TIDMAMC
RNS Number : 5616D
Amur Minerals Corporation
30 June 2021
30 June 2021
AMUR MINERALS CORPORATION
(AIM: AMC)
Kun-Manie JORC Resource Update
1.3 Mt of Nickel, 0.37 Mt of Copper
Amur Minerals Corporation ("Amur" or the "Company"), the
nickel-copper sulphide exploration and resource development company
focused on the far east of Russia, is pleased to announce RPM
Global's ("RPM") 25 June 2021 update to the Mineral Resource
Estimate ("MRE") for its 100% owned Kun-Manie project
("Kun-Manie").
The MRE update includes all existing drill and trench results.
The resource is contained within three deposits identified as Maly
Kurumkon / Flangovy ("MKF"), Vodorazdelny ("VOD") and Ikenskoe /
Sobolevsky / Kubuk ("ISK"). Based on a 0.3% nickel equivalent
cut-off grade ("COG"), the global JORC ore tonnage has increased by
19.2 million tonnes ("Mt") (12.4%) to 174.3 Mt, by 156,000 nickel
tonnes (13.5%) to 1.31 Mt of nickel (averaging 0.75% nickel) and by
53,000 copper tonnes (16.6%) to 372,000 copper tonnes (averaging
0.21% copper).
Of the global resource available for utilisation in the
development of a JORC Mining Ore Reserve ("MOR"), only Measured and
Indicated categories qualify for inclusion. The global Measured
plus Indicated resource now consists of 148.3 million ore tonnes
containing 1.11 Mt nickel (averaging 0.75% nickel) and 0.31 million
tonnes copper (averaging 0.21% copper). An additional 29.4 Mt
Inferred ore tonnes averaging 0.69% nickel (204,000 nickel tonnes)
and 0.20% copper (58,000 copper tonnes). By-product metal content
have been estimated for cobalt, platinum, palladium, gold and
silver, but are not reported herein as the nonbinding offtake
payable terms for the by-product metals is limited.
RPM has stated that in-fill drilling of the existing Inferred
resources could expand the Measured and Indicated resource, and the
limits of the mineralisation have not been fully defined in the
down dip directions and in other areas where limited drilling
indicates the presence of mineralisation within the licence
boundary limits.
Robin Young, CEO of Amur Minerals, commented:
"The newly released JORC resource estimate on the Kun-Manie
nickel copper sulphide deposit is a major step in the update to all
future study work associated with western market and funding. Not
only has the resource been expanded but the resource categories
suited for the definition of JORC mining reserves have also been
increased by as much as 25%. Copper will serve to provide
additional revenues which had been completely excluded in our
February 2019 operational base case. That base case was then
comprised of a single nickel only payable concentrate sold into one
of the three major nickel consuming nations of China, Japan and
South Korea. The addition of the copper revenue will likely have a
material impact on the results presented in the independently
audited February 2019 PFS."
Summary:
-- The JORC resource estimate is based on 0.3% nickel equivalent
COG whereas the previous resource COG was 0.4% nickel. The COG
reduction is based on the Oreall TEO study work operating cost
estimates, metallurgical recoveries (derived by Gipronickel
Institute) of 78.9% for nickel and 54.9% for copper and commodity
prices for nickel was US$ 13,224/t (US$ 6.00/lb) and US$ 5,958/t
(US$ 2.70/lb).
-- The reduction in the COG is primarily due to the
metallurgical test results by Gipronickel which confirmed that two
revenue generating concentrate products (nickel and copper) could
be produced. Previous resource estimates were based on a single
nickel only payable concentrate being produced with zero revenue
contribution being derived from the copper. The addition of the
copper revenue more than offsets the decrease in the metal prices
used in the February 2019 utilised metal price for nickel (US$
17,632/t, US$ 8.00/lb).
-- The JORC resource is based solely on the mineral resources
that fall within an open pit mine production scenario defined by a
US$ 15,869/t (US$ 7.20/lb) pit shell.
-- The total Kun-Manie resource has been expanded from 155.1
million ore tonnes to 174.3 million ore tonnes, an increase of
12.4% in the ore tonnage. Nickel and copper grades for the JORC
resource are 0.75% nickel (previously 0.75% nickel) and 0.21%
copper (previously 0.21% copper) with an increase in total
contained nickel from 1.157 Mt to 1.313 Mt (13.5%) and total
contained copper from 319,000 tonnes to 372,000 tonnes (16.6%).
