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Asiamet Lifts Beutong Copper-Gold Project Interest to 80%

Asiamet is pleased to announce that negotiations to simplify the exercise of its option agreement with PT Media Mining Resources covering the Beutong copper-gold project ("Beutong") have been completed and a single milestone payment of A$4.375million has been made to increase its effective ownership in PT Emas Mineral Mumi ("EMM") from 40% to 80% by acquiring the remaining 50% of Beutong Resources Pte Ltd. ("BRPL") that it does not already own.   EMM, 80% owned by BRPL, wholly-owns the Beutong Copper-Gold Deposit in Nagan Raya Regency, Aceh, Indonesia. Beutong is held under a Mining Business License for Production Operations "IUP-OP" which provides for an initial 20 years of licence tenure which may be extended twice, each for a period of 10 years, totalling 40 years.  This is the key licence required to advance the Beutong Project to the development stage. 

Highlights:

  • Equity interest in Beutong increases to 80% through exercise of the option and delivery of recent milestones including the key long-term production licence required to advance project to development stage
  • Beutong is a large high-quality copper, gold, silver, molybdenum deposit outcropping at surface and remaining open laterally and at depth.
  • Resources contain 2.4Mt (5.3BIb) copper, 2.1Moz gold and 20.6Moz silver on 100% basis (1.92Mt (4.24Blb) copper, 1.68Moz gold and 16.48Moz silver on an 80% attributable basis), reported in accordance with the requirements of the JORC Code (2012).
  • Beutong very favourably located with regard to infrastructure and logistics.  The project is adjacent to a sealed road and approximately 60km from a large power station and seaport
  • Significant scope to expand the mineral inventory with recent drilling intersecting 456.0m at 1.06% CuEq. (0.93% Cu, 0.15g/t Au) from 10.0m extending mineralisation beyond current the current JORC Resource envelope and remaining open to depth and laterally.
  • Recent assays suggest that a significant proportion of the Beutong East Porphyry copper mineralisation could potentially be processed by heap leach to produce cathode copper.  Extensive metallurgical test work to further assess this potential is required.

 

Peter Bird, Asiamet's Chief Executive Officer commented:

"Asiamet is extremely pleased to substantially lift its interest in this advanced high quality copper-gold project at a time when the copper market is forecast to be moving into supply deficit and large copper development opportunities with nearby infrastructure are rare.  Achieving this major milestone doubles the Company's attributable contained metal inventory in Beutong to 1.92Mt copper, 1.68Moz gold and 16.48Moz silver.  The deposit remains open both laterally and at depth with recent drilling at Beutong East hole BEU0900-08 extending mineralisation beyond the current Resource envelope and terminating, due to rig depth capacity, in mineralisation grading 1.14% Cu.  The Company looks forward to reporting on progress at Beutong as the recently mobilised deeper capacity drill rig ramps up and development activities incorporating evaluation drilling, metallurgy and geotechnical activities gain momentum in the second half of 2018."

 

Beutong Project Summary and Background

Joint Venture Agreement

On 11 February 2011, Asiamet, through its predecessor companies, entered into an Option and Joint Venture agreement on the Beutong project with PT Media Mining Resources (Media), an Indonesian private company.  The Joint Venture aims to combine the exploration and development capability of Asiamet's team with the extensive in-country operating experience of Media to unlock the potential of the Beutong project through a staged work and earn-in program.  Over the past 8 years, Asiamet and its predecessor Company, Tigers Realm Metals, earned a 40% interest in the Beutong project by sole funding over A$13.3 million of intensive exploration/development work and making a number of milestone payments to its Joint Venture partner.  Following recent negotiations, the parties agreed to simplify the earn-in period and Asiamet lifted its interest in the Beutong project from 40% to 80% through a single, final milestone payment of A$4.375 million. 

 

Geology and Resources

Since 1996, the Beutong project has been explored and evaluated with 164 holes for 42.3km of diamond drilling completed.  While the geology is reasonably well understood, the deposit remains open in several directions and requires extensive further evaluation work to unlock its full value and potential.

Beutong is a large porphyry copper-gold system, which comprises the Beutong East Porphyry ("BEP"), Beutong West Porphyry ("BWP") and the Beutong Skarn("BSK") as shown in Figure1.  Beutong has current Resources containing 2.4Mt (5.3Blb) copper, 2.1Moz gold and 20.6Moz silver on a 100% basis (see announcement dated 08 January 2018), reported in accordance with the requirements of the JORC Code (2012).  The surface mineralisation at BEP and BWP comprises chalcocite, covellite and digenite mineralisation with lesser chalcopyrite.  The outcropping BSK deposit comprises a garnet - magnetite skarn with chalcocite-malachite-azurite in the upper section and chalcopyrite-bornite mineralisation at depth.

At 600m-700m depth there is a notable transition to chalcopyrite-bornite mineralisation, similar to the deeper sections of other porphyry systems in Southeast Asia such as the giant high-grade Grasberg Indonesia (Freeport-McMoRan Copper & Gold), Wafi-Golpu PNG (Newcrest Mining) and Tujah Bukit Indonesia (Merdeka Resources).  At depth in the BEP, large clasts of potassic altered (biotite, potassic feldspar and magnetite) diorite porphyry with intense stockwork chalcopyrite-bornite mineralisation occur within a diatreme breccia and are interpreted to have been transported from a high-grade potassic core at depth.  The BEP and BWP systems remain open in several directions and the interpreted BEP high-grade core remains untested at depth (Figure 2).

 

Infrastructure

The Beutong project is differentiated from many other large copper deposits by its favourable location in moderate terrain 60 kilometres from the coast and by its proximity to well-developed nearby transport and general infrastructure including roads, power and seaport.  These key features have the potential to favourably impact development economics.

 

Tenement Status

In January 2018, the project was granted the key production licence, Izin Usaha Pertambangan Operasi Produksi "IUP-OP" following a period of two years working with the relevant Indonesian authorities, particularly with the Ministry of Energy and Mineral Resources ("ESDM") and the local government of Nagan Raya Regency.  It provides for an initial 20 years of licence tenure which may be extended twice, each for a period of 10 years, totalling 40 years.  This is the key licence required to advance the Beutong Project to the development stage.  The support for the project from the local and central government administrations and the local community provides a firm basis for the further development of Beutong.

 

2018 Work Program

For 2018, the Company plans to create further value through a targeted infill and extension drilling program comprising eight holes totalling approximately 4,000 metres. This work aims to expand the boundaries of BEP and BWP deposits and test the gap between them, further assess geotechnical conditions and the potential for heap leach SX-EW processing of BEP mineralisation to produce copper cathode. To date three holes for 767.5 metres have been completed. 

Figure 1: Location Map to view the image click on the following link  http://asiametresources.com/assets/img/ars1_beutong.png

Figure 2: Beutong Porphyry Deposit Resource Copper Grade Shells to view the image click on the following link   http://asiametresources.com/assets/img/ars2_beutong.png

Table of Comparable Projects to view the image click on the following link http://asiametresources.com/assets/img/ars3_beutong.png

 

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