BKZ Delivers Outstanding Mineralisation

RNS Number : 2319J

Asiamet Resources Limited

28 March 2018

 

For Immediate Release                           London AIM

28 March 2018                                          Symbol: ARS

Asiamet's BKZ Delivers Further Outstanding Polymetallic Zn-Pb-Ag-Au and Copper Mineralisation

Asiamet Resources Limited ("Asiamet" or the "Company") is pleased to report remaining assay results from the infill drilling recently completed at the BKZ prospect ("BKZ").  High-grade polymetallic and copper - silver mineralisation was intersected in line with expectations.  The BKZ prospect is located in Central Kalimantan (Indonesia) on the Kalimantan Surya Kencana ("KSK") 6^th Generation Contract of Work ("CoW"), less than 800 metres from the BKM copper project on which Asiamet is currently completing a feasibility study.

Highlights include:

·      Broad intervals of high grade massive sulphide mineralisation in the upper polymetallic zone, including 42.0m at 6.9% zinc (Zn), 2.8% lead (Pb) and 31g/t silver (Ag), including 10.0m at 16.5% Zn, 8.2% Pb and 65g/t Ag

·     A wide interval of high grade copper-silver mineralisation in the lower zone assayed 67.0m at 1.3% copper (Cu) and 10g/t Ag

·     Assay results confirm up to 23.2% Lead, 16.7% Zinc and 61g/t silver over 1-metre sample intervals in the polymetallic zone and up to 4.6% copper over 1-metre sample intervals in the interpreted "Feeder Structure" in the Lower Zone

·    A Maiden Resource estimate for both mineralised domains at the BKZ deposit is expected to be completed in May 2018

Highlights of the latest drill results received include: 

BKZ33600-06     67.0m at 1.29% Cu, 10g/t Ag, 0.13g/t Au (from 52.0m)

Including 5.0m at 2.05% Cu, 5g/t Ag, 0.12g/t Au (from 63.0m)

Including 3.0m at 1.70% Cu, 10g/t Ag, 0.19g/t Au (from 95.0m)

Including 3.0m at 2.06% Cu, 10g/t Ag, 0.16g/t Au (from 100.0m)

Including 5.0m at 2.80% Cu, 60g/t Ag, 0.15g/t Au (from 104.0m)

Including 6.0m at 2.83% Cu, 8g/t Ag, 0.18g/t Au (from 111.0m)

BKZ33650-03     42.0m at 6.9% Zn, 2.8% Pb, 31g/t Ag, 0.32% Cu and 0.50g/t Au (from 26.0m)

Including 10.0m at 16.5% Zn, 8.2% Pb, 65g/t Ag, 0.17% Cu and 0.99g/t Au (from 28.0m)

Including 2.0m at 10.6% Zn, 2.6% Pb, 41g/t Ag, 1.13% Cu and 0.50g/t Au (from 49.0m)

Including 2.0m at 12.7% Zn, 0.6% Pb, 48g/t Ag, 2.03% Cu and 0.34g/t Au (from 55.0m)

Including 3.0m at 10.2% Zn, 4.6% Pb, 27g/t Ag, 0.49% Cu and 0.23g/t Au (from 62.0m)

BKZ33650-04     23.0m at 6.4% Zn, 2.2% Pb, 34g/t Ag, 0.21% Cu and 0.33g/t Au (from 15.0m)

Including 5.0m at 7.7% Zn, 4.0% Pb, 49g/t Ag, 0.16% Cu and 0.42g/t Au (from 21.0m)

Including 5.0m at 13.4% Zn, 2.6% Pb, 46g/t Ag, 0.62% Cu and 0.47g/t Au (from 29.0m)

BKZ33650-05     11.2m at 6.5% Zn, 4.9% Pb, 20g/t Ag, 0.12% Cu and 0.22g/t Au (from 14.8m)

Including 5.2m at 11.8% Zn, 9.3% Pb, 34g/t Ag, 0.23% Cu and 0.28g/t Au (from 16.8m)

Including 2.45m at 9.0% Zn, 5.1% Pb, 24g/t Ag and 0.28g/t Au (from 38.25m)

All assay results have now been received for the current Resource delineation drill program which comprised thirty-six drill holes totalling 3,416 metres. This included the five drill holes reported herein.   The infill drilling campaign has enabled the development of an improved geological model for the two mineralised domains at the BKZ deposit. Mineralisation still remains open in several directions and further follow up drilling will take place over the coming months. The Company remains on track to report a maiden Resource estimate for the BKZ deposit in May 2018.

