TIDMAMC
RNS Number : 7530E
Amur Minerals Corporation
05 November 2015
05 November 2015
AMUR MINERALS CORPORATION
(AIM: AMC)
Successful 2015 Drill Season Complete
Maly Kurumkon / Flangovy Resource Expansion Anticipated
Amur Minerals Corporation ("Amur" or the "Company"), the
nickel-copper sulphide mineral exploration and resource development
company focused on the far east of Russia, is pleased to inform
shareholders that it has successfully completed the third and final
phase of its 2015 drill season in the Maly Kurumkon ("MK") area of
its Maly Kurumkon / Flangovy ("MKFL") deposit. During the third
phase, 755.5 metres within five holes continued to confirm the
mineralised thicknesses and grades defined by historical holes. At
season end, a total of 5,821.4 metres had been drilled in 21 holes
that intersected ore. Globally, the 2015 drill programme
accomplished the planned objective of establishing the continuity
of the mineralisation. Additionally, the resource was expanded with
successful step out drilling and identification of discrete high
grade lenses suitable for underground mining.
Highlights
-- The continuity of the mineralisation has now been established
on 100 metre spaced drill sections covering 1,500 metres of the
2,000 metre long MKFL deposit. The westernmost area of MK which
contains Inferred resource requires infill drilling in the
future.
-- The 2015 infill drill programme focused on a 1,200 metre long
area including all of the Flangovy ("FL") mineralisation and the
eastern 400 metres of the MK mineralisation. The average grade of
the 2015 drill results is 0.83% nickel and 0.22% copper. The
average thickness per ore hole is 25.7 metres.
-- As a part of the drill programme, an 800 metre long segment
of Inferred resources located in the Flangovy area ("FL") was
successfully drilled. The average thickness per hole intersecting
ore was 26.9 meters having average grades of 0.79% nickel and 0.21%
copper.
-- The 100 metre drill section spacing has been previously
utilised to define Indicated resources. It is anticipated that the
majority of the Inferred resource at FL will be upgraded to
Indicated during the next resource update. Resources of Indicated
or Measured categories can be utilised to define reserves for use
in a Definitive Feasibility Study ("DFS").
-- High grade lenses of mineralisation have been confirmed to be
present throughout the 1,200 metre drilled area being both
continuous and pervasive in thickness and grade. The average high
grade thickness per hole is 17.2 metres having average grades of
1.03% nickel and 0.27% copper. These lenses have the potential of
yielding higher operating profits per tonne using underground
mining methods in lieu of open cast mining. Previous analyses
indicate that in order to yield the highest profit margins (based
on Earnings Before Interest, Depreciation and Amortisation)
("EBITDA") the majority of the Flangovy area would be best suited
to underground production.
-- Step out drilling has extended the total length of the MKFL
deposit in the eastward direction from 2,000 metres to nearly 2,500
metres in length. Likely to be classified as Inferred resource, the
additional resource should expand the 30 July 2015 resource
statement beyond that presently containing 52.9 million tonnes of
ore. The area also remains highly prospective as the limits of the
mineralisation remain undefined to the east, west and in the down
dip direction.
-- The 30 July 2013 MKFL resource will be updated upon receipt
of final independent analytical results. The final Alex Stewart
Laboratory ("ASL") results are anticipated to be available in
December 2015.
-- Resource modelling will specifically focus on and compare
open cast and underground considerations to establish the optimised
production basis and scheduling of ore production.
2015 Drill Programme Objectives
The Company planned to drill up to 6,000 metres during the 2015
season. The primary object was to infill drill the FL area of the
MKFL deposit to a density allowing for the conversion of Inferred
resource to that of Indicated. The second objective was to complete
a pair of step out holes to determine if the FL deposit extended
beyond the last known limits of mineralisation. Successful
completion of the programme would establish the continuity of the
ore zone regarding both mineralised thicknesses and the contained
grade of the nickel and copper and allow for the compilation of an
updated resource estimate suitable for use in a Definitive
Feasibility Study ("DFS").
