TIDMAMC
RNS Number : 6613E
Amur Minerals Corporation
10 May 2017
10 May 2017
AMUR MINERALS CORPORATION
(AIM: AMC)
Kun-Manie Operating Cost Update
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 announce
that a review of its internally derived operating cost estimates is
well advanced and being completed by Runge Asia Limited ("Runge").
The independent assessment will allow the Company to establish the
mining potential of its Kun-Manie nickel copper project located in
Amur Oblast of the Russian Far East.
Highlights
-- Runge is independently compiling first principles mine site
operating cost estimates for Amur's Kun-Manie nickel copper
sulphide project. This is a key component for the determination of
the open pit and underground mining potential for the four deposits
planned for mining. These deposits are Maly Kurumkon / Flangovy
("MKF"), Ikenskoe / Sobolevsky ("IKEN"), Vodorazdelny ("VOD") and
Kubuk ("KUB").
-- The operating costs estimate is based on Russian costs and
productivity factors, and include depreciation, equipment
replacement requirements and any additionally identified items.
-- Runge will provide the Company with applicable fixed and
variable operating unit rates and results are anticipated to be up
to an accuracy of +/-25%. Most operating cost estimates will be
based on Q2 2017 information. Amur and Runge consider historical
operating costs to be obsolete.
-- To date, the review and determination of operating costs has
not identified any fatal flaws in previous reported information by
the Company.
-- Runge's remit also includes the identification of any
potential areas where the operation could be improved operationally
over that established by Amur. This could include potential
improvement in productivities and provide potential operating cost
reductions.
Robin Young, CEO of Amur Minerals, commented:
"Runge's review and development of Russian based operating costs
will provide critical information for the evaluation of the
economic potential of Kun-Manie. The final costs will permit Amur
to undertake the generation of an independent estimate of the
mining potential for all four of our deposits.
"The mining potential evaluation will be involved and intricate
in order to ensure that we establish an optimised mine plan and
production schedule. At present, two mining methods, open pit and
underground, have been identified at three of our four deposits.
With each of the deposits differing in terms of metallurgical
recoveries and operating cost, this will not be a rapid nor easy
task.
"Having production derived from four deposits does present
opportunity. We can consider the blending of ores and target
extraction of the higher operating profit tonnages from multiple
locations, not just one deposit. Multiple challenges also provide
multiple opportunities to increase production of higher profit
tonnages at earlier stages in the life of the project."
Further information:
The determination of operating costs for the Kun-Manie nickel
copper sulphide project will be used in the determination of the
technical and economic potential of its proposed operation. The
Runge results will supplant previously reported operating cost
projections which should be considered to be obsolete.
The operation is to consist of:
-- Ore production of 6.0 million tonnes per year.
-- Mining is planned to be conducted by a combination of open
pit and underground methods (long hole retreat) from four distinct
deposits.
-- Ore to be processed at the mine site using proven sulphide
flotation methods with recoveries of nickel and copper in the order
of 75 to 85% respectively.
-- The concentrate will contain approximately 10% economic
metals including nickel, copper, cobalt, platinum, palladium, gold
and silver. A minimum of 30,000 tonnes of nickel per year are
projected to be produced which would place the operation among the
10 largest annual nickel producers.
-- The concentrate can be processed at contract smelters or by a
Company owned furnace to generate a low grade matte for onward
refining and sale.
-- The project is fully supported by the Russian government as
part of the Far East Development programme and is eligible for low
cost funding of infrastructure related support including
construction of its access road from its supply station on the
Baikal Amur rail line to the Kun-Manie site and for the extension
of the power grid from existing sources to the potential furnace
capable of treating the concentrate to generate the low grade
matte.
-- The project is located adjacent to the three largest nickel
consuming markets of China, Japan and Korea.
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 Nomad and Broker Public Relations
Amur Minerals S.P. Angel Corporate Yellow Jersey
Corp. Finance LLP
Robin Young Ewan Leggat Charles Goodwin
CEO Soltan Tagiev Harriet Jackson
+44(0)7 544
+7(4212)755615 +44(0)20 3470 0470 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 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 was the lead
engineer and participant 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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