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Asiamet Resources Limited – Updated BKM Ore Reserve
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Asiamet Resources Limited (Asiamet or the Company) is pleased to announce an update to the Ore Reserve Estimate (“ORE”) for its 100% owned BKM Project, located in Central Kalimantan, Indonesia.  This update is provided as part of the updated Feasibility Study (FS)[1].  The Statement of Ore Reserves (including the JORC Table 1 Section 4) for BKM was completed by Australian Mine Design and Development Pty Ltd (“AMDAD”) and is reported in accordance with the requirements of the JORC Code 2012. 

A summary of the highlights of the Ore Reserve are detailed below:

Highlights – 2023 BKM FS Update:

·    BKM Ore Reserves now comprise:

 19.0Mt @ 0.7% Cu for 137kt of contained copper in the Proved Reserve category

 21.8Mt @ 0.6% Cu for 135kt of contained copper in the Probable Reserve category

 40.8Mt @ 0.7% Cu for 272kt of contained copper in the Proven and Probable Ore Reserves category

·    Low strip ratio of 1.2

·    Ore Reserves are reported based on extraction by open-pit mining and processing by heap-leach and solvent extraction / electro-winning (“SX-EW”)


Darryn McClelland, Asiamet’s Chief Executive Officer commented:

“The BKM Ore Reserve Update is the culmination of workstreams completed over the last 12 months as part of the BKM Feasibility Study Update. It has been very pleasing to see consistency in the assessment of what is economic for the BKM project over the course of the latest study notwithstanding changing inputs. This gives the company a high level of confidence that we are targeting the best material in BKM for the heap leach project and can deliver on the expected production and financial outcomes. Developing the BKM heap leach project is the first step on the path that will see Asiamet unlock the potential of the BKM mineral district and the wider KSK Contract of Work.”


Table 1 The BKM Ore Reserve Estimate summarised in the table below, May 2023 (100% Basis)



Soluble Copper

Total Copper

Soluble Copper

Total Copper






Proved Ore






Probable Ore












Waste Rock



Waste : Ore Ratio




Notes: The tonnes and grades shown in the table are stated to a number of significant figures reflecting the confidence of the estimate. The table may nevertheless show apparent inconsistencies between the sum of components and the corresponding rounded totals. The Ore Reserves are reported within the final pit design forming the basis of the Updated Feasibility Study. They do not include Inferred Mineral Resources. The Ore Reserves treat Inferred Resources within the pit design as waste rock.  The Competent Person for the Ore Reserves is Mr John Wyche who is a full-time employee of Australian Mine Design and Development Pty Ltd.  Mr Wyche is a Member of the Australasian Institute of Mining and Metallurgy. He has 35 years of relevant experience in operations and consulting for open pit metalliferous mines.  He has consented to be named as the Competent Person for the Ore Reserves.  (Note: consent can only be quoted when the Ore Reserves Statement is issued to Asiamet).  Ore Reserves are presented in the document “Ore Reserves Statement, BKM Copper Project, Central Kalimantan, Indonesia, as at 9 May 2023”.


Additional information to accompany the Ore Reserve Statement:

·    The Ore Reserves have been compiled as part of the Updated Feasibility Study (UFS) which was completed to account for the significant changes in the macro-environment for new projects. The UFS covers all aspects of the project:

 Mineral resource estimation (no change from 2019 Resource model);

 Geotechnical assessment of stability of final pit wall design utilising updated assessment of rock mass quality and updated hydrogeological conceptual model and finite element numerical model, pit stability assessed in both 2D and 3D limit equilibrium analysis;

 Heap leach assessment based on column test work and heap stability and permeability assessment, consolidated reporting of all heap leach test work and updated interpretation of copper recovery model, iron dissolution and acid consumption/generation characteristics;

 Updated site climate assessment and revised water balance and water quality modelling;

 Mine cost estimation based on detailed budget pricing from experienced local mining contractors utilising equipment considered appropriate for scale of mining;

 Feasibility Study design of the heap leach pad earthworks, liners and reticulation;

 Feasibility Study design of the crushing, conveying and stacking system;

 Feasibility Study design of the Solvent Extraction and Electrowinning;

 Feasibility Study design of Process Plant Neutralisation and Mine ARD water treatment facilities;

 Processing and maintenance cost estimation for the designed facilities matched to the scheduled ore feed from the mine;

 Site services and administration cost estimation;

 Copper price forecasting for cathode product;

 Cost estimation for Transport and Logistics for inbound operational cargo and cost estimation for cathode backhauled to central facility;

 Open Pit optimisation based on the above parameters to define the pit shape and overall strategic plan;

 Detailed pit design including staging and design of access for ore and waste to the ROM pad and waste rock dump respectively;

 Detailed production scheduling of the mine, heap leach stacking and copper cathode production;

 Capital costs for the above items based primarily on quotations on equipment, from detailed material take offs;,

 Sustaining capital cost estimation based on a range of staged planned investments such as pit dewatering capacity, heap leach interlift liners and ARD water treatment capacity;

 Preliminary mine closure cost estimation;

 Financial modelling;

 Environmental and social assessment through the Indonesian AMDAL process, completed previously.

