BKZ Drilling Intersects High Grade Mineralisation

RNS Number : 1600I

Asiamet Resources Limited

19 March 2018

 

For Immediate Release                            London AIM

19 March 2018                                          Symbol: ARS

Asiamet BKZ Resource Drilling Continues to Intersect High Grade Mineralisation

Asiamet Resources Limited ("ARS" or the "Company") is pleased to report that ongoing Resource delineation drilling at the BKZ prospect ("BKZ") continues to intersect high-grade polymetallic and copper - silver mineralisation as predicted.  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 which is at BFS stage.

Highlights of recent results include:

·     Broad intervals of high-grade massive sulphide mineralisation in the upper polymetallic zone, including 17.0m at 11.4% Zinc, 6.0% Lead and 383g/t Silver and 30.0m at 6.0% Zinc, 4.0% Lead and 62g/t Silver

·     Broad interval of high-grade copper-silver mineralisation in the lower zone, including 29.5m at 1.86% Cu and 50g/t Ag

·    Assay results confirm up to 30.7% zinc, 17.7% lead, 158g/t silver over 1-metre sample intervals in the polymetallic zone and up to 6.6% 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 being prepared by Hackman & Associates Pty Ltd and is expected to be completed in May 2018

Highlights of the latest batch of drill results received include: 

BKZ33700-06     17.0m at 11.4% Zn, 6.0% Pb, 383g/t Ag, 0.11% Cu and 0.16g/t Au (from 34.0m)

Including 5.0m at 21.4% Zn, 10.7% Pb, 137g/t Ag, 0.14% Cu and 0.29g/t Au (from 45.0m)

Final 1.0m assayed 25.3% Zn, 7.2% Pb, 130g/t Ag, 0.18% Cu and 0.26g/t Au (from 71.0m)

BKZ33700-05     30.0m at 6.0% Zn, 4.0% Pb, 62g/t Ag, 0.19% Cu and 0.79g/t Au (from 4.0m)

Including 2.0m at 10.1% Zn, 9.3% Pb, 177g/t Ag, 0.52% Cu and 0.94g/t Au (from 4.0m)

Including 13.0m at 8.2% Zn, 5.5% Pb, 56g/t Ag, 0.19% Cu and 0.49g/t Au (from 18.0m)

                        43.0m at 4.4% Zn, 0.9% Pb, 16g/t Ag, 0.24% Cu and 0.40g/t Au (from 39.0m)

Including 7.0m at 8.2% Zn, 2.7% Pb, 24g/t Ag, 0.08% Cu and 0.60g/t Au (from 45.0m)

Including 6.0m at 10.6% Zn, 2.0% Pb, 45g/t Ag, 0.98% Cu and 0.40g/t Au (from 56.0m)

BKZ33600-04     29.5m at 1.86% Cu, 50g/t Ag, 0.15g/t Au (from 58.0m)

Including 18.0m at 2.64% Cu, 24g/t Ag, 0.15g/t Au (from 63.0m)

BKZ33600-05     9.5m at 5.1% Zn, 0.75% Pb, 18g/t Ag, 0.12% Cu and 0.10g/t Au (from 36.5m)

25.85m at 1.36% Cu, 2.7% Pb, 20g/t Ag, 0.15g/t Au (from 75.15m)

Including 8.0m at 1.70% Cu, 12g/t Ag, 0.16g/t Au (from 82.0m)

Including 3.0m at 3.40% Cu, 6.0% Pb, 57g/t Ag, 0.21g/t Au (from 94.0m)

The Maiden Resource drilling programme at BKZ continues to provide confidence in the strike, dip and internal continuity of the high-grade polymetallic and underlying copper-silver mineralisation.  A total 3,416 metres in thirty-six holes were completed for the first of a two-phase drilling campaign at BKZ, where mineralisation continues to define the dimensions of the two mineralised domains at BKZ, the footprint of which still remains open in several directions.  The analysis from the final five drill holes is expected in March 2018, and the Company is on track to report a Maiden Resource estimate for the BKZ deposit in May 2018, which is being carried out by Independent consulting geologist Duncan Hackman of Hackman & Associates Pty Ltd.

Peter Bird, Asiamet's Chief Executive Officer commented:

"The excellent results generated from our drilling programmes at both the BKM and BKZ projects over the past three years clearly demonstrate the intrinsic value of Asiamet's project portfolio.  This latest batch of results from Resource delineation drilling at BKZ demonstrate excellent internal continuity of both the upper high-grade polymetallic and the underlying copper-silver mineralisation and increase the Company's confidence in defining an initial high value polymetallic deposit with potential to leverage off the proposed BKM mining infrastructure. With the recent financing completed we look forward to reporting further results from the BKZ infill drilling programme and the initial Resource in May, together with further results from the final stages of the BKM bankable feasibility study and first results from our current programme of drilling and metallurgical testwork underway at the Beutong porphyry Cu-Au deposit."

