Robin Young, CEO of Amur Minerals, commented: “We are pleased to confirm that the Maly Kurumkon / Flangovy Company reported drilling results of the 2015 drill programme have been confirmed to be accurate to within five per cent. Mining thicknesses averaging over 13 metres in thickness substantiate the potential mineability of the mineralisation using both open cast and underground methods.”
“The availability of this information allows us to move forward with the update of resources and reserves at both Kubuk and Maly Kurumkon – Flangov. These two deposits contain nearly two thirds of the nickel at Kun-Manie representing more than 413,000 tonnes of nickel. Enhanced modeling of these two deposits to account for the two production scenarios of open cast and underground will allow for the development of reserves and an optimised production schedule. This is a key element for inclusion in the Definitive Feasibility Study of Kun-Manie.”
Amur Minerals Corporation the nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, has informed DirectorsTalk that it has received the final Alex Stewart Laboratory (“ASL”) analytical results for the 2015 drill season that targeted the Maly Kurumkon / Flangovy (“MKFL”) deposit. The Company has also engaged SRK Consulting (UK) Limited (“SRK”) to update the resource estimates at the Kubuk and MKFL deposits for inclusion in the Definitive Feasibility Study (“DFS”).
· Analytical results derived by the independent laboratory ASL indicate that the nickel and copper grades derived and reported by the Company using its Niton unit understate both the nickel and copper content by approximately 5%;
· A total of 468 sample intervals within 21 ore holes having a minimum three metre mining thickness using a cutoff grade of 0.20% nickel indicate the length weighted average grade of 0.86% for nickel and 0.23% for copper;
· The MKFL mineralised thickness per discrete interval is 13.3 metres with several holes containing two or more intervals of ore. Each hole contains an average combined thickness per hole of 29.1 metres. These thicknesses and the associated contained nickel and copper grades are suitable for both open cast and underground production scenarios;
· The newly acquired drill information at MKFL is being compiled for use in an update to the resource and reserve; and
· In early 2015, an internal Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) analysis identified that the optimal economic potential of the MKFL and Kubuk deposits consists of a combined production scenario wherein ore is mined by open cast and underground methods. The resource models utilised in the assessment were compiled based on the assumption that all production was to be derived from an open cast mining scenario. For this reason, the Company has requested that the resource models for both deposits be updated to reflect the combined production scenario allowing for a more accurate definition of the production grades in the two mine production settings. The first stage of this work has been implemented with the regeneration of the Kubuk potential.
Alex Stewart Laboratory Results
The ASL results for the 2015 drill programme at MKFL confirm the average drill intercept grades of 0.86% nickel and 0.23% copper. These results are approximately 5% higher than the Company reported Niton XL2500 X-Ray Fluorescence unit (“Niton”) results of 0.81% nickel and 0.22% copper.
A total of 21 drill holes intercepted mineable ore grade values based on a cutoff grade of 0.20% nickel and a minimum mining thickness of three metres. A mineralised average thickness of 29.1 metres per hole has been identified. Numerous holes contain two or more discrete intervals which individually average 13.3 metres in thickness. Such mineralised thicknesses and grades are suitable for both open cast and underground mining scenarios.
The Company is presently compiling the drill hole database for use by SRK in the estimation of a resource update of the MKFL deposit. The MKFL deposit is the largest of the five deposits thus far identified at Kun-Manie, all of which are wholly located within the boundary limits of the 20 year production licence. MKFL contains 45% of the 650,600 nickel tonnes (294,200 tonnes) of the global nickel resource identified within the 36 square kilometre Kun-Manie production licence.
Resource Update
Analyses of the EBITDA completed in early 2015 indicated that the deposits of MKFL and Kubuk are best mined using a combination of open cast and underground production methods. Underground production is indicated to generate a higher cash flow in areas where high stripping ratios were dominant. The results were derived from resource models based on open cast production consideration. Such models tend to understate the grade of the ores recoverable by the more selective underground production process.
Using the Leapfrog process, new high grade (underground) and low grade (open cast) mineral limits will be defined permitting the definition of a refined resource estimate suitable for optimisation of production from the deposits. The estimation process will include the development of a selective mining unit model (smaller block sizes, reflective of underground production) than has previously been utilised. The enhancement will result in the development of a reserve more reflective of projected production and for use in production scheduling in the DFS.
Proactive Investors One2One Forum
The Company also wishes to take the opportunity to announce that it will be presenting at the Proactive Investors One2One Forum at the Chesterfield Mayfair Hotel, on Thursday 14th January at 6.00pm.
Further details relating to this event can be found via the following web-link to the registration page:
http://www.proactiveinvestors.co.uk/register/event_details/48
