Asiamet Resources Limited delivers strong PEA for Indonesia copper project

(MENAFN- ProactiveInvestors - UK) Asiamet Resources Limited (LON:ARS) has announced the results of a preliminary economic assessment of Beruang Kanan Main copper deposit in Kalimantan Indonesia.

The assessment was undertaken by Australian mine planning consultants Orelogy and outlined a potential scenario in which BKM would produce 25000 tonnes of LME grade A copper metal to deliver gross revenue of US$1.27bn over the eight year life of the mine.

Cash operating costs are set at US$1.28 per pound which gives plenty of margin even against today's weakened copper price of US$2.21 per pound and allows for after-tax net free cash flow of US$387.5 mln.

Payback will be less than two and a half years.

All told according to Orelogy's estimates the project has a net present value of US$204 mln and should deliver an internal rate of return of 38.7%.

These are good looking numbers and it was hardly surprising that Asiamet's Tony Manini struck a positive tone.

'Asiamet is extremely pleased with the results of the BKM project PEA' he said. 'To exceed our expectations on this most important milestone speaks volumes for the quality of the asset and the potential of the BKM deposit.'

And it could get even better.

The project remains open in several directions and there's significant potential for the addition of further mineralisation.

Working on proving up this additional potential is now likely to be a key focus of the company which talks of the likelihood of a 'strongly positive impact' on the economics of BKM if more feed for the plant can be discovered.