JAKARTA (TheInsiderStories) – Asiamet Resources Limited said that PT Emas Mineral Murni (EMM), the developer of Beutong gold project in which Asiamet has interest, has been granted the key production licence, called “IUP-OP”. The permit paves the way for EMM to advance the Beutong Copper-Gold Project, located in Nagan Raya Regency, Aceh, to the development stage.
The conversion of EMM’s IUP Exploration license to an IUP-OP license is a major step in advancing the Beutong project. It provides for an initial 20 years of licence tenure which may be extended twice, each for a period of 10 years, totaling 40 years.
Asiamet has a 40 per cent equity interest in the Beutong Project and can increase its interest to 80 per cent based on various payments and milestones. A consideration to the value of A$2.87 million will be due within 90 days of the grant of the production IUP to increase its interest to 60 per cent. Completion of a Feasibility Study and a further payment of A$1.5 million are the final conditions to increase its equity interest to 80 per cent.
The Beutong deposit is very well located with respect to existing infrastructure i.e. adjacent to a sealed road and approximately 60 km from a large power station and seaport. Beutong is a large high-quality copper, gold, silver, molybdenum deposit which outcrops at surface and remains open in several directions including to depth. Current JORC compliant Resources contain 2.4 Mt copper, 2.1 Moz gold and 20.6 Moz silver. 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. (*)