20 June 2017
AMUR MINERALS CORPORATION
(AIM: AMC)
2017 Inaugural Drill Update
30% of Planned Metres (5,903.5 m) Completed
Amur Minerals Corporation ("Amur" or the "Company"), a nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, is pleased to announce its progress through 14 June 2017 on its 2017 drill programme at the Ikenskoe / Sobolevsky ("IKEN" ) and Kubuk ("KUB") deposits of Kun-Manie.
Highlights:
· The 2017 drill programme is focused on the deposits of IKEN and KUB and began 4 weeks ahead of schedule on 5 May 2017.
· The programme is designed to convert existing Inferred resource to Indicated, define the up dip and down dip limits of mineralisation for mine planning purposes, expand resources between IKEN and KUB (a 2.5 kilometre long target) where drilling has not yet been completed and to derive additional sample for metallurgical test work.
· Through 14 June 2017, a total of 5,903.5 metres of drilling have been completed representing approximately 30% of the planned 20,000 metres. The average daily drill rate is 137.3 metres.
· The Company owned LF70 drill rig is drilling at IKEN and has completed 2,804.5 metres within 16 holes. Of these, 6 holes have been completed (591.0 metres) to establish the limits of mineralisation for mine planning purposes, an additional 2 holes (219.0 metres) completed as infill holes and 8 holes step out holes (1,995.5 metres) for resource expansion toward KUB have been completed to the southeast of the previously defined IKEN ore zone.
· At KUB, the Company owned LF90 has drilled 3,099.0 metres contained with 16 holes through 14 June 2017. Seven holes (1,066.0 metres) have been completed as infill holes to convert Inferred resource to that of Indicated. The remaining 9 holes (2,033.0 metres) are considered to be a combination of resource expansion and mineral limit determination holes located at the northern and eastern limits of the previously drill defined boundaries of the deposit.
· Analytical results for 25 of the 32 completed holes have been generated at our onsite sample preparation facility using two Niton XL2 500 X-Ray Fluorescence units ("RFA"). The results are under review and subject to release via an RNS announcement once the RFA calibration verification programme is completed on 23 June 2017. Completion of this annual verification process allows management to report the RFA results which are preliminary in nature and internally derived. Ore host rock types, mineralisation and sulphide content are similar to that identified by previous drill seasons and it is anticipated that ore grade mineralisation will be reported in the near term and on completion of the calibration verification results.
· The first shipment of samples to Alex Steward Laboratories ("ASL") was made on 14 June 2017. Located in Moscow, Russia, ASL is responsible for the determination of the final metal content of all samples. Results for nickel, copper, cobalt, platinum and palladium are anticipated to be available in about 6 to 10 weeks, depending on ASL sample load. The ASL results supersede that of the RFA results and are the primary source of information for use in resource and reserve definition. When available, these results will be released as a part of the drill reporting process.
2017 Drilling Objectives
A total of 20,000 metres of drilling are planned for the 2017 field season. Targeting the IKEN and KUB deposits, the following objectives are planned:
· At KUB, convert existing Inferred resource to that of Indicated for use in reserve definition.
· At both IKEN and KUB, identify down dip and outcrop limits of two deposits for mine planning purposes.
· Conduct resource expansion drilling focused on the largest exploration target (a 2.5 kilometre long undrilled area between IKEN and KUB).
· Obtain additional metallurgical samples from both deposits.
The specific distribution of the drilling between the two deposits is not defined. The intent is to keep both drill rigs fully operational and drill meters will be allocated to appropriate targets and objectives within each distinct deposit and as each the drill rigs complete a hole.
Progress to Date
During the period from 5 May 2017 through 14 June 2017, a total of 5,903.5 metres (32 holes) have been completed representing 29.5% of the planned 2017 drill programme. During the five week period since start of drilling, the Company is presently ahead of schedule due than planned to start on 1 June 2017. Drilling is based on a budgeted drill rate of 1,000 metres per week and with the early start we are presently about 4,000 meters ahead of schedule. A link to figures depicting the location of the completed holes as of 14 June 2017 is provided at the end of this RNS.
Drilling is being completed simultaneously on the IKEN and KUB deposits. The LF70 has completed 2,804.5 metres (16 holes) at IKEN with the LF90 having completed 3,099 metres (16 holes) at KUB. In combination, the two rigs are averaging approximately 137.3 metres per day, slightly less than the planned daily budget of 142 metres.
The onsite sample preparation facility is fully operational and two Company owned and operated Niton XL2 500 X-Ray Fluorescence units ("RFA") have generated preliminary analytical results for drill intervals within 25 of the 32 completed drill holes (15 at IKEN) and (10 at KUB). These RFA results are under final annual calibration and verification review which is scheduled for completion on 23 June 2017. Once completed, the RFA derived results can be approved by management for release to shareholders.
In addition, the first batch of samples (665 total) from 18 of the completed 32 holes have already been transported by helicopter from site to our Khabarovsk, Russia office and transshipped (14 June 2017) to ASL for derivation of the final metal content of nickel, copper, cobalt, platinum and palladium. It is anticipated that ASL results for this first batch could be available within the next 6 to 10 weeks, depending on ASL's sample load. These results will be reported when finalised and will replace those of which are derived using the RFA approach.
Robin Young, CEO of Amur Minerals, commented:
"I am pleased to provide an update on our drill accomplishments at Ikenskoe / Sobolevsky and the Kubuk deposits. Getting an early start, we are ahead of schedule and are now verifying our internally derived results to enable us to report mineralised grades and thicknesses. As we are drilling two deposits, we plan to successively issue results individually by deposit to provide a clear and coherent presentation of results in what will be an interesting year as we test our largest existing 2.5 kilometres long undrilled target located between these two deposits. We plan for weekly updates with the next update including results from Ikenskoe / Sobolevsky, then Kubuk, then hydrological results followed by a comprehensive summary of the previous results."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Enquiries:
Company Amur Minerals Corp. |
Nomad and Broker S.P. Angel Corporate Finance LLP |
Public Relations Yellow Jersey |
Robin Young CEO |
Ewan Leggat Soltan Tagiev |
Charles Goodwin Harriet Jackson |
+7(4212)755615 |
+44(0)2034 700 470 |
+44(0)7747 788 221 |
For additional information, visit the Company's website, www.amurminerals.com.
Please follow the link at the end of this RNS to view figures depicting drill hole locations of the drill holes completed as at 14 June 2017.
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 13 years, previously Mr. Young was employed as an exploration and mine geologist, mining engineer, construction manager of a mine startup as well as 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 has been the lead engineer and project manager in the compilation 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.
Ikenskoe / Sobolevsky Drill Progress Summary Report
As at 14 June 2017 2017
Hole |
Results |
Objective |
Depth (m) |
To ASL |
C340 |
RFA* |
Down Dip Limit |
113.0 |
Yes |
C341 |
RFA* |
Down Dip Limit |
113.0 |
Yes |
C342 |
RFA* |
Down Dip Limit |
115.0 |
Yes |
C343 |
RFA* |
Down Dip Limit |
100.0 |
Yes |
C344 |
RFA* |
Down Dip Limit |
90.0 |
Yes |
C345 |
RFA* |
Outcrop Limit |
60.0 |
Yes |
C346 |
RFA* |
Infill |
103.0 |
Yes |
C347 |
RFA* |
Infill |
115.0 |
Yes |
C348 |
RFA* |
Expansion |
205.0 |
Yes |
C349 |
RFA* |
Expansion |
221.5 |
Yes |
C350 |
RFA* |
Expansion |
190.0 |
Yes |
C351 |
RFA* |
Expansion |
193.0 |
Yes |
C352 |
RFA* |
Expansion |
250.0 |
|
C353 |
RFA* |
Expansion |
295.0 |
|
C354 |
RFA* |
Expansion |
313.0 |
|
C355 |
In Progress |
Expansion |
328.0 |
|
Total |
|
|
2,804.5 |
|
RFA*: Results available and under review and verification.
Verification to be completed 23 June 2017.
Kubuk Drill Progress Summary Report
As at 14 June 2017 2017
Hole |
Results |
Objective |
Depth (m) |
To ASL |
C446 |
RFA* |
Infill |
49.0 |
Yes |
C447 |
RFA* |
Infill |
127.0 |
Yes |
C448 |
RFA* |
Infill |
106.0 |
Yes |
C449 |
RFA* |
Expansion Down Dip |
313.0 |
Yes |
C450 |
RFA* |
Expansion Down Dip |
235.0 |
Yes |
C451 |
RFA* |
Infill |
235.0 |
Yes |
C452 |
RFA* |
Infill |
262.0 |
|
C453 |
RFA* |
Expansion Down Dip |
347.0 |
|
C454 |
RFA* |
Expansion Down Dip |
259.0 |
|
C455 |
RFA* |
Expansion Down Dip |
211.0 |
|
C456 |
In Progress |
Expansion Down Dip |
248.0 |
|
C457 |
In Progress |
Infill |
211.0 |
|
C458 |
In Progress |
Expansion To East |
97.0 |
|
C459 |
In Progress |
Expansion To East |
127.0 |
|
C460 |
In Progress |
Expansion To East |
196.0 |
|
C461 |
In Progress |
Infill |
76.0 |
|
Total |
|
|
3,099.0 |
|
RFA*: Results available and under review and verification.
Verification to be completed 23 June 2017.
Analytical Results - Cautionary Comment
Analytical results to be presented in upcoming RNS announcements will be reported in two stages. Initial results internally generated by the Company using two Niton XL2 500 X-Ray Fluorescence units ("RFA") will be provided first. The second and final set of results for use in resource and reserve definition will be provided by ASL, an independent laboratory. This approach has been implemented historically by the Company.
The Company's use of its RFA units provide initial results allowing for a rapid turnaround to assist in decision making to finalise drill hole site selections. Use of these results is not without risk if the units have not been rigorously tested and calibrated. Annually and at the beginning of every field season, these units undergo a rigorous calibration programme. Using standards provided with the units and existing samples that have been analysed by external facilities (ASL), it is possible to calibrate and ensure that the results generated by the units are representative. The data acquisition for the calibration programme has now been completed and the Company is conducting a final analysis of the results assuring that the RFA results are representative and suitable for reporting.
To maintain the integrity of the reported RFA results over the course of the field programme, daily calibration tests at the start and end of each on site sample preparation shift are completed to ensure that there is no drift during the shift allowing for the introduction of erroneous results. With verified calibration results, the RFA results provide reasonable accuracy but are not the definitive result. Typically, results will be available within a few days of completion of a drill hole. The Company reiterates that RFA results require this cautionary comment.
As noted, the second and definitive source of analytical results is produced by Alex Stewart Laboratories ("ASL") located in Moscow, Russia. This fully independent, licenced and certified laboratory provides the results that are used in resource estimation and is of a greater accuracy than that of the RFA unit especially for values in excess of 1.0% nickel. As ASL is located in Moscow and samples are shipped from the site on a monthly basis, the final and official results require a minimum of 6 weeks to be reported to the Company. Upon receipt of the ASL results, the Company updates previously RFA reported results and includes the information in ensuing RNS updates.
Alex Stewart Laboratory Turnaround
The turnaround time from when a mineralised core sample is recovered at the drill rig to obtaining the final analytical result is dependent upon multiple factors. The Company provides a monthly helicopter flight to the site to provide fresh food stuffs, undertake staff changes and provide required spares. On the return flight, the sample pulps are delivered to Khabarovsk staff and then are transshipped by rail to ASL's Moscow, Russia facility.
On receipt of the ASL results, the Company carefully examines the data to ensure that both the RFA and ASL results are mutually supportive. For further control, blind known and blank samples are inserted. If there is any notable difference between the RFA and ASL results, the Company will request a re-assay of the sample batch. Once results are verified as representative, these become the master result available for future use in resource estimation and metallurgical test work.
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.
Click on, or paste the following links into your web browser, to view the associated PDF document and audio file.
http://www.rns-pdf.londonstockexchange.com/rns/5225I_-2017-6-19.pdf
http://amurminerals.com/content/wp-content/uploads/drill-results-update-19-June.mp3
