TIDMAMC
RNS Number : 1767Q
Amur Minerals Corporation
28 August 2014
28 August 2014
AMUR MINERALS CORPORATION
(AIM: AMC)
Kun-Manie Mining Reserve Increased by 25%
Among Largest 20 Nickel Sulphide Projects In World
Amur Minerals Corporation ("Amur" or the "Company"), the nickel
copper exploration and development company focused on base metal
projects located in the far east of Russia, is pleased to announce
its update of the Reserve Statement for the nickel and copper
sulphide deposits of Kun-Manie. The Company determined Proved and
Probable Reserve ("Reserve") has increased by 25% to 39.2 million
ore tonnes containing 219,000 tonnes of nickel and 58,100 tonnes of
copper. The increase in contained nickel has resulted in making
Kun-Manie one of the largest nickel sulphide projects in the world
with the potential for further expansion of the Reserve by positive
infill drilling of Inferred Resources. Reserve definition has been
based on the Company's internal calculation of Earnings Before
Income, Tax, Depreciation and Amortisation ("EBITDA"). Runge,
Pincock, Minarco ("RPM") assisted the Company, in evaluation of the
Reserve. The updated Reserve is not considered to be JORC compliant
until sign off by a Competent Person (as defined by the JORC
Code).
Highlights:
-- Reserve ore tonnages increased by 24.5% from 31.5 million to 39.2 million tonnes of ore;
-- Nearly 80% of Measured and Indicated Resource is defined to be mineable;
-- The Reserve contains 219,100 tonnes of nickel (an increase of
28%) and 58,100 tonnes of contained copper (an increase of 22.3%)
having average mined grades of 0.56% Ni and 0.15% Cu;
-- By product platinum and palladium both exceed 5.0 tonnes.
-- The stripping ratio is reduced by 30% from 4.5 to 3.1 tonnes
of waste for each tonne of ore to be mined;
-- The Company derived EBITDA for the Reserve is estimated to
range from $US 726 million at a nickel price of $US 8.50 per pound
($US 18,740 per tonne). Using a long term nickel price of $US 9.50
per pound ($US 20,950 per tonne), the EBITDA is projected to be $US
1,058 million; and
-- Substantial Inferred Resources have been specifically
excluded from the Company's Reserve estimate, portions of which
could be converted to reserves by successful infill drilling.
Runge Pincock Minarco ("RPM") of Australia assisted the Company
in the determination of the Reserve by compiling open pit designs
identifying ultimate pit limits. Pit designs for each of the three
deposits that contain Measured and Indicated Resources were
generated. The available Mineral Resource for conversion to Ore
Reserve consisted of 50.1 million tonnes averaging 0.54% nickel and
0.14% copper. There are an additional 70.7 million tonnes of
Inferred Resource not included in the Company's reserve definition
phase.
Available SRK JORC December 2013 Resource
Resource Tonnage Ni Ni Cu Cu Pt Pt Pd Pd
Class Mt % t % t g/t kg g/t kg
----------------- -------- ----- -------- ----- -------- ---- ------- ---- -------
Total Measured 15.8 0.52 81,800 0.13 21,100 0.2 2,900 0.2 3,200
Total Indicated 34.3 0.55 187,100 0.15 50,900 0.1 4,100 0.1 4,900
Sub-total 50.1 0.54 268,900 0.14 72,000 0.1 7,000 0.1 8,100
Total Inferred 70.7 0.54 381,700 0.15 106,400 0.1 9,900 0.1 9.900
----------------- -------- ----- -------- ----- -------- ---- ------- ---- -------
Total 120.8 0.54 650,600 0.15 178,400 0.1 16,900 0.1 18,000
----------------- -------- ----- -------- ----- -------- ---- ------- ---- -------
RPM compiled a series of 28 incremental pit shells for each of
the deposits of Vodorazdelny, Maly Kurumkon / Flangovy, and
Ikenskoe / Sobolevsky. The contained tonnages and average metal
content for each shell were provided to the Company.
