TIDMAMC
RNS Number : 2055I
Amur Minerals Corporation
20 March 2018
20 March 2018
AMUR MINERALS CORPORATION
(AIM: AMC)
50% Mineral Resource Increase at Kun-Manie
Contains 1.58 M Nickel Equivalent Tonnes at 1.02 NiEq %
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 announce
that RPM Global ("RPM") has updated the Mineral Resource Estimate
("MRE") for its Kun-Manie project ("Kun-Manie"), the largest
undeveloped nickel sulphide project, located immediately adjacent
to the three largest nickel consuming nations of China, Korea and
Japan.
The MRE update includes all 2017 drill results derived at the
Ikenskoe / Sobolevsky ("IKEN") and Kubuk ("KUB") deposits,
resulting in the MRE expanding by 50%, the largest ever
year-on-year ("y-o-y") increase. The total contained nickel
equivalent ("Ni Eq") content at Kun-Manie is more than 1.58 million
tonnes (2017:1.04 million Ni Eq tonnes) averaging 1.02% Ni Eq
(2017: 1.03%).
Highlights:
-- The global Kun-Manie resource has been expanded by 50% and
now stands at 155.1 million ore tonnes (2017: 101.3) having a
nickel equivalent grade of 1.02% (2017: 1.03%) equating to a total
of 1.58 million contained Ni Eq tonnes (2017: 1.04 million).
-- Based on a 0.4% cutoff grade ("COG"), Kun-Manie now ranks
third among the world's greenfield nickel sulphide deposits whilst
being located immediately adjacent the three largest nickel
consuming nations in the world.
-- All newly estimated resources identified by the 2017 drill
programme are located within the IKEN and KUB deposits. The 2018
global MRE (four deposits) has been increased by 538 million tonnes
(55% increase) of new ore, an additional 387,000 nickel tonnes (50%
increase) of new nickel, and 112,000 (54% increase) new tonnes of
copper. The total cobalt content is 23,500 tonnes with 23.5 tonnes
of platinum and 26.0 tonnes of palladium also present.
-- The 2017 drill programme successfully linked the neighbouring
IKEN and KUB deposits together forming the largest mineralised zone
at Kun-Manie. The updated and consolidated resource for these two
deposits (89.5 million ore tonnes, 645,000 nickel tonnes and
178,000 copper tonnes) surpasses the Maly Kurumkon / Flangovy
("MKF") deposit, formerly the Company's largest deposit containing
approximately 60.9 million ore tonnes, 472,000 nickel tonnes and
131,000 copper tonnes.
-- The global average grade of nickel is 0.75%, copper is 0.21%,
cobalt is 0.015%, platinum is 0.16 g/t and palladium is 0.17
g/t.
-- Using March 2018 metal prices for all commodities, the Ni Eq
grade is 1.02% (2017: 1.03%) containing a total in situ metal value
estimated to be in the order of US$ 21.3 billion (2017: US$ 10.4
billion). The in ground value increase of 105% is due to the
addition of 50% more metal and the increase in nickel, copper and
cobalt prices during the most recent 12 months. Metal price changes
account for US$ 3.6 billion of the increase over the 2017 MRE with
the remainder (US$ 7.3 billion) being attributable to the newly
defined resource.
-- The Kun-Manie nickel copper sulphide deposit contains the
commodities suitable for inclusion in the manufacture of batteries
for Electronic Vehicles ("EV's") and large scale power storage
facilities (national power grid type). Nickel and cobalt are key
components for the batteries, whilst copper will be required for
electrical grid expansion that will be required to allow for
battery charging.
-- During the 2018 drill season, metallurgical drill sample
collection and relevant test work will continue. This will allow
the Company to refine the processing flowsheet to establish the
capability of generating an additional copper concentrate
(potentially allowing for streaming of a copper concentrate
product) and the ability to identify the requirements necessary to
generate a nickel sulfate product for direct sale into the EV
battery market.
-- The all-in Russian expenditures to discover a pound of nickel
is US$ 0.014 (US$ 31.81 per tonne). All-in includes all Russian
operating and capital cost expenditures.
-- For every metre drilled to define resources at Kun-Manie, a
total of 34,175 pounds (15.5 tonnes) of nickel is discovered. At
March 2018 metal prices, this equates to US$ 285,000 in metal value
being identified per drilled metre.
-- Substantial exploration potential remains untested and is
located within the Kun-Manie production licence area. Drilling for
resource expansion is no longer required and can be delayed to
early production years when resources begin to be mined.