2015 Drill Programme Accomplishments
During the season, a total of 5,821.4 metres were drilled. This
included two step out holes that successfully defined that the
mineralisation at FL extended an additional 400 metres eastward
beyond the previously determined ore limits thereby expanding the
resource. The infill portion of the programme was designed to
double the drilling density within the FL area from the
historically spaced 200 metre drill sections to that of 100 metre
sections. By doubling the density, areas of Inferred resource are
likely to be upgraded to that of Indicated based on previous
resource classification criteria. The FL infill progamme required
fewer metres than budgeted and hence allowed for the Company to
undertake infill drilling on the MK area immediately to the west of
Flangovy. The MK infill drilling targeted an area already
classified as Indicated. Here, a previously identified 60 metre
thick lense of mineralisation had been defined and the intent was
to confirm its continuity over a 250 metre length. The continuity
of the structure was confirmed.
Infill Drilling Comparison
A total of 19 holes were drilled as infill holes during 2015.
Based on existing historical results from 18 holes, the Company
anticipated intersecting mineralisation in the order of 29.7 metres
in thickness per hole with average grades of approximately 0.74%
nickel and 0.21% copper. This year's infill drilling intersected an
average of 25.7 metres per hole with average grades of 0.83% nickel
and 0.22% copper. Based on a grade thickness comparison, the 2015
infill holes contained 97% of the anticipated nickel metal hence
the infill drill programme was deemed to have confirmed thicknesses
and grades defined in the historically derived drill holes. The
global drill data set now consists of 37 holes within the 1,200
metre long infill drilled area with each hole containing an average
of 27.4 metres of ore averaging 0.78% nickel and 0.21% copper. A
summary of all drill results by phase is presented below.
Drill 2015 Drill Results Historical Holes
Phase - Niton Results - ASL
------------- ----------------------------------- -----------------------------------
Holes Average Ni Cu Holes Average Ni Cu
Mineralised Mineralised
Metres Metres
------------- ------ ------------- ------ -------------
(%) (%) (%) (%)
------------- ------ ------------- ----- ----- ------ ------------- ----- -----
Step Out 2 29.0 0.79 0.23 No Drilling Available
------------- ------ ------------- ----- ----- -----------------------------------
FL Infill 14 26.0 0.81 0.21 12 27.9 0.76 0.22
------------- ------ ------------- ----- ----- ------ ------------- ----- -----
MK Infill 5 24.8 0.87 0.23 6 33.2 0.71 0.19
------------- ------ ------------- ----- ----- ------ ------------- ----- -----
Infill Only
Summary 19 25.7 0.83 0.22 18 29.7 0.74 0.21
------------- ------ ------------- ----- ----- ------ ------------- ----- -----
Values above are based on a minimum thickness of 3 metres using
a cutoff grade of 0.20% nickel. Waste intervals of less than 3
metres are included as internal waste.
High Grade Mineralisation
Historical drilling identified the presence of substantial plus
1.0% nickel sample intervals located throughout the 1,200 meter
long area drilled during the infill process. Of the 18 historical
holes, 14 holes contain high grade mineralisation based on a cutoff
grade of 0.7% nickel having a minimum thickness of 3 metres. The
average grade of these intervals was 1.04% nickel and 0.27% copper.
On average each of the 14 holes contained 15.7 metres of
mineralisation with discrete intervals having an average thickness
of 10.5 metres.
The 2015 infill programme confirmed the presence of these high
grade intervals. Eighteen of the infill ore holes contained an
average total high grade thickness of 18.4 metres averaging 1.03%
nickel and 0.27% copper. These drill results were nearly identical
to that of the historical results and confirmed the continuity of
the high grade material. Individual lenses have an average
thickness of 9.8 metres.
The combined results of the historical and 2015 drill results
have established continuity of these high grade structures in both
grade and along strike. Globally, the average thickness of these
underground recoverable mineralised structures average 17.2 metres
in thickness with an average of 1.03% nickel and 0.27% copper.
These structures contain a total of 83% of the total nickel defined
within the 1,200 metre long ore zone structure.
