Earnings Release • Sep 3, 2015
Earnings Release
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National Storage Mechanism | Additional information
RNS Number : 9029X
Amur Minerals Corporation
03 September 2015
3 September 2015
AMUR MINERALS CORPORATION
(AIM: AMC)
Flangovy Zone Expanded by 40%
Amur Minerals Corporation ("Amur" or the "Company"), a nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, is pleased to announce the first set of drill results from its 2015 Flangovy drill programme.
A step out hole located 400 metres to the east of C210-1 which intersected 46.3 metres of 0.97% nickel and 0.26% copper has successfully identified that the mineralised zone is substantially larger than previously reported.
The first hole ("C306") intersected three sulphide horizons containing a total of 46.6 metres of mineralisation averaging 0.8% nickel and 0.2% copper as determined by the in-house Niton XL2 500 X-Ray Fluorescence unit ("RFA"). This extends the Flangovy area of the Maly Kurumkon / Flangovy deposit by 40% from its previously identified 850 metre length to that of 1,250 metres.
The total length of the deposit Maly Kurumkon / Flangovy now stands at two kilometres long and remains open to expansion at both its western and eastern limits. In addition, the Company reports that two holes have been completed at the westernmost limits of Flangovy (a part of the infill and resource delineation programme) and these holes successfully defined the limits of the mineralisation at the surface and at the down dip limit of the drill section.
Highlights:
· Results from three holes containing a total of 555.8 metres of drilling have been internally evaluated and are available for release now that the Niton units have been fully calibrated and verified as providing reasonable and representative results.
· The first two holes were completed at the western end of Flangovy and defined the upper and lower extent of the mineralisation. Drilled to depths of 150 and 31 metres, the limits of the economic mineralisation on the drill section have now been identified. These were drilled first as they were located nearest the base camp.
· The remainder of the 2015 drill programme will generally be drilled from east to west.
· Hole C306 located 400 metres to the east of the last known ore intercept was intended to identify the presence of the peridotite sill which contains the mineralisation. Large distance step outs such as this typically provide valuable information for later drill efforts to better target future drill programmes.
· C306 provided more than geological information, it intersected the peridotite sill and three discrete sulphide enriched zones containing economic grades of nickel and copper were intersected. The average RFA content for nickel was 0.8% and for copper was 0.2%. The total combined mineralised drill intercept thickness of 46.6 metres was identified.
· Individually, the three zones averaged from 0.7% to 1.0% nickel and range from 12.7 metres to 17.5 metres in thickness.
· Flangovy is projected to contain approximately 29 million tonnes of ore at an average nickel grade of 0.55% and a copper grade of 0.16% over a length of 850 to 900 metres. The successful step out of nearly 400 metres is likely to add substantial resource to the 120 million tonnes global resource at Kun-Manie.
· The successful completion of C306 resulted in the decision to complete a nearby hole targeting the sill at a greater depth to confirm the continuity of the mineralisation in the dip direction. This is hole C305 and RFA results will be released when available.
· Presently, the Company anticipates a total of 5,000 metres to 6,000 metres will be completed over the course of the season.
The design of the drill programme and various key considerations in evaluation of the information are presented in the "Notes to Editor" below.
Robin Young, CEO of Amur Minerals, commented:
"The process of infill drilling tends to be a mundane process from which confidence is increased but resource growth potential is limited. This drilling programme was living up to its expectations when considering the results of the first infill holes. However, the step out and expansion of the Flangovy limb of Maly Kurumkon / Flangovy was an extremely positive result. A 40 percent expansion in the Flangovy area could result in an increase in resource and add another two to three years of production which in turn may provide higher metal delivery to the plant sooner than anticipated. We look forward to the reporting of information as it becomes available and we continue to verify the results both internally and from Alex Stewart Laboratories based in Moscow."
| Company Amur Minerals Corp. |
Nomad and Broker S.P. Angel Corporate Finance LLP |
Public Relations Yellow Jersey |
| Robin Young CEO | Ewan Leggat Katy Birkin |
Dominic Barretto Kelsey Traynor |
| +44 (0) 7981 126 818 | +44 (0) 20 3470 0470 | +44 (0) 7768 537 739 |
For additional information, visit the Company's website, www.amurminerals.com.