-- The Measured (20.1 Mt of ore) plus Indicated (128.2 Mt of
ore) resource has been increased from 118.2 million ore tonnes to
148.3 million ore tonnes (25.5%). Total contained nickel and copper
tonnages increased from 867,000 nickel tonnes to 1.11 Mt nickel and
copper also increased from 237,000 tonnes to 310,000 tonnes of
copper. This portion of the resource inventory can be utilised in
the definition of proven and probable JORC reserves and its
subsequent inclusion in further feasibility study work.
-- Resource expansion is present wherein 29.4 Mt of Inferred
resource could be upgraded by in-fill drilling, the down dip limits
of the mineralisation have not yet been fully identified and the
identified drill targets of Gorny and Falcon have not been
sufficiently drilled nor estimated.
-- The Kun-Manie nickel copper sulphide deposits contain the
commodities suitable for inclusion in the manufacture of batteries
for Electronic Vehicles ("EV") and large scale power storage
facilities (national power grid type). Nickel is a key component
for EV batteries, whilst copper will be required for electrical
grid expansion and for the numerous charging stations needed to
support the electrification of the transport industry.
-- The RPM resource inventory (Measured plus Indicated plus
Inferred) is mutually supported by the independent Russian
consultant (Oreall) which has also compiled a resource estimate for
inclusion in the mandatory TEO report. At a 0.3% nickel equivalent
COG, Oreall reports the deposits of MKF, VOD and ISK contain 168.1
Mt of ore (174.3 Mt for RPM)), 0.76% nickel (0.75% nickel RPM) and
0.21% copper (0.21% copper RPM). The total tonnes of nickel and
copper projected to be present via Russian resource estimation
methods is 1.28 Mt nickel (1.32 Mt nickel RPM) and 353,000 copper
(368,000 copper RPM tonnes).
A summary of the 25 June 2021 RPM independently compiled MRE for
the three deposits and the total project inventory follow:
Kun-Manie Nickel Copper Sulphide Mineral Resource Estimate
(0.3% Ni Eq COG - Above Revenue Factor 120% Pit Shell)
Resource Classification Ore Ni Cu Ni T Cu T
Mt % % (1,000's) (1,000's)
Maly Kurumkon / Flangovy
Measured 7.3 0.76 0.22 55 16
------ ----- ----- ----------- -----------
Indicated 38.0 0.80 0.22 300 84
------ ----- ----- ----------- -----------
M+I 45.3 0.79 0.22 355 100
------ ----- ----- ----------- -----------
Inferred 3.1 0.79 0.23 24 7
------ ----- ----- ----------- -----------
MKF TOTAL 49.0 0.79 0.22 380 110
------ ----- ----- ----------- -----------
Ikenskoe / Sobolevskey /Kubuk
Measured 11 0.70 0.19 77 21
------ ----- ----- ----------- -----------
Indicated 88 0.74 0.21 650 180
------ ----- ----- ----------- -----------
M+I 99 0.74 0.20 727 201
------ ----- ----- ----------- -----------
Inferred 25 0.68 0.19 170 48
------ ----- ----- ----------- -----------
ISK TOTAL 120 0.72 0.20 890 250
------ ----- ----- ----------- -----------
Vodorazdelny
Measured 1.8 0.84 0.24 15 4
------ ----- ----- ----------- -----------
Indicated 2.2 0.80 0.22 17 5
------ ----- ----- ----------- -----------
M+I 4.0 0.80 0.23 32 9
------ ----- ----- ----------- -----------
Inferred 1.3 0.78 0.22 10 3
------ ----- ----- ----------- -----------
VOD TOTAL 5.3 0.81 0.23 43 12
------ ----- ----- ----------- -----------
TOTAL KUN-MANIE
Measured 20.1 0.73 0.20 147 41
------ ----- ----- ----------- -----------
Indicated 128.2 0.75 0.21 967 269
------ ----- ----- ----------- -----------
M+I 148.3 0.75 0.21 1,114 310
------ ----- ----- ----------- -----------
Inferred 29.4 0.69 0.20 204 58
------ ----- ----- ----------- -----------
GLOBAL TOTAL 174.3 0.75 0.21 1,313 372
------ ----- ----- ----------- -----------
TEO Resource (0.3% Ni COG)
All (B, C1,
C2) 168.1 0.76 0.21 1,279 353
------ ----- ----- ----------- -----------
Notes by RPM:
1. Totals may differ due to rounding, Mineral Resources reported
on a dry in-situ basis.