Maly Kurumkon - Flangovy Resource
(MORE TO FOLLOW) Dow Jones Newswires
November 05, 2015 10:52 ET (15:52 GMT)
The 2015 drill programme significantly impacts the presently
reported MKFL resource dated 30 July 2013. The MKFL deposit is the
largest of the five drilled deposits at Kun-Manie. MKFL contains
52.9 million tonnes of ore representing 43% of the global resource
defined at Kun-Manie. Of the 52.9 million tonnes, 31.1 million
tonnes are defined to be of the Inferred resource category with the
remainder being classified as Indicated resource.
Global Resource Maly Kurumkon
/ Flangovy
----------------------------------------------------------
Global Tonnes Ni Ni Cu Cu
Resource (million) (%) Tonnes (%) Tonnes
----------- ----------- ----- -------- ----- --------
Indicated 21.8 0.58 126,100 0.16 34,900
----------- ----------- ----- -------- ----- --------
Inferred 31.1 0.54 168,100 0.16 50,200
----------- ----------- ----- -------- ----- --------
Total 52.9 0.56 294,200 0.16 85,100
----------- ----------- ----- -------- ----- --------
The infill drill programme tested a continuous 1,200 metre long
segment of the mineralisation which contains approximately 87% of
the resource tonnage at MKFL. Within this area, a total of 45.8
million tonnes of ore have been estimated having an average grade
of 0.56% nickel 0.16% with copper. A total of 257,200 tonnes of
nickel and 74,200 tonnes of copper are contained within the infill
drilled area. The distribution of the drilled model tonnage is
presented below.
Resource Tested by Infill Drilling
Global Tonnes Ni Ni Cu Cu
Resource (million) (%) Tonnes (%) Tonnes
Indicated 18.4 0.59 108,300 0.16 29,800
Inferred 27.4 0.54 148,900 0.16 44,500
Total 45.8 0.56 257,200 0.16 74,300
Resources are classified by the available drill density. A drill
section spacing of 100 metres was previously utilised to assign
Indicated resources. With the successful completion of the 2015
infill programme, the remaining area of the 1,200 metre long
segment that had previously been drilled at a 200 metre spacing has
now been drilled on 100 metre drill section spacing. Hence, it is
anticipated that a substantial amount of the 27.4 million tonne
Inferred resource can be upgraded to that of Indicated.
In addition, the global resource of 52.9 million tonnes should
be increased to account for the 400 meter step out where resources
had not previously been estimated. It is expected that this
additional tonnage will be classified as Inferred resource.
Drill Grades Versus Model Grades
The 37 holes within the 1,200 metre drill area indicate the
presence of 27.4 metres of ore per hole averaging 0.78% nickel and
0.21% copper. The estimated resource grade has been estimated to be
0.56% nickel and 0.16% copper. This represents a difference of 28%
for nickel and 24% for copper.
The resource model was based on wireframes constructed using a
nickel cutoff grade of 0.20% and minimum mining thicknesses of 3.0
metres and established the limits of the mineralisation for open
cast mining operation. Using this approach, the estimated model
grades are considered to be fully diluted mining grades.
MKFL Resource Update
The Company will initiate an update on the MKFL resource
immediately upon receipt of the final analytical results from ASL.
Final analytical results are anticipated for delivery in December
2015. Modeling of the resource will be substantially modified from
past procedures. Specific attention will be given to defining the
wireframes used to establish the limits of the ore and will include
the definition of at least two domains. These domains represent
areas suitable for open cast production methods and that relate to
underground production allowing for determination of an optimised
open cast versus underground limit. Dilution will not be included
in the estimation process, however, it will be included during the
determination of the mining reserve.
Robin Young, CEO of Amur Minerals, commented:
"We are extremely pleased with the success of the 2015 drill
programme. We expanded Flangovy an 400 metres eastward, increasing
the global resource and have confirmed the continuity and grade
over a 1,200 metre long segment of the Maly Kurumkon / Flangovy
deposit. The increased drill density should allow for a substantial
portion of the Inferred resource to be upgraded to Indicated which
is suitable for inclusion in the Definitive Feasibility Study."
