10 March 2014
AMUR MINERALS CORPORATION
(AIM: AMC)
AEROSCRAFT AND AMUR MINERALS CORPORATION (AIM: AMC)
SIGN MEMORANDUM OF UNDERSTANDING
MOU TO EXPLORE INFRASTRUCTURE DEVELOPMENT REDUCTION
VIA USE OF AEROSCRAFT FLEET
Amur Minerals Corporation ("Amur" or the "Company"), a nickel copper sulphide exploration and development company, is pleased to announce that it has entered into a Memorandum of Understanding ("MOU") with Aeroscraft Corporation (Aeros), America's most innovative FAA-certified lighter-than-air (LTA) manufacturing company, to establish a strategic partnership to explore utillisation of Aero's heavy lift vehicles in supporting project logistics on the Company's proposed base metal operation located in the far east of Russia.
The MOU considers the potential to utilise Aeros heavy lift vehicles to reduce the high start-up capital cost requirements related to accessing the Company's Kun-Manie project. The Kun-Manie nickel copper sulphide project, with JORC resources in excess of an 830,000 nickel equivalent tonnes and a positive independently compiled prefeasibility study ("PFS") by SRK Consulting Ltd ("SRK"), requires the construction of a 320 kilometre long access road to the site. The successful completion and development of the Aeros vehicles, a new type of Rigid Variable Buoyancy Air Vehicle, designed to control lift in all stages of air or ground operations, including the ability to off-load heavy payloads without the need to re-ballast, and their subsequent use could eliminate the need for the construction of an access road to the project site. In addition, the design, engineering and construction lead time can potentially be eliminated providing a shortened construction phase.
Emerging Partnership Overview:
· The Company and Aeroscraft are in discussion to undertake the utilisation of two Aeroscraft ML868 (250 tonne lift) vehicles on a multi-year basis to move equipment, supplies, materials and concentrate to and from the Kun-Manie project site. Use of the ML868's could result in the Company not having to construct an access road from the rail station at Verknezeisk to the project. This could result in the elimination of at least $US 140 million in road construction costs as estimated in the SRK Consulting Ltd ("SRK") prefeasibility study ("PFS). In addition, rail and truck freight costs could be substantially reduced.
· Amur would be a launch partner for the Aeroscraft ML868 vehicles.
· The intent of the Company and Aeroscraft is to enter into a service user/customer agreement once the companies have mutually established the transport requirements, costs, benefits and structure of a commercial relationship on the successful launch of the ML868 anticipated within the next two years, which falls within the Company's time frame to implement construction.
· By taking advantage of the Aeroscraft innovative capabilities such as vertical takeoff and landing, independence from ballast, a cargo handling system, fuel efficiency, and its successful launch, the Company would also eliminate the environmental impact related to the construction and operation of the road as well as numerous bridges required to access the remote project.
· The flexibility of the Aeroscraft system could allow the Company to deliver materials directly to the site from the original supplier facilities. This could reduce transport costs related to the haulage of supplies to the site. Concentrate could also be delivered directly to year round operational port facilities for the delivery of the nickel, copper, cobalt and PGM product to a smelter. Fuel could be transported directly from the refinery to the site.
Commenting on today's partnership, Robin Young, CEO of Amur Minerals Corporation, stated:
"The Board is pleased to announce the MOU with Aeroscraft Corporation. This partnership in the innovative use of developing heavy lift transport could substantially reduce our anticipated capital expenditure to develop Kun-Manie and shorten the upfront construction period. We look forward to providing additional updates as Aeroscraft moves toward its final release of its commercial vehicles."
Igor Pasternak, CEO of Aeroscraft Corporation, added:
"Amur's proposed resource-rich mining operation in the Russian Far East for whom Aeroscraft utilisation will disrupt infrastructure development requirements and reduce capital expenditures, streamline intermodal logistics, and lessen environmental impacts. We look forward to a long and productive partnership that should add significant value for investors of both organizations."
Enquiries:
Company Amur Minerals Corp. |
Nomad and Broker S.P. Angel Corporate Finance LLP |
Public Relations Yellow Jersey |
Robin Young CEO |
Ewan Leggat Laura Littley |
Dominic Barretto Kelsey Traynor |
+44 (0) 7981 126 818 |
+44 (0) 20 3463 2260 |
+44 (0) 77 6853 7739 |
|
|
Public Relations Aeroscraft Company John Kiehle Director of Communications 1 (323) 201-8374 or [email protected] Erica Irigoyen PR Associate 1 (323) 201-8373 [email protected] |
Notes to Editors
About Amur Minerals:
Amur Minerals Corporation (AMC) is a developing mineral exploration company focused on base metal projects in the far east of Russia. The Company's principal asset is the Kun-Manie sulphide nickel, copper project located in Amur Oblast, with JORC resources in excess of an 830,000 nickel equivalent tonnes and a positive independently compiled prefeasibility study ("PFS) by SRK Consulting Ltd ("SRK"). During the last ten years, five deposits have been identified and drilled at Kun-Maine. The mineral inventory contains Measured, Indicated and Inferred resources totaling 120.8 million tonnes with an average grade of 0.54% nickel and 0.15% copper. The total contained tonnage of nickel is estimated to be 650,600 tonnes with copper being 178.400 tonnes. This equates to 1.4 billion pounds of contained nickel and 0.4 billion pounds of copper. A total of 16.9 tonnes of platinum and 18.0 tonnes of palladium are also present as by product metals.
