TIDMAMC
RNS Number : 0565F
Amur Minerals Corporation
25 July 2016
25 July 2016
AMUR MINERALS CORPORATION
(AIM: AMC)
Definitive Feasibility Study - Road to Value
Amur Minerals Corporation ("Amur" or the "Company"), a
nickel-copper sulphide mineral exploration and resource development
company focused in the far east of Russia, is pleased to present an
update on its Definitive Feasibility Study ("DFS") and working plan
for the development of its flagship Kun-Manie nickel copper
sulphide project ('Kun-Manie').
Highlights:
-- Kun-Manie resource can sustain 15 years of operations at an
annual mining rate of 5.0mt of ore for the production of
polymetallic concentrate - the base line for the DFS is set out in
the Operational Blueprint, dated 29 June 2015.
-- Mined ores are planned to be sourced from four open pits and
two (possibly three) underground operations.
-- A flotation concentrate will be generated which can be
smelted by a toll smelting company or by a Company owned
smelter.
-- Portions of the DFS have been completed, including the
geological assessment and the compilation of resource estimates.
Future updates of the resource will be compiled for the discovery
of new mineralisation at Maly Kurumkon / Flangovy ("MKF") and
successful infill drilling reported in previous RNS statements.
-- The compilation of mining reserves, based on metallurgical
work and preliminary operating costs, will be initiated in the near
term - final terms for completion of the mining evaluation are
under negotiation.
-- Bench scale metallurgical test work is under final review by
management and will be released in the near term - the
metallurgical recovery information will form a key element in the
definition of reserves.
-- A large scale bulk metallurgical sample is being acquired
during this year's field season for the definition of the process
flow sheet, plant design and determination of the composition of
the concentrate for evaluation of smelter design considerations.
The sample will be transported to Khabarovsk at the end of the
15,000 metre drill programme for shipment to one of the short
listed metallurgical companies experienced in nickel sulphide
process design, concentrate generation and smelting of the
concentrate.
-- Independent contractors and engineering groups have also been
identified and short listed for design of onsite infrastructure,
road access and power design for the optional owner operated
furnace.
-- The completion of the DFS is targeted for 31 December 2017.
Robin Young, CEO of Amur Minerals Corporation, commented:
"We are pleased to provide a detailed plan of the major steps
related to our Kun-Manie DFS and the progress we have made to this
point in time. There is a great deal more to be accomplished over
the next 18 months and we plan to issue updates on the global
progress toward its completion, as well as any key developments
generated during the completion of this milestone document."
Enquiries:
Company Nomad and Broker Public Relations
Amur Minerals S.P. Angel Yellow Jersey
Corp. Corporate Finance PR
LLP
Robin Young Dominic Barretto
CEO Ewan Leggat Harriet Jackson
Laura Harrison
+7 4212 75 +44 (0) 20 +44 (0) 75
56 15 3470 0470 44 275 882
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 12 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 which includes information derived by
Sibsvetmetniproyect, SRK, RPM, and SGS.
For further information, see the Company website at
www.amurminerals.com.
Overview
The Company is compiling an independent Definitive Feasibility
Study ("DFS") for its Kun-Manie nickel copper sulphide project
located in the Far East of Russia. The operational design is based
on the 29 June 2015 Blueprint design concept wherein the ores of
Kun-Manie will be beneficiated to recover the economic nickel,
copper, cobalt, platinum, palladium, gold and silver from four of
its five identified deposits. Completion of the DFS represents a
key milestone for the Company. Concurrently, additional field work
will be completed during the next 18 month period. The major focus
of activities over the course of this period will include:
-- The compilation and completion of the DFS for use in the
development of project financing options and funding source
identification.
-- The completion of Russian required studies (called a
Permanent Conditions TEO) allowing for subsequent approvals of
detailed drawings, construction permits, and operational design
parametres which are mutually supportive of the DFS designs.
-- Continued exploration and engineering works drilling for the
purpose of upgrading the resource in accordance with JORC reporting
criteria, the expansion of reserves and support of engineering
designs related to mining considerations.
The DFS will evaluate, assess and establish the detailed
engineering potential of the Kun-Manie nickel copper sulphide
project. It will provide for a production decision and establish
the financing requirements and economic potential of the project.
