Successful 2015 Drill Season Complete

 

05 November 2015

 

AMUR MINERALS CORPORATION

(AIM: AMC)

 

Successful 2015 Drill Season Complete

Maly Kurumkon / Flangovy Resource Expansion Anticipated

 

Amur Minerals Corporation ("Amur" or the "Company"), the nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, is pleased to inform shareholders that it has successfully completed the third and final phase of its 2015 drill season in the Maly Kurumkon ("MK") area of its Maly Kurumkon / Flangovy ("MKFL") deposit.  During the third phase, 755.5 metres within five holes continued to confirm the mineralised thicknesses and grades defined by historical holes.  At season end, a total of 5,821.4 metres had been drilled in 21 holes that intersected ore.  Globally, the 2015 drill programme accomplished the planned objective of establishing the continuity of the mineralisation.  Additionally, the resource was expanded with successful step out drilling and identification of discrete high grade lenses suitable for underground mining.

 

Highlights

 

·     The continuity of the mineralisation has now been established on 100 metre spaced drill sections covering 1,500 metres of the 2,000 metre long MKFL deposit.  The westernmost area of MK which contains Inferred resource requires infill drilling in the future.

 

·     The 2015 infill drill programme focused on a 1,200 metre long area including all of the Flangovy ("FL") mineralisation and the eastern 400 metres of the MK mineralisation.  The average grade of the 2015 drill results is 0.83% nickel and 0.22% copper.  The average thickness per ore hole is 25.7 metres. 

 

·     As a part of the drill programme, an 800 metre long segment of Inferred resources located in the Flangovy area ("FL") was successfully drilled.  The average thickness per hole intersecting ore was 26.9 meters having average grades of 0.79% nickel and 0.21% copper.

 

·     The 100 metre drill section spacing has been previously utilised to define Indicated resources.  It is anticipated that the majority of the Inferred resource at FL will be upgraded to Indicated during the next resource update.  Resources of Indicated or Measured categories can be utilised to define reserves for use in a Definitive Feasibility Study ("DFS").

 

·     High grade lenses of mineralisation have been confirmed to be present throughout the 1,200 metre drilled area being both continuous and pervasive in thickness and grade.  The average high grade thickness per hole is 17.2 metres having average grades of 1.03% nickel and 0.27% copper.   These lenses have the potential of yielding higher operating profits per tonne using underground mining methods in lieu of open cast mining. Previous analyses indicate that in order to yield the highest profit margins (based on Earnings Before Interest, Depreciation and Amortisation) ("EBITDA") the majority of the Flangovy area would be best suited to underground production.

 

·     Step out drilling has extended the total length of the MKFL deposit in the eastward direction from 2,000 metres to nearly 2,500 metres in length. Likely to be classified as Inferred resource, the additional resource should expand the 30 July 2015 resource statement beyond that presently containing 52.9 million tonnes of ore.  The area also remains highly prospective as the limits of the mineralisation remain undefined to the east, west and in the down dip direction.

 

·     The 30 July 2013 MKFL resource will be updated upon receipt of final independent analytical results.  The final Alex Stewart Laboratory ("ASL") results are anticipated to be available in December 2015. 

 

·     Resource modelling will specifically focus on and compare open cast and underground considerations to establish the optimised production basis and scheduling of ore production.

 

2015 Drill Programme Objectives

 

The Company planned to drill up to 6,000 metres during the 2015 season.  The primary object was to infill drill the FL area of the MKFL deposit to a density allowing for the conversion of Inferred resource to that of Indicated.  The second objective was to complete a pair of step out holes to determine if the FL deposit extended beyond the last known limits of mineralisation.  Successful completion of the programme would establish the continuity of the ore zone regarding both mineralised thicknesses and the contained grade of the nickel and copper and allow for the compilation of an updated resource estimate suitable for use in a Definitive Feasibility Study ("DFS"). 

 

2015 Drill Programme Accomplishments

 

During the season, a total of 5,821.4 metres were drilled.  This included two step out holes that successfully defined that the mineralisation at FL extended an additional 400 metres eastward beyond the previously determined ore limits thereby expanding the resource.  The infill portion of the programme was designed to double the drilling density within the FL area from the historically spaced 200 metre drill sections to that of 100 metre sections.  By doubling the density, areas of Inferred resource are likely to be upgraded to that of Indicated based on previous resource classification criteria.  The FL infill progamme required fewer metres than budgeted and hence allowed for the Company to undertake infill drilling on the MK area immediately to the west of Flangovy.  The MK infill drilling targeted an area already classified as Indicated.  Here, a previously identified 60 metre thick lense of mineralisation had been defined and the intent was to confirm its continuity over a 250 metre length.  The continuity of the structure was confirmed.