Peter Bird, Asiamet's Chief Executive Officer commented:

"The rapid advancement of BKZ from a promising target to the cusp of maiden Resource status over the past six months has been outstanding and clearly demonstrates the inherent potential for significant value growth in our Indonesian project portfolio.  Following the completion of our recent capital raising, Asiamet is now in a strong position to continue exploring a number of high potential targets in the highly prospective KSK CoW while simultaneously advancing exploration and development of the large scale Beutong porphyry Cu-Au project. Asiamet is very excited by these recent results and looks forward to delivering further value from the exploration and development of its assets at a time when quality copper and base metals projects are in short supply."

Drill Hole Summary

The sixth and final hole on section line BKZ33600 was drilled steeply to the east and below BKZ33600-04 (92.1m End of Hole "EOH"), which intersected 29.5m at 1.86% Cu, 50g/t Ag, 0.15g/t Au from 58.0m and included 18.0m at 2.64% Cu, 24g/t Ag, 0.15g/t Au from 63.0m (refer Asiamet Press Releases March 19, 2018).  BKZ33600-06 (143.3m EOH) interpreted the interpreted feeder zone starting at 52.0m depth, comprising a dense stockwork of quartz-sulphide and sulphide veins containing bornite, chalcopyrite and pyrite.  Individual 1-metre sample intervals assayed up to 4.6% copper within the higher grade interval from 111m to 117m depth.   

Four additional holes were drilled on section line BKZ33650, namely BKZ33650-03 (79.0m EOH), BKZ33650-04 (50.0m EOH), BKZ33650-05 (49.7m EOH) and BKZ33650-06 (60.0m EOH).  All four holes were drilled from the same collar, in a fan pattern and were drilled near to drill hole BKZ33750-02 (89.9m EOH) which intersected 26.3m at 6.3% zinc, 2.2% lead and 33.6g/t silver from 1.7m depth and included 7.0m at 10.8% zinc, 4.7% lead and 56.1g/t silver from 3m depth (refer Asiamet Press Releases November 1, 2017).  All holes intersected the targeted polymetallic mineralisation at shallow depths comprising quartz-sulphide veins and massive sulphides containing sphalerite (zinc), galena (lead), chalcopyrite (copper) and pyrite.  BKZ33650-03 intersected some of the highest grade lead assays seen to date, with up to 23.2% Lead, 16.7% Zinc and 61g/t silver in a 1-metre sample interval.  Drill holes BKZ33650-03 and BKZ33650-05 terminated in high grade mineralisation.

The drill hole location plan map and a table of full assay results are provided in Figures 1 and Table 1 respectively.

Qualified Person

Data disclosed in this press release have been reviewed and verified by Asiamet's qualified person, Stephen Hughes, P. Geo, Vice President Exploration of the Company and a Qualified Person within the meaning of NI 43-101 and for the purposes of the AIM Rules.

ON BEHALF OF THE BOARD OF DIRECTORS

Peter Bird, Deputy Chairman and CEO

For further information, please contact:

-Ends-

Peter Bird
Deputy Chairman and CEO, Asiamet Resources Limited
Telephone: [phone]
Email: [e-mail]

Tony Manini
Executive Chairman, Asiamet Resources Limited
Telephone: [phone]
Email: [e-mail]

FlowComms Limited

Sasha Sethi

Telephone: [phone]

Email: [e-mail]
 

Asiamet Resources Nominated Adviser
RFC Ambrian Limited

Andrew Thomson / Stephen Allen

Telephone: [phone]

Email: [e-mail] / [e-mail] 

Liberum
Neil Elliot, Clayton Bush, Kane Collings                

Telephone: [phone]

Email: [e-mail]

Optiva Securities Limited
Christian Dennis

Telephone: [phone]

Email: [e-mail]

This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements.   Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices.  There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.  Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").

Table 1: Recent drill intercepts.

HOLE ID	From	To	Length	Zinc (%)	Lead (%)	Silver (g/t)	Gold (g/t)	Copper (%)
BKZ33600-06	29.80	33.80	4.00	7.10	3.45	35.55	0.23	-
BKZ33600-06	34.70	40.00	5.30	3.39	0.20	6.65	0.15	0.35
BKZ33600-06	52.00	119.00	67.00	-	-	9.88	0.13	1.29
Including	63.00	68.00	5.00	-	-	4.58	0.12	2.05
Including	95.00	98.00	3.00	-	-	10.27	0.19	1.70
Including	100.00	103.00	3.00	-	-	9.57	0.16	2.06
Including	104.00	109.00	5.00	-	-	59.60	0.15	2.80
Including	111.00	117.00	6.00	-	-	8.00	0.18	2.83
BKZ33650-03	26.00	68.00	42.00	6.88	2.76	31.26	0.50	0.32
Including	28.00	38.00	10.00	16.49	8.20	65.43	0.99	0.17
Including	49.00	51.00	2.00	10.63	2.62	41.15	0.50	1.13
Including	55.00	57.00	2.00	12.68	0.65	48.50	0.34	2.03
Including	62.00	65.00	3.00	10.22	4.58	26.57	0.23	0.49
BKZ33650-03	77.00	79.00	2.00	6.12	0.99	11.60	0.22	0.16
BKZ33650-04	15.00	38.00	23.00	6.45	2.16	34.37	0.33	0.21
Including	21.00	26.00	5.00	7.71	4.02	49.10	0.42	0.16
Including	29.00	34.00	5.00	13.39	2.61	46.44	0.47	0.62
BKZ33650-05	14.80	26.00	11.20	6.46	4.90	20.29	0.22	0.12
Including	16.80	22.00	5.20	11.76	9.31	33.66	0.28	0.24
BKZ33650-05	28.00	34.00	6.00	1.80	0.32	5.62	0.14	-
BKZ33650-05	38.25	40.70	2.45	9.05	5.11	23.60	0.28	-
BKZ33650-06	14.00	29.00	15.00	3.28	1.53	27.96	0.58	-
BKZ33650-06	39.00	42.00	3.00	4.85	1.32	24.40	0.51	0.13
BKZ33650-06	44.00	50.00	6.00	2.04	0.39	51.00	0.57	1.06