Principal parameters will be based on sound and complete
engineering considerations. This will include cost estimate
accuracy in the range of +/-15%. The level of detail and accuracy
will be far more stringent than any previously completed studies
related to the project's potential. For completeness, we note that
the term "bankable" has also been used to describe a study of this
level meaning the study is sufficient for project financing.
The comprehensive review and design of the project includes
detailed geological and mine engineering work to define the
resource and reserve to support the project and all mining
associated parameters for pit slope design / underground rock
mechanics, hydrology, and geotechnical design considerations.
Metallurgical test work for flow sheet development, equipment
selection and sizing, consumables and power consumption, material
balance, general arrangement drawings, and production and
development schedules will be an integral component of the DFS.
Capital and operating cost estimates are to be derived from
take-off drawings and vendor quotes. A draft Environmental Social
Impact Assessment (EISA) will be generated and submitted to the
appropriate regulatory authorities. A major component of the study
will be the infrastructure development related to project access
using a 320 kilometre long road. Economic analyses with
sensitivities will be included to allow for the derivation of pro
forma cash flow models for the mine life and the key five year
start up period during which construction loans are typically
repaid.
The right to mine Kun-Manie has been granted as a part of our
production licence with reasonable expectations that all necessary
operating permits will be granted allowing the Company to mine the
metals of nickel, copper, cobalt, platinum, palladium, gold and
silver. Concurrent with the DFS, a Russian standard regulatory
report ("TEO") will be compiled for obtaining the necessary
operating permits.
Key DFS Engineering Centres
The major components incorporated in the DFS are provided in
greater detail within the following sections.
Geology
More than a decade of exploration has resulted in the Company
identifying five deposits located within the boundaries of the 36
square kilometre production licence area. Four of the nickel copper
sulphide mineral deposit has been explored to the extent that the
geologic character and morphology of each has been established. As
part of the DFS, exploration procedures including mapping,
geophysics, sampling and drilling must be independently reviewed.
Analytical procedures and a well-documented Quality Control /
Quality Assurance ("QA/QC") programme must be implemented to verify
the accuracy and precision of the sampling and analytical data. The
QA/QC efforts have included the use of industry standards, a series
of blanks, standard reference material, coarse and pulp duplicates,
and samples sent to a second independent laboratory for
assaying.
The geological exploration procedures and related results have
been reviewed and approved by SRK Consulting (UK) Ltd ("SRK") for
inclusion in the DFS. The geologic features that control economic
mineralisation as well as exploration analytical results are
considered to be suitable to compile reliable resource estimates in
accordance with JORC (December 2012) standards.
Resources and Expansion Potential
For a DFS, resource estimation is based on the development of
three-dimensional models of each deposit's geology, mineralisation
characteristics and continuity in order that a reliable and
accurate estimate is compiled using verifiable data. The work must
be done by an independent qualified company. SRK has compiled an
estimate of the resources for each of the five deposits in
accordance with JORC which allows for the tabulation and reporting
of the mineral inventory. This component of the DFS study was
completed in May 2016 and the global mineral resource inventory
contains nearly 1.0 million tonnes of nickel equivalent.
