2017 Inaugural Ikenskoe / Sobolevsky Drill Results

RNS Number : 0824J

Amur Minerals Corporation

26 June 2017

 

26 June 2017

AMUR MINERALS CORPORATION

(AIM: AMC)

2017 Inaugural Ikenskoe / Sobolevsky Drill Results

500 Metre Expansion Averaging 0.98% Nickel - 0.28% Copper

Amur Minerals Corporation ("Amur" or the "Company"), a nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, is pleased to report its first set of drill results at its Ikenskoe / Sobolevsky ("IKEN") deposit.  Included all results from drilling startup 5 May 2017 through 23 June 2017, an expansion of 500 metres has already been identified averaging nearly 1.0% nickel and 0.3% copper.  Substantial expansion remains to be tested to the southeast, along strike in the direction of the Kubuk deposit.  The Company is presently drilling its Kubuk ("KUB") deposit with results scheduled for reporting during the week of 3 July 2017.

Highlights:

·     Drilling at IKEN is intended to complete five objectives.  Two have been fully completed including mineral limit determination for mine planning purposes and a single infill hole to confirm the geological structure of IKEN.  This required 7 holes containing 694 total metres.

·     The third objective is resource expansion to the southeast of the existing Mineral Resource Estimate ("MRE") of IKEN in the direction of the KUB deposit located 2,500 metres to the southeast.  Using a widely spaced step out approach testing an area of 500 metres in length, 9 holes have been completed of which 6 holes have identified a block of continuous newly defined mineralisation having economic grades of nickel and copper suitable for both open pit and underground mining.

·     Based on a cutoff grade ("COG") of 0.4% nickel only and a minimum thickness of 3 metres, the newly defined block of mineralisation covers an area of 175,000 square metres (approximately 500 metres in extension length (to the southeast) and up to 400 metres in the dip direction (to the northeast)).  The average mineralised thickness is 28.5 metres (per ore hole) with the associated length weighted grades being 0.98% for nickel and 0.28% for copper.

·     The average grade of the newly defined mineralisation is substantially higher than that of the MRE reported average grades with nickel being 42% (0.69% versus 0.98%) higher and copper being 65% (0.17% vs versus 0.28%) higher.  Based on the substantially higher grades and size of this new mineral block, there is good potential to nearly double the currently reported IKEN MRE from 146,000 tonnes of nickel and 36,000 tonnes of copper.

2017 IKEN Drill Programme Objectives

During the season, 5 drill objects are planned for completion at IKEN.  These include:

·     Definition of the potential minerals limits at depth and near outcrop allowing for the determination of open pit mining limits at IKEN based on the 10 February 2017 Runge Asia ("RPM") Mineral Resource Estimate ("MRE").  Completed.

·     Limited infill drilling to identify a fault and localised mineralisation controls.  Completed.

·     Resource expansion programme to the southeast limits of the presently defined IKEN deposit MRE where previous drill results (2 holes) indicated substantial potential for continuation of the mineralisation in the eastward direction toward the KUB deposit.  Should results indicate that IKEN and KUB are a single continuous orebody, the combined length of the intervening as yet undrilled area could result in a total deposit length of approximately 5.0 kilometres. In Progress.

·     Detailed resource verification drill programme on a limited (approximately 5% to 10% of the presently defined resource tonnage) area of the IKEN deposit.  This is required by the Russian authorities for obtaining final mine operations approvals in the future.  Planned.

·     Obtain additional metallurgical sample for use in process flowsheet determination.  Planned.

Drill Progress to Date

From 5 May 2017 through 23 June 2017, the Company's LF70 Boart Longyear rig has drilled 3,132.1 metres of NQ diameter core within 17 holes.  (The Company's second drill rig, the LF90 is drilling at KUB.)  A plan map of the drill hole locations and those completed prior to this year is provided in a link at the end of this RNS.

IKEN Drill Summary by Objective

Drill Objective	Holes	Total Metres	Average Length (m)
Mineral Limit Definition Infill Definition Resource Expansion Russian Mining Permits Metallurgical Sample Collection	6 1 10 0 0	591.0 103.0 2,438.1 0 0	98.5 103.0 243.8 0 0
Total	17	3,132.1	184.2

Use of RFA Analytical Results

Analytical results reported within this RNS are internally generated by the Company using two Niton XL2 500 X-Ray Fluorescence units ("RFA").  Having been calibrated and verified, the Company uses these promptly generated onsite results to guide our decisions for drill site selection providing a cost effective approach with regard to total drill costs.  These RFA results are preliminary in nature and are ultimately replaced by independently verified Alex Stewart Laboratories ("ASL") results which are used in the derivation of MRE's.  The RFA results are based on a rigorous and daily implemented calibration protocol which has historically confirmed the Company results are within 5% of the ASL final results for nickel and copper.  By reporting these results, Amur can provide timely results related to our drilling as the final and official ASL results lag from 6 to 10 weeks behind.  Once ASL results are verified, the ASL results replace the RFA results and the ASL results will be reported in future RNS releases.  Presently, the first batch of samples for 13 of the IKEN holes is in transit to the Moscow, Russia located ASL facility.