Drill Hole Summary

The fifth hole on section line BKZ33700 was drilled to confirm continuity of mineralisation in BKM33700-03 (101.3m End of Hole "EOH"), which intersected 30.0m at 8.3% zinc, 3.3% lead, 39g/t silver and 0.51g/t gold from 14m (refer ARS Press Release October 18, 2017). BKZ33700-05 (94.2m EOH) was drilled eastward and intersected a broad zone of moderate to high-grade polymetallic mineralisation from 4.0m depth comprising quartz-sulphide veins and massive sulphides containing sphalerite (zinc), galena (lead), chalcopyrite (copper) and pyrite. The sixth hole on section line BKZ33700 is a scissor hole to BKM33700-02 (113.9m EOH), drilled to confirm continuity of high-grade mineralisation that included 39m at 7.3% zinc, 2.3% lead, 33g/t silver and 0.33g/t gold from 41m (refer ARS Press Releases October 3, 2017). BKZ33700-06 (72.0m EOH) was drilled eastward and intersected a broad zone of moderate to high-grade polymetallic mineralisation from 34.0m depth comprising quartz-sulphide veins and massive sulphides containing sphalerite (zinc), galena (lead), chalcopyrite (copper) and pyrite.  This hole intersected some of the highest grade polymetallic assays seen to date, with up to 30.7% zinc, 17.7% lead and 158g/t silver in a 1-metre sample interval. 

The fourth hole on section line BKZ33600 was drilled parallel to BKZ33600-02 (89.6m EOH), which intersected a broad zone of copper-silver mineralisation assaying 29.3m at 1.52% copper, 0.15g/t gold and 40.1g/t silver from 59.0m and includes 19.0m at 1.97% copper, 0.14g/t gold and 19.0g/t silver from 61.0m depth (refer ARS Press Release November 13, 2017).  BKZ33600-04 (92.1m EOH) was targeting the area below the hematite rich zone, but unfortunately the rig was unable to breach this intensely silicified rock.  However, BKZ33600-04 did intersect higher grade copper-silver mineralisation than was reported in BKZ33600-02, the interpreted feeder zone comprising a dense stockwork of quartz-sulphide and sulphide veins containing bornite, chalcopyrite and pyrite.  Individual 1-metre sample intervals assayed up to 6.6% copper within the higher grade interval from 63m to 81m depth.  The fifth hole BKZ33600-05 (115.8m EOH) was also drilled east, but at a shallower angle.  This hole also intersected the interpreted feeder zone, comprising a dense stockwork of quartz-sulphide and sulphide veins containing bornite, chalcopyrite, galena and pyrite.  This hole also terminated in the intensely silicified and hematite altered breccia, with assays confirming gold-silver 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 ARS'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 (%)
BKZ33700-05	4.00	34.00	30.00	6.01	4.05	62.17	0.79	0.19
Including	4.00	6.00	2.00	10.15	9.29	176.95	0.94	0.52
Including	18.00	31.00	13.00	8.18	5.48	55.69	0.49	0.19
BKZ33700-05	39.00	82.00	43.00	4.40	0.86	15.71	0.40	0.24
Including	45.00	52.00	7.00	8.25	2.69	24.27	0.60	0.08
Including	56.00	62.00	6.00	10.61	2.02	45.20	0.40	0.98
BKZ33700-06	34.00	51.00	17.00	11.40	6.03	383.15	0.16	0.11
Including	45.00	50.00	5.00	21.40	10.75	136.66	0.29	0.14
BKZ33700-06	71.00	72.00	1.00	25.30	7.17	130.00	0.26	0.18
BKZ33600-04	33.60	40.00	6.40	1.96	0.20	6.40	-	-
BKZ33600-04	58.00	87.50	29.50	-	-	50.36	0.15	1.86
Including	63.00	81.00	18.00	-	-	24.37	0.15	2.64
BKZ33600-04	87.50	92.10	4.60	-	-	121.05	0.21	-
BKZ33600-05	36.50	46.00	9.50	5.13	0.75	18.03	0.10	0.12
BKZ33600-05	75.15	101.00	25.85	-	2.66	19.88	0.15	1.36
Including	82.00	90.00	8.00	-	0.90	12.34	0.16	1.70
Including	94.00	97.00	3.00	-	5.98	56.93	0.21	3.40
BKZ33600-05	101.00	115.80	14.80	-	-	36.99	0.35	-

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 link: http://www.asiametresources.com/i/maps/Fig1-mar192018-NR.png

 

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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