May 2016 SRK JORC Resource Estimate
(zero cutoff grade - fully diluted)
Resource Category Tonnes Ni Ni Cu Cu Pt Pt Pd Pd
(m) (%) (t) (%) (t) (g/t) (kg) (g/t) (kg)
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Maly Kurumkon / Flangovy
--------------------------------------------------------------------------------------------------
Measured - - - - - - - - -
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Indicated 68.4 0.42 285,200 0.12 84,200 0.10 6,600 0.10 6,900
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Subtotal 68.4 0.42 285,200 0.12 84,200 0.10 6,600 0.10 6,900
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Inferred 22.2 0.37 81,400 0.12 25,700 0.09 1,900 0.09 2,000
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Total 90.6 0.40 366,600 0.12 109,900 0.09 8,500 0.10 8,900
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Ikenskoe / Sobolevsky
--------------------------------------------------------------------------------------------------
Measured 17.5 0.50 88,600 0.14 24,200 0.18 3,200 0.20 3,500
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Indicated 11.8 0.39 46,000 0.10 11,400 0.14 1,700 0.17 2,000
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Subtotal 29.4 0.46 134,600 0.12 35,600 0.16 4,900 0.19 5,500
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Inferred 5.9 0.78 46,100 0.19 11,400 0.17 1,100 0.21 1,200
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Total 35.2 0.51 180,700 0.13 47,000 0.17 5,900 0.19 6,700
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Kubuk
--------------------------------------------------------------------------------------------------
Measured - - - - - - - - -
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Indicated 3.7 0.76 28,500 0.17 7,300 0.17 700 0.18 700
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Subtotal 3.7 0.76 28,500 0.19 7,200 0.17 700 0.18 700
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Inferred 22.0 0.47 104,500 0.15 32,100 0.14 3,100 0.12 2,700
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Total 25.7 0.52 133,000 0.15 39,400 0.15 3,800 0.13 3,400
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Vodorazdelny
--------------------------------------------------------------------------------------------------
Measured 0.8 0.57 4,700 0.17 1,400 0.25 200 0.25 200
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Indicated 4.8 0.66 31,200 0.17 8,200 0.13 600 0.13 600
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Subtotal 5.6 0.64 35,900 0.17 9,600 0.14 800 0.14 800
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Inferred - - - - - - - - -
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Total 5.6 0.64 35,900 0.17 9,600 0.14 800 0.14 800
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Gorny
--------------------------------------------------------------------------------------------------
Measured - - - - - - - - -
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Indicated - - - - - - - - -
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Subtotal - - - - - - - - -
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Inferred 7.6 0.31 23,900 0.09 7,000 0.21 1,600 0.25 1,900
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Total 7.6 0.31 23,900 0.09 7,000 0.21 1,600 0.25 1,900
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Global Total Resource
--------------------------------------------------------------------------------------------------
Measured 18.3 0.51 93,300 0.14 25,600 0.19 3,400 0.20 3,700
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Indicated 88.7 0.44 390,900 0.12 111,100 0.11 9,600 0.11 10,200
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Sub-total 107.0 0.45 484,100 0.13 136,600 0.12 13,000 0.13 13,900
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Inferred 57.7 0.44 255,900 0.13 76,200 0.13 7,700 0.14 7,800
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Grand Total 164.7 0.45 740,100 0.13 212,900 0.12 20,600 0.13 21,700
------------------- ------- ----- -------- ----- -------- ------- ------- ------- -------
Numbers may not be precise due to rounding.
Currently, drilling is being conducted on the Maly Kurumkon /
Flangovy ("MKF") deposit. Inferred resources are being infill
drilled and new mineralisation has been identified at the western
limit of the deposit. This material has not been updated or added
to the resource inventory presented above. Drilling is also planned
at the eastern end of the deposit during this field season targeted
at a conversion of available Inferred resources and a potential
resource expansion. At the end of the field season, the Company
plans to update the resource inventory of MKF.
In addition, three major exploration drill targets remain and
represent highly prospective ground allowing for the further
resource expansion beyond that defined by SRK in May 2016. In the
west, the area between the eastern limit of MKF and the Gorny
deposit contains both geophysical and soil anomalies. This area is
approximately two kilometres in length. The second and larger of
the three targets lies between the eastern limit of Ikenskoe /
Sobolovsky ("Iken") and the Kubuk deposit. This area similarly
contains geophysical and geochemical anomalies and its target
length is three kilometres. The third target is the potential
expansion of Kubuk eastward for up to an additional kilometre and
in the down dip direction. Undrilled, these targets are not
included in the DFS but could add substantially to the mine
life.
Mining and Reserves
DFS reserves are to be compiled in accordance with JORC
(December 2012) listing rules for mining projects, reserve
reporting requirements and level of engineering required for
inclusion in the study. The process is an iterative and phased
approach to define the final mining methods where both surface and
underground production are planned to obtain the final optimal mine
design. The selected production configuration is to be defined
based on the geometry of the mineralisation, depth of the
mineralisation and optimised profitability of the ore.