The Company reports its MRE's using a 0.4% nickel only cutoff grade ("COG") at a minimum mining thickness of 3.0 metres.  The reported RFA results within this RNS are based on the same criteria.  Internal waste (<0.4% nickel and less than 3.0 metres) in thickness is also included in the determination of reported thickness and grade of the contained metal.  By inclusion of this internal dilution, a more accurate representation of potential mining grades is projected.

Mineral Limit Drill Results

Planned mineral limit drilling is complete and should allow for the determination of open pit production limits within the existing resource model dated 10 February 2017.  All but one hole were located along the area anticipated to be the northeast limit of open pit mining.  The one exception was to define the location of the up dip outcrop at the southern edge of the anticipated open pit.  For these 6 holes, it is noted that the average thickness per mineral interval is 4.4 metres with the average thickness contained in a hole intersecting ore being 5.5 metres.  These thicknesses are substantially less than the 10 to 15 metre thicknesses identified with the IKEN deposit.  The average grade is projected to be 0.75% nickel and 0.19% copper.

Average Drill Results

Mineral Limit Determination

Drill Hole	From (m)	To (m)	Length (m)	Ni %	Cu %
С340	No Ore
С341	86.6	92.4	5.8	0.65	0.11
С342	81.0	84.0	3.0	0.60	0.20
С343	83.7	86.7	3.0	1.10	0.24
С344	51.4	54.4	3.0	0.40	0.21
С344	62.0	69.0	7.0	0.89	0.21
С345	No Ore
Average Or Total	4.4 m / Interval	5.5 m / Ore Hole	21.8	0.75	0.19

Infill Drill Results

The IKEN deposit has been drilled in accordance to JORC (December 2012) standards.  Approximately 78% of the mineralised tonnage is considered to be Measured or Indicated by JORC category.  The majority of the Inferred resource is located to the north and east of the main IKEN deposit as defined 10 February 2017.  The infill drill programme has been limited to a single hole intended to define the geological structure and mineral controls in a geologically complex area where a fault has been interpreted to be present.  This hole contains two discrete intervals averaging 11.6 m each and containing a total of 23.1 metres of mineral having 0.66% nickel and 0.27% copper average grades.  Mineralisation is located very near the surface (at 4.0 metres depth) confirming the open pit potential indicated by existing historical drilling.

Average Drill Results

Infill Drill Results

Drill Hole	From (m)	To (m)	Length (m)	Ni %	Cu %
С346	4.0	13.5	9.5	0.72	0.29
С346	24.0	37.6	13.6	0.62	0.25
Average Or Total	11.6 m / Interval	23.1 m / Ore Hole	23.1	0.66	0.27

Resource Expansion Drill Results

The resource expansion phase has proven to be highly successful.

Immediately to the southeast of IKEN, two historical holes located on the slopes of Sobolevsky Peak and immediately adjacent the known limits of the deposit contained drill intercepts of 43.6 metres and 48.9 metres of mineralisation.  The average nickel grade within the two holes was 0.82% and 1.06%, respectively.  Between these two holes and the KUB deposit, soil geochemical analyses, ground based geophysical surveys and geological mapping have provided limited but indicative information similar to that of the Maly Kurumkon / Flangovy ("MKF") deposit, confirming the potential continuity of mineralisation toward and along the trend between IKEN and KUB.  For this reason, the intervening 2.5 kilometre long area represents potential large target for drilling and has been given a drill priority for this season.  The recent acquisitions of D9R dozers and 320DL2 excavators have allowed the Company to construct access roads to this target area which previously was inaccessible to drilling due to the very rugged and steep terrain.

On 19 May 2017 and using a step out approach, the Company began this resource expansion drill phase at IKEN.  Ten holes have now been completed for which RFA results are available for 9 holes.  Of these 9 holes, 6 have intersected mineable ore thicknesses (>3.0 metres) and grades of (>0.4% nickel only) mineralisation.  The drill intercepts have defined a mineralised block averaging 28.5 meters in thickness with length weighted average grades of 0.98% for nickel and 0.28% for copper.  The continuous block covers an area of 175,000 square metres extending the mineral limits approximately 500 metres.

This newly defined block is higher in grade (by 0.29% for nickel and 0.11% for copper) than the average grade of the IKEN deposit which is reported by RPM to be 0.69% nickel and 0.17% copper.  The 10 February 2017 RPM defined IKEN resource contains 146,000 tonnes of nickel.  Drill results from these 6 ore holes could result in a doubling to the contained MRE IKEN nickel and copper tonnage resource

Mineral limits have not been defined along the north edge (in the down dip direction, northward) and along strike (eastward) in the direction of KUB.  The Company plans to continue expansion drilling within and adjacent the area of newly defined mineral block to ensure continuity of the mineralisation and to conduct additional step out drilling toward Kubuk.  Concurrently, step out drilling has been initiated at KUB at its western limits in the direction of IKEN.  KUB results will be reported in an RNS during the week of 3 July 2017.

The detailed IKEN expansion drill results are presented in the following table.  A link to a plan maps and drill sections is presented at the end of this RNS.

