Robin Young, CEO of Amur Minerals LON:AMC, commented: “It is with pleasure that we release the resource update for the second of three deposits that have been estimated using the newly implemented modelling methods of SRK. The Ikenskoe / Sobolevsky resource statement consists of two geological grade domains that typically reflect open pit and underground production methods. This enhanced resource model is suitable for determining Definitive Feasibility Study reserve statements. Presently, nearly 480,000 tonnes of nickel have now been classified within the Measured and Indicated resource category, which are available for reserve definition.
“Furthermore, the ability to define continuous high grade geological horizons is important and allows us to select the right mining method for the right location. By having this ability, the operating profit for each mineable tonne can be optimised. This resource update for Ikenskoe / Sobolevsky and the previously released Maly Kurumkon / Flangovy resource statement that have been modelled using this approach and the results are highly encouraging in that more than 75% of the drill identified metal averages from 0.80% to 0.85% nickel. With high grades such as this, we can undertake the development of a reserve base potentially capable of withstanding depressed metal prices such as we are currently experiencing. As we are in the process of compiling the Definitive Feasibility Study that allows us to generate a development plan, we can evaluate the impact of harsh economic conditions and set a long term operational plan covering a broader range of economic factors”.
Amur Minerals Corporation the nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, has told DirectorsTalk that the independent resource update of the Ikenskoe / Sobolevsky nickel-copper deposit in Russia, which has been approved and completed by SRK Consulting (UK) Ltd.
Highlights
· The definition of two geological domains within the IKEN resource has provided an enhanced resource model at IKEN. The model is suitable for the definition of both open pit and underground reserves as well as providing the ability to assess multiple cut-off grades (“COG”) based on nickel price volatility. The model is appropriate for the definition of DFS reserve statements;
· The global JORC resource including the Measured, Indicated and Inferred resource (“MI&I”) has increased from the July 2013 statement. The resource consists of 35.3 million ore tonnes (formerly 34.1 million tonnes) averaging 0.51% nickel per tonne (formerly 0.52% nickel) and 0.13% copper (unchanged). Total nickel metal is 180,800 tonnes with copper totaling 47,100 tonnes. By-product platinum totals 5,900 kg with palladium being 6,700 kg;
The combined M&I resource inventory from which reserves will be derived has been significantly upgraded (20%) due to modelling thicker zones overall.. The M&I inventory consists of 29.4 million ore tonnes (up from 22.6 million) averaging 0.46% nickel (down from 0.47%) and 0.12% copper (unchanged) per tonne. The M&I contained nickel has increased by 27,900 tonnes to a total of 134,700 tonnes with copper increased by 8,100 tonnes to 35,600 tonnes. M&I platinum now consists of 4,900 kg (up from 3,800 kg) and 5,500 kg (up from 4,300 kg) for palladium;
· Because M&I resources can be used to define reserves for the DFS, the increase in the M&I resource categories provides an opportunity to expand reserves from previous projections without additional significant field work or drilling being required in M&I area of IKEN;
· Continuous high grade geological domains of mineable thicknesses are prevalent throughout IKEN. Representing 50% of the mineralised ore tonnes, the high grade zones contain 77% (138,800 nickel tonnes) of the total IKEN nickel resource. Contained within 17.0 million tonnes of ore, the average grade is 0.82% nickel and 0.19% copper. PGM content totals 8,100 kgs;
· The introduction of the high grade modelling has a definitive and positive impact on evaluation of the reserves. It will allow for a far more refined definition of the open pit and underground areas from which production will be obtained therefore optimising the operating profit to be identified at IKEN.
· A COG analysis (the level below which material within an ore body does not contain sufficient value to economically justify processing into a final salable product) indicates a limited portion of is present below 0.4% nickel. This is the approximate COG based on projected operating costs, metallurgical recoveries, use of a nickel price of US$ 8,800 and assuming underground production only. A total 17.7 million tonnes, containing 142,600 tonnes of nickel (0.81% Ni) and 33,700 tonnes of copper (0.19% Cu), is available to reserve determination. PGM totals are 8,400 kgs averaging a combined grade of 0.47 g/t); and
· IKEN remains the second largest of the five deposits identified at Kun-Manie. The updated consolidated resource for all five deposits is 159.6 million ore tonnes. The average nickel grade is 0.45% containing 726,000 tonnes. Copper content per tonne is 0.13% containing 206,400 tonnes. The combined PGM grade is 0.25 g/t representing a total of 40,600 kg.
The resource estimate reflects the presence of two individual geological grade domains and has been designed to facilitate an assessment of open pit and underground production methods within the Ikenskoe / Sobolevsky (“IKEN”) deposit. The low grade open pit mineral domain identifies the zones of all mineralisation in excess of 0.2% nickel with the second modelling the internal continuous high grade (plus 0.5% nickel) zones of mineralisaton typical of underground production grades.
The combined mineralised tonnage at IKEN totals 35.2 million ore tonnes with 18.3 million tonnes contained in the low grade shell and 17.0 million tonnes contained in the high grade shell. The average grade of the 35.2 million ore tonnes is 0.51% nickel (180,800 tonnes) and 0.13% copper (47,100 tonnes). By-product Platinum Group Metals (“PGM”) total 12,700 kgs.
Two significant enhancements to the updated resource have been identified which could improve the results of the Definitive Feasibility Study (“DFS”). By resource category, there has been a 20% increase (27,900 nickel tonnes) in the JORC Measured and Indicated (“M&I”) inventories bringing the new M&I total nickel to 134,700 tonnes. The newly defined continuous high grade horizons contain a total of 139,100 nickel tonnes representing 77% of the 180,800 tonnes of nickel defined by the model.
The enhancements identified within the IKEN resource model provide the Company with the opportunity to define a larger and higher grade reserve inventory from within the second largest deposit at Kun-Manie. The increase in the Measured and Indicated resource can be used to define reserves in accordance with JORC (Dec. 2012) protocols. Modelling of the high grade domain provides a more representative resource for the determination of reserves suitable for identification of the appropriate areas for open pit and underground production. The IKEN model will be used in the definition of reserves and for mine planning purposes in the ongoing DFS.
“We look forward to the release of the third and final resource update at Kubuk. The results are under review and will be released in due course.”