The first phase of work has been completed with the
identification of the economic potential of all drill defined
resources including Inferred resources. By inclusion of all classes
of resource, it is possible to identify specific areas of mining
potential where successful infill drilling would result in an
increase in the reserve by the conversion of Inferred resources to
that of Indicated or higher. These high quality drill targets can
add significant economic value to the project. The target
identification phase has already been completed by Runge, Pincock
Minarco ("RPM") and reported 19 March 2015. Based on the RPM
results, the 2015 and ongoing 2016 drill programmes at Kun-Manie
targeted the areas of Inferred resource having the greatest
economic potential which were and are presently located at MKF.
Additional high value targets also have been identified at Ikenskoe
/ Sobolevsky (high grade material in excess of 0.85% nickel) and
Kubuk (large scale high grade ore tonnage exceeding 20 million
tonnes of ore mineralisation). These areas represent later drill
targets.
The next phase of reserve definition for the DFS is the
identification of the broad design of the mine. This starts with an
optimisation evaluation to determine open pit economic limits and
underground mine designs which will vary by deposit. The selection
of economic mining limits will include assessing the impact of
changes in prices, costs, and metallurgical recoveries for those
resources of the Measured and Indicated resource categories. The
process begins with the determination of ultimate pit designs
followed by underground optimisation studies for the deposits.
Based on trade off studies of the economic potential of the two
mining approaches, the results will define the optimal production
configuration for each deposit.
At completion of this phase and with the advancement of the
mining engineering study, the mine design, production schedule and
capital and operating cost estimation will be implemented to
reflect the final designs. For the mine design, the detail and
quantity of geotechnical data is important as it dictates the pit
slopes in surface mines and the design of underground openings and
suitable underground mining methods. Mine design and scheduling
will include processing requirements such as maintaining mill feed
grades or rock type blends, and by environmental requirements such
as surface and groundwater management. A refined and detailed mine
design and production schedule will be derived allowing for the
definition and reporting of "reserves".
Mid-year 2015 mine reserve statements indicated that a
production blend of 50% from open pit and 50% from underground
production sources could deliver 0.55% nickel to the mill over a
period of 15 years. Updated resource estimates have substantially
increased the Measured and Indicated resource inventory and
identified continuous zones of high grade ore averaging in excess
of 0.75% nickel are present and have been reported in the May 2016
SRK resource inventory. The reserve study will likely result in a
significant modification of the mine delivered grade to the mill
and the ratio of open pit to underground production.
The Company is in the final stage of agreeing the scope of work
for the definition of the mining reserve with an internationally
recognised organisation that will include both open pit and
underground production scenarios leading to the ultimate definition
of an optimised mine plan and production schedule. It is
anticipated that early life of mine production covering a period
longer than that of a typical construction loan will be derived
from the MKF deposit. This deposit contains more than 50% of
Measured and Indicated resource presently identified at Kun-Manie
and will be evaluated first. Current drilling is focused within
this deposit with the intent of increasing the resource and
upgrading a portion of the Inferred resource to that of Indicated.
Based on the final design and contained reserve, additional
deposits will be subsequently evaluated to identify additional
reserves for inclusion in the later stages of the Kun-Manie
operation.
Process Engineering
Process development requirements at the DFS level include test
work on representative samples sufficient to develop a flow sheet,
pilot testing of this flow sheet on representative blends of all
significant ore types, and variability testing of all significant
ore types and mining blends sufficient to identify probable plant
throughput and recovery variation. Processing facilities are
designed to produce marketable products for shipment directly to
the consumers such as concentrates to smelters-refineries for toll
smelting or for smelting by a Company owned facility. Key
components for process engineering include:
-- Metallurgical test work
-- Mineralogical studies
-- Consideration of project site conditions
-- Identification of best tailing containment location and form
-- Selection of processing flow sheet and design basis
-- Determination of processing design criteria and description
-- Plant processing facilities layout
-- Equipment sizes and specifications
-- Plant services
The Company has actively undertaken metallurgical work to
establish the most likely process design. Sibsvetmetniproyect
("Sib") and SGS Minerals ("SGS") have reported that a smeltable
concentrate can be generated which contains recoverable nickel,
copper, cobalt, platinum, palladium, gold and silver. Completed at
a bench scale level, mineralogical studies have also been
completed. Also available are grade recovery curves and
comprehensive mineralogical assessments of the concentrate. It is
noted that additional metallurgical test work has been recently
completed by SGS Minerals and is under management review with
results to be announced in the near term. Preliminary mill site and
tailings impoundment facilities locations have been identified and
future site geotechnical assessment work to confirm that the
selected sites are appropriate is required. Preliminary flow sheets
have been developed by Sib and SGS has confirmed Sib's results and
designs to be suitable for the Kun-Manie ores.
