Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) has reworked key parts of the feasibility study for its BKM copper heap leach SX-EW project located in Indonesia to optimise the project and allow for recent inflation.
The junior said the new plan improves the strip ratio with a third less ore being processed though still producing 89% of the original copper cathode target.
Over the life of mine (LOM) the new plan also generates more revenue based on current consensus copper pricing of between US$3.75-3.85/lb, said Asiamet.
BKM plans to produce copper cathodes for sale in local Asian markets.
Darryn McClelland, Asiamet’s chief executive, added that this update was the most significant piece of work undertaken in the ongoing update of the BKM feasibility study.
“Delivering 89% of copper production for only 67% of the total material movement relative to the 2019 study demonstrates a focus on quality over quantity when comparing the study scenarios.
“In order to mitigate the input cost increases being experienced industry-wide and thus maintain robust and attractive economics, the project has been reshaped in terms of scope and mine plan.
“Extensive modelling has been required to produce the final pit designs and the integrated mining and heap leach production schedules.
“Work is progressing as quickly as possible to bring the required information together to conclude the 2022 FS update.”