Robin Young, CEO of Amur Minerals, commented:
"The newly derived 2018 MRE represents a substantial and
material increase of more than 50% from previously reported
estimates of the Kun-Manie resource. Having surpassed key
institutional bench marks of 1.0 million contained nickel tonnes
and maintaining a plus 1.0% nickel equivalent grade, we shall be
positioning the Company as a ready source for EV battery market
participation. In addition, the significant resource increase will
allow for us to identify institutional investors to work with and
we will be undertaking an aggressive Asian marketing programme
focused on China, Korea and Japan.
"We continue to monitor the nickel and copper sulphide market
with regard to EV potential. Though not fully inclusive, we have
examined 23 western listed companies which report resource
inventories for 20 greenfield projects. Using a 0.4% nickel cutoff
grade, Kun-Manie ranks third largest among the greenfield projects
containing approximately 18% of the total greenfield nickel
resource. Of course, this is an indicator of our world position
with regard to reported greenfield projects, but it does provide
valuable insight into the potential status of Kun-Manie being
located in the immediate proximity of the three largest nickel
consuming nations in the world."
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
+7 (4212) 75
56 15 +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 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 which includes
information derived by RPM and Gipronickel Institute.
For further information, see the Company website at
www.amurminerals.com.
Mineral Resource Statements - Competent Persons Criteria
Amur Minerals Corporation reports resources based on JORC 2012
standards. This requires that the Mineral Resource Estimates
("MRE") be independently compiled from audited information attained
using best industry practices. AMC has engaged RPM Global ("RPM")
as the qualified company responsible completion of this important
and mandatory task to assess its Kun-Manie nickel copper sulphide
project located in the far east of Russia.
RPM have conducted the mandatory site visit allowing it to audit
the Company's field procedures, sample handling and preparation
techniques, analytical procedures, results and Quality Assessment /
Quality Control ("QAQC") systems (check assaying) that it
implements. RPM confirms that AMC has undertaken its exploration
programmes using industry best practices enabling AMC to issue this
update to the global MRE for the Maly Kurumkon / Flangovy ("MKF"),
Ikenskoe / Sobolevsky ("IKEN"), Kubuk ("KUB"), and Vodorazdelny
("VOD") deposits are reported in accordance with JORC (December
2012) standards.
Material Considerations in Compilation of the Mineral Resource
Estimates
Modelling of the mineralisation includes the following specific
considerations:
-- An MRE must have the potential to become a mine based on
reasonable mining and processing information whilst simultaneously
demonstrating the potential to represent an economically viable
operation. At Kun-Manie, mining by a combination of open pit and
underground operations has been confirmed by RPM with available
metallurgical test work confirming an economically marketable
concentrate can be generated. RPM has also reviewed projected
operating costs. The combination of these results allows AMC to
report JORC compatible resource statements.
-- For Kun-Manie, mineralisation is defined to be those
continuous zones that can be identified and modeled. A natural
cutoff grade ("COG") exists at approximately 0.3% nickel providing
the basis for determining the limits of the mineralisation.
Resources are reported using a 0.4% nickel COG which allows the
Company to derive optimised production schedules based the
combination of open pit and underground mining methods.
Mineral Resource Estimates
The global MRE statement is based on a 0.4% nickel COG with
individual statements being reported for the deposits of MKF, IKEN,
VOD and KUB. Each MRE statement reports the content for ore
tonnage, nickel (%), copper (%), cobalt (%), platinum (g/t),
palladium (g/t) and a nickel equivalent (%). Minor gold and silver
is present but have not been calculated.