Average Drill Results

Resource Expansion Drill Results

Drill Hole	From (m)	To (m)	Length (m)	Ni %	Cu %
С347	39.6	51.2	11.6	1.14	0.25
	57.2	76.4	19.2	1.02	0.29
С348	146.8	167.4	20.6	1.14	0.32
	182.6	185.6	3.0	0.61	0.17
С349	74.4	87.9	13.5	0.92	0.35
	146.3	153.8	7.5	0.65	0.29
С350	No Ore No Ore No Ore
С351
C352
С353	238.1	244.8	6.7	0.98	0.28
	252.5	274.4	21.9	0.84	0.24
С354	196.6	225.9	29.3	1.04	0.28
	254.2	262.8	8.6	0.60	0.29
C355	286.4	295.2	8.8	1.01	0.36
	299.1	319.3	20.2	1.14	0.25
C356	RFA Results Pending
Average or Total	14.2 m/ Interval	28.5 m / Hole	170.9	0.98	0.28

Robin Young, CEO of Amur Minerals, commented:

"With pleasure, we report a highly successful kick off to our 2017 drill season which started ahead of schedule.  With the early start, we have been able to begin our resource expansion portion of the drill programme at Kun-Manie sooner than anticipated.  Highly successful drilling has extended the Ikenskoe / Sobolevsky deposit by another 500 metres along a target area of 2,500 metres which lies between this deposit and Kubuk where we are now beginning to conduct resource expansion drilling along the eastern limits of this same 2,500 metre target.

"Based on the current drilling at Ikenskoe / Sobolevsky alone, we believe that we have already doubled the resource for this deposit and are looking at substantially higher grades of 0.98% nickel within this new mineral block which are much higher than the 0.69% current average grade of the deposit.  Additional step out drilling will be continued in both the dip direction and to the east where mineral limits have not yet been defined."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:

Company Amur Minerals Corp.	Nomad and Broker S.P. Angel Corporate Finance LLP	Public Relations Yellow Jersey
Robin Young CEO	Ewan Leggat Soltan Tagiev	Charles Goodwin Harriet Jackson
[phone]	[phone]	[phone]

For additional information, visit the Company's website, www.amurminerals.com.

Please follow the links at the end of this RNS to view figures depicting drill hole locations of the drill holes completed as at 23 June 2017. 

Notes to Editors

The information contained in this announcement has been reviewed and approved by the CEO of Amur, Mr. Robin Young.  Mr. Young is a Geological Engineer (cum laude), a Professional Geologist licensed by the Utah Division of Occupational and Professional Licensing, and is a Qualified Professional Geologist, as defined by the Toronto and Vancouver Stock Exchanges.  An employee of Amur for 13 years, previously Mr. Young was employed as an exploration and mine geologist, mining engineer, construction manager of a mine startup as well as independent consultant with Fluor Engineers, Fluor Australia and Western Services Engineering, Inc. during which time his responsibilities included the independent compilation of resources and reserves in accordance with JORC standards.  In addition, he has been the lead engineer and project manager in the compilation of numerous studies and projects requiring the compilation of independent Bankable Studies utilised to finance small to large scale projects located worldwide.  Mr. Young is responsible for the content of this announcement.

For further information, see the Company website at www.amurminerals.com. 

Ikenskoe / Sobolevsky Drill Progress Summary Report

As at 23 June 2017

Hole	Results	Objective	Depth (m)	To ASL
C340	RFA	Down Dip Limit	113.0	Yes
C341	RFA	Down Dip Limit	113.0	Yes
C342	RFA	Down Dip Limit	115.0	Yes
C343	RFA	Down Dip Limit	100.0	Yes
C344	RFA	Down Dip Limit	90.0	Yes
C345	RFA	Outcrop Limit	60.0	Yes
C346	RFA	Infill	103.0	Yes
C347	RFA	Expansion	115.0	Yes
C348	RFA	Expansion	205.0	Yes
C349	RFA	Expansion	221.5	Yes
C350	RFA	Expansion	190.0	Yes
C351	RFA	Expansion	193.0	Yes
C352	RFA	Expansion	250.0	At Site
C353	RFA	Expansion	295.0	At Site
C354	RFA	Expansion	313.0	At Site
C355	RFA	Expansion	328.0	At Site
C356	In Analysis	Expansion	277.0	At Site
Total			3,081.5

Glossary

DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES

EXTRACTED FROM THE JORC CODE: (December 2012) (www.jorc.org)

A 'Mineral Resource' is a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual 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. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

An 'Inferred Mineral Resource' is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.

An 'Indicated Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

A 'Measured Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It 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. The locations are spaced closely enough to confirm geological and/or grade continuity.

An 'Ore Reserve' is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves.

Click on, or paste the following link into your web browser, to view the associated PDF document and audio file.

http://amurminerals.com/content/wp-content/uploads/2017-Drill-Results-23-June-Ikenskoe.pdf

http://amurminerals.com/content/wp-content/uploads/26-June-2017-RNS-Update-Ikenskoe.mp3

 

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