Asiamet Resources wins licence to begin production at Indonesian asset

Indonesia-focussed exploration and development group Asiamet Resources has been granted the key production license required to advance its Beuton copper-gold project to the development stage.

Asiamet referred to the Izin Usaha Pertambangan Operasi Produski (IUP-OP) license as a "major de-risking milestone" for the project, securing it a long-term license for up to 20 years.

Beutong, a large high-quality copper, gold, silver and molybdenum deposit in the Nagan Raya Regency of Aceh, Indonesia of which Asiamet held a 40% equity interest, had shown to contain resources of 2.4m tonnes of copper, 2.1m ounces of gold and 20.6m ounces of silver, with geology indicating the potential for a discovery of a deep high-grade copper-gold zone similar to those discovered in other Asia-Pacific porphyry systems.

Drilling and related development activities had been allowed to commence immediately.

Chief executive Peter Bird said, "This is a major milestone for the company which secures long-term licence tenure for Beutong and enables detailed evaluation and development of its second large copper-gold project to progress at a time when the copper market is forecast to move into deficit, copper prices are rising and new projects especially those of considerable scale are in short supply globally.

"The Beutong deposit outcrops at surface and remains open in multiple directions including to depth where the geology indicates potential for the discovery of a deep high-grade copper-gold zone similar to that seen in some of the giant Asia-Pacific porphyry systems," he added.

As of 0840 GMT, shares had gained 12.22% to 10.10p.