2. The Statement of Estimates of Mineral Resources has been
compiled under the supervision of Mr. David Allmark who is a
full-time employee of RPM and a Member of the AusIMM and AIG. Mr.
Allmark has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity that he has undertaken to qualify as a Competent Person as
defined in the JORC Code (2012).
3. All Mineral Resources figures reported in the table above
represent estimates at 19th February, 2021. Mineral Resource
estimates are not precise calculations, being dependent on the
interpretation of limited information on the location, shape and
continuity of the occurrence and on the available sampling results.
The totals contained in the above table have been rounded to
reflect the relative uncertainty of the estimate. Rounding may
cause some computational discrepancies.
4. Mineral Resources are reported in accordance with the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (The Joint Ore Reserves Committee Code -
JORC 2012 Edition).
5. Mineral Resources have been calculated at a cut-off grade of
0.3% Ni Eq inside a 1.2 revenue factor optimised pit shell based on
metal prices of USD 13,224/t Ni and USD 5,958/t Cu, mining loss and
dilution of 5%, nickel recovery of 78.9% and copper recovery of
54.9% and open pit mining and processing parameters as used in a
Russian Feasibility Study.
6. Mineral Resource have been reported at a cut-off grade of
0.3% Ni Eq inside a 1.2 times revenue factor optimised pit shell.
The pit shell was based on metal prices of US$ 15,869/t Ni and US$
7,150/t Cu (equivalent to 120% of metal prices of US$ 13,224/t Ni
and US$ 5,958/t Cu). RPM compared the metal prices of US$ 13,224/t
Ni and US$5,958/t Cu with the Long Term Consensus forecast prices
as at November 2020, found these metal prices conservative, and
considered them reasonable. Other key parameters used were a mining
loss and dilution of 5%, nickel recovery of 78.9% and copper
recovery of 54.9% and open pit mining and processing parameters as
used in a Russian Feasibility Study.
Company Nomad and Broker Public Relations
Amur Minerals Corp. S.P. Angel Corporate Blytheweigh
Finance LLP
Robin Young CEO Robert Morrison Megan Ray
Adam Cowl Tim Blythe
+44 (0) 207 7138
+7 (4212) 75 56 15 +44 (0) 203 470 0470 3204
For additional information, visit the Company's website,
www.amurminerals.com.
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
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,
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 RPM Global.
For further information, see the Company website at
www.amurminerals.com .
Mineral Resource Statements - Competent Person's Criteria
Amur Minerals Corporation reports resources based on JORC 2012
standards. This requires that the Mineral Resource Estimates
("MRE") be independently compiled from audited information attained
using best industry practices. AMC has engaged RPM Global ("RPM")
as the qualified company responsible completion of this important
and mandatory task to assess its Kun-Manie nickel copper sulphide
project located in the far east of Russia.
RPM have conducted the mandatory site visit allowing it to audit
the Company's field procedures, sample handling and preparation
techniques, analytical procedures, results and Quality Assessment /
Quality Control ("QAQC") systems (check assaying) that it
implements. RPM confirms that AMC has undertaken its exploration
programmes using industry best practices enabling AMC to issue this
update to the global MRE within the boundary limits of the
Kun-Manie detailed exploration and mining property limits and that
it is reported in accordance with JORC (December 2012)
standards.
Material Considerations in Compilation of the Mineral Resource
Estimates
Modelling of the mineralisation includes the following specific
considerations:
-- An MRE must have the potential to become a mine based on
reasonable mining and processing information whilst simultaneously
demonstrating the potential to represent an economically viable
operation. For the RPM study results at Kun-Manie, mining by open
pit has been confirmed by RPM with available metallurgical test
work confirming an economically marketable concentrate can be
generated. RPM has also reviewed projected operating costs. The
combination of these results allows AMC to report JORC compatible
resource statements.
-- For Kun-Manie, mineralisation is defined to be those
continuous zones that can be identified and modeled. A natural
cut-off grade ("COG") exists at approximately 0.3% nickel providing
the basis for determining the limits of the mineralisation.
Resources are reported using a 0.3% nickel equivalent COG which
allows the Company to derive JORC reserves and ultimately
production schedules based on an open pit production method.
Glossary
DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES
EXTRACTED FROM THE JORC CODE: (December 2012) (www.jorc.org)
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.
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