Robin Young, CEO of Amur Minerals, commented: “It is with pleasure that we announce the Kubuk resource update using the newly implemented modelling methods of SRK. Since April 2015, we have more than doubled the Measured and Indicated resource at Kun-Manie. Now standing at approximately 107 million ore tonnes containing 484,100 nickel tonnes and 136,600 copper tonnes, we have a substantial resource from which to define reserves for the DFS. From these models, we can develop a comprehensive mine design and production schedule for use in the ongoing Definitive Feasibility Study
“We are now reviewing available metallurgical test work to establish grade recovery curves for each of the four deposits that will be sources to the mill. The curves will allow us to define the unique operating profits per ore tonne as each deposit does display differing metallurgical recoveries. The mining production schedule will allow us to establish the variability of the total metal recovered to the concentrate and the parameters in establishing the plant and proposed smelting furnace to generate a Low Grade Matte.
“On finalisation of the recovery curves, we will be awarding the reserve definition stage of work to an independent consultant to be done to DFS standards. The scope of services will be the definition of the right mining method for the right style of mineralisation at the correct location.”
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 Kubuk nickel-copper deposit at its Kun-Manie project located in Russia has been completed by SRK Consulting (UK) Ltd (“SRK”).
This completes the resource evaluation phase for the Definitive Feasibility Study (“DFS”) providing a fully updated set of resource estimates for the four deposits from which production is planned. The results for each of the deposits are suitable for use in the definition of reserves in accordance with JORC (December 2012) standards. Metallurgical grade recovery curves for each deposit are being updated by SGS Minerals (“SGS”) for use in the determination of the recoverable metal to be extracted by the ore treatment facility which will generate a concentrate suitable for smelting.
Highlights
— Completion of the Kubuk resource update, using the two geological domain approach, now completes the resource estimation phase of the DFS allowing for the initiation of the development of reserves. It is anticipated that open pit production will be derived from the four deposits of Maly Kurumkon / Flangovy (“MKF”), Ikenskoe / Sobolevsky (“IKEN”), Kubuk and Vodorazdelny (“VOD”). Underground production is likely to be derived from all deposits with the exception of VOD.
— SGS metallurgical test work results are in review and grade recovery curves for each of the four deposits are being finalised for use in the determination of the recovery of metal to concentrate. The recoveries differ by deposit and the information is key to defining reserves.
— The Kubuk deposit presently is the third largest deposit drilled at Kun-Manie. Containing approximately 16% of the identified ore mineralisation, the deposit contains 25.7 million ore tonnes with an average nickel grade of 0.52% (total nickel of 133,000 tonnes), an average copper grade of 0.15% (total copper of 39,400 tonnes) and combined Platinum Group Metals (“PGM”) of 7,200 kg.
— The Kubuk resource has been increased from the previous April 2015 estimate by 5.1 million tonnes (from 20.6 million tonnes of ore), 14,100 tonnes of nickel (from 118,900 tonnes), 6,500 tonnes of copper (from 32,900 tonnes) and 1,800 kg of PGMs (from 5,400 kg).
— Within the Kubuk resource, half of the mineralised ore tonnage is contained within the continuous high grade mineralised zones. As for metal, 75% (100,400 tonnes) of the nickel, 67% (26,400 tonnes) of the copper and 58% (4,200 kg) of the PGMs are contained within the high grade structures.
— Using a cut-off grade (“COG”) of 0.4% nickel, more than half of the mineralisation (13.5 million tonnes) is above the COG and averages 0.71% nickel (95,500 tonnes), 0.19% copper (25,400 tonnes) and 0.27 g/t PGM (3,600 kg).
— The completion of Kubuk brings the total drill defined resource identified within five deposits and located within the Kun-Manie production licence boundaries to more than 164.7 million tonnes of ore containing 740,100 tonnes of nickel, 212,900 tonnes of copper and 42,300 kgs of PGM.
— The resources from all deposits total 107 million tonnes of Measured and Indicated (“M&I”) resource and are available for the definition of reserves (Proved and Probable). The M&I nickel content is 484,100 tonnes (0.48% per tonne) and copper is 136,600 tonnes (0.12% per tonne).
— Since the April 2015 resource statement, the Company has successfully and substantially upgraded the potential of the Kun-Manie project. Drilling of MKF and the updated modelling process have more than doubled the M&I resource from 52.9 million tonnes to 107.2 million tonnes. M&I nickel content has been increased from 294,200 tonnes to 484,100 tonnes, whilst copper has been increased from 85,100 tonnes to 136,600 tonnes.
The resource estimate contains two individual geological grade domains designed to facilitate assessment of open pit and underground production potential within the Kubuk deposit. The low grade open pit mineral domain identifies the zones of all mineralisation in excess of 0.2% nickel with the second domain comprised of the internal continuous high grade (plus 0.5% nickel) zones of mineralisation typical of underground production grades.
The mineralised tonnage at Kubuk totals 5.7 million ore tonnes with 12.4 million tonnes contained in the low grade shell and 13.4 million tonnes contained in the high grade shell. The average grade is 0.52% nickel (133,000 tonnes) and 0.15% copper (39,400 tonnes). By-product PGMs total 7,200 kgs.
Two significant enhancements to the updated Kubuk resource have been identified which could improve the results of the ongoing DFS. By resource category, there has been a marginal increase in the JORC M&I inventories bringing the new Kubuk M&I total nickel to 28,500 tonnes. The newly defined continuous high grade horizons contain a total of 100,400 nickel tonnes representing 76% of the 133,000 tonnes of nickel defined by the model.
Changes made to the modelling approach have provided a more representative resource for the determination of reserves suitable for identification of the appropriate areas for open pit and underground production. The Kubuk model will be used in the definition of reserves and for mine planning purposes in the ongoing DFS. It is also noted that infill drilling in the future will be required to convert Inferred resources to that of Indicated.
