Asiamet Resources Ltd on Friday said that it would be reshaping its Indonesian mining project to mitigate further costs, after the updated feasibility study for its flagship project helped to optimise several key production parameters.
Asiamet is an Indonesia-based mining company. Its wholly-owned flagship licence is the BKM Copper Project, located north-west of Palangkaraya, the regional capital of Central Kalimantan.
Compared to the 2019 study, the most significant relative change was in the data results for the mining and production ‘life of mine’ physicals.
Asiamet successfully improved strip ratio at the project, processing 33% higher soluble copper grade. It also processed 32% less ore whilst delivering 89% of the LoM copper cathode production.
Total material mined fell by 33%, which Asiamet said reduced total mining costs as well as its carbon footprint.
Significantly reducing the maximum ore treatment rate also helped to optimise its heap leach footprint, reducing costs of all materials handling equipment.
Asiamet expects this to generate greater LoM revenue, based on current consensus copper pricing between $3.75 and $3.85 per pound.
‘Delivering 89% of copper production for only 67% of the total material movement relative to the 2019 study demonstrates a focus on quality over quantity when comparing the study scenarios,’ said Chief Executive Officer Darryn McClelland.
However, McClelland noted that the feasibility update had not been a ‘simple review and update of the costs’ from 2019.
In order to mitigate the input cost increases being experienced industry wide, Asiamet has reshaped the project in terms of scope and mine plan.
Extensive modelling was required to produce the final pit designs, as well as the integrated mining and heap leach production schedules. Detailed operating cost models are now being prepared using the updated production schedule.
‘Significant momentum has been building and work is progressing as quickly as possible to bring the required information together to conclude the 2022 FS Update. Given the criticality of this study for project financing we must deliver this 2022 FS update to the necessary standard and quality required by the banks,’ said McClelland.
Asiamet shares were trading 1.1% higher at 1.19 pence each in London on Friday afternoon.
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