Asiamet Resources Ltd (LON:ARS) has begun the additional drilling and geotechnical work at its Beruang Kanan Main (BKM) copper project in Indonesia.
The explorer had hoped to have delivered a bankable feasibility study for BKM by now but decided last month to carry out extra work in order to optimise the mine design and further enhance the project economics.
READ: Asiamet to carry out more drilling at BKM
A targeted programme of 2,500-4,500 metres of additional core drilling is now underway which will further evaluate the BKM deposit.
It will also evaluate the additional resource tonnages that currently sit both inside and outside the pit shells, and which are currently classified as inferred resources.
The drilling is scheduled to finish in early 2019 and has the potential to “materially impact project financing outcomes”, Asiamet said.
Drilling to “significantly enhance” BFS
“Following thorough review of the study work undertaken to date we are clearly of the view that this additional piece of work should significantly enhance the outcomes of the BKM BFS when complete,” said chief executive Peter Bird.
“The planned drilling is expected to substantially improve understanding of the resource and the geological and geotechnical inputs into mine design, leading to enhanced overall project economics.
He added: “A robust BFS, both in terms of quality and economics, is critical to achieving a successful project development financing outcome.”
Testing of targets in wider BK district
Separate to the additional drilling at BKM, Asiamet has also kicked off an exploration program in the wider BK district.
A number of adjacent “high impact targets” will be tested with the aim of extending BKM and the nearby BKZ as well as testing the link between the two deposits.
Bird added: “The very recent recognition of a potential new VMS district on our tenements in Central Kalimantan is extremely exciting as these deposits are recognised globally for their potential company maker value per tonne metrics and almost universally occur in clusters.
“We are looking forward to unlocking this value through our ongoing exploration effort and expect to be reporting a strong news flow from these programmes as a result.”
Asiamet shares rose 3.2% to 5.8p at the opening bell on Wednesday.