RPM Ordinary Kriging Mineral Resource Estimates
March 2018
0.4% Nickel Cutoff Grade
Resource Ore Ni Cu Co Pt Pd Eq Contained Metal (t)
Classification Mt % % % g/t g/t Ni
(%)
---------------- ------ ----- ----- ------ ----- ----- ----- ---------------------------------------------------------
Ni Cu Co Pt Pd Eq
(1000's) (1000's) (1000's) (t) (t) Ni
(1000's)
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
MKF - Updated February 2017
------------------------------------------------------------------------------------------------------------------------------
Measured
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Indicated 57.5 0.77 0.22 0.015 0.15 0.16 1.06 445 124 8.9 8.8 9.3 606.5
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
M+I 57.5 0.77 0.22 0.015 0.15 0.16 1.06 445 124 8.9 8.8 9.3 606.5
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Inferred 3.4 0.80 0.22 0.017 0.16 0.15 1.06 27 7 0.6 0.5 0.5 36.1
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
MKF TOTAL 60.9 0.78 0.22 0.015 0.15 0.16 1.06 472 131 9.5 9.3 9.8 643.0
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
IKEN - Updated March 2018
------------------------------------------------------------------------------------------------------------------------------
Measured 10.6 0.71 0.18 0.011 0.22 0.26 0.98 75 19 1.1 2.3 2.8 103.2
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Indicated 13.6 0.66 0.17 0.012 0.18 0.20 0.91 89 24 1.7 2.4 2.8 123.7
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
M+I 24.2 0.68 0.18 0.012 0.19 0.23 0.94 164 43 2.8 4.7 5.6 226.9
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Inferred 27.8 0.80 0.23 0.017 0.19 0.19 1.10 222 63 4.6 5.2 5.3 306.5
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
IKEN TOTAL 51.9 0.75 0.20 0.014 0.19 0.21 1.03 386 106 7.5 9.9 10.8 534.0
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
KUB - Updated March 2018
------------------------------------------------------------------------------------------------------------------------------
Measured -
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Indicated 32.9 0.69 0.19 0.014 0.13 0.12 0.93 226 63 4.7 4.3 3.9 306.0
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
M+I 32.9 0.69 0.19 0.014 0.13 0.12 0.93 226 63 4.7 4.3 3.9 306.0
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Inferred 4.7 0.7 0.19 0.014 0.12 0.12 0.94 33 9 0.7 0.6 0.6 44.5
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
KUB TOTAL 37.6 0.69 0.19 0.014 0.13 0.12 0.93 259 72 5.3 4.9 4.5 349.9
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
VOD - Updated February 2017
------------------------------------------------------------------------------------------------------------------------------
Measured 0.6 0.74 0.22 0.012 0.29 0.32 1.24 5 1 0.1 0.2 0.2 7.6
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Indicated 3.2 0.85 0.21 0.017 0.16 0.16 1.13 27 7 0.5 0.5 0.5 36.0
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
M+I 3.8 0.85 0.21 0.016 0.20 0.19 1.15 32 8 0.6 0.7 0.7 43.9
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Inferred 1.0 0.81 0.22 0.016 0.17 0.16 1.06 8 2 0.2 0.2 0.2 11.0
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
VOD TOTAL 4.8 0.83 0.21 0.016 0.18 0.18 1.13 40 10 0.8 0.9 0.9 54.6
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
TOTAL
------------------------------------------------------------------------------------------------------------------------------
Measured 11.2 0.71 0.18 0.011 0.23 0.26 0.99 80 20 1.3 2.5 3.0 110.8
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Indicated 107.0 0.74 0.20 0.015 0.15 0.15 1.00 787 217 16.2 16.0 16.6 1,075.1
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
M+I 118.2 0.73 0.20 0.015 0.16 0.17 1.00 867 237 17.5 18.5 19.6 1,185.9
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Inferred 37.0 0.79 0.22 0.017 0.17 0.18 1.08 290 81 6.0 6.4 6.6 398.2
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
TOTAL 155.1 0.75 0.21 0.015 0.16 0.17 1.02 1,157 319 23.5 24.9 26.0 1,581.6
---------------- ------ ----- ----- ------ ----- ----- ----- --------- --------- --------- ----- ----- ----------
Numbers may not be concise due to rounding.
The nickel equivalent (Ni Eq) grades reported above were derived
based on 9 March 2018 metal prices. The following table presents
the contained in situ metal value by resource category and
commodity. Approximately 75% (80% - 2017) of the resource value is
defined to be Measured and Indicated (suitable for reserve
classification as Prove or Probable). By commodity, 73% (74% -
2017) of the value is contained in nickel, 10% (12% - 2017) in
copper, 9% (5% - 2017) in cobalt, and 7% (9% - 2017) in PGM's
(platinum group metals).
In Situ Value (US$ Billion) and Nickel Equivalent Calculation
Data
March 2018 Metal Pricing
Pricing Nickel Copper Cobalt Platinum Palladium Total
US$
Imperial $6.10 $3.10 $37.77 $950.00 $970.00 b
-------- ------- -------- --------- ----------
Metric $13,450 $6,835 $83,250 $30,544 $31,187 Value
-------------- -------- ------- -------- --------- ---------- -------
Measured $1.08 $0.14 $0.11 $0.08 $0.09 $1.49
-------------- -------- ------- -------- --------- ---------- -------
Indicated $10.59 $1.48 $1.35 $0.49 $0.51 $14.42
-------------- -------- ------- -------- --------- ---------- -------
M+I $11.66 $1.62 $1.46 $0.57 $0.61 $15.91
-------------- -------- ------- -------- --------- ---------- -------
Inferred $3.90 $0.55 $0.50 $0.20 $0.20 $5.36
-------------- -------- ------- -------- --------- ---------- -------
TOTAL $15.56 $2.17 $1.96 $0.76 $0.81 $21.27
-------------- -------- ------- -------- --------- ---------- -------
2018 % Value
Content 73.2% 10.2% 9.2% 3.6% 3.8% 100.0%
-------------- -------- ------- -------- --------- ---------- -------
2017 % Value
Content 73.6% 11.7% 5.3% 5.1% 4.2% 100.0%
-------------- -------- ------- -------- --------- ---------- -------
Numbers may not be concise due to rounding.
