Robin Young, CEO of Amur Minerals LON:AMC, commented: “We are extremely pleased to release the Maly Kurumkon / Flangovy resource update. We attained two major milestones with last year’s drill programme at Maly Kurumkon / Flangovy. We increased the global nickel equivalent to just short of a million tonnes while simultaneously converting the majority of the previously existing Inferred resource into the Indicated resource category. The conversion added 50% to the project’s Measured and Indicated resource. These resources are also believed to be suitable for JORC reserve definition. Additionally, continuous high grade zones have been identified and estimated. Substantially higher grades than reflected in previous resource models have been derived and should increase the mined grades within the anticipated areas targeted for underground production. An optimal production schedule could well result in moving the underground production forward in the life of mine schedule. We anticipate that this will improve the project economics by recovering more metal in earlier years.”
“There is additional upside potential for the increase and improvement of the global resource at Kun-Manie without any additional drilling. The implementation of the same resource modelling procedures could have a substantial impact on the distribution of metal at Kubuk and Ikenskoe / Sobolevsky. Resources have been compiled and are under review. These could also significantly impact the global resource and reserve statements provided within this announcement. Results will be released as the review of each deposit is finalised.”
Amur Minerals Corporation LON:AMC the nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, has told DirectorsTalk that an independent resource estimate of the Maly Kurumkon / Flangovy (“MKFL”) deposit is now complete.
The estimate compiled by SRK Consulting (UK) Ltd (“SRK”) includes all results from drilling undertake prior to and including 2015. The resource estimation methodology has been modified since that used for the previous estimate to enable the better definition of metal related to high grade zones. The global nickel equivalent for the entire Kun-Manie project has been increased from 831,000 tonnes to 958,000 tonnes (based on today’s metal pricing for nickel, copper platinum and palladium). The global nickel metal resource for the Kun-Manie project has been increased from 650,600 tonnes to 723,000 tonnes. At MKFL, total contained nickel has been increased by approximately 25% from 294,200 tonnes to a total of 366,600 tonnes. MKFL resources suitable for conversion to reserves that can be used in a mine plan have been increased by 126% from 126,100 nickel tonnes to 285,200 nickel tonnes. The MKFL high grade zones contain 73% of the nickel at a cutoff grade of 0.5%. The newly implemented modelling approach has likewise been applied to update the deposits of Kubuk and Ikenskoe / Sobelovsky which contain similar high grades zones.
Highlights
· Kun-Manie contained nickel equivalent based on combined nickel, copper, platinum, and palladium using current metal prices stands at 958,000 tonnes. Cobalt, gold and silver are not included.
· The resource estimate compiled by SRK Consulting (UK) LTD (“SRK”) has successfully identified the high grade zones in excess of 0.50% nickel within discrete continuous structures.
· Global Kun-Manie resource expanded from 120.8 million tonnes containing 650,600 tonnes of nickel, 178,400 tonnes of copper, 16.9 tonnes of platinum, and 18 tonnes of palladium to 158.4 million tonnes containing 723,000 tonnes of nickel, 203,100 tonnes of copper, 20.0 tonnes of platinum and 20.8 tonnes of palladium. The average nickel grade is 0.46% with copper being 0.13%.
· MKFL resource expanded from 52.9 million tonnes containing 294,200 nickel tonnes and 85,100 tonnes of copper to 90.6 million tonnes containing 366,600 tonnes of nickel and 109,900 tonnes of copper. Platinum increased to 8.5 tonnes with palladium now standing at 8.9 tonnes. The average nickel grade is 0.40% with copper being 0.12%.
· At MKFL, 78% of the contained nickel (285,200 tonnes) is now JORC classified as Indicated. Previously, the Indicated resource averages 0.42% nickel containing 126,100 tonnes of nickel. The infill drill programme of 2015 was successful in conversion of Inferred resources to Indicated resources. The MKFL Indicated resource has been more than doubled.
· Approximately 73% of the nickel (268,700 nickel tonnes at a zero cutoff grade (“COG”)) is contained within high grade structures. Averaging 0.84% nickel and 0.22% copper, the total metal within the high grade zones is relatively insensitive to increasing cutoff grades. An increase in the COG from zero to 0.40% reduces the nickel inventory by 400 tonnes of nickel in the high grade structures to a total of 268,300 tonnes. The 0.40% COG was based on the nickel price of $8,800 per tonne ($4.00 / lb.).
· It is anticipated that there will be a substantial upgrade to the projected mine grades associated with the areas to be mined using underground methods within the MKFL area. Previously projected underground mining grades determined by the Company were 0.53% nickel, the high grade resource zones now are projected to be in the order 0.80% nickel. This represents an increase of approximately 50%.
· The MKFL potential mining reserve requires an update to identify the optimal location of the interface between open cast and underground production.
· The MKFL modelling approach has been tested on the Kubuk and Ikenskoe / Sobolevsky deposits. Results are being reviewed by the Company and will be released on completion of the review.
It was acknowledged by the Company that Resources and Reserves will be substantially altered with regard to the newly implemented modelling approach. For this reason, the Company has already placed a notice on its website that the resources are in the process of being updated. Also critical is the need to regenerate the mining reserves for the Kun-Manie project. Upon completion of the review of Kubuk and Ikenskoe / Sobolevsky, the JORC reserve will be updated.
The change to a new estimation approach was undertaken to better establish the grade distribution of the high grade mineralisation. The high grade zones contain 73% of metal at a grade of 0.84% nickel and 0.22% copper. These are the zones that will be targeted for reserve definition and inclusion in a mine plan. The present unaudited potential reserve is projected to be 0.54% nickel and 0.15% copper. This will permit the Company to generate a more optimised production schedule potentially moving higher grade ores forward in the production schedule having a larger and more beneficial impact on the economic potential of the project.
As the Company now completed resource estimation studies using two different methods, an extensive review of the history and development of the resource and reserve statements has been provided in the Notes to Editors. Readers of this announcement are encouraged to read the lengthy review to develop a full understanding of the evolution of the resources and reserves over the course of the last 15 months.
