2018 Kun-Manie Programme

RNS Number : 9646F

Amur Minerals Corporation

27 February 2018

 

27 February 2018

AMUR MINERALS CORPORATION

(AIM: AMC)

2018 Kun-Manie Programme

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 provide details on its 2018 work programme for defining and attaining project development criteria at its Kun-Manie project. 

2018 Work Programme Highlights:

·     New Mineral Resource Estimate ("MRE") (In Progress):  Completion of an update to the February 2017 Mineral Resource Estimate including all 2017 drill results which have confirmed the neighboring deposits of Ikenskoe / Sobolevsky ("IKEN") and Kubuk ("KUB") form one much larger deposit ("IKEN / KUB").  The new MRE will cover a total mineralised strike length of approximately four kilometres, an increase of more than 2.25 kilometres from that defined in the February 2017 MRE.

·     Updated Open Pit and Underground Mine Designs at IKEN / KUB (Requires Completion of MRE):  Upon completion of the MRE, an evaluation will be completed to determine the preferred mining approach for extraction of the ores from the new larger mineralised block of IKEN / KUB.  Initially, open pit optimisation designs will be completed to determine the open pit economic potential of mining the IKEN / KUB.  Subsequently, an economic trade off study will be completed to identify which portions of the IKEN /KUB orebody are best suited for underground mining using the Long Hole Open Stoping ("LHOS") method.

·     Development of a Life of Mine ("LOM") Production Schedule:  Compile an optimised LOM production schedule utilising the new MRE (results pending) including the blending of ores from all orebodies and by differing mine extraction methods.  Selection of production sources and the related schedule for mining will be optimised based on a combination of Earnings Before Income Tax, Depreciation, and Amortisation ("EBITDA") and Net Present Value ("NPV").

·     Priority Metallurgical Test Work:  The current process flowsheet is based on the generation of a single simple concentrate containing all metals including nickel, copper, cobalt, platinum, palladium, gold and silver.  Additional test work on a half tonne representative LOM sample is to be conducted to determine the potential of generating two separate concentrates, one for copper and one nickel.  Successful generation of a copper concentrate line will enhance project revenues by attaining a higher payable value for the total recovered copper than if a single simple concentrate is generated.  The results of the test work will be utilised to establish the flowsheet defining the final configuration of the large scale LOM metallurgical test necessary to establish plant design parametres and for derivation of operating and capital cost estimates.

·     Detailed Metallurgical Test Work - Battery Ready Materials:  Following the assessment of the development of a copper concentrate, additional test work related to the Company generating battery ready or near battery ready product will be examined.

·     Access Road Development Plan:  Based on the existing Company generated road design including necessary stream and river crossing structures (culverts and bridges), a First Pass Design ("1^st PD") has allowed AMC to identify specific rights of way within which to construct the 360 kilometre long access road.  This 1^st PD route will be reviewed by a Certified Road Design and Construction group to confirm and "adjust" as necessary (accounting for geological hazards) creating a Second Pass Design ("2^nd PD").  A final field inspection of the 2^nd PD route will be completed allowing for final design specifications to be established for the road and documented in accordance with Russian regulatory standards.  As part of the process, road industry design experts will provide a final approval allowing for construction to begin.

·     Prefeasibility Study ("PFS") Audit:  Implement an independent gap analysis of the Company compiled PFS including confirmation of the projected economic potential of Kun-Manie considering various production scenarios including a LOM off take contract smelting agreement, the Company generating a Low Grade Matte ("LGM") using an owner operated furnace, the potential generation of final saleable product obtained from a Company captive refinery / combination thereof and the scenario of producing product suited for the EV market.

·     Environmental Assessment Work:  Continue the environmental study work beyond the existing water quality and preliminary flora and fauna studies that have been completed to date.  This environmental study will cover a 12 month consecutive period to define base line parameters throughout a full calendar year.  This will be resumed during this field season to ensure timely completion for the Definitive Feasibility Study ("DFS").

This year's activities reflect a substantial shift from the previous year's exploration efforts to that of project development considerations.  Limited drilling of approximately 15,000 metres is planned and is focused on the development of final production related information.  This will include resource conversion of Inferred high grade resource to that of Indicated for inclusion in the early stage of mine production, metallurgical sample collection for evaluation of necessary process modifications to evaluate the potential to generate battery ready product, and detailed infill drilling of limited areas allowing for mine plan approval to be granted by the Russian Federation agencies.

In addition to the field programme, extensive engineering works are also planned.  An updated Mineral Resource Estimate ("MRE") is being compiled including all drill results obtained through 2017 with follow-on optimised open pit and underground designs to be completed along the length of the IKEN to Kubuk ("KUB") trend where the 2017 drill programme more than doubled the known strike length of the mineralisation.  The internally compiled Prefeasibility Study ("PFS") is to be independently reviewed by an external qualified mining consultancy to verify the Company results and assist in the identification of any additional work that may be required.  Resumption of Environment base line data collection work for the Environment Impact report will be resumed covering a full seasonal cycle (12 months), an important aspect for future project funding requirements.

This 2018 programme has been substantially upgraded to assess the potential of the Company to generate product that would be suitable for battery use.  With the potential disruption to the nickel and cobalt markets related to Electronic Vehicles ("EVs"), new additional options are available to the Company further increasing the project viability, which is important with regard to project funding.  This also expands the field of strategic partners for consideration.

Robin Young, CEO of Amur Minerals, commented:

"Over the course of the last year and a half, analyses and projections of the Electronic Vehicle market are indicating there is the potential of a disruption in the market with regard to the metals employed in the fabrication of the batteries as is already noted with regard to cobalt.  Presently, projections to source sufficient nickel product to meet the 4% annual growth from this sector alone could increase the current two million tonnes per year nickel consumption demand by as much as a million tonnes per year by 2025.

"Given the potential for such growth, we are actively reviewing all of our metallurgical test work with regard to nickel and cobalt and have generated a work programme to determine the optimal operational setup allowing the Company to fully participate in the EV market.  With potential modification to our downstream concentrate treatment plans, the ability to generate near battery ready or battery ready product could further enhance the economic potential of Kun-Manie."

Enquiries:

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

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.

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.

 

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