In 2007, a positive prefeasibility study ("PFS") was compiled by SRK Consulting Ltd ("SRK") wherein capital and operating costs estimates were compiled and an NPV of $US 84 million (10% discount rate) was determined. The design of the project was based on three drilled deposits identified at that time. Three open cast mines would provide sulphide ore to a conventional flotation mill designed to beneficiate 4.0 million tonnes of ore per annum. In order to construct, supply and maintain the operation, a 320 kilometre long access road from the nearest rail station on the BAM rail line to the east where the proposed mine is to be located. The road must be completed to permit the construction of the operation as well as resupply the site. The road would also be utilised to transport saleable concentrates to the rail system for ultimate delivery to a smelter located 5,300 kilometres distant.
The PFS detailed design of the road consisted of a one lane width with a signal switching system permitting two-way traffic. The final construction cost was estimated to be in the order of $US 140 million which included cost savings by the use of existing roads present along the planned route. This road cost centre represented nearly 40% of the SRK initial capital cost estimate of the operation. The cost per kilometre to construct the road ranged from $US 150,000 (flat lying to rolling hills) to $US 1,000,000 (in mountain terrain). Transport costs of supplies, materials and concentrates was projected to average approximately $US 19.95 per tonne. The rail transport cost for the concentrate was estimated to be in the order of $US 39.50 for the concentrate. Therefore, the total transport related costs per tonne were estimated to be of the order of $60.00 in Q4 2007 dollars.
Over the course of the last six months, the Company has reviewed the design of the road and associated costs to account for inflation and to consider various upgrades to the proposed road allowing access the project site. The design was upgraded to allow for swifter full dual direction traffic and to increase the usage of the road to a full year round operation consisting of 350 days. The upgrade also included design parameters allowing for an expansion of the operation from 4.0 to 6.0 million tonnes per year thereby taking advantage of the economy of scale and allowing for an increase in annual mill throughput. The 2.0 million tonne per year increase in mill capacity could result in the delivery of 50% more saleable metal per year. This increase in throughput may be possible due to the expansion of the resources identified since the 2007 PFS and is presently being examined in greater detail during the presently ongoing evaluation of open cast production from five deposits instead of the three available to SRK during the completion of the 2007 PFS.
The average cost to transport a tonne of material over the road from the site to the rail station is now estimated by the Company to be approximately $40.00 per tonne. The increase in the road transportation costs included the additional upgrade of full maintenance, snow removal and repair crews and equipment, way stations / rest stops and emergency facilities.
The rail transport costs per tonne have also substantially increased since the SRK PFS was compiled in 2007. The newly provided rail transport rates to deliver the concentrate to the smelter are in the order of $US 160.00 per tonne including loading and offloading of concentrate.
The Company is now working with Aeros and has provided a schedule of tonnage deliverable to and from the site over the course of the construction cycle and operational period of the 4.0 million tonne a year operation. During the anticipated two year construction period, approximately 23,000 tonnes of materials will be moved to the site. Once full scale operation is attained, an average of 57,000 to 80,000 tonnes of consumable material will have to be delivered to the site. Concentrate to be transported from the operation to a year round open sea port will total from between 250,000 and 480,000 tonnes.
The current conceptual design is to deliver the concentrate from the proposed mine site to the port at Vanino located 880 kilometres to the southeast. Returning from the port, the craft will load fuel and consumables at Komsomolsk na Amur to resupply the mine located 620 kilometres away. Both Vanino and Komsomolsk na Amur are along the same flight path. By successful implementation of the Aeros system, the Company could substantially benefit from lower startup capital expenditures and the potential reduction in transport costs for both consumables required to support the proposed operation and the shipment of concentrate to a smelter.
The Company and Aeros are evaluating the requirements and configuration of the heavy lift system to establish the related costs and specific configuration of the fleet with regard to size and number. The Company notes that the newly estimated costs have been derived internally and are based on first principles. These will be independently verified in the future.
For more information on the Company and its project, see its website at www.amurminerals.com.
About Aeros:
Founded 27 years ago in the US, the Aeroscraft Corporation (Aeros) has grown from a small aerostat production manufacturer to a leading FAA-certified airship producer and R&D firm for the aerospace industry. Aeros has achieved multiple FAA airship type certificates and operates with an FAA Production Certificate, while featuring a product line that includes advanced airships and tethered aerostats utilised in commercial and government applications throughout the world. Learn more at www.aeroscraft.com
An Aeroscraft is a new type of Rigid Variable Buoyancy Air Vehicle, designed to control lift in all stages of air or ground operations, including the ability to off-load heavy payloads without the need to re-ballast. For the first time in history, an aircraft has been designed to control and adjust buoyant and dynamic lift, creating a new paradigm for global air transportation and logistics. Poised to enhance the air transportation industry, the Aeroscraft will deliver opportunities for business and consumers globally through access to remote locations and by new vertical takeoff and landing ("VTOL") cargo delivery capabilities. The key features of the Aeroscraft include a rigid structure, vertical takeoff and landing, and operational abilities at low speed, in hover, and from unprepared surfaces.
The Aeroscraft vehicle is a vertical logistical solution to many of the difficulties facing the cargo world today, and is poised to disrupt the current hub-and-spoke distributional model characterised by intermodal cargo transfers and distribution delays. The benefits of the Aeroscraft are expected to be globally transformational and significant to humanity. The Aeroscraft fleet will introduce global point-to-point air cargo delivery services for oversised and overweight project cargos, as well as general cargo, with capability to deliver to virtually any topographical location in under 72 hours. The network of globally positioned Aeroscraft vehicles will help take the chain out of the current supply chain while providing Aeros' clients unlimited transcontinental reach.
