-surface mineralisation, test the strike and depth potential of the Beutong system, and fulfil permitting commitments.
Accordingly, Asiamet will also carry out feasibility-level metallurgical test-work focused on determining the leachability of the secondary copper sulphide minerals that dominate the upper 600m of the Beutong porphyry system.
READ: Asiamet Resources lauds "strong metallurgical drill results" at BKM
Further work will be done to determine the leachability of the chalcocite and oxide copper minerals, and an evaluation of the potential for undertaking a large-scale SX-EW mining operation will also take place.
The company also said discussions about is contract of work remain ongoing.
In afternoon trading, Asiamet shares were 255%, or 2.25p higher at 11.25p.
-- Adds share price -