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Asiamet Resources Shares Rise as Resource Expansion Program Significantly Exceeds Expectations

Sam Boughedda trader
Updated 24 Nov 2021

Asiamet Resources (LON: ARS) shares are rising Wednesday after it announced strong results from recent drilling completed as part of its resource extension program at the BKZ deposit.

The company revealed that drilling at BKZ, located on its KSK Contract of Work (KSK CoW) in Central Kalimantan, Indonesia, continues to return high-grade Zinc-Lead-Copper-Silver-Gold mineralisation. In addition, it most recently also intersected strong gold-silver mineralisation. 

All of the holes completed at the site have reported “significant” mineralisation, with the company awaiting results on a further 5 holes.

Furthermore, the drill program has been expanded from 3,000 metres to 4,500 metres.

Tony Manini, Executive Chairman of Asiamet Resources, said: “The 2021 Resource expansion program has significantly exceeded our expectations. 

“As drilling continues to deliver exceptional high-grade zinc and copper dominant polymetallic results which expand the current BKZ Resource envelope, the recent discovery of strong precious metals consistent with zonation commonly observed in other gold rich VHMS systems, provides strong supporting evidence that the BKZ and BKM deposits are part of a single 3km long VHMS system which will continue to grow. 

Most importantly these results provide significant optionality for a longer mine life which further enhances the value of the BKM project and the wider KSK Contract of Work.”

Asiamet shares are currently up 2% at 2.52p after initially jumping as high as 2.74p.

Should you invest in Asiamet Resources shares?

Asiamet Resources shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are ARS shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.