"The update to the resource estimate will specifically focus on
providing a result that will fully allow the Company to evaluate
various mining considerations. As 83% of the metal is contained
within high grade lenses, there appears to be substantial potential
to utilise underground production which is highly selective and
should provide higher grade reserves than are presently reported.
Once the resource update is complete, a full production schedule
for Maly Kurumkon / Flangovy can be generated. This will also
provide us with the ability to move more metal forward in the
production cycle".
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
+44 (0) 7981 +44 (0) 20 3470 +44 (0) 7768
126 818 0470 537 739
For additional information, visit the Company's website,
www.amurminerals.com.
Notes to Editors:
The information contained in this announcement has been reviewed
and approved by the CEO of Amur, Robin Young. Mr. Young is a
Geological Engineer (cum laude) and is a Qualified Professional
Geologist, as defined by the Toronto and Vancouver Stock Exchanges
and has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves" and as a "qualified person" as defined in the Guidance
Note for Mining, Oil And Gas Companies, June 2009, of the London
Stock Exchange.
Analytical Results:
The analytical results contained within this RNS are based on
two sources. The results for the drill holes completed prior to
2015 have been determined by ASL and are the final results used in
the determination of resources and reserves. The second set of
information obtained during the current 2015 drill programme is
determined by the Company using a Niton XL2 500 X-Ray Fluorescence
unit ("Niton"). The Company considers the Niton results to be
preliminary in nature and utilises the information for reporting
purposes. All samples for which Niton results are available are
assayed by ALS. The ALS results supersede those of the Company and
are used in resource estimation. Statistically, a comparision of
the results confirms the Company results are reflective of the
final results generated by ALS.
See the following link for schematic drawings and information
related to this release below.
Phase 3 Niton Drill Results
Depth Hole +0.2% Nickel Intervals Contained Intervals
- > 3.0 Metres Exceeding 0.7% Nickel
------ -----
From To length Ni Cu From To Length Ni Cu
(%) %) (%) %)
------ ----- ------ ------ ------- ----- ----- ------ ------ ------- ----- -----
79.0 C319 4.1 65.5 61.4 1.00 0.26 4.1 46.0 41.9 1.08 0.31
50.5 64.0 13.5 1.06 0.21
55.4 1.07 0.28
------ ----- ------ ------ ------- ----- ----- ------ ------ ------- ----- -----
173.4 C320 143.2 151.0 7.8 0.83 0.30 143.2 148.0 4.8 1.03 0.33
160.0 169.0 9.0 0.68 0.22 166.0 169.0 3.0 0.88 0.29
16.8 0.75 0.25 7.8 0.97 0.32
------ ----- ------ ------ ------- ----- ----- ------ ------ ------- ----- -----
160.0 C321 89.5 104.5 15.0 0.69 0.20 94.0 100.0 6.0 0.86 0.22
149.5 158.2 8.7 0.73 0.17 113.5 131.5 18.0 0.94 0.23
23.7 0.70 0.19 24.0 0.92 0.22
------ ----- ------ ------ ------- ----- ----- ------ ------ ------- ----- -----
172.4 C322 129.4 136.0 6.6 0.91 0.17 131.8 136.0 4.2 1.20 0.21
143.5 152.5 9.0 0.82 0.19 148.0 152.5 4.5 1.34 0.29
15.6 0.86 0.18 8.7 1.27 0.25
------ ----- ------ ------ ------- ----- ----- ------ ------ ------- ----- -----
170.7 C323 148.9 155.5 6.6 0.70 0.21 149.7 152.5 2.8 0.92 0.27
------ ----- ------ ------ ------- ----- ----- ------ ------ ------- ----- -----
http://www.rns-pdf.londonstockexchange.com/rns/7530E_-2015-11-5.pdf
Glossary
DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES
EXTRACTED FROM THE JORC CODE: (December 2012) (www.jorc.org)
(MORE TO FOLLOW) Dow Jones Newswires
November 05, 2015 10:52 ET (15:52 GMT)
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