17 May 2016
AMUR MINERALS CORPORATION
(AIM: AMC)
2016 Drill Season Underway
Earliest Start On Record
Amur Minerals Corporation ("Amur" or the "Company"), a nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, announces that it has initiated its 2016 field programme ahead of schedule at its Kun-Manie production licence.
A total of 15,000 metres of drilling are planned for completion within the three and a half kilometre long Maly Kurumkon / Flangovy ("MKF") deposit. The prime objective of the drill programme is to generate a large representative metallurgical sample from the deposit for use in the final process design of the ore treatment facilities. Exploration drilling will also be undertaken to convert existing Inferred resources to that of Indicated and to further expand the resource of the MKF deposit. Satellite communications have now been established to the MKF deposit base camp and it has been reported that drilling begun on 5 May 2016. This is the earliest start to the drilling field season since exploration began in 2004.
Highlights include:
· The LF90 Boart Longyear rig has been fully commissioned by Boart Longyear representatives and drilling commenced on 5 May 2016.
· A full maintenance inspection of the LF70 rig is now complete and it will begin drilling within the next days.
· A total of approximately 25 to 35 drill holes are planned for the acquisition of a large bulk metallurgical sample located along the length of the MKF deposit. It is anticipated that approximately 7,500 to 9,000 metres of drilling will generate a bulk metallurgical sample ranging from 5 to 6 tonnes of ore. The sample will be used in the process plant design, determination of the composition of the concentrate and the design of a furnace to treat the concentrate in preparation of a Low Grade Matte (''LGM'').
· Exploration drilling will be completed and is comprised of two elements. Infill drilling will be completed at both the eastern and western limits of the deposit to convert existing Inferred resources to that of Indicated. Step out drilling to both the east and west will be conducted to expand the resource where its limits are not yet defined. Exploration drilling is presently budgeted to total from 6,000 to 7,500 metres.
· To the south of the mining licence area, and within the water rights licence area, the Company will compile information to define the source and quantity of industrial water available to process the ores. Surface geological mapping and extensive ground based geophysics will be implemented to define the locations of test and production wells scheduled for drilling in 2017.
The Company is in the final stage of mobilisation for implementation of the 2016 Kun-Manie field season. The last of the personnel and sundry materials are now being transferred to site via our contract helicopter company as the ice road is closed. Satellite communications are now established allowing the site to report that our heavy equipment operators and drill teams began drill road construction and drilling on 5 May 2016. As of 13 May 2016, a total of 496 metres have been drilled within two holes using the newly purchased LF90 Boart Longyear drill rig.
Robin Young, CEO of Amur Minerals, commented:
"The 2016 field season is already underway, a full three weeks earlier than it has ever begun before. With the full team and support system now up and running, we will be focused on the acquisition of the bulk sample to conduct the necessary test work to design the flowsheet and process plant design. From this, we will be able to determine the composition of our concentrate and the variability we can expect over the first years of production at Kun-Manie. With these parameters, the design of our Low Grade Matte furnace can be completed. All of this work will provide us with a basis and key information of inclusion in the Definitive Feasibility Study. We intend to provide periodic updates as the field season progresses."
Enquiries:
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 |
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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 for 12 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 announcement.
For further information, see the Company website at www.amurminerals.com.
2016 Drill Programme
Drilling will be comprised of two elements having a total of 15,000 metres planned for completion during the 2016 field season.
Priority has been given to the acquisition of a large scale bulk metallurgical sample from the MKF deposit. The MKF deposit will likely be the start up production deposit as it contains the majority of the defined mineralisation at Kun-Manie and a substantial portion of the high grade ores defined to be contained within discrete and continuous geological horizons. The metallurgical drill holes will be equally spaced at 100 metre long intervals along the strike of MKF. The holes will be drilled immediately adjacent to existing holes that contain known intervals of mineralisation. This is key information for use in the Definitive Feasibility Study ("DFS").
Exploration drilling will target the conversion of existing Inferred resources to that of Indicated resources. Two areas will be tested which are located at the eastern and western ends of the MKF deposit. Beyond the existing Inferred resources, step out drilling will be implemented to further expand the MKF resource. Deeper holes may also be completed to test down dip mineral limits suitable for underground production.
2016 Water Resource Assessment
The evaluation of the source of the water for use in the processing plant and other facilities will be completed over the course of two field seasons. This season's work is comprised of geological investigation of the surface geology, river flow rates and use of ground based geophysical methods to define specific subsurface areas for drilling of test and production wells. Drilling of approximately 1,000 metres is planned for 2017.
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.