Using the RPM generated results, the Company calculated EBITDA
values based on Q1 2014 operating costs (Company generated),
improved metallurgical recoveries (SGS Minerals - "SGS"), smelter
charges (Chinese Smelter Schedule) and reduced smelter penalties
(SGS) and the elimination of metal extraction royalties (Russian
Government). The EBIDA was calculated for each shell with revenues
being determined using a long term nickel price of $US 9.50 ($US
20,900 /t) and $US 3.12 ($US 6,900 / t) per pound as projected by
RBC Dominion Securities, Inc (June 2014).
Determination of the ultimate pit limit that contained the Ore
Reserve was defined to be the last shell containing a minimum
EBITDA of $US 10 million whilst simultaneously having a stripping
ratio of less than 20 tonnes of waste per tonne of ore. The defined
Ore Reserve follows:
August 2014 Company Determined Ore Reserve Statement*
Strip Ni Cu
Deposit And Reserve Total Ore Waste Ratio Ni Tonnes Cu Tonnes Pt T Pd T
Class
Mt Mt Mt t/t % (1,000's) % (1,000's) g/t g/t
Ikenskoe / Sobolevsky
Proved 12.7 0.53 67.2 0.13 16.5 0.2 2.3 0.2 2.6
Probable - - - - - - - - -
Proved and Probable 44.8 12.7 32 2.5 0.53 67.2 0.13 16.5 0.2 2.3 0.2 2.6
----------------------- ------ ----- ------ ------ ----- ---------- ----- ---------- ---- ---- ---- ----
Maly Kurumkon
/ Flangovy
Proved - - - - - - - - - -
Probable 21.5 0.0 0.55 118.5 0.15 32.9 0.1 2.2 0.1 2.8
Proved and Probable 0 21.5 0 0.0 0.6 118.5 0.2 32.9 0.1 2.2 0.1 2.8
----------------------- ------ ----- ------ ------ ----- ---------- ----- ---------- ---- ---- ---- ----
Vodorazdelny
Proved 0.9 0.0 0.57 5.1 0.17 1.5 0.3 0.2 0.3 0.2
Probable 4.1 1.0 0.69 28.3 0.18 7.2 0.1 0.5 0.1 0.5
Proved and Probable 9.1 5 4.1 0.8 0.67 33.4 0.18 8.7 0.2 0.8 0.2 0.8
----------------------- ------ ----- ------ ------ ----- ---------- ----- ---------- ---- ---- ---- ----
Total Reserve
Proved 13.6 0.53 72.4 0.13 18.0 0.2 2.5 0.2 2.9
Probable 25.6 0.57 146.8 0.16 40.1 0.1 2.7 0.1 3.4
---------- ---------- ---- ----
Proved + Probable
Reserve 160.6 39.2 121.4 3.1 0.56 219.1 0.15 58.1 0.1 5.3 0.2 6.3
----------------------- ------ ----- ------ ------ ----- ---------- ----- ---------- ---- ---- ---- ----
*as calculated by the Company with assistance from RPM. The
updated Ore Reserve is not considered to be JORC compliant until
sign off by a Competent Person (as defined by the JORC Code).
The total quantity of the Ore Reserve present at Maly Kurumkon /
Flangovy, Ikenskoe / Sobolevsky and Vodorazdelny was 39.2 million
tonnes of ore at a 3:1 stripping ratio. The average grade of the
Reserve is 0.56% Ni and 0.15% Cu. The three pits contain 219,100
tonnes of nickel and 58,100 tonnes of copper. By-product platinum
and palladium are also present in significant amounts (both
exceeding five tonnes). The nickel equivalent cut-off grade is
projected to be 0.34% at Ikenskoe / Sobolevsky, 0.36% at Maly
Kurumkon / Flangovy and 0.33% at Vodorazdelney.
The Company projected EBITDA for the Ore Reserve has been
estimated using long term nickel and copper pricing (RBC Dominion
Securities Inc.) is $US 1.06 billion. The EBITDA at the current
market price is estimated to be $US 732 million. The distribution
of the EBITDA by deposit follows.
Earnings Before Income Tax, Depreciation, and Amortisation
(EBITDA)
Nickel Copper Combined Ikenskoe Maly Kurumkon Vodorazdelny
Price Price Total Sobolevsky Flangovy (million)
(million) (million) (million)
---------- --------- ----------- ------------ -------------- -------------
8.50 / 3.25 /
lb lb
$18,730 $7,160
/ T / T $731.8 $232.3 $301.6 $197.9
---------- --------- ----------- ------------ -------------- -------------
9.50 / 3.12 /
lb lb
$20,940 $6,880
/ t /t $1,056.7 $335.5 $469,8 $251.5
---------- --------- ----------- ------------ -------------- -------------
The potential for reserve expansion is highly prospective with
successful infill drilling of existing Inferred Resources to that
of Measured or Indicated Resources. As a result, the Company has
requested that RPM also compile a second series of ultimate pit
designs that include all Mineral Resource classes. The resultant
pits will guide the Company in defining the extent of the infill
drill programme required at all deposits (especially Kubuk) whilst
simultaneously defining the potential reserve within the boundary
limits of its mining application. Results of the expansion
potential will be reported in due course.
Robin Young, CEO of Amur Minerals Corporation, commented:
"Having nearly a three quarter of a billion dollar EBITDA at
today's metal prices is highly encouraging and supports the Board's
belief that Kun-Manie will ultimately become one of the largest
nickel sulphide projects in the world. In light of the fact that
there are presently 70 million tonnes of Inferred Resource not
available for inclusion in our current Reserve assessment and that
our historical infill drill success rate has been high, we
anticipate an opportunity to take advantage of the economy of scale
by increasing the annual production rate at Kun-Manie. And this
does not include the substantial potential to define more resources
by simple step out drilling down dip and along strike where the
limits of mineral are not yet identified, which we believe the
future expansion of Resources and Reserves to be substantial."
Enquiries:
Company Nomad and Joint Public Relations
Amur Minerals Broker Yellow Jersey
Corp. S.P. Angel Corporate
Finance LLP
Robin Young CEO Ewan Leggat Dominic Barretto
Laura Harrison Kelsey Traynor
+44 (0) 7981 126 +44 (0) 20 3463 +44 (0) 77 6853
818 2260 7739
Notes to Editors
Amur Minerals Corporation
The Company's primary objective is to explore for base metals
deposits located within the Russian Far East. The Company controls
100% of the 950 square kilometre exploration licence of Kun-Manie.
Drilling has defined the presence of five nickel copper sulphide
deposits containing the by-product metals of cobalt, platinum and
palladium. The licence is located in Amur Oblast approximately 700
kilometres for the capital of Blagoveshchensk on the Chinese -
Russian border.
The Company is listed on the AIM Market in London, United
Kingdom and trades under the symbol AMC.L. Additional information
related to the Company can be viewed on its website
http://www.amurminerals.com .
Qualified Persons
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) and is a Qualified Professional
Geologist, as defined by the Toronto and Vancouver Stock Exchanges.
An employee of Amur for 10 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 RNS that has included
information derived by SRK, RPM, SGS and AMC's staff of
professionals.
Mr. A.E. Jack Swanson is the COO of Amur and has 49 years of
international experience. His roles have included executive
management positions wherein he was manager of various underground
and open pit mining operations. A participant in the compilation of
Bankable Studies for companies within which he was employed and for
internationally recognised mining consultancy companies, he led the
team in the compilation of the internally derived operating costs
utilised to define the Reserves reported within this RNS.
Reserve Discussion - The Process and Results
The definition of open pit ore quantities using open pit
optimisation computer software requires specific input parameters
to define reasonable and reliable results. The process requires
technical information related to the mining parameter and
metallurgical responses of the ore based on the operational design.
Most importantly, the operating costs to mine, process and
ultimately produce a final saleable product must be derived using
best engineering practices (first principle engineering) to
identify the profitable ore. This information allows for the
definition of the profitable material within an ultimate pit.
In 2007, SRK produced a Pre-Feasibility Study ("PFS") based on a
specific project design which indicated that the Company should
continue with exploration of the project and undertake specific
work to advance the project and potentially develop a mine at
Kun-Manie. The design basis consisted of the sulphide ore being
mined via open pit operations and delivered to a flotation
processing plant wherein a single concentrate would be generated
and subsequently delivered to a smelter for final processing into a
final saleable product. The study included a series of
recommendations. The primary focus was on increasing the level of
information related to understanding the metallurgical responses of
the ore and improving the recoveries of the metal.
Subsequent to the issuance of the 2007 PFS, the Company and
selected consultancies have both conducted work that has
specifically modified the considerations and design basis put forth
in the PFS. A redesign of the operation and substantial update was
identified as being necessary for the following reasons:
-- Exploration drilling has expanded the Maly Kurumkon (now Maly
Kurumkon / Flangovy) and Ikenskoe (now Ikenskoe / Sobolevsky)
deposits. Infill drilling has also been completed within portions
of the two deposits resulting in the conversion of Inferred
Resources to that of Indicated or Measured.
-- Two new deposits have been identified: Gorny and Kubuk. These
deposits have expanded the Resource further and are presently
classified as Inferred Resources.
-- The Mineral Resource statement was updated in December 2013
and is nearly twice that of 2007; classification of the Resources
has been significantly modified, impacting the availability of
Resources to be converted to Reserves.
-- The Company has opted to undertake the less capital intensive
approach of power generation by on-site power generation that will
be powered by diesel.
-- Access to the site by a 320 km road is critical to sustain
the operation. Concentrate must be transported from the proposed
mine to the Baikal Amur ("BAM") rail system for transshipment to a
smelter and resupply requirements have increased markedly to handle
fuel requirements for onsite power generation.
-- The expanded Ore Reserve has identified that the initial
tailing impoundment area has insufficient capacity. The plant and
associated impoundment area have been moved to an area allowing for
the necessary expansion. The relocation of the plant will increase
haulage distances.
-- Metallurgical test work has resulted in the determination of
higher recoveries into concentrate of all commodities as well as
the ability to suppress deleterious minerals (in particular MgO),
for which a penalty fee is paid at the smelter.
-- Rail transport costs have markedly increased with the
increased demand for rail transport. Available capacity is now
reduced within Russia, thereby increasing the costs related to
delivery of the concentrate to a smelter.
-- The Company considers that all operating costs from the 2007
PFS are outdated and do not account for inflation or the changes
related to the proposed update in the design of the operation as
noted above. The operating costs required substantial rework and
were updated to late Q1 2014 costs by the Company. First principle
engineering approaches were used. The average cost per tonne of ore
is projected to be $US 42.12 as opposed to the 2007 estimate of $US
20.00.
Given the above considerations, the Q1 2014 operating costs and
operational parameters required to define Reserves were
reconsidered and updated. The newly defined operating costs and
parameters to define Reserves within this RNS are presented
below
Mine Site Cost Per Ore Tonne Q1 2014 2007 PFS
$US
(AMC Sourced) $US
Mining Cost Per Tonne (including
haulage to plant) 6.15 3.46
Processing and Tailings 14.50 6.82
G&A 2.25 1.46
Transport From Mine to Rail 2.73 1.93
Smelting Cost Including Rail
Transport 16.49 6.33
Total Cost Per Ore Tonne 42.12 20.00
Mining Design Parameters (SRK
Sourced)
Overall Pit Slope Angles (Degrees) 45 50
Dilution 5% 5%
Losses 5% 5%
Metallurgical Recoveries (SGS
Sourced)
Nickel 78% 76%
Copper 90% 73%
Cobalt 69% 57%
Platinum 74% 51%
Palladium 82% 41%
Payable Metal Delivered to Smelter
(China Based)
Nickel 70% 70%
Copper 50% 50%
Cobalt 0% 0%
Platinum 0% 0%
Palladium 0% 0%
In accordance with JORC Code standards, Reserves must be based
upon those Resources classified as Measured and Indicated only.
Three of the five deposits at Kun-Manie contain these classes. The
total available Measured and Indicated resource is estimated to be
50.1 million tonnes averaging 0.54% Ni and 0.14% Cu. The contained
nickel is 268,900 tonnes with copper being 72,000 tonnes.
By-product platinum and palladium are also present in the amounts
of 7.0 and 8.1 tonnes, respectively. The Measured and Indicated
Resources represent approximately 40% of the total drill identified
resource.
JORC Measured and Indicated ("M+I") Only Resource Estimate - 2
December 2013
(zero cut off grade)
Orebody Tonnage Ni Ni Cu Cu Pt Pt Pd Pd
Mt % t % t g/t kg g/t kg
================= ======== ===== ======== ===== ======= ==== ====== ==== ======
Ikenskoe
Measured 14.9 0.52 77,100 0.13 19,700 0.2 2,700 0.2 3,000
Indicated 7.7 0.39 29,800 0.10 7,800 0.1 1,100 0.2 1,300
M+I Total 22.6 0.47 106,900 0.12 27,500 0.2 3,800 0.2 4,300
Vodorazdelny
Measured 0.8 0.57 4,700 0.17 1,400 0.3 200 0.3 200
Indicated 4.8 0.66 31,200 0.17 8,200 0.1 600 0.1 600
M+I Total 5.6 0.64 35,900 0.17 9,600 0.1 800 0.1 800
Maly Krumkon
Measured - - - - - - - - -
Indicated 21.8 0.58 126,100 0.16 34,900 0.1 2,400 0.1 3,000
M+I Total 21.8 0.58 126,100 0.16 34,900 0.1 2,400 0.1 3,000
Total Measured 15.8 0.52 81,800 0.13 21,100 0.2 2,900 0.2 3,200
Total Indicated 34.3 0.55 187,100 0.15 50,900 0.1 4,100 0.1 4,900
M+I Total 50.1 0.54 268,900 0.14 72,000 0.1 7,000 0.1 8,100
Runge, Pincock, Minarco ("RPM") of Australia, generated open pit
optimisations based on the preceding information. A series of
ultimate pits were generated for each of the deposits of Maly
Kurumkon / Flangovy, Vodorazdelny and Ikenskoe / Sobolevesky. Using
an undiscounted EBITDA value, the value of each pit advance
(commonly call a shell) was calculated. The Company established the
pit limit to be that last shell which provided a minimum EBITDA of
$US 10 million whilst simultaneously have a stripping ratio of less
than 20 tonnes of waste per tonne of ore. Results indicated the
nickel equivalent cut-off grade to be 0.34% at Ikenskoe /
Sobolevsky, 0.36% at Maly Kurumkon / Flangovy and 0.33% at
Vodorazdelney.
The global Ore Reserve was estimated at 39.2 million tonnes of
ore at a 3.1 tonnes of waste per tonne of ore stripping ratio. The
average grade of the Reserve is 0.56% Ni and 0.15% Cu. The
projected production from the open pits will result in the delivery
of 219,100 tonnes of nickel and 58,100 tonnes of copper to the
processing plant. By-product platinum and palladium are also
present in significant amounts. The August 2014 Company Ore Reserve
by deposit is summarised in the following table.
August 2014 Company Determined Ore Reserve Statement*
Strip Ni Cu
Deposit And Reserve Total Ore Waste Ratio Ni Tonnes Cu Tonnes Pt T Pd T
Class
Mt Mt Mt t/t % (1,000's) % (1,000's) g/t g/t
Ikenskoe / Sobolevsky
Proved 12.7 0.53 67.2 0.13 16.5 0.2 2.3 0.2 2.6
Probable - - - - - - - - -
Proved and Probable 44.8 12.7 32 2.5 0.53 67.2 0.13 16.5 0.2 2.3 0.2 2.6
----------------------- ------ ----- ------ ------ ----- ---------- ----- ---------- ---- ---- ---- ----
Maly Kurumkon
/ Flangovy
Proved - - - - - - - - - -
Probable 21.5 0.0 0.55 118.5 0.15 32.9 0.1 2.2 0.1 2.8
Proved and Probable 0 21.5 0 0.0 0.6 118.5 0.2 32.9 0.1 2.2 0.1 2.8
----------------------- ------ ----- ------ ------ ----- ---------- ----- ---------- ---- ---- ---- ----
Vodorazdelny
Proved 0.9 0.0 0.57 5.1 0.17 1.5 0.3 0.2 0.3 0.2
Probable 4.1 1.0 0.69 28.3 0.18 7.2 0.1 0.5 0.1 0.5
Proved and Probable 9.1 5 4.1 0.8 0.67 33.4 0.18 8.7 0.2 0.8 0.2 0.8
----------------------- ------ ----- ------ ------ ----- ---------- ----- ---------- ---- ---- ---- ----
Total Reserve
Proved 13.6 0.53 72.4 0.13 18.0 0.2 2.5 0.2 2.9
Probable 25.6 0.57 146.8 0.16 40.1 0.1 2.7 0.1 3.4
---------- ---------- ---- ----
Proved + Probable
Reserve 160.6 39.2 121.4 3.1 0.56 219.1 0.15 58.1 0.1 5.3 0.2 6.3
----------------------- ------ ----- ------ ------ ----- ---------- ----- ---------- ---- ---- ---- ----
*as calculated by the Company with assistance from RPM. The
updated Ore Reserve is not considered to be JORC compliant until
sign off by a Competent Person (as defined by the JORC Code).
A summary of the EBITDA by deposit and the cumulative total is
indicated to be approximately $US 732 million at recent metal
prices.
Earnings Before Income Tax, Depreciation, and Amortisation
(EBITDA)
Nickel Copper Combined Ikenskoe Maly Kurumkon Vodorazdelny
Price Price Total Sobolevsky Flangovy (million)
(million) (million) (million)
---------- --------- ----------- ------------ -------------- -------------
$8.50 3.25 /
/ lb lb
$18,730 $7,160
/ T / T $731.8 $232.3 $301.6 $197.9
---------- --------- ----------- ------------ -------------- -------------
$9.50 3.12 /
/ lb lb
$20,940 $6,880
/ t /t $1,056.7 $335.5 $469,8 $251.5
---------- --------- ----------- ------------ -------------- -------------
Cautionary Note
The materials presented herein contain assumptions that may
change in the future as additional information becomes available.
The Company has defined reserves based on internally derived
unaudited first principle engineered operating costs. The reserves
are defined based on EBITDA estimates and long term pricing
projections which may vary from those experienced in the future. A
comprehensive cash flow model update is required to determine the
net present value ("NPV") and internal rate of return ("IRR") of
the EBITDA. Work is in progress to evaluate the project using newly
defined operational and capital cost parameters. Results will be
utilised development a capital expenditure schedule reflecting the
construction and maintenance of the operation.
Whilst the Company has followed JORC Code guidance in relation
to the classification of Mineral Resources and Ore Reserves when
calculating the updated Ore Reserve, the updated Ore Reserve as
referred to in this announcement is not considered to be JORC
compliant until it has been signed off by a Competent Person (as
defined by the JORC Code).
Glossary
DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES
EXTRACTED FROM THE JORC CODE: (December 2012) (www.jorc.org)
The Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves ('the JORC Code') is a
professional code of practice that sets minimum standards for
Public Reporting of minerals Exploration Results, Mineral Resources
and Ore Reserves.
The JORC Code provides a mandatory system for the classification
of minerals Exploration Results, Mineral Resources and Ore Reserves
according to the levels of confidence in geological knowledge and
technical and economic considerations in Public Reports.
Public Reports prepared in accordance with the JORC Code are
reports prepared for the purpose of informing investors or
potential investors and their advisors. They include, but are not
limited to, annual and quarterly company reports, press releases,
information memoranda, technical papers, website postings and
public presentations of Exploration Results, Mineral Resources and
Ore Reserves estimates.
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.
A 'Probable Ore Reserve' is the economically mineable part of an
Indicated, and in some circumstances, a Measured Mineral Resource.
The confidence in the Modifying Factors applying to a Probable Ore
Reserve is lower than that applying to a Proved Ore Reserve.
Consideration of the confidence level of the Modifying Factors is
important in conversion of Mineral Resources to Ore Reserves. A
Probable Ore Reserve has a lower level of confidence than a Proved
Ore Reserve but is of sufficient quality to serve as the basis for
a decision on the development of the deposit.
A 'Proved Ore Reserve' is the economically mineable part of a
Measured Mineral Resource. A Proved Ore Reserve implies a high
degree of confidence in the Modifying Factors. A Proved Ore Reserve
represents the highest confidence category of reserve estimate and
implies a high degree of confidence in geological and grade
continuity, and the consideration of the Modifying Factors. The
style of mineralisation or other factors could mean that Proved Ore
Reserves are not achievable in some deposits.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAXPXADSLEFF
Amur Minerals (LSE:AMC)
Historical Stock Chart
From Apr 2024 to May 2024
Amur Minerals (LSE:AMC)
Historical Stock Chart
From May 2023 to May 2024