TIDMAMC
RNS Number : 3066J
Amur Minerals Corporation
20 August 2021
20 August 2021
AMUR MINERALS CORPORATION
(AIM: AMC)
Kun-Manie TEO Submitted For Review
Amur Minerals Corporation ("Amur" or the "Company"), the
exploration and resource development company, is pleased to
announce that Oreall LLC ("Oreall") has completed the Permanent
Conditions Report ("TEO") on its far east Russia Kun-Manie nickel
copper sulfide project. Oreall's analysis and documentation is
complete and is now undergoing the mandatory review process by the
Russian Government Commission for Natural Resources Reserves
("GKZ"). Completion of the GKZ review will establish the reserves
available for open pit mining at its "Detailed Exploration and
Mining Production" licence (BLG 15883 TE). Subsequent approval, the
reserves will be utilised to establish the Russian approved mine
plan for Kun-Manie.
Oreall results are based on the cumulative exploration
information and comprehensive technical reports on mining,
processing, metallurgical recoveries, engineering, intermediate
product generation of both nickel and copper concentrates,
environmental setting, transport and non-binding offtake agreements
specific to the Kun-Manie mineralisation. Moscow based Oreall has
compiled Russian based project specific operating and capital cost
estimates using a team of industry recognised specialists /
experts. Oreall has concluded and states that Kun-Manie is ready
for industrial development.
AMC notes that reserves reported herein are in accordance with
Russian reserve reporting standards as JORC standards are not
utilised in the definition or classification of mineralisation in
the Russian Federation. There are three Russian categories
identified as B, C(1) and C(2) . Those that are within an open pit
or mined as ore from underground openings are reported as
in-balance reserves whilst those not mined or below cutoff grade
are off-balance reserves. Per the Committee for Mineral Reserves -
International Reporting Standards ("CRIRSCO"), Russian and western
resources / reserves are correlative. Russian B reserves equate to
Proved when within a pit with Russian C(1) approximating Probable
Mineral Reserves.
Summary:
-- Based on Oreall's independent calculation of operating costs,
metallurgical recoveries of metals (economically dominated by
nickel and copper) into two saleable battery precursor concentrate
products, the nickel cutoff grade is calculated to be 0.3% nickel
only. Revenue is based on a presently conservative nickel price of
US$ 13,300/t (US$ 6.00/lb - US$ 8.40/lb today) and a copper price
of US$5,960/t (US$2.70/lb - US$ 3.98/lb today). Metal recoveries
are anticipated to be 73.5% for nickel and 52.3% for copper.
-- For now, production will be completed using open pit mining
methods only. A minimum mining thickness of five meters has been
utilised, intercalated waste of up to five meters is included and
pit slope analyses have identified numerous mine slope angles based
on pit wall location, dip direction and rock type. Pit slopes will
vary from 37(o) to 55(o) . Mining losses are projected to be 2.6%
with dilution of 8.8%.
-- In-balance B + C1 + C2 totals 150.0 million ore tonnes
averaging 0.77% nickel (1.15 million tonnes), 0.21% copper (0.32
million tonnes) and 0.015% cobalt (22.7 thousand tonnes). An
additional off-balance tonnage ranging from 13.3 million to 14.9
million tonnes (C(1) + C(2) ) averaging 0.64% nickel, 0.18% copper
and 0.012% cobalt is located external the Lerchs Grossman 0.3%
ultimate pit limit boundaries.
-- Russian B + C1 reserve inclusive of in-balance and
off-balance totals 144.2 million ore tonnes containing 1.10 million
nickel tonnes and 304 thousand copper tonnes. In the 30 June 2021
RNS, the RPM Asia JORC Measured and Indicated (CRIRSCO) resource
totaled 148.3 million ore tonnes containing 1.11 million nickel
tonnes and 310 thousand copper tonnes. Russian and JORC equivalent
resources are virtually identical.
-- Mine ore production and the nominal mill throughput at six
million tonnes per annum indicates a potential mine life in the
order of 25 years. Oreall has determined that the reserve base is
substantial and suitable to potentially sustain an 11.2 million
tonne per year throughput.
-- Open pit mining operating costs per ore tonne including waste
totals US$ 14.79. All other costs per ore tonne total $33.25 per
ore tonne.
-- The initial and life of mine sustaining capital costs are
projected to be approximately US$ 1.0 billion. Working capital
expenditures are projected to be US$ 83 million.
Key portions of the report remain to be translated from Russian.
Upon completion of the translation, a comparative analysis of the
results generated by Oreall for the TEO and the independently
compiled February 2019 Pre-Feasibility Study ("PFS") will be
provided. There are substantial upgrades and modifications to the
February 2019 PFS. Many of which are related to metallurgical
improvements by the development of a flowsheet allowing for the
capture of two concentrate products.
Robin Young, CEO of Amur Minerals, commented:
"Submission of the independently compiled Permanent Conditions
TEO in now complete. Going forward, the process will include a
series of meetings between our team and the experts of various
disciplines representing the GKZ. These are best viewed as
negotiations, modifications and updates to the report. There is a
calendar to completion of the work which is presently being
finalised by the GKZ representative appointed to our Kun-Manie
project. We shall revert once the schedule and key decision points
are established."
Comments on bulletin board speculation of funding
We note that there has been speculation on the internet
regarding the inclusion of the Kun-Manie nickel copper project as a
priority mining investment project for the Amur Region within the
Plan for Social Development of Economic Growth Centre in the Amur
Region, approved by the order of the Government of the Amur Region
(as amended 1 July 2021). This is only an amendment to older
documents and approvals. Kun-Manie was approved and listed in 2015.
This confusion occurs intermittently and is most often resurfaces
when Amur Oblast updates budgets and schedules expenditures which
includes already listed priority projects.
We recommend that shareholders and those that are interested
follow the various links that have been provided on the bulletin
boards, fully read and digest the substantial information contained
therein, especially as to how a project becomes a priority project
and what is needed to obtain funding. Note, being on the list does
not mean new funding has been provided, a company has access to
funding. The Company works closely with a large number of agencies
in Russia to secure funding for Kun-Manie and will announce any
funding that is secured.
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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