Robin Young, CEO of Amur Minerals LON:AMC, commented: “The 2016 drill programme focused on the Maly Kurumkon / Flangovy deposit is already providing substantial and positive results well ahead of schedule. Starting nearly four weeks ahead of schedule, we have almost completed our first phase of drilling before our typical drill start date. As for the results, infill drilling has certainly provided us with a bonus. Drilling within the current Inferred resource area indicates that the future resource update in this area will be substantially larger with regard to the contained tonnage of ore and at higher nickel and copper grades. We intend to complete drilling in this area with about another seven holes at which time, we will have drilled out the western extent of the Maly Kurumkon / Flangovy at its western limits. Our focus is now shifting to metallurgical drilling to obtain the large bulk sample for flowsheet, plant and furnace design to generate a Low Grade Matte.”
Amur Minerals Corporation, a nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, has told DirectorsTalk about the first set of drill results from its Maly Kurumkon / Flangovy (“MKF”) drill programme at Kun-Manie.
Highlights:
— Drilling was initiated on 5 May 2016, a month ahead of schedule. As at 28 May 2016, the LF70 and newly purchased LF90 drill rigs have drilled a total of 2,457.3 metres averaging 102 metres per day.
— Infill drilling has identified that the 1,900 metre long high grade zone continues for an additional 300 metres to the west bringing its total length to 2,200 metres.
— Infill drilling indicates the existing Inferred resource is conservative with regard to tonnage and grade. Over the Inferred model area, the infill drill thicknesses are substantially greater (43.9 metres versus 19.9 metres) than the previously available drill results and the contained average nickel grade is also higher at 0.83%, up from 0.70%. Copper is indicated to be 0.24%, up from 0.17%. A resource update for this 300 metre long area should provide a substantial increase in the MKF resource.
— The infill drilled area has now been completed on a drill grid which has historically been used to classify resources as Indicated. The Company anticipates that future resource updates of this Inferred resource will be upgraded to the Indicated JORC category. This category of resource can be utilised to define reserves.
— The infill drilled area will likely add to the reserve totals. Depending on availability and timing, any reserve derived from this area may be considered as a part of the reserve for use in the DFS.
— Step out drilling (condemnation drilling) is underway. Holes are being completed to identify the precise location of a fault at the western limit of MKF. The fault is interpreted to truncate the mineralisation. Drilling is now underway to establish the orientation of the fault allowing for the next resource update to fully and reasonably define the mineralisation up to the plane of the fault.
— Metallurgical holes are being drilled to obtain a large bulk sample for detailed metallurgical test work leading to flowsheet and plant design, concentrate characterisation and the design of a furnace capable of smelting the concentrate to generate a Low Grade Matte (“LGM”).
— The current drill phase focused on the west end of MKF is nearing completion with an anticipated 7 holes remaining to be drilled. The LF70 rig has already moved onto the second target area for the purpose of drilling metallurgical holes along the existing Indicated resource and to complete some infill holes where necessary.
— Analytical results are generated on site using the two Niton XL2 500 X-Ray Fluorescence units (“RFA”). The Company considers the results to be reasonably accurate and undertakes a daily calibration programme to ensure results are acceptable. It is noted that the final analytical results will be obtained from Alex Stewart Laboratories (“ASL”) located in Moscow. From sample collection to final reporting can typically take up to 10 weeks.
The 2016 drill programme of 15,000 metres is well underway (17% of the total planned metres have been drilled) and ahead of schedule due to the earlier than usual startup. Three phases of drilling are planned with each phase related to the geographical distribution of the resources by category. Indicated resources are targeted for metallurgical drilling and the Inferred drilling resources for infill drilling as well as metallurgical drilling. The first phase of drilling is nearly complete with the second phase being initiated recently.
Key results from the first phase of drilling within a zone identified as Area A have included the infill drilling of the Inferred resource target at the western end of the MKF deposit. Drilling has identified that the pervasive 1,900 metre long high grade zone is present within the Inferred resource area bringing the total length of the zone to 2,200 metres. Three of the five newly completed infill holes, spaced at 100 metre intervals along strike, confirm that the high grade zone is present which existing widely spaced holes had not identified. The average drill intercept thickness from the three holes is indicated to be 63 metres with an average nickel grade of 0.83% and a copper grade of 0.24%. The complete set of infill holes also indicates that the MKF Inferred resource may be substantially understated. A significant upgrade to the 3.4 million tonne Inferred resource is expected as the resource model presently has a much thinner true thickness of 12 metres and lower average contained grades of 0.55% nickel and 0.16% copper than the drilling indicates. In addition to the anticipated increase in tonnage and grade, the area is now drilled at a spacing which has previously been classified as Indicated resources. Drilling is also progressing on the acquisition of the metallurgical sample for use in the compilation of the DFS.