Notes to Editor
The information contained in this announcement has been reviewed and approved by the CEO of Amur, Robin Young. Mr. Young is a Geological Engineer (cum laude) and is a Qualified Professional Geologist, as defined by the Toronto and Vancouver Stock Exchanges.
2015 Drill Programme Target -Maly Kurumkon / Flangovy
The 2015 drill programme is targeted on the Flangovy area of the Maly Kurumkon / Flangovy deposit. The aim is to increase the drill density thereby allowing for Inferred resources to be upgraded to Indicated resources. By upgrading the resource, reserves can be reported to fully compliant JORC 2012 standard reserves. Open pit and underground preliminary mine designs by the Company have confirmed that a substantial portion of the Flangovy area should fall within a mine plan suitable for use in a Definitive Feasibility Study.
Drilling is progressing from east to west along the strike of the deposit beginning with a step out hole located 400 metres to the east of the last intersection of mineralisation. This hole is intended to confirm the presence of the structure. The remaining holes will be completed along the dip of the mineralisation where mineralisation has been drill intersected and in between the current 200 metre spaced drill sections.
The Company has targeted a total of 6,000 metres to be completed during this field season. The season lasts approximately four to five months. It is anticipated that a minimum of 5,000 metres will be completed, weather permitting.
Background
The Maly Kurumkon / Flangovy deposit is one of five deposits that have been drill identified over the last 11 years of exploration at the Kun-Manie nickel copper sulphide project. Thus far, drilling has defined a continuous mineral host sill composed of peridotite having a length of at least 1,750 metres. The sill can be observed in out crop in the western half of the deposit (Maly Kurumkon area) and has been intersected by 37 holes throughout a 1,750 metre length. The western and easternmost holes have intersected mineralisation and there is substantial potential to expand the resource in both directions and at depth.
Pre 2015 Drill Results
A total of 45 diamond core holes have been drilled along the deposit using two distinct spacings between the drill sections. In the Maly Kurumkon area, the majority of the drilling has been completed on drill sections spaced at 100 metres while that of Flangovy (the eastern half) has been completed using a 200 metre drill section spacing.
Mineralisation
Mineralisation is contained within the peridotite sill that dips from 20 to 40 degrees to the northeast. The sill ranges in thickness from 20 metres to more than 100 metres. In the dip orientation, the sill tends to thin in the down dip direction and has been identified at depths of more than 375 metres below the surface.
The sill hosts a series of layered zones which contain disseminated and veinlet sulphide mineralisation. The economic mineralisation of nickel, copper and the associated by-product is associated with the concentrations of greater sulphide content and tend to be located at or near the footwall and hanging wall contacts with the enclosing country rock (a metagabbro). The footwall enriched horizon is generally thicker than that of the hanging wall zone. Using a 0.2% nickel cutoff grade, the average mineralised intercept length approaches 7.3 metres in thickness containing an average nickel grade of 0.72% and a copper grade of 0.20%. Each hole that has intersected mineralisation contains an average of 24.0 metres of mineralisation.
The geometry (orientation and thickness) of the mineralisation is well suited to both open cast and underground mining. In the Maly Kurumkon area, the average thickness of each of the mineral lenses is 9.1 metres reaching a maximum thickness of 45.1 metres. At Flangovy, the average mineralised thickness is 5.7 metres with a maximum intercept thickness of 52.6 metres.
Resource and Distribution of the Ore
In July 2013, SRK Consulting Ltd ("SRK") updated the resource estimate for the Maly Kurumkon / Flangovy area. The deposit contains approximately 45% of the 120 million ore tonne JORC resource presently identified at Kun-Manie. Approximately 40% of the Maly Kurumkon / Flangovy resource has been classified to be of the Indicated resource category which is predominantly contained within the Maly Kurumkon portion of the deposit. Here drