Last checked at 7 Mar 2012 09:00
07 March 2012
AIM: AMC
AMUR MINERALS CORPORATION
("Amur" or the "Company")
Newly Acquired Core Drill Rig for Kun-Manie
·; Acquisition of LF-70 Boart Longyear diamond core drilling rig
·; Reduction of drilling costs per metre
·; Materials have been purchased to support the upcoming field programme
·; Supplies are presently being delivered over the ice road
Amur Minerals Corporation, a nickel-copper sulphide mineral exploration and resource development company focused on far east Russia, announces that is has taken possession of its newly acquired LF-70 Boart Longyear diamond core drilling rig. The rig is being transported from Khabarovsk to the base camp and from there to site via the recently completed 320 kilometre long Ice Road which is constructed annually.
The rig purchase will substantially reduce drilling costs on a per metre basis at Kun-Manie where the Company plans to drill 6,000 metres over the course of this coming field season. On a contract basis, historical costs incurred by the Company were approximately $290 per metre, not including the additional cost of mobilisation and demurrage. The projected cost per metre for the Company owned and operated rig is estimated to be in the order of $165, resulting in a potential saving of $125 per metre (40% cost reduction). The Company expects to have fully recovered the purchase of the rig and its associated supplies and drill tools ($944,000 all in cost) by drilling a total of about 7,500 metres. The rig will be used for an anticipated five to seven years. Weather permitting, the Company will drill additional metres this year.
Fuel, supplies and other materials have also been purchased thereby allowing the Company to drill holes up to a depth of more than 500 metres. A total of 260 to 270 tonnes of material will be transported along the ice road. The resupply trips to the site have already begun.
Robin Young, CEO of Amur Minerals, commented:
"I am pleased to announce the acquisition of the new drill rig, which will facilitate this year's drilling programme and should lead to an increase in both the Company's resources and reserves. We will soon have identified the drilling targets for the year based on available results from 2011 which are currently fully in hand and are being reviewed in detail. I look forward to updating the market with further developments of our results from last field season and the upcoming drill programme."
Enquiries:
Company Amur Minerals Corp. | Nomad and Joint Broker RBC Capital Markets | Joint Broker Merchant Securities | Public Relations Tavistock Communications |
Robin Young CEO | Martin Eales/Daniel Conti | Lindsay Mair | Lydia Eades/ Ed Portman/ Paul Youens |
+44 (0) 7981 126 818 | +44 (0) 20 7653 4000 | +44 (0) 20 7382 0924 | +44 (0)20 7920 3150 |
Notes to Editors
In February 2012, Amur raised £5.5m at 8p which will be used to fund metallurgical and engineering studies in the 2012 drilling season at Kun-Manie. This will include additional Joint Ore Reserves Committee ("JORC") standard resource and reserve studies that will augment the JORC estimates that are presently being updated. This information will enable the Company to update its 2007 pre-feasibility study compiled by SRK Consulting.