Notes: Grade intercepts are calculated as a weighted average grade ≥1.0% Zinc (uncut) for Polymetallic Zone.  Grade intercepts are calculated as a weighted average grade ≥0.2% Copper (uncut) for the Copper-Silver Zone.  True widths are interpreted to be between 80-100% of the reported lengths, unless otherwise stated. Orientation of the polymetallic mineralised domain is interpreted to have an azimuth of 340 degrees and a dip of -25 degrees to the northeast. Orientation of the copper mineralised domain is interpreted to have an azimuth of 340 degrees, a dip of -25 degrees to the northeast and plunging south-southeast.

Figure 1: Location map showing strong zinc in soil geochemistry over the BK district with prospects & drill collars. To view the image, please click on the following link: http://www.asiametresources.com/i/maps/2018-03-26-Fig1.jpg

 

Glossary of Technical Terms

"anomaly or anomalous"	something in mineral exploration that geologists interpret as deviating from what is standard, normal, or expected.
"assay"	The laboratory test conducted to determine the proportion of a mineral within a rock or other material. For copper, usually reported as percentage which is equivalent to percentage of the mineral (i.e. copper) per tonne of rock.
"azimuth"	the "compass direction" refers to a geographic bearing or azimuth as measured by a magnetic compass, in true or magnetic north.
"bornite"	Bornite, also known as peacock ore, is a copper sulphide mineral with the formula Cu5FeS4.
"breccia"	Breccia is a rock classification, comprises millimetre to metre-scale rock fragments cemented together in a matrix, there are many sub-classifications of breccias.
"chalcocite"	Chalcocite is a copper sulphide mineral with the formula Cu2S and is an important copper ore mineral. It is opaque and dark-gray to black with a metallic luster.
"chalcopyrite"	Chalcopyrite is a copper sulphide mineral with formula CuFeS2. It has a brassy to golden yellow colour.
"channel sample"	Samples collected across a mineralised rock exposure. The channel is typically orientated such that samples are collected perpendicular to the mineralised structure, if possible.
"chargeability"	Chargeability is a physical property related to conductivity. Chargeability is used to characterise the formation and strength of the induced polarisation within a rock, under the influence of an electric field, suggesting sulphide mineralisation at depth.
"CIM"	The reporting standard adopted for the reporting of the Mineral Resources is that defined by the terms and definitions given in the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves (December 2005) as required by NI 43-101. The CIM Code is an internationally recognised reporting code as defined by the Combined Reserves International Reporting Standards Committee.
"covellite"	Covellite is a copper sulphide mineral with the formula CuS. This indigo blue mineral is ubiquitous in some copper ores.
"diamond drilling"	A drilling method in which penetration is achieved through abrasive cutting by rotation of a diamond encrusted drill bit. This drilling method enables collection of tubes of intact rock (core) and when successful gives the best possible quality samples for description, sampling and analysis of an ore body or mineralised structure.
"digenite"	Digenite is a copper sulfide mineral with formula Cu9S5. Digenite is a black to dark blue opaque mineral.
"dip"	A line directed down the steepest axis of a planar structure including a planar ore body or zone of mineralisation. The dip has a measurable direction and inclination from horizontal.
"galena"	Galena is the natural mineral form of lead (II) sulphide, with formula PbS. It is the most important ore of lead and an important source of silver.  It has a silver colour.
"grab sample"	are samples of rock material collected from a small area, often just a few pieces or even a single piece of rock "grabbed" from a face, dump or outcrop or roughly 2-5kg. These are common types of rock samples collected when conducting mineral exploration. The sample usually consists of material that is taken to be representative of a specific type of rock or mineralisation.
"grade"	The proportion of a mineral within a rock or other material. For copper mineralisation this is usually reported as % of copper per tonne of rock (g/t).
"g/t"	grams per tonne; equivalent to parts per million ('ppm')
"hematite"	Hematite is the mineral form of iron(III) oxide (Fe2O3), one of several iron oxides.  Magnetite alteration is also typically associate with porphyry copper systems, at or close to the central core.
"hypogene"	Hypogene ore processes occur deep below the earth's surface, and form deposits of primary minerals, such as chalcopyrite and bornite.
"Indicated Resource"	An "Indicated Mineral Resource" is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
"Inferred Resource"	An "Inferred Mineral Resource" is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
