TIDMAMC
RNS Number : 0248P
Amur Minerals Corporation
14 November 2016
14 November 2016
AMUR MINERALS CORPORATION
(AIM: AMC)
Access Road Update
Amur Minerals Corporation ("Amur" or the "Company"), developer
of the Far East Russian sulphide nickel copper project Kun-Manie,
is pleased to provide an update on its access road activities
completed during the 2016 field season.
Key highlights:
-- A Category IV industrial gravel road of eight metres width
capable of handling the transport of concentrate and supplies to
and from the site can be constructed and its route has been
identified.
-- The road is planned to be 316 kilometres in length.
Construction materials required to build the road are available
along its entire length.
-- Five major bridges will be required with an estimated 200
stream and drainage crossings having also been identified. The
stream and drainage areas will require the installation of culverts
and / or water diversions.
-- The western portion of the road (180 kilometres) will be
constructed along existing, though narrow, roads pioneered by
placer mining companies. The placer mines are no longer in
operation. Limited timber production does exist in the area. The
terrain in the area is flat to hilly in character and limited
infrastructure is present.
-- The eastern 136 kilometres will be constructed in the
mountainous terrain of the Stanovoy Range. No infrastructure along
this section of the route is present.
-- Permafrost conditions vary along the route and will need to
be considered in the detailed design of the road.
-- The next stage consists of the compilation of topographic
maps along the road route to allow for detailed road design and the
specific identification of the initial road location. Results are
anticipated in Q1 2017.
Based on a field inspection by a qualified road design engineer,
three alternative routes from the Company's Ulak base (also
referred to as Gorny), located on the Baikal Amur rail line to the
Kun-Manie project site, were examined to identify the preferred
route along which to construct its access road. The selection
considered the availability of necessary road construction
materials as well as stream / river crossing requirements. The
inspection programme has now identified the preferred access, which
has been determined to be 316 kilometres in length. Completion of
this phase now allows the Company to initiate the next stage of
road design comprised of the development of surface topographic
maps for use in route selection, road design and construction
planning.
As the road is an integral part of the project and is related to
infrastructure development, the Far East and Baikal Region Fund
("FEDF") has assisted by providing additional cost related
information of similar road building projects. The average cost per
kilometre for the five projects provided is indicated to average
US$400,000 per kilometre. This is substantially less than the
Company's budgeted US$ 1,000,000 per kilometre. Without specific
and detailed road design, the precise savings per kilometre cannot
be specifically established. However, Amur does anticipate a
reduction in this capital cost category with a significant portion
of the decrease related to the devaluation of the Russian Rouble
RUB since the compilation of the original estimate when the RUB was
30 to the USD. Presently, the RUB to USD exchange rate is ranging
from 60 to 65 RUB per USD.
Description of the Access Road
The 316 kilometre long access road traverses two distinct
geographic terrains. To be constructed as a Category IV road
intended for industrial use only, it will be surfaced with a
combination of sand and gravel. It is expected that up to 600,000
tonnes of concentrate will be delivered over the road from
Kun-Manie to Ulak with a near equivalent tonnage of fuel, supplies
and materials being backhauled to the site.
The western half of the access road (from Ulak to the Zeya
River) is anticipated to be the most favourable for construction.
The 180 kilometre long stretch already has a narrow road which must
be substantially upgraded to meet production requirements. Limited
infrastructure associated with dormant placer mining operations and
existing fuel storage sites related to ongoing exploration
activities by other exploration groups and timber harvesting
companies is present. Approximately half of this portion of the
route is characterised by flat marshy ground with the remainder
being classified as hilly. Most of this 180 kilometre segment is
accessible by heavy duty wheeled vehicles. Sufficient road
construction materials are available. The Tok and Sivakan Rivers
will each require the design and construction of a large bridge and
numerous stream crossings will also be necessary.
The remainder of the access road (136 kilometres), from the Zeya
River to the Kun-Manie project site will run through the
mountainous terrain of the Stanovoy Range. Major bridge
construction will be required at the Zeya, Kupuri and Maya Rivers.
These rivers are prone to rapid changes in water levels related to
substantial runoff during rain and spring snow melts. As a result,
the design of the bridges and siting of the road will require
consideration of the fluctuation of water levels. Construction
materials are available along the entire portion of this route and
will be derived from barrow pits and river gravels.
Next Stages of Work on the Access Road
Topographic maps of the 316 kilometre long by 4 kilometre wide
road corridor are being compiled. Upon completion of this task,
road profiles will be generated allowing for initial route
selection. Field verification of the initial route will be
completed and adjustments will be undertaken as required. Upon
completion of the identification of the final route, the detailed
design of the road can be undertaken which will include field work
consisting of the following key tasks:
-- Implementation of a geotechnical and soil stability drilling
programme to define the stability of the road bed base (an 8 to 10
metre deep hole at one kilometre spacings along the road), two 15
metre deep holes at each bridge location), and approximately 200
eight metre deep holes where culverts are planned for installation
at stream and drainage crossings.
-- Survey of permafrost conditions along the route.
-- Completion of the laboratory test work related to soil and
geotechnical stability analyses as well as water quality
analyses.
Far East and Baikal Region Fund
The Far East initiatives intended to advance the development of
the region include governmental support through a series of
agencies including the FEDF. These especially focus on
infrastructure development. As the road is an integral part of the
project and is considered to be a part of the initiative, FEDF has
provided additional cost related information of similar road
building projects. The average cost per kilometre for the five
projects indicates a cost of US$400,000 per kilometre can be
expected.
This is substantially less than the Company's budgeted
US$1,000.000 per kilometre. The primary reason for the substantial
difference is related to the devaluation of the RUB. The
US$1,000,000 per kilometre was determined based on a 30 RUB per
USD. Currently, the exchange rate ranges from 60 to 65 RUB per USD.
The decline in the RUB in comparison to the USD indicates that
substantial savings are anticipated once specific and detailed road
designs are completed and new capital costs are compiled.
Robin Young, CEO of Amur Minerals, commented:
"With pleasure, we present our first access road update. We have
now identified our preferred route from the rail station at Ulak to
our Kun-Manie nickel copper sulphide project. With this significant
step now complete, we are moving onto the generation of topographic
maps which will enable us to precisely select the route of the road
and to compile the first design. After we verify the designed
route, we will be able to undertake necessary design adjustments to
account for any special considerations and conditions along the
route. Subsequently, the capital cost of this critical component
can be finalised. We anticipate a reduction in the cost to
construct a kilometre of the access road over that which has been
used in the past to evaluate our project economics."
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)7768
+74212755615 +44(0)2034700470 537 739
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
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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November 14, 2016 02:00 ET (07:00 GMT)