The resource definition drilling program at Asiamet Resources’ Beruang Kanan Main (BKM) copper deposit in Central Kalimantan, Indonesia is expected to be completed early next month with an updated resource estimate due shortly after.

Asiamet has progressed the early phase feasibility studies into the project’s engineering and design aspects. These studies utilise the information and learnings developed by the company over the past year, and build on the positive conceptual design work conducted as part of the Preliminary Economic Assessment (PEA).

PT Ground Risk Management (GRM) was commissioned to lead the geotechnical program. GRM completed a program of data collation, detailed mapping, geotechnical logging and laboratory testing to develop a robust geotechnical database for the open pit mine, including assessments and recommendations on the location and management of waste dumps. Geotechnical input into the infrastructure location studies and a field survey of the site access road route was also completed.

Highlights include:

• Approximately 34% of material in the shallower 35-40 metres of the proposed pit, is classified as ‘easy digging’, which will contribute to relatively lower mining costs.

• No foundation treatment is likely to be required below the proposed waste dump locations, saving on potential pre-production costs for development of the waste dump site.

• There is the potential to steepen pit wall angles in the upper section of the open pit compared with the previous pit design. This would lead to lower estimated operating costs through a lower strip ratio.

• Investigations revealed there are no large landslides that could present a significant impact. • The deposit lies within an area of very low seismicity and seismic ground vibrations are expected to be insignificant in terms of earthworks design.

• Trafficability of the site access road is considered to be good. GRM suggests that the development proceed with zero upgrade work and address the potential hazards and reliability issues through simple, operational procedures and effective road maintenance systems.

Australian Mine Design and Development (AMDAD) was engaged to undertake the mining engineering components of the feasibility study. The initial phase scope of work included open pit optimisation, production rate assessments and development scenario analysis. AMDAD completed a Project Definition Study (PDS) to address the scope of work. The PDS updates the cost and revenue assumptions and provides a sufficiently detailed pit design and schedule to demonstrate the practicality of the mine plan including an updated assessment of the site layout. This potentially offers major operational and cost benefits.

Results of the PDS provide a high level of confidence in advancing to a Definitive Feasibility Study.

Detailed feasibility study work is continuing as results from the resource definition and metallurgical test-work programs become available. With improved resource knowledge, AMDAD will execute the required work to produce feasibility level pit designs, waste rock management and dump designs, mining equipment sizing and selection, mine scheduling, and the estimation of capital and operating costs for the mine.

Asiamet’s CEO Peter Bird said, “The positive results generated from these early engineering and design studies, coupled with the excellent results and progress being made in our resource definition and metallurgical test-work programs, enhances the potential for developing a high quality medium scale copper mine at BKM.”