Shares in Asiamet Resources (LSE:ARS) sat flat at 4.3p on Friday after the firm said work at its Beruang Kanan Main (BKM) copper deposit is going to plan.

The business is carrying out additional resource evaluation drilling as part of a bankable feasibility study (BFS) at the site. As it stands, 22 holes for nearly 3,000m of diamond core drilling have completed. Drilling is ongoing, with a further 1,825m planned. This is expected to be completed by five drill rigs by the end of the current quarter.

In an update, the firm said results from the first four holes confirm the continuity of mineralisation in the southern part of the BKM deposit. Moderate to strong chalcocite-covellite mineralisation was intersected just below the zone of oxidation. Some samples returned grades of up to 5.52pc copper.

A preliminary economic assessment has given BKM an NPV10 of $204m, and an internal rate of return of 39pc based on a 431.9kt contained copper resource. Asiamet plans to develop an open pit mine that will produce 25kt of copper cathode a year over eight years, with immediate expansion potential.

However, it hopes its current programme of drilling can upgrade and capture additional inferred resources at the site. If successful, it expects this to enhance BKM’s project economics and the robustness of its BFS significantly ahead of project financing. The firm plans to begin production later this year, with financing discussions underway.

In today’s update, Asiamet’s chief executive Peter Bird said initial drilling were positive and in line with expectations.

He added: ‘With operational work continuing apace we expect to be consistently reporting further results as they come to hand over the coming weeks leading into completion of the BFS. In addition to the ongoing technical programme, various work streams relating to the Environmental Impact Assessment ("AMDAL") for BKM and forestry use permits are also being progressed along with due diligence investigations and commercial discussions with potential partners on both our main projects. We look forward to providing further updates as they become available.’

Author: Daniel Flynn

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