28 March 2024
BKM Project Engineering
Design and Execution Update
Asiamet Resources Limited ("Asiamet"
or the "Company") announces a further update in relation to the
Company's wholly owned, development stage, BKM copper project
located in Central Kalimantan, Indonesia ("BKM" or the "BKM Copper
Project").
Highlights
· Early EPC
Engagement: Asiamet has engages
project execution partners for engineering, procurement, and
construction, optimising project integration and cost estimation
accuracy. Specific focus on critical path project engineering
activities.
· Execution Partners
Appointed: PT Rexline Engineering
Indonesia selected for comprehensive engineering design covering
materials handling and non-process related infrastructure elements,
ensuring continuity and cost efficiency.
Beijing Research Institute of Mining
and Metallurgy engaged for process infrastructure engineering,
leveraging expertise from prior successful
collaboration.
· Further contractor Engagement
and Project Management: engagement
progressing with contractor for site earthworks, pre-production
development, and mining services, prioritising early engagement for
cohesive project execution. Partnerships to strengthen project
management capabilities, enhancing efficiency in scheduling, cost
estimation, and planning.
Engineering Design & Development
Strategy
As previously indicated, in response
to feedback from the Independent Technical Expert (ITE) review of
the 2023 Feasibility Study ("2023 FS") as part of the debt
financing process, the Company has refined its approach to
delivering engineering design, procurement and construction and
implemented a strategy of engaging partners early to deliver
engineering design, procurement and construction execution across
various scopes of work for the BKM Project.
This approach enables improved
integration of project execution disciplines and an expected
increase in accuracy with respect to project capex
estimation.
The Company has chosen the following
preferred execution partners for delivery of the BKM Project - the
work areas referenced cover the entire site-based scope of
work:
PT
Rexline Engineering Indonesia ("Rexline")
Rexline will complete engineering
design of the crushing and ore handling system and non-process
infrastructure such as the main accommodation camp, site offices,
workshop and warehouses. Rexline have significant experience in
delivering design and construction of this type of infrastructure
in the Central Kalimantan coal industry.
Rexline will provide cost estimation
for all construction execution excluding scope related to project
bulk earthworks, mine operations infrastructure development and
pre-production mine operations.
Beijing Research Institute of Mining and Metallurgy
("BGRIMM")
BGRIMM will deliver engineering for
the Solvent Extraction, Electrowinning, Water Treatment ("SX-EW")
and Reagent Preparation process infrastructure. This is a
continuation of engagement with BGRIMM from the 2023 FS
update.
The SX-EW plant is a critical
component of the BKM processing facility as it delivers the
processes of metal purification and copper metal
production.
The BGRIMM Group has over six
decades of experience, specialising in technology and innovation in
the mining sector. BGRIMM's core strength and competitive
advantage is in engineering design, procurement and equipment
manufacturing. Their input into this project is an important part
of the overall design and will positively impact costs through
their purchasing power. BGRIMM have provided engineering design and
procurement for several SX-EW facilities in various countries (such
as Central Asian Metals' Kounrad facility in Kazakhstan) and are
familiar with engineering design requirements of Indonesia given
their association with several past and current projects in the
country.
Further Contractor Engagement
The Company is advancing discussions
with a highly reputable contractor capable of delivering the
project site earthworks, mine pre-production development, mine
operations infrastructure and mining services at least for the
first 5 years of the project life. This strategy differs from the
2023 FS, in that separate contractors were engaged to provide
quotes for the cost of project earthworks and mining operations.
The Company is committing to an integrated approach of project and
operations earthworks to leverage the use of common mobile
equipment fleet. Further details of this contractor engagement will
be provided as they become available.
The Company is engaging with
suitable partners capable of providing project management support
updating key project execution deliverables such as project
schedule, capex estimate and project execution planning.
BKM
Copper Project Optimisation
An improved heap leach
facility location has been proposed and detailed modelling of a new
facility layout is underway through engagement of Chilean expert
heap leach design group Minera and Servicos (M&S). The outcome
of this work will be communicated in Q2 2024.
Optimisation of engineering
resources and costs, along with low-cost equipment and materials
sourcing will be realised through the aforementioned project
partner engagement strategy.
A recent review of site access road
earthworks and local equipment hire costs indicates significant
potential savings on this activity are possible relative to the
2023 FS. A detailed inspection and further refinement of the cost
estimate will be undertaken in April 2024.
Darryn McClelland, Chief
Executive Officer, commented:
"Our approach to project execution for BKM has evolved, taking
into consideration feedback from the ITE as well as the positive
outcomes realised in the 2023 FS, by engaging early with our
preferred project execution partners.
"I
am pleased to be able to confirm Rexline and BGRIMM as two of our
major partners, who will be working with us to deliver a highly
cost effective BKM Copper Project. Both Rexline and BGRIMM were
instrumental in delivering low capital cost outcomes for the 2023
FS and I look forward to working with them on delivering
Indonesia's newest copper mine. News on the engagement of our
project earthworks contractor will also be provided in due course.
"Effective project execution in the mining industry remains a
priority focus and it is essential that we advance the BKM Project
in a manner that optimises management of risk for all
stakeholders.. Involving EPC partners early significantly reduces
project execution risk and aligns with key requirements outlined in
the ITE feedback during the debt financing
process.
"The positive trajectory of copper prices and growing market
optimism regarding copper's supply / demand dynamics underscore the
strategic significance and inherent value of our assets. Our
advanced projects and high-quality JORC compliant copper resources
at both projects are attracting significant inbound interest, and
with the mobilisation of execution partners the BKM copper cathode
project takes a further step towards financing and production.
Shareholders should expect further updates as our efforts
intensify."
ON
BEHALF OF THE BOARD OF DIRECTORS
Darryn McClelland, Chief Executive
Officer
-Ends-
For further information, please
contact:
Darryn McClelland
Chief
Executive Officer, Asiamet Resources Limited
Email: darryn.mcclelland@asiametresources.com
Tony
Manini
Executive Chairman,
Asiamet Resources Limited
Email: tony.manini@asiametresources.com
Investor Enquiries
Sasha Sethi
Telephone: +44 (0) 7891 677
441
Email: Sasha@flowcomms.com
/ info@asiametresources.com
Nominated & Financial Adviser
Strand Hanson Limited
James Spinney / James Dance / Rob
Patrick
Telephone: +44 20 7409
3494
Email: asiamet@strandhanson.co.uk
Broker
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137
1903
Email: Christian.Dennis@optivasecurities.com
Follow us on twitter @AsiametTweets
FORWARD-LOOKING
STATEMENT
This news release contains forward-looking statements that are
based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterised 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.
