14 May 2024
BKM Heap Leach Facility
Earthworks Optimisation
Asiamet Resources Limited ("Asiamet"
or the "Company") is pleased to report positive results flowing
from recent optimisation work completed for the BKM heap leach
project in Central Kalimantan, Indonesia ("BKM" or the "BKM Copper
Project").
Detailed optimisation work on BKM by
heap leap experts, Mineria & Servicos SPA, Chile ("M&S")
has been focused on a progressive development of the Heap Leach
Facility ("HLF") to reduce upfront project capital cost. The HLF is
the single largest capital cost item in the 2023 Feasibility Study
("FS") and is the critical path activity for project
construction.
Highlights
· Optimisation
Results: a revised location for the
BKM HLF was assessed with updated HLF pad designs completed by
M&S. The overall bulk earthworks volumes for the new pad are
less than half that of the 2023 design. Critically, the revised
location allows the HLF pad to be constructed in two stages, with
the first stage development to enter production delivering a bulk
earthworks volume of approximately one-third of that required for
the 2023 FS design.
·
Implications: the considerable
reduction in bulk earthworks to achieve first production results in
a substantial decrease in the upfront capital cost of this critical
phase of the project. A substantial reduction in bulk earthworks
volumes is also expected to reduce construction timeline and move
the HLF construction off the critical path in the project
development schedule.
BKM
Project Heap Leach Facility Design Optimisation
On completion of the BKM 2023 FS,
several project opportunities were identified by the Company. The
first and most significant opportunity identified was the potential
for construction of the BKM HLF in a revised location, with the
opportunity described in the 2023 FS as such:
"An expected 25% to 30% reduction in earthworks volume
associated with Heap Leach Pad construction. A more straightforward
location to build with an expected reduction in costs, material
movement and an overall reduction in construction
time."
The location of the HLF presented in
the 2023 FS was chosen due to the proposed operational parameters
of the project, namely copper production rate and time to
leach/dissolve the copper from the BKM ore. When compared to the
2019 BKM FS, the updated 2023 FS approach to developing the HLF
significantly reduced the cleared area required, driven primarily
by a reduction in ore volume stacked and the processing rate being
reduced. The total excavated earthworks volume for the BKM HLF was
3.2 million cubic metres, however the location of the facility and
its design necessitated all bulk earthworks for the final pad
design be completed at the time of project construction with no
opportunity to defer capital expenditure to later in the mine
life.
A review of previous work was
undertaken to assess the potential for better alternatives for the
BKM HLF. As part of this work, an area previously considered to be
too small for the proposed production rate and leach cycle, was
re-evaluated using updated parameters and demonstrated the
opportunity to build the HLF in two stages, thus reducing the
volume of earthworks and ultimately the initial capital cost to get
BKM into production. The overall earthworks volumes for the new HLF
are as follows:
·
Stage 1: Excavated Volume - 1.1M cubic metres,
Fill Volume - 1.3M cubic metres
·
Final Stage: Incremental Excavated Volume - 1.0M
cubic metres; Fill Volume - 0.74M cubic metres
Additional fill to balance the
earthworks for Stage 1 will be supplied from excess excavated
material elsewhere on the project.
The greatly reduced overall
excavation volumes will be very positive from a cost and
construction schedule perspective, and the revised location
is easier to complete construction works on. In addition, several
key aspects, including water management and the close proximity of
excavation/fill materials, deliver a lower overall construction
risk profile for the new HLF design.
Darryn McClelland, Chief
Executive Officer, commented:
"I
am pleased to share the outcomes of the work we have been pursuing
to optimise the development of the Heap Leach Facility, one of the
most critical elements of the BKM project infrastructure. This work
has delivered a far more optimal approach to BKM's development from
both a physical and financial perspective.
We
can now pursue development of a smaller, initial stage heap leach
facility to get into production and defer capex to later in the
project life. The revised design for the HLF will also deliver
lower construction risk compared to our original project
design.
The full impact of this optimisation work in terms of
construction schedule and capital cost will flow through from the
detailed design and engineering currently underway for BKM.
This coincides with the appointment of Rexline Engineering and
BGRIMM Technologies for engineering design work and ultimately
revisions to the capital cost estimate for the BKM Project. The
Company looks forward to providing regular updates from ongoing
works as they become available."
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.