Asiamet Resources (LON:ARS ) has received approval from Bandan Koordinasi Pernanaman Modal (“BKPM”) for the further exploration permit on its KSK Contract of Work in central Kalimantan.
The exploration permit will allow the copper producer to undertake exploration activity on its key target areas within the KSK Contact of Work over the next 2 years.
The group received approvals from the Ministry of Energy and Mineral Resources, the Ministry of Environment and Forestry with the final approval provided by BKPM.
The drilling programme will focus on advancing four highly prospective opportunities including some walk-up targets in close proximity to the proposed BKM copper project infrastructure.
The group said it will focus on immediate value delivery and that the four targets have the potential to add significant upside by extending the mine life beyond the initial 9 years.
Shares in Asiamet Resources were trading 18.37% higher at 2.9p on Tuesday afternoon.
In addition, the targets are expected to add heap leachable copper resources to those already defined and create further opportunities for revenue enhancement, the group outlined.
The group said it has been quick to respond to measures as outlined by the World Health Organisation in regard to the pandemic to ensure the safety of employees and contractors.
This includes social distancing and working from remote locations whilst maintaining ongoing proactive communication.
Tony Manini, Executive Chairman of Asiamet said the permit, recent financing and its work with Aeturnum Energy were “ important steps” to enable the group to advance opportunities at BKM and “to further position the project as a rare development ready copper asset in the Asian region.”
“The BKM feasibility study delivered a robust copper project with post tax NPV of $124.8 million, life of mine revenue of $1.27 billion and EBITDA of $563.3 million,” he added.
The company said that preparations have been made to re-active the group’s drill programs and that its drill teams will be mobilised as soon as they are able to do so.Follow News & Updates from Asiamet Resources here:
Asiamet's maiden Mineral Resource Estimate for the BKZ polymetallic project can be seen here and further data for the BKM copper project here.