Feasibility Drilling Confirms High Grade Copper Mineralization

Asiamet Resources Limited ("ARS" or the "Company") is pleased to announce that Resource infill and extension drilling being undertaken as part of the feasibility study on the Beruang Kanan Main ("BKM") copper deposit in Central Kalimantan, Indonesia continues to intersect high grade copper mineralization in the southern part of deposit and has confirmed good continuity of higher grades previously reported within the BK058 Zone. 

Four drill rigs are operational with 25 holes/2558 meters of diamond core drilling completed to date and four holes currently in progress. Five large diameter holes collecting bulk samples for copper leaching test work have also been completed with an additional 12 holes to follow.

Assay results have been received for three infill holes drilled to increase Resource confidence and one hole drilled to extend the BKM Resource eastward. Shallow high grade covellite-chalcocite copper mineralization very similar in style to that reported previously in drill holes BKM31850-02 (11m at 2.96% Cu, including 2 meters at 9.26% Cu, from 6 meters. Refer ARS Press Release August 26, 2015) and BK058-01(64.9m at 1.24% Cu, including 9 meters at 7.35% Cu, from 11.7 meters. Refer ARS Press Release August 22, 2013) was intersected in all three holes drilled within the BK058 Zone. 

Better results include:

BKM31700-02     12.0   meters at 0.93% Cu (from 1 meter)
BKM31700-03 5.0   meters at 1.80% Cu (from 10.5 meters)
  22.0   meters at 1.07% Cu (from 21 meters)
    Including 3 meters at 5.42% Cu (from 21 meters)
  6.2   meters at 1.06% Cu (from 102 meters) and hole terminated in 1.2% Cu
BKM31700-04 43.0   meters at 1.16% Cu (from 15 meters)
    Including 8 meters at 2.52% Cu (from 23 meters)
    Including 13 meters at 1.60% Cu (from 38 meters)


The first hole on section line BKM31700 (110m End of hole) was drilled outside the BKM Resource and intersected moderate grade mineralization from near surface, confirming copper mineralization continues eastward. Drilling continues to confirm continuity and extend copper mineralization in the BK058 Zone. Five additional holes have also been completed on this line and assays are expected shortly.

Consistent intersections of strong copper mineralization grading 1-2% and above so close to surface is considered to be highly positive for the BKM project, as is the extension of mineralization beyond the current Resource envelope. This shallow higher grade mineralization is easily accessible for early mining and has the potential to further improve the very low mining strip ratio generated in the BKM Preliminary Economic Assessment (1.23:1). Lower strip ratios would be expected to result in lower mining costs and enhanced project economics. Drilling is continuing to assess this opportunity.

A drill hole location plan and a table of full assay results are provided in Figure 1 and Table 1 respectively.

Tony Manini, Asiamet's Chief Executive Officer commented:

"The BKM deposit feasibility study drilling program is off to a flying start with these first results providing early confirmation of continuous shallow, high grade mineralization at the BK058 Zone. This presents Asiamet with an opportunity to assess selective mining and scheduling of this higher grade mineralization early in the mine life, potentially enhancing project economics and shortening the capital payback period for the project. As the momentum of the feasibility study builds over the coming months, Asiamet looks forward to reporting the results from ongoing drilling, metallurgical testing, mining, infrastructure and environmental studies" 

Table 1: Recent drill intercepts.
HOLE IDFromToLengthCopper (%)Cumulative Cu
Mineralized Interval
BKM31700-01 1.8 33.0 31.2 0.29 31.2 Meters
Including 1.8 7.0 5.2 0.50
Including 11.0 18.0 7.0 0.34
BKM31700-02 1.0 73.2 72.2 0.38 72.2 Meters
Including 1.0 13.0 12.0 0.93
Including 19.0 21.0 2.0 0.67
BKM31700-03 10.5 15.5 5.0 1.80 50.5 Meters
BKM31700-03 21.0 43.0 22.0 1.07
Including 21.0 24.0 3.0   5.42  
BKM31700-03 47.0 58.5 11.5 0.30
BKM31700-03 66.2 72.0 5.8 0.41
BKM31700-03   102.0     108.2   6.2 1.06
BKM31700-04 15.0 58.0   43.0   1.16 49.0 Meters
Including 23.0 31.0 8.0 2.52
Including 38.0 51.0 13.0 1.60
  BKM31700-04   95.0 101.0 6.0 0.69

Notes: Grade intercepts are calculated
as a weighted average grade =0.2% copper (uncut).  
True widths are interpreted to be between 80-100% of the reported lengths, unless otherwise stated.
 
Figure 1: Location map showing section lines and drill collars

Qualified Person

Data disclosed in this press release have been reviewed and verified by ARS's qualified person, Stephen Hughes, P. Geo, Vice President Exploration of the Company and a Qualified Person within the meaning of NI 43-101 and for the purposes of the AIM Rules.

ON BEHALF OF THE BOARD OF DIRECTORS

Tony Manini, Deputy Chairman and CEO

For further information please contact: 

-Ends-

Tony Manini
Deputy Chairman and CEO, Asiamet Resources Limited
Telephone: +61 3 8644 1300
Email: [email protected]

FlowComms Limited
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: [email protected] / [email protected]

Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Andrew Thomson / Oliver Morse
Telephone: +61 8 9480 2500
Email: [email protected] / [email protected] 

VSA Capital Limited
Andrew Raca / Justin McKeegan
Telephone: +44 20 3005 5004 / +44 20 3005 5009
Email: [email protected]

Optiva Securities Limited
Christian Dennis 
Telephone: +44 20 3137 1903
Email: [email protected]

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This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.