Robin Young, CEO of Amur Minerals LON:AMC, commented: “This year’s drill season has already produced remarkable results in less than 90 days of drilling. We have been able to identify new resources at the western limits of Maly Kurumkon / Flangovy and drill these out to what we anticipate to be Indicated by JORC standards based on parameters used by SRK Consulting. Infill drilling has also resulted in attaining a drill spacing where the next resource update should convert these to Indicated as well, not to mention much greater thicknesses and higher grades have been identified to be present within the zone. The combination of these two efforts has now substantially enhanced the reserve potential over a length of nearly 700 metres adding substantially to the reserve inventory for inclusion in the Definitive Feasibility Study.
“Having completed the planned metallurgical drill programme is a major milestone and its extraction from site almost 3 months ahead of schedule is a real credit to logistical staff. This presents us with the potential to initiate metallurgical test and design work for the Definitive Feasibility Study earlier than anticipated.”
Amur Minerals Corporation, a far east Russian sulphide nickel copper explorer, has given DirectorsTalk an update on the 2016 drill results from its Maly Kurumkon / Flangovy (“MKF”) drill programme at Kun-Manie.
An early start to the drilling season, combined with higher than planned drill rates, has enabled the Company to complete a total of 54 holes (11,978.3 metres) as of 1 August 2016. A total of 34 resource definition holes have been completed and 2,100 metres of the current MKF 2,500 metre length is now considered to be completely drilled for resource and reserve determination (based on parameters previously used by SRK Consulting Ltd (“SRK”). This 2,100 metre length also includes 400 metres of newly discovered resource extension located at the western limit of the deposit.
All of the planned 20 metallurgical drill holes (3,959 metres) have also been completed, providing a 6.9 tonne bulk metallurgical sample. A full 3 months ahead of schedule, these samples have already been airlifted off the project site and are being inventoried and sorted in the Company’s core storage facility in Khabarvosk.
This bulk metallurgical sample will be used for the evaluation of the metallurgical response of the MKF ore, which is a key element for the Definitive Feasibility Study (“DFS”). This metallurgical testwork leads to the defining of recoveries, flowsheet design, process plant design, assessment of the final composition of the concentrate and determination of the suitability of the Company to construct its own smelter / furnace for the generation of a salable product on the international market.
The remainder of the drill season will focus on the eastern end of the MKF deposit. Drilling will target further Inferred resource upgrade of as much as 9.2 million tonnes of ore to Indicated, as well as potential resource expansion eastward of the last drill section toward the Gorny deposit. A sufficient tonnage of fuel was delivered to site to allow for an estimated 18,000 metre drill programme, and as such drilling will continue until either the fuel supply is exhausted or early winter conditions set in.
Highlights:
— The length of MKF has been extended an additional 400 metres bringing the total length of MKF to 2,500 metres.
— In less than 3 months, the Company has drilled 11,978.3 metres in 54 holes. Drilling is now considered to be complete in two of the three planned MKF drill targets.
— A total of 34 holes have been drilled for resource definition. The average mineralised thickness per hole intersecting ore is 24.8 metres averaging 0.74% nickel and 0.20% copper. The average thickness per intercept interval is 16.1 metres. These represent suitable thicknesses and grades for mining in both the open pit and underground mine production environments.
— The entire westernmost 2,100 metre length of MKF has now been drilled to a spacing used by SRK Consulting Ltd (“SRK”) to assign Indicated resources. Previously, the Indicated resource was established to be 1,300 metres in length. This represents an increase of 62% over the previously identified Indicated resource strike length.
— Resource expansion will be derived from the discovery of the new resource westward. An additional 400 metres have been drilled at the SRK Indicated spacing. No mineral had previously been identified in the area. At a cutoff grade of 0.2% nickel, the average thickness is 21.0 metres having an average grade of 0.74% nickel and 019% copper.
— Infill drilling within the western Inferred resource block (300 metres) confirms existing drill results previously used to define the resource understated the mineralised thickness by as much as 78%.. The average infill drill results indicate a thickness of 34.8 metres per hole at 0.74% nickel and 0.21% copper based on a 0.2% nickel cutoff grade.
— All planned metallurgical drill holes (3,959 metres) have been completed and the bulk metallurgical sample totals 6.9 tonnes for the ore intervals. The samples from these holes have already been airlifted from the project site and are being inventoried and sorted in the Company’s core storage facility located in Khabarovsk. This has been completed 3 months ahead of schedule as transport was available sooner than anticipated. Additional metallurgical holes may be drilled based on future drill results.
— Drilling was initiated on the last target area as scheduled (3 August 2016). Presently the easternmost block of Inferred resource is being drilled to convert it to an Indicated category of resource for reserve definition. Using a 0.2% cutoff grade, the area presently contains 9.2 million tonnes of ore averaging 0.58% nickel and 0.17% copper. At a cutoff grade of 0.5%, the mineralised tonnage is 5.7 million tonnes averaging 0.76% nickel and 0.20% copper.
— The aggressive and highly successful drill programme may preclude portions of the step out drilling planned in Area C due to the availability of fuel. A sufficient tonnage of fuel was delivered to site to allow for nearly 18,000 metres to be drilled. Hence, drilling will proceed until the drilling fuel supply is exhausted or an early winter creates unsafe drill operating conditions.
— Alex Stewart Laboratories (“ASL”) has now delivered its analytical results from the first two batches of drill samples. Totaling 1,048 samples, the results reported within this RNS reflect the final analytical results suitable for resource estimation. Presently only three holes have not been analysed by ASL. These 76 samples are now in transit to Moscow.
