The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region
Issue link: https://asiaminer.epubxp.com/i/830355
16 | ASIA Miner | Volume 14 • Issue 2 | 2017 Indonesia ASIAMET Resources expects that a re- source definition drilling program at the Be- ruang Kanan Main (BKM) project will lead to an increase in copper resources. BKM is part of the company's KSK Contract of Work area with an updated estimate due in May. The diamond core drilling has formed part of BKM feasibility study work and after the success of the program of 112 holes for 11,500 metres, Asiamet extended it to about 12,500 metres with the final 1000 metres expected to be complete by the end of April. The drilling intersected thick intervals of moderate to high-grade copper mineralisa- tion, and successfully established continuity and closed gaps in the previous resource model. New copper mineralisation intersected in two drill holes is outside the current BKM re- source envelope and located between the BK044 and BK058 zones while a metallurgy hole drilled within BK044 Zone intersected a broad zone of high grade copper, with indi- vidual samples assaying up to 13% copper. Better results include: 82 metres from 15.5 metres @ 0.79% copper, including 13 metres from 34.5 metres @ 2.24%, 3 me- tres from 37.5 metres @ 3.36% and 1 metre from 45.5 metres @ 13%; 26.4 metres from 8.6 metres @ 0.78%, including 2 metres from 21 metres @ 1.96% and 1 metre from 32 metres @ 8.31%; 12 metres from 187 metres @ 0.95%, including 2 metres from 27 metres @ 1.96%, and 32 metres from 35 metres @ 0.8%, including 13 metres from 47 metres @ 1.25%; 57 metres from 7 metres @ 0.60%, including 6 metres from 38 metres @ 1.62%; and 44 metres from 1 metre @ 0.57%. CEO Peter Bird said, "Asiamet is pleased to report another set of excellent results from its feasibility study resource evaluation drilling program. Results have met or ex- ceeded our expectations in respect of both grade and continuity. "While the program has been very much focused on resource definition, some ex- tension areas requiring further evaluation have also been identified for future follow up." Early phase feasibility studies into the proj- ect's engineering and design aspects have returned positive results. Peter Bird said the results in conjunction with the resource definition work and metallurgical test work enhance the potential for developing a high quality medium scale copper mine at BKM. INDO Mines is advancing plans to develop a smelter at its Kulon Progo Iron Sands Project near Jogjakarta in Java. Following com- pletion of the second transaction for development of the plant, the company is seeking to issue a quasi-debt instrument for US$20 million to $24 million to provide funding for construction of a bene- ficiation plant and to provide iron sand concentrate for the smelter. The debt funds will also be used to meet working capital require- ments and repay the Anglo Pacific Group convertible debenture facility. Indo Mines' major shareholder PT Rajawali Corpora has recently provided a revolving credit facility for US$150,000 for a period of three months to enable the company to keep operating. During April the company was still awaiting finalisation of a share purchase agreement for the sale of its 51% interest in Sapex Oil- field Services Ltd. Sapex is an established regional provider of the world's leading composite mat system, which is designed for use in remote and challenging terrain-access locations. Sapex holds the licence to distribute the mat system within Indonesia, technical services capability, in-house developed downhole tools and three existing sub-contracts to provide services. The fact that the company was awaiting the receipt of funds from the Sapex sale and the signing of an agreement for development of a smelter, meant that it was unable to sign-off on the financial statements for the six months to December 31, 2016, on the basis of a going concern. Quantitative test work has been conducted for export quality con- centrate. The work by PT Geoservices has been critical to confirm the scale plant assumptions used in equipment sizing and calculat- ing yields. This allows Indo Mines to confirm calculations from the basic engineering design on actual operating costs with a relative level of comfort. Samples from two completed tests have been delivered to poten- tial off-takers. The particle sizing of the export test product indicated the concentrate will not have to be ground as fine as initially con- sidered, to the point where one stage grinding may be sufficient to produce the required iron level. Another test is under review but results are in line with the ex- pectations of Indo Mines' technical teams and will be included for independent review when assessing the resource conversion to reserves. Indo Mines plans Kulon Progo smelter The Beruang Kanan Main deposit is part of Asi- amet Resources KSK CoW area in Central Kali- mantan. Increase in BKM resources expected