 

Infill Drilling Comparison

 

A total of 19 holes were drilled as infill holes during 2015.  Based on existing historical results from 18 holes, the Company anticipated intersecting mineralisation in the order of 29.7 metres in thickness per hole with average grades of approximately 0.74% nickel and 0.21% copper.  This year's infill drilling intersected an average of 25.7 metres per hole with average grades of 0.83% nickel and 0.22% copper.  Based on a grade thickness comparison, the 2015 infill holes contained 97% of the anticipated nickel metal hence the infill drill programme was deemed to have confirmed thicknesses and grades defined in the historically derived drill holes.  The global drill data set now consists of 37 holes within the 1,200 metre long infill drilled area with each hole containing an average of 27.4 metres of ore averaging 0.78% nickel and 0.21% copper.  A summary of all drill results by phase is presented below.

 

Drill Phase	2015 Drill Results - Niton Results				Historical Holes - ASL
	Holes	Average Mineralised Metres	Ni	Cu	Holes	Average Mineralised Metres	Ni	Cu
			(%)	(%)			(%)	(%)
Step Out	2	29.0	0.79	0.23	No Drilling Available
FL Infill	14	26.0	0.81	0.21	12	27.9	0.76	0.22
MK Infill	5	24.8	0.87	0.23	6	33.2	0.71	0.19
Infill Only Summary	19	25.7	0.83	0.22	18	29.7	0.74	0.21

Values above are based on a minimum thickness of 3 metres using a cutoff grade of 0.20% nickel.  Waste intervals of less than 3 metres are included as internal waste.

 

High Grade Mineralisation

 

Historical drilling identified the presence of substantial plus 1.0% nickel sample intervals located throughout the 1,200 meter long area drilled during the infill process.  Of the 18 historical holes, 14 holes contain high grade mineralisation based on a cutoff grade of 0.7% nickel having a minimum thickness of 3 metres.  The average grade of these intervals was 1.04% nickel and 0.27% copper.  On average each of the 14 holes contained 15.7 metres of mineralisation with discrete intervals having an average thickness of 10.5 metres.

 

The 2015 infill programme confirmed the presence of these high grade intervals.  Eighteen of the infill ore holes contained an average total high grade thickness of 18.4 metres averaging 1.03% nickel and 0.27% copper.  These drill results were nearly identical to that of the historical results and confirmed the continuity of the high grade material.  Individual lenses have an average thickness of 9.8 metres.

 

The combined results of the historical and 2015 drill results have established continuity of these high grade structures in both grade and along strike.  Globally, the average thickness of these underground recoverable mineralised structures average 17.2 metres in thickness with an average of 1.03% nickel and 0.27% copper.  These structures contain a total of 83% of the total nickel defined within the 1,200 metre long ore zone structure.

 

Maly Kurumkon - Flangovy Resource

 

The 2015 drill programme significantly impacts the presently reported MKFL resource dated 30 July 2013.  The MKFL deposit is the largest of the five drilled deposits at Kun-Manie.  MKFL contains 52.9 million tonnes of ore representing 43% of the global resource defined at Kun-Manie.  Of the 52.9 million tonnes, 31.1 million tonnes are defined to be of the Inferred resource category with the remainder being classified as Indicated resource. 

 

Global Resource Maly Kurumkon / Flangovy
Global Resource	Tonnes (million)	Ni (%)	Ni Tonnes	Cu (%)	Cu Tonnes
Indicated	21.8	0.58	126,100	0.16	34,900
Inferred	31.1	0.54	168,100	0.16	50,200
Total	52.9	0.56	294,200	0.16	85,100

 

The infill drill programme tested a continuous 1,200 metre long segment of the mineralisation which contains approximately 87% of the resource tonnage at MKFL.  Within this area, a total of 45.8 million tonnes of ore have been estimated having an average grade of 0.56% nickel 0.16% with copper.  A total of 257,200 tonnes of nickel and 74,200 tonnes of copper are contained within the infill drilled area.  The distribution of the drilled model tonnage is presented below.

 

Resource Tested by Infill Drilling
Global	Tonnes	Ni	Ni	Cu	Cu
Resource	(million)	(%)	Tonnes	(%)	Tonnes
Indicated	18.4	0.59	108,300	0.16	29,800
Inferred	27.4	0.54	148,900	0.16	44,500
Total	45.8	0.56	257,200	0.16	74,300

 

Resources are classified by the available drill density.  A drill section spacing of 100 metres was previously utilised to assign Indicated resources.  With the successful completion of the 2015 infill programme, the remaining area of the 1,200 metre long segment that had previously been drilled at a 200 metre spacing has now been drilled on 100 metre drill section spacing.  Hence, it is anticipated that a substantial amount of the 27.4 million tonne Inferred resource can be upgraded to that of Indicated.

 

In addition, the global resource of 52.9 million tonnes should be increased to account for the 400 meter step out where resources had not previously been estimated. It is expected that this additional tonnage will be classified as Inferred resource.

