Asiamet Resources is considering options for divesting the Jelai Gold Project in North Kalimantan, Indonesia, in order to focus on two core Indonesian copper projects.
The AIM-listed company, formerly known as Kalimantan Gold, said it was studying various options for divesting the Jelai epithermal gold scheme or putting it into a partnership. It considers Jelai to be highly prospective for a small to medium-sized gold deposit.
In a statement Asiamet said: “Although the potential of the Jelai project remains high, it is considered to be a lower priority than the company’s two copper projects.”
Asiamet is primarily focused on evaluating the potential to develop a medium-scale copper mine at the Beruang Kanan project in Central Kalimantan, where the Beruang Kanan Main (BKM) deposit is undergoing an intensive resource evaluation drilling program, metallurgical test work and mining studies.
It said the near-surface nature of the copper mineralization at BKM, coupled with a recently discovered high grade zone and positive test results demonstrated excellent potential for developing a copper mine.
The latest hole produced an 11 metre section grading 2.96% copper and it was intersected from just six metres below surface. Within that section, there were two metres at a grade of 9.26% copper. Follow-up drilling is being carried out in the immediate vicinity.
The other priority is the Beutong porphyry deposit in Aceh, North Sumatra, which contains a large copper deposit with accessory gold and molybdenum, together with a smaller, higher grade copper-gold skarn deposit.
“The Beutong project has excellent nearby infrastructure and provides the company with a large copper growth option going forward,” it said. “Activities have focused on processing the company’s application for a production licence.”