TIDMAMC
RNS Number : 8443T
Amur Minerals Corporation
11 January 2017
11 January 2017
AMUR MINERALS CORPORATION
("Amur" or the "Company")
Gipronickel Institute MKF Metallurgical Test Results
Significant value expected to be added to Kun-Manie Project
Amur Minerals Corporation (AIM: AMC), the far east Russian
sulphide nickel copper explorer, is pleased to announce encouraging
results from Gipronickel Institute's ("GI") metallurgical test work
programme on the half tonne metallurgical sample of ore from the
Maly Kurumkon / Flangovy ("MKF") deposit, located within the
Company's Kun-Manie production licence area in the prospective Amur
Oblast region of Russia.
The results, collected from the largest of the Company's five
deposits, present key information relating to metallurgical
recoveries and process design parameters for the processing of the
nickel, copper and additional by-product metals of MKF.
Highlights:
-- GI (a subsidiary of Norilsk Nickel) is a Russian certified
institute highly qualified in the design of nickel processing
plants specialising in the recovery of various metals contained
within nickel ores. GI has successfully completed its audit of
previously completed metallurgical test work by Sibsvetmetniproyect
("SIB") and SGS Minerals ("SGS") and has also completed the first
production scale metallurgical test of ores from the MKF
deposit.
-- The GI test results have been derived for a 443.9 kilogramme
bulk sample consisting of half core collected from three drill
holes located within the MKF deposit. The sample included all ore
and waste rock types, the comprehensive mineral suite and the
potential average grade of the ore that will be processed from the
MKF deposit. The average grade of the sample was 0.70% for nickel
and 0.17% for copper.
-- Initially, GI confirmed that higher metallurgical recoveries
can be obtained, compared to what was previously reported by SIB
and SGS. This can be accomplished by the implementation of a two
stage grinding process which had not been previously considered in
detail. After initial grinding, a first stage concentrate is
generated by flotation. The reject from the first stage is then
reground allowing for recovery of a second nickeliferous
concentrate by flotation.
-- Using Russian manufactured equipment, Russian reagents, and
the newly identified grinding configuration, GI determined that the
metallurgical recoveries are 80.63% for nickel, 83.78% for copper,
61.4% for cobalt, 59.6% for platinum, 82.3% for palladium, 63.7%
for gold and 70.5% for silver.
-- The newly defined recoveries represent a substantial increase
in previously projected recoveries based on SIB and SGS
metallurgical results. Using the average grade of the half tonne
bulk sample (0.70% for nickel and 0.17% for copper), the SGS
recoveries were anticipated to be 69.2% (approximately 11.4% lower
than GI) for nickel and 77.9% (approximately 3.9% lower than GI)
for copper. The newly generated GI results, are expected to be more
reflective of the actual production process. This should allow for
an increase in anticipated revenues expected from the MKF deposit
once mining commences.
-- The final concentrate grades are projected to be 8.58% for
nickel, 2.10% for copper, 0.15% for cobalt, 1.26 g/t for platinum,
1.91 g/t for palladium, 0.6 g/t for gold, and 7.82 g/t for
silver.
-- An improved mass pull of less than 7% has also been
identified. The improved mass pull indicates that a total of
394,000 tonnes of concentrate will be generated from 6.0 million
mined ore tonnes. This is a reduction from the previously
identified 420,000 tonnes of concentrate and could lead to
potential savings in the capital expenditure for the construction
of the concentrate treatment facility where a Low Grade Matte
("LGM") is planned for production. An additional reduction in the
transport fleet may be possible as the total concentrate tonnage is
approximately 26,000 fewer tonnes than previously planned for
transport from the mine to the LGM facility.
-- In addition, GI has also identified various potential
adjustments and test work considerations related to the use of
foreign based products which could further enhance recoveries.
These considerations are to be evaluated during the processing of
the 7.5 tonne metallurgical sample obtained in the 2016 drill
programme which is currently inventoried in the Company's core and
sample storage facility in Khabarovsk.
-- The grade of the half tonne sample also approximates that of
the open pit / underground production trade-off study by Runge,
Pincock and Minarco ("RPM"). RPM projected the MKF mining grade to
be in the order of 0.75% nickel and 0.19% copper. A total of 45
million ore tonnes were defined as a potential reserve. This mining
tonnage and these grades were based on the SGS metallurgical
recoveries of 69.2% for nickel and 77.9% copper. Hence, use of the
GI metallurgical recoveries should result in an increase in
potential revenues associated with the RPM trade-off study
reserves.
The GI results have identified simple modifications to the flow
sheet allowing for a substantial improvement in the metallurgical
recoveries of all economic metals into a concentrate suitable for
the generation of a LGM. The newly defined recoveries are provided
in the following table and also include a comparison with the
previous results based on SGS generated grade recovery curves.
MKF Metallurgical Recovery Comparison
Half Tonne Bulk Sample Grade
Recovery Nickel Copper Cobalt Platinum Palladium Silver Gold
(%)
--------------- ------- ------- ------- --------- ---------- ------- ------
SGS (Average) 69.2% 77.9% 53.3% 49.5% 58.3% 49.5% 53.4%
--------------- ------- ------- ------- --------- ---------- ------- ------
GI 80.6% 83.8% 61.4% 59.6% 82.3% 70.5% 63.7%
--------------- ------- ------- ------- --------- ---------- ------- ------
Robin Young, CEO of Amur Minerals, commented:
"The Gipronickel Institute's work on a production sized Maly
Kurumkon / Flangovy sample has substantially added to the economic
potential of the Kun-Manie project. With recoveries of 80.6% for
nickel and 83.8% for copper, additional metal should be recovered
whilst operating costs will remain nearly the same. Revenues could
be increased by as much as 10% for nickel and 6% for copper.
Capital cost savings may also be attained if the Company decides to
establish an owner operated concentrate treatment facility to
generate a Low Grade Matte.
In addition to these very positive results, there are
substantial upside considerations that could further enhance the
economics of the Kun-Manie project. We are nearing completion of a
resource update which will include all drilling completed in 2016,
which we expect will result in a substantial increase in the
resource. An updated mine plan including the new 2016 drill defined
resource should also increase the economic potential by expansion
of the mining reserve. We look forward to reporting the resource
update when Runge, Pincock, and Minarco have completed the
compilation of the resource. It is anticipated that the results
will be available to the Company during this quarter."
Enquiries:
Company Nomad and Broker Public Relations
Amur Minerals S.P. Angel Corporate Yellow Jersey
Corp. Finance LLP
Robin Young Ewan Leggat Dominic Barretto
CEO Laura Harrison Harriet Jackson
+74212755615 +44(0)2034700470 +44(0)7544275882
For additional information, visit the Company's website,
www.amurminerals.com.
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
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 worldwide. Mr. Young is responsible
for the content of this announcement which includes information
derived by Gipronickel Institute, SRK Consulting (UK) Ltd, Runge,
Pincock and Minarco, SGS Minerals and Sibsvetmetniproyect.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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