The Company is presently drilling at the MKF deposit for the
purposes of resource upgrade, resource expansion and to obtain a
representative bulk metallurgical sample. An integral part of the
2016 drill programme is the acquisition of the large scale
representative sample located along the entire length of the
deposit to determine the variability of the ores planned for mining
at MKF. Monthly updates detail progress of the acquisition of the
metallurgical sample.
Three companies have been identified to undertake and complete
the process design work for the onsite processing facilities.
Requests for proposal ("RFP") are being compiled for submission to
experienced nickel sulphide engineering and design groups.
Preliminary cost estimates for the process design work have been
provided by the companies and will be refined upon review of all
available metallurgical test work including that generated by SGS
Minerals which is under current review by the Company.
Concentrate Handling (Trade Off Analysis)
The Company has four alternative concentrate handling
considerations for the DFS. One of the options is to have the site
produced concentrate smelted on a toll basis whilst the remaining
three are owner operated options. Toll smelting requires lower
capital costs but a substantial amount of the value is lost to fees
at the smelter. The three owner operated options consist of the
Company constructing its own furnace / refinery to generate one of
three products. These consist of a Low Grade Matte, a High Grade
Matte or refined metal. Internally generated analyses based on
information provided by an internationally recognised concentrate
treatment company indicate the best economic potential is for the
Company to construct its own concentrate treatment facility located
near the Ulak rail station adjacent the Baikal Amur rail line. The
DFS will examine the four options to ensure the decision to
construct an owner operated furnace is reasonable and which final
saleable product is best suited for Kun-Manie. This component of
the study requires the following considerations:
-- Test work on the smelting response of the concentrate
-- Mineralogical studies of the concentrate
-- Evaluation of toll smelting agreements
-- Consideration of smelting / refining site conditions
-- Identification of best waste containment location and form
-- Selection of concentrate smelting flow sheet and design basis
-- Determination of design criteria and description
-- Site facilities layout
-- Identification of coal and limestone sources for fluxing the concentrate during smelting
-- Equipment sizes and specifications
-- Plant services
Bench scale work completed by both SGS and Sib has been
completed and serves to provide cornerstone technical information
related to the composition of the concentrate that would be derived
from the four deposits of Kun-Manie. The four available options
could result in a hybrid combination of toll smelting and owner
operated matte or refined metal generation. A short term offtake
agreement with a toll smelting company could be established to
reduce initial capital funding requirements with a follow on
construction phase resulting in a Company owned furnace to treat
the concentrates generating a matte or refined metal. For an owner
operated furnace, coal and limestone will be required during the
smelting process and surveys of potential providers are
underway.
The Far East and Baikal Regional Development Fund ("FEDF") fully
supports the development of the owner operated furnace and are
working with the Company to evaluate the potential of creating a
major smelting hub alongside the Company's proposed smelter
operation. For the DFS, this is not considered to be an integral
part of the evaluation. However, the concept of the hub could allow
for the Company to be a partner in the development of the Far East
region through the treatment of concentrate sourced from other base
metal sulphide mines of the Russian Far East.
Infrastructure
The infrastructure requirements for mining projects are site
location specific. The capital cost for infrastructure can vary
substantially from project to project as a percentage of the total
capital cost, and is a function of the location rather than the
mining or processing methods. Thus, the capital cost estimate in
engineering studies must be based on a proper identification and
assessment of the infrastructure requirements for the DFS.
