Last checked at 18 Apr 2016 07:00
18 April 2016
AMUR MINERALS CORPORATION
(AIM: AMC)
Ice Road Resupply Completed
Field Season Objectives Defined
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 the Company has completed the full restock and mobilization of all newly purchased mobile equipment to its Kun-Manie nickel copper sulphide project located in the Far East, Russia. The successful completion of the mobilization effort positions the Company to undertake and continue its development of the project toward the completion of its Definitive Feasibility Study ("DFS").
Highlights:
· The largest total resupply effort ever undertaken on the project commenced 1 March and was completed on 9 April. A total of 500 tonnes of supplies, spare parts and materials have been delivered over the 350 kilometre long ice road;
· All newly purchased equipment has been delivered to the site, more than doubling the Company's drill capacity and associated drill road and drill platform construction requirements.;
· The newly purchased LF-90 Boart Longyear drill rig enables the Company to drill a total of 15,000 of diamond core holes planned for the 2016 field season;
· The two drill rigs will target resource conversion of existing Inferred resource to Indicated resource, step out drilling for resource expansion and the acquisition of a bulk metallurgical sample for process plant design;
· To provide support for the Company team assessing the available amount of water for use in the industrial processing of the ore and identification of potable water sources for supporting the projected mine staff at the proposed operation;
· Construction materials and shop machinery has been delivered, enabling the Company to construct a limited maintenance bay and repair facility to support the existing and enhance equipment fleet.
Logistical Summary
The successful delivery of a record 500 tonnes of materials to site and the newly acquired equipment provides the Company with the ability to continually advance the Kun-Manie project to a construction decision and the compilation of a DFS suitable for construction financing. The increased capacity to drill and support the expanded capacity enables Amur to undertake key tasks in support of the DFS.
The ice road mobilisation effort was completed by a series of seven conveys manned by a team of staff ranging from 15 to 20 contract employees during which nearly 500 tonnes of supplies and equipment were delivered to the site during the winter ice road period. This is the largest resupply ever undertaken to support a field season. An eighth equipment convoy was also deployed allowing for the delivery of the new Caterpillar and Boart Longyear equipment which substantially increases the onsite capabilities. This included two new D9R dozers and a 320D2L sourced from Caterpillar and an LF-90 Boart Longyear diamond core rig. Additional purchased mobile equipment was delivered to provide support for the greatly expanded earth moving and drilling capacity. This was all accomplished during the warmest ice road periods since undertaking work on the Kun-Manie licence area.
The addition of the self-propelled LF-90 Boart Longyear rig to that of the onsite LF-70 rig doubles the drill capacity on site to approximately 15,000 metres per year. Support equipment totaling 35 tonnes including drill rods, bits and additives have also been delivered. Two portable six-man housing units have been purchased and delivered, allowing for the housing of drill crews nearer each of the drill rigs during drilling. The additional drill capacity requires increased drill road and drill site platform construction for which the newly acquired Caterpillar equipment will be utilised. The onsite dozer fleet now stands at five with an excavator fitted with a rock breaker.
Additional equipment purchases have also been delivered to site including a 25 tonne mobile crane, a Ural side dump truck, an eight tonne fuel truck, portable welding unit, a personnel carrier and two generators. Associated spares for the comprehensive fleet totaling 40 tonnes are now available on site. To support and maintain the expanded fleet, 45 tonnes of construction materials have been delivered allowing for the construction of a maintenance bay.
Fuel to support the operation includes winter and summer fuel as well as aviation fuel for the helicopter support required during the summer field season. The total fuel allotment now on site is 344 tonnes.
Food stuffs and field supplies for the staff which will vary but are anticipated to average around 80 summer field staff are on site. Approximately 19 tonnes are available and will be refreshed on each helicopter flight completed during the season.
Operational Field Plan
The 2016 field season will be comprised of two elements. The primary task will be drilling at Maly Kurumkon / Flangovy ("MKFL") wherein 15,000 drill metres are budgeted. The second is to undertake the first of two working field seasons to assess and identify both industrial and potable water sources to support the planned operation at Kun-Manie.
Drilling will be divided into two components with one rig dedicated to each of the activities. One rig will be tasked to resource conversion and expansion whilst the second will be dedicated to drilling holes adjacent existing holes for the purpose of acquiring a representative bulk metallurgical sample.
The MKFL deposit is the largest deposit identified to date and presently represents the preferred source of ore production at Kun-Manie. Resource conversion will target the current 22.2 million tonnes of Inferred resource located at the eastern and western limits of the MKFL deposit. Potential for expansion is also present at both locations along strike with the greatest potential being located at the eastern limits defined during the 2015 step out phase of drilling. The current resource is provided below.