·    The Ore Reserve Estimate is derived from the June 2019 BKM Resource Estimate by application of Modifying Factors.  The Company is not aware of any changes which could affect this Resource estimate

·    The Ore Reserve Estimate is reported within the final pit design forming the basis of the UFS.  It does not include Inferred Mineral Resources.  The Ore Reserve Estimate considers Inferred Resources within the pit design to be waste rock

·    Conventional open cut mining methods will be used.  Mining loss and dilution factors were estimated by re-blocking the irregular block sizes in the resource block model to 5m x 5m x 5m.  The resource model blocks are clipped against interpreted boundaries for the mineralisation.  The regular re-blocked block size reflects a workable mining size for the proposed scale of mining and grade control and the geometry of the mineralisation.  If mining loss and dilution were applied on a global basis, the re-blocking would be equivalent to 96% mining recovery with 11% dilution at 0.11% soluble copper

·    Whittle™ pit optimisation was run on the re-blocked resource model. Inputs for the pit optimisation included:

 Overall wall slopes by geotechnical domain as advised by specialist geotechnical consultants

 Mining costs based on mining contractor quotes and estimated owner costs.

 Processing costs based on power from a new Biomass Power Station and updated assessments of acid and limestone costs, owner labour and other operating costs,

 Quotations for cathode transport,

 Updated royalty calculations, and

 An updated copper price forecast.

·    Where appropriate, the pit optimisation inputs were varied spatially through the deposit. These include slopes, mining cost and copper recovery. Other inputs, such as process costs and copper price were fixed. Average values of key inputs used are:

 Copper recovery – variable, average 78.6% (applied to soluble copper grades)

 Mining cost – variable, average US$3.37 per tonne

 Process cost – US$5.16 per ROM tonne (including crusher feed but excluding electrowinning power)

 General and administration – US$3.02 per ROM tonne

 Electrowinning power – US$253.65 per tonne cathode

 Cathode transport – US$60.00/tonne of cathode

 Copper price – US$3.96/lb fixed over LoM

 Cathode premium – $US 100.00 per tonne of cathode

 Royalty – Government of Indonesia 2%

·    Copper ore will be processed using heap leaching and solvent extraction and electrowinning (SX-EW) to produce copper cathodes on site.  Ore from the pits will be crushed and agglomerated prior to conveyor stacking on the heap leach pads.  Sulphuric acid will be used as the leaching agent on the heaps but will not need to be added at all times due to acid generation from the oxidation of pyrite.

·    Project assessment is based on the soluble copper portion of the mineralisation which was determined using extensive sequential assays throughout the deposit.

·    The ratio of soluble copper species varies through the deposit making it impossible to state a unique cut-off grade, with cut-off grades therefore variable over the mine life.  However, grade tonnage reporting of the positive value blocks in the resource model shows the cut-off grade can be reasonable approximated as 0.13% soluble copper (Cusol)

·    Mining costs have been sourced from mining contractors who are familiar with the nature of mining at BKM, with respect to expected equipment, ground and climate conditions, with blasting costs provided by quotation from two well-credentialed suppliers.

·    Owners’ costs in Mine Geology and Mining have been derived from a company organisation structure (based on reverse circulation grade control drilling for at least the first five years)

·    Processing costs are based on a variety of goods and services providers (such as the proponent of the Biomass Power Station), with equipment maintenance costs estimated on the basis of capital costs of the equipment, and costs for processing and maintenance personnel derived from a company organisational structure, salary structure applied and oncost model.

·    Support Service costs have been estimated for the planned workforce covering the remaining functions outside mining and processing, with major cost areas such as Transport and Logistics for the operation and the provision of Camp Services on site based on cost estimates from reputable service providers in these areas.

·    The capital cost estimate has been built up from a range of sources with all major fixed plant equipment being based on vendor quotations. The costs for site/Heap Leach civil earthworks have been provided by an experienced civil infrastructure contractor. Engineering design has been taken to a Feasibility Study standard. Growth allowance has been allocated at varying levels depending on confidence in the cost information provided.

·    Royalties are based on the current Government of Indonesia standards as it relates to production of Copper Cathode.

·    Cost estimates cover the periods through construction, operation, closure and post closure.

·    A discount rate of 8% pa was applied and references the Company’s weighted average cost of capital.  The prevailing corporate taxation rates taxation have been applied in accordance with the laws of Indonesia.


A copy of the BKM 2023 Ore Reserve Statement, including the JORC Table 1 Section 4 is available on the Company’s website at and appended to this announcement via the following link


Qualified Person and Competent Person’s Statement

The statement of Ore Reserves (Table 1) has been completed by Australian Mine Design and Development Pty Ltd (“AMDAD”) and is reported in accordance with the requirements of the JORC Code (2012).  

The information in this release and the report to which this statement is attached that relates to the estimation of Ore Reserves is based on information compiled by Mr John Wyche, a full-time employee of AMDAD, and who has acted as the Competent Person on the Ore Reserve Estimation of the BKM Project.  Mr Wyche is a Fellow of The Australasian Institute of Mining and Metallurgy. He has 35 years of relevant experience in operations and consulting for open pit metalliferous mines, being sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.  Mr Wyche consents to the inclusion in the report and this release of the matters based on his information in the form and context in which it appears.  Mr Wyche confirms that he is not aware of any new information or data that materially affects the information included in the relevant market announcements, and that the form and context in which the information has been presented has not been materially modified.  

Data disclosed in this press release has been reviewed and verified by Mr John Wyche, FAusIMM (Fellow of the Australian Institute of Mining and Metallurgy) acting as a qualified appointed adviser to Asiamet.  Mr Wyche is a Competent Person within the meaning of the JORC Code 2012 and a Qualified Person for the purposes of the AIM Rules for Companies.

Updated BKM Ore Reserve – 10:30:02 10 May 2023 – ARS News article | London Stock Exchange


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