Kun-Manie related infrastructure consists of three components
categorized into that related to the site, the 320 kilometre long
access road from the rail station at Ulak and the power connection
at the potential owner operated smelter facility. Globally, the
infrastructure covers a wide range of facilities and services to be
reported in the DFS. These follow:
-- 320 kilometre long access road, Ulak to Kun-Manie
-- Power connection to the owner operated concentrate treatment facility
-- Onsite road network
-- Onsite utilities
-- Onsite water supply
-- Communications network
-- Fuel handling and storage facilities
-- Waste disposal systems
-- Administration facilities located onsite, in Blagoveshchensk
of Amur Oblast and Khabarovsk of Khabarovsk Krai
-- Industrial facilities
-- Transportation
-- Townsite / Camp facilities
SRK studies completed in 2007 included consideration of all
required onsite infrastructure facilities based on a 4.0 million
tonne per year ore treatment capacity. Two companies have been
identified to update the onsite infrastructure facilities and
related operating and capital cost expenditures based on an
anticipated 6.0 million ore tonne capacity per annum.
The Company has five proposals for the design of the 320
kilometre long access road from Ulak to Kun-Manie. These are now
under review and a shortlist of two will be selected for a second
round of bidding. The Company's approach related to the road is
that it will undertake the design and construction of the road as a
full Company obligation within the DFS. Alternative financing of
the road is under discussion with the FEDF and could substantially
impact the DFS if negotiations are successfully completed.
Power is comprised of two elements. Onsite power generation will
be implemented using diesel powered generator sets. Power to the
smelting / refining area is being investigated and evaluated with
final requirements being established once the final concentrate
tonnages and the composition of the concentrate are more fully
defined.
Marketing and Commodity Pricing Considerations
Marketing studies are critical to define the nature of the
market for the potential products to be generated by the Company.
This includes the preferred production rate, the potential for
substitution, potential competitors (new mines coming on stream),
product specifications, future product prices, likely buyers and
terms of sales. Depending upon the final commodity parameters,
product samples may be supplied to potential buyers for evaluation
as a part of the negotiation process. This may entail additional
pilot plant test work in order to produce sufficient samples.
Environmental and Social Management
The Company has identified two qualified environmental and
regulatory specialists to develop effective and economic
environmental controls for the mining operation and processing of
ore onsite, along the 320 kilometre long access road and at the
anticipated furnace / smelter facility located along the Baikal
Amur rail line. Proposals are under review to ensure that all
applicable environmental regulations (international, federal,
state, and local) are fully considered. Social considerations for
the DFS are also included.
Economic Analysis
Economic analysis will be performed using conventional pro forma
cash flow analysis and tradeoff studies for the project.
Sensitivity analyses will be included to determine project exposure
and risk to the variability of pricing, mined grades, metallurgical
recoveries, operating and capital cost variation, and overall
economic viability.
DFS Project Management
The development of the DFS requires professionals with extensive
mine industry experience in multiple disciplines. The higher the
quality of the DFS team, the higher are the chances to reduce risk
during the development of a project. To date, the Company has
selected internationally recognised and Russian experienced teams
allowing AMC to optimize the project as much as possible and to
apply the best-proven technology available. This has included
consideration of project financing experience required for
inclusion in the preparation of a DFS. The Company's selection of
an organisation is critical to ensure the correct project teams are
involved in the determination of an optimal outcome and timely
completion of the study. This allows the Company to focus on
reducing both project development and cost risks.
The Company notes that a DFS must be compiled and approved by an
independent and qualified organisation. In addition, the Company is
required to compile and submit additional Russian Federation
required reports necessary for obtaining final approvals to
construct and operate the mine at Kun-Manie, the access road and
owner operated furnace. For this reason, the Company has identified
two companies to undertake the project management and compilation
of the DFS whilst simultaneously compiling mutually supportive
Russian required documentation and materials. Both organisations
are internationally recognised and have extensive experience within
the Russian Federation, a key qualification. The Company is
preparing requests for proposals to undertake this key management
role.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLBUGDRUDDBGLX
(END) Dow Jones Newswires
July 25, 2016 02:00 ET (06:00 GMT)
Amur Minerals (LSE:AMC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Amur Minerals (LSE:AMC)
Historical Stock Chart
From Apr 2023 to Apr 2024
