Proactive Investors - Asiamet Resources (LON:ARSA) said optimisation studies on the BKM copper heap leach project in Central Kalimantan, Indonesia have halved the expected upfront capital cost.
Heap leap specialist Mineria & Servicos from Chile (M&S) carried out the work with a remit to reduce the upfront capital cost of the Heap Leach Facility (HLF), the largest item in the feasibility study.
M&S has recommended a revised pad location for the BKM requiring less than half of the bulk earthworks volumes and the HLF pad to be constructed in two stages.
The first stage of development would enable production with a third of the earthworks required for the 2023 plan.
Upfront capital cost would be reduced significantly as a result, as would the HLF construction timeline, said Asiamet.
Darryn McClelland, chief executive, said: “This work has delivered a far more optimal approach to BKM's development from both a physical and financial perspective.
"We can now pursue the development of a smaller, initial stage heap leach facility to get into production and defer capex to later in the project life.
“The revised design for the HLF will also deliver lower construction risk compared to our original project design.
"The full impact of this optimisation work in terms of construction schedule and capital cost will flow through from the detailed design and engineering currently underway for BKM.
“This coincides with the appointment of Rexline Engineering and BGRIMM Technologies for engineering design work and ultimately revisions to the capital cost estimate for the BKM project.”