"Induced Polarisation Geophysics"	Induced polarisation (IP) is a geophysical survey used to identify the electrical chargeability of subsurface materials, such as sulphides. The survey involves an electric current that is transmitted into the subsurface through two electrodes, and voltage is monitored through two other electrodes.
"intercept"	Refers to a sample or sequence of samples taken across the entire width or an ore body or mineralised zone. The intercept is described by the entire thickness and the average grade of mineralisation.
"lbs"	Pounds (measure of weight)
"Mlbs"	Million pounds (measure of weight)
"magnetite"	Magnetite is main iron ore mineral, with chemical formula Fe3O4. Magnetite is ferromagnetic, and it is attracted to a magnet and can be magnetised to become a permanent magnet itself.
"massive"	In a geological sense, refers to a zone of mineralisation that is dominated by sulphide minerals.  The sulphide-mineral-rich material can occur in centimetre-scale, metre-scale or in tens of metres wide veins, lenses or sheet-like bodies containing sphalerite, galena, and / or chalcopyrite etc.
"Measured Resource"	A "Measured Mineral Resource" is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
"Mineral Resource"	A "Mineral Resource" is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilised organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.
"mineralisation"	In geology, mineralisation is the deposition of economically important metals (copper, gold, lead, zin etc) that in some cases can be in sufficient quantity to form mineral ore bodies.
"open pit mining"	A method of extracting minerals from the earth by excavating downwards from the surface such that the ore is extracted in the open air (as opposed to underground mining).
"outcrop"	A section of a rock formation or mineral vein that appears at the surface of the earth.  Geologists take direct observations and samples from outcrops, used in geologic analysis and creating geologic maps. In situ (in place) measurements are critical for proper analysis of the geology and mineralisation of the area under investigation.
"polymetallic"	three or more metals that may occur in magmatic, volcanogenic, or hydrothermal environments; common base and precious metals include copper, lead, zinc, silver and gold.
"polymict"	A geology term, often applied to breccias or conglomerates, which identifies the composition as consisting of fragments of several different rock types.
"porphyry"	Porphyry copper deposits are copper +- gold +- molybdenum orebodies that are formed from hydrothermal fluids that originate from a voluminous magma chamber below the deposit itself.
"Preliminary Economic Assessment"	NI 43-101 defines a PEA as "a study, other than a pre-feasibility study or feasibility study, which includes an economic analysis of the potential viability of mineral Resources".
"propylitic alteration"	Propylitic alteration is the chemical alteration of minerals within a rock, caused by hydrothermal fluids. This style of alteration typically results in epidote-chlorite+-albite alteration and veining or fracture filling, commonly altering biotite or amphibole minerals within the rock groundmass. It typically occurs along with pyrite.
"sediments"	Sedimentary rocks formed by the accumulation of sediments. There are three types, Clastic, Chemical and Organic sedimentary rocks.
"sequential assays"	Sequential copper analysis is a technique to semi-quantitatively define the zonations associated with some copper deposits. The method is based on the partial dissolution behaviour displayed by the prevalent copper minerals to solutions containing sulphuric acid and sodium cyanide. Results from sequential analyses can theoretically determine the amounts of leachable oxide minerals, leachable secondary sulphide minerals, and primary copper minerals, respectively.
"sphalerite"	Sphalerite is a zinc sulphide in crystalline form but almost always contains variable iron, with formula (Zn,Fe)S. It can have a yellowish to honey brown or black colour.
"supergene"	Supergene ore processes occur near surface, and form deposits of secondary minerals, such as malachite, azurite, chalcocite, covellite, digenite, etc.
"surface rock chip samples"	Rock chip samples approximately 2kg in size that are typically collected from surface outcrops exposed along rivers and mountain ridgelines.
"veins"	A vein is a sheet-like or anastomosing fracture that has been infilled with mineral ore (chalcopyrite, covellite etc) or mineral gangue (quartz, calcite etc) material, within a rock. Veins form when minerals carried by an aqueous solution within the rock mass are deposited through precipitation and infill or coat the fracture faces.
"volcanics"	Volcanic rock such as andesite or basalt that is formed from magma erupted from a volcano, or hot clastic material that erupts from a volcano and is deposited as volcaniclastic or pyroclastics.

 

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