The MRE update was completed for the IKEN and KUB deposits where
drilling was completed over the 2017 drill season. A comparison of
the resource increase for each of the two areas is provided in the
following table.
Resource Ore Ni Cu Co Pt Pd Eq Contained Metal (t)
Classification Mt % % % g/t g/t Ni
(%)
---------------- ----- ----- ----- ------ ----- ----- ----- --------------------------------------------------------
Ni Cu Co Pt Pd Eq
(1000's) (1000's) (1000's) (t) (t) Ni
(1000's)
---------------- ----- ----- ----- ------ ----- ----- ----- --------- --------- --------- ---- ----- ----------
IKEN
----------------------------------------------------------------------------------------------------------------------------
2018 IKEN 51.9 0.75 0.20 0.014 0.19 0.21 1.03 386 106 7.5 9.9 10.8 534.0
---------------- ----- ----- ----- ------ ----- ----- ----- --------- --------- --------- ---- ----- ----------
2017 IKEN 21.1 0.69 0.17 0.012 0.20 0.25 0.96 146 36 2.6 4.2 5.2 201.8
---------------- ----- ----- ----- ------ ----- ----- ----- --------- --------- --------- ---- ----- ----------
KUB
----------------------------------------------------------------------------------------------------------------------------
2018 KUB 37.6 0.69 0.19 0.014 0.13 0.12 0.93 259 72 5.3 4.9 4.5 349.9
---------------- ----- ----- ----- ------ ----- ----- ----- --------- --------- --------- ---- ----- ----------
2017 KUB 14.5 0.77 0.20 0.016 0.16 0.15 1.04 112 30 2.3 2.3 2.2 149.5
---------------- ----- ----- ----- ------ ----- ----- ----- --------- --------- --------- ---- ----- ----------
Cutoff Grade Considerations
The MRE is defined as that mineralisation estimated to be in
excess of 0.40% nickel (excluding all other by-product metal) and
contained within continuous zones having a minimum grade of 0.30%
nickel. Based on RPM audited operating costs of US$ 24.16 per ore
tonne (using the higher underground mining only configuration), an
average nickel recovery of 80% (sourced by Gipronickel Institute)
and nickel only content, the breakeven nickel price is projected to
be US$ 3.71 per pound (approximately US$ 8,175 per tonne). The
current nickel price is approximately US$ 6.10 per pound
(approximately US$ 13,450 per tonne) providing an indicated
potential operating profit margin to be in the order of US$ 2.39
per pound of recovered nickel to concentrate. Recovered by-product
metal is not included in the potential operating profit margin.
Key Nickel Discovery Statistics
The MRE is defined based on a total of 74,613.5 metres of
drilling. An additional 10,203.3 metres of core have been drilled
for the recovery of metallurgical sample, twinned verification
holes, unmineralised wildcat holes, and other holes defining other
potential mineral zones to be drilled in the future when Kun-Manie
is in operation.
Since 2010, 816,000 tonnes (1.8 billion pounds) of nickel have
been discovered. The total all-in Russia based expenditures for the
same period indicate a discovery cost of US$ 0.014 per pound
(approximately US$ 31.81 per tonne of nickel) or 0.23% of the
current nickel price. The all-in Russian costs includeall field
costs, all ice road construction and transport costs, all costs to
maintain our Ulak support station on the Baikal Amur ("BAM") rail
line, all Khabarovsk, Russia office costs and all new / spare
equipment purchases.
In addition to the low discovery price per nickel pound, a total
of 15.5 tonnes (34,175 pounds) of nickel are defined for every
metre drilled. Based on the nickel equivalent in situ metal value
of $US 21.3 billion, every metre drilled at Kun-Manie has defined
approximately US$ 285,000 of metal.
Website Update
The results reported within this RNS will be updated to the
Company website. Whilst accessing our website, it is important to
examine the information closely to ensure that the March 2018
results contained herein have been included. The Company is in the
process of updating the website to reflect the significant changes
reported herein.
http://amurminerals.com/project-details/resources-and-reserves/
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
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