 

Drill Grades Versus Model Grades

 

The 37 holes within the 1,200 metre drill area indicate the presence of 27.4 metres of ore per hole averaging 0.78% nickel and 0.21% copper.  The estimated resource grade has been estimated to be 0.56% nickel and 0.16% copper.  This represents a difference of 28% for nickel and 24% for copper. 

 

The resource model was based on wireframes constructed using a nickel cutoff grade of 0.20% and minimum mining thicknesses of 3.0 metres and established the limits of the mineralisation for open cast mining operation.  Using this approach, the estimated model grades are considered to be fully diluted mining grades.

 

MKFL Resource Update

 

The Company will initiate an update on the MKFL resource immediately upon receipt of the final analytical results from ASL.  Final analytical results are anticipated for delivery in December 2015.  Modeling of the resource will be substantially modified from past procedures.  Specific attention will be given to defining the wireframes used to establish the limits of the ore and will include the definition of at least two domains.  These domains represent areas suitable for open cast production methods and that relate to underground production allowing for determination of an optimised open cast versus underground limit.  Dilution will not be included in the estimation process, however, it will be included during the determination of the mining reserve. 

 

Robin Young, CEO of Amur Minerals, commented:

 

"We are extremely pleased with the success of the 2015 drill programme. We expanded Flangovy an 400 metres eastward, increasing the global resource and have confirmed the continuity and grade over a 1,200 metre long segment of the Maly Kurumkon / Flangovy deposit.  The increased drill density should allow for a substantial portion of the Inferred resource to be upgraded to Indicated which is suitable for inclusion in the Definitive Feasibility Study."

 

''The update to the resource estimate will specifically focus on providing a result that will fully allow the Company to evaluate various mining considerations.  As 83% of the metal is contained within high grade lenses, there appears to be substantial potential to utilise underground production which is highly selective and should provide higher grade reserves than are presently reported.  Once the resource update is complete, a full production schedule for Maly Kurumkon / Flangovy can be generated.  This will also provide us with the ability to move more metal forward in the production cycle''. 

 

 

Company Amur Minerals Corp.	Nomad and Broker S.P. Angel Corporate Finance LLP	Public Relations Yellow Jersey
Robin Young CEO	Ewan Leggat Laura Harrison	Dominic Barretto Harriet Jackson
+44 (0) 7981 126 818	+44 (0) 20 3470 0470	+44 (0) 7768 537 739

 

For additional information, visit the Company's website, www.amurminerals.com.

 

Notes to Editors:

 

The information contained in this announcement has been reviewed and approved by the CEO of Amur, 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 and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as a "qualified person" as defined in the Guidance Note for Mining, Oil And Gas Companies, June 2009, of the London Stock Exchange.

 

Analytical Results:

 

The analytical results contained within this RNS are based on two sources.  The results for the drill holes completed prior to 2015 have been determined by ASL and are the final results used in the determination of resources and reserves.  The second set of information obtained during the current 2015 drill programme is determined by the Company using a Niton XL2 500 X-Ray Fluorescence unit ("Niton").  The Company considers the Niton results to be preliminary in nature and utilises the information for reporting purposes.  All samples for which Niton results are available are assayed by ALS.  The ALS results supersede those of the Company and are used in resource estimation.  Statistically, a comparision of the results confirms the Company results are reflective of the final results generated by ALS.

 

See the following link for schematic drawings and information related to this release below.

 

Phase 3 Niton Drill Results

 

Depth	Hole	+0.2% Nickel Intervals - > 3.0 Metres					Contained Intervals Exceeding 0.7% Nickel
		From	To	length	Ni (%)	Cu %)	From	To	Length	Ni (%)	Cu %)
79.0	C319	4.1	65.5	61.4	1.00	0.26	4.1	46.0	41.9	1.08	0.31
							50.5	64.0	13.5	1.06	0.21
									55.4	1.07	0.28
173.4	C320	143.2	151.0	7.8	0.83	0.30	143.2	148.0	4.8	1.03	0.33
		160.0	169.0	9.0	0.68	0.22	166.0	169.0	3.0	0.88	0.29
				16.8	0.75	0.25			7.8	0.97	0.32
160.0	C321	89.5	104.5	15.0	0.69	0.20	94.0	100.0	6.0	0.86	0.22
		149.5	158.2	8.7	0.73	0.17	113.5	131.5	18.0	0.94	0.23
				23.7	0.70	0.19			24.0	0.92	0.22
172.4	C322	129.4	136.0	6.6	0.91	0.17	131.8	136.0	4.2	1.20	0.21
		143.5	152.5	9.0	0.82	0.19	148.0	152.5	4.5	1.34	0.29
				15.6	0.86	0.18			8.7	1.27	0.25
170.7	C323	148.9	155.5	6.6	0.70	0.21	149.7	152.5	2.8	0.92	0.27

 

http://www.rns-pdf.londonstockexchange.com/rns/7530E_-2015-11-5.pdf 

 

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.