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Asiamet Resources expects feasibility study for BKM this quarter

“Capital and operating cost estimates are being benchmarked"
Bankable study will be delivered this quarter

Copper explorer Asiamet Resources Limited (LON:ARS) said the bankable feasibility study for its BKM project in Kalimantan will be delivered by the end of September.

Originally scheduled for mid-year, optimisation of the mine plan is almost complete with key inputs being finalised, the junior said in a statement today.

Watch: Asiamet Resources confident of resource boost at 'big beast' Beutong

“The heap leach design has undergone extensive review and optimisation with significantly improved expected performance and overall metrics. 

“Capital and operating cost estimates are being benchmarked and will be subject to further review once the mine planning studies are complete shortly. “

This final exercise is expected to provide substantial upside for the project, Asiamet added.

House Liberum meanwhile pointed to what it says were further outstanding drill results from Beutong, another of Asiamet’s prospects in Indonesia, earlier this week.

“Results confirmed near-surface extensions to both the East and West Porphyry's, outside the 2014 resource  envelope and including significant higher grade (c.1% Cu equiv.) intervals.”

BKM study a potential catalyst

Liberum added that feasibility study at BKM might provide a catalyst to an accretive sell-down at the KSK licence and the recent share price weakness looks unjustified.

The broker said the copper contained within its projects is being valued at $36/t compared to a peer group average of $118/t.

Liberum adds that Aussie group Finders Resources has an almost identical project to BKM at Wetar Island in Indonesia and it was acquired for US$254mln on an enterprise value basis.

Asiamet is currently valued at £84mln (US$108mln) and also has the BKZ, Beutong and Baroi projects, said the broker, which reiterated its target price of 20p.

Shares rose 2% to 9.1p.

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“Asiamet’s strategy is on the near-term development of BKM and BKZ and then the development of Beutong, which is, in our view, the key asset of most interest, which will place Asiamet as a major copper player”

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