March 2016 Maly Kurumkon / Flangovy JORC Resource
Zero Cutoff Grade (Includes Internal Waste)
High Grade and Low Grade Mineral Domains
Resource | Tonnes | Ni | Ni | Cu | Cu | Pt | Pt | Pd | Pd |
Category | (millions) | (%) | Tonnes | (%) | Tonnes | g/t | Kg | g/t | Kg |
Indicated High Grade | 24.9 | 0.86 | 214,300 | 0.23 | 57,200 | 0.1 | 3,700 | 0.1 | 3,900 |
Indicated Low Grade | 43.5 | 0.16 | 70,800 | 0.06 | 27,000 | 0.1 | 2,900 | 0.1 | 3,000 |
Total Indicated | 68.4 | 0.42 | 285,200 | 0.12 | 84,200 | 0.1 | 6,600 | 0.1 | 6,900 |
Inferred High Grade | 7.1 | 0.76 | 54,400 | 0.20 | 14,100 | 0.1 | 1,000 | 0.1 | 1,000 |
Inferred Low Grade | 15.0 | 0.18 | 27,000 | 0.08 | 11,500 | 0.1 | 900 | 0.1 | 1,000 |
Total Inferred | 22.2 | 0.37 | 81,400 | 0.12 | 25,600 | 0.1 | 2,000 | 0.1 | 2,000 |
Total High Grade | 32.0 | 0.84 | 268,700 | 0.22 | 71,300 | 0.1 | 4,700 | 0.1 | 4,900 |
Total Low Grade | 58.5 | 0.17 | 97,800 | 0.07 | 38,500 | 0.1 | 3,800 | 0.1 | 4,000 |
Total | 90.6 | 0.40 | 366,600 | 0.12 | 109,800 | 0.1 | 8,500 | 0.1 | 8,900 |
Numbers may not be precise due to rounding.
The second drill objective is the generation of a representative bulk metallurgical sample. Holes will be drilled adjacent to existing holes to provide whole core for use in the metallurgical test work required to finalise the process design to treat the ore and to establish the metallurgical response of the contained metals. The test work will also identify the composition of the concentrate and its response to smelting. This is a key programme required for inclusion in the DFS and will provide the basis for the final design and engineering of the processing plant. The core will be transported from the site to Khabarovsk for consolidation and transport to the selected laboratory, which is qualified and skilled in the treatment of nickel copper sulphide ores.
The drill season is typically initiated around 1 June of a field season. Unseasonable warm weather this year may permit the Company to begin drilling earlier than normal.
The treatment and processing of ore requires substantial amounts of water. Substantial amounts of the water will be recycled during the method of processing, however the Company must ensure that there is substantial water of suitable quality to process the ore and generate the final concentrate. In addition, potable water will be required to support the near 1,000 site based employees. The work undertaken during this year will be implemented by Company staff and supported out of our base camp. Drill sites will be identified and pads will be constructed of the drilling of water production during next year's field season.
Ice Road Video Library
The concept of an ice road is often not fully understood. For this reason, the Company has undertaken the compilation of a video library providing a look inside the reality of transport of materials over the 350 kilometre long ice road. This group of individuals is responsible for the success of our field programmes by enabling us to year on year complete the field programmes at Kun-Manie.
To view the Company's video library please visit: http://amurminerals.com/photo-gallery/
Robin Young, CEO of Amur Minerals, commented:
"We are pleased to update the shareholders that we have now closed down our ice road activities and have delivered a record tonnage of supplies and new equipment over the 350 kilometre long ice road. It is with pleasure that I have the opportunity to report that all required materials have been delivered safely and efficiently, as a direct result of a highly dedicated and skilled team. We encourage our readers to view the videos depicting what an ice road in Russia is truly about.
The delivery of 500 tonnes of material and supplies enables us to move forward in resource development and to advance the Definitive Feasibility Study. Metallurgical test work on the samples to be acquired during this season will form the engineering design basis for the processing plant, definition of the composition of the concentrate and establish key smelting parameters. The focus on the Maly Kurumkon / Flangovy is key as it will likely be our primary source of ore over the course of the first several years."
Company Amur Minerals Corp. | NomadandBroker S.P. Angel Corporate Finance LLP | Public Relations Yellow Jersey |
Robin Young CEO | Ewan Leggat Laura Harrison | Dominic Barretto Harriet Jackson |
+44(0)7981126818 | +44(0)2034700470 | +44(0)7768537739 |
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, 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 SRK.
For further information, see the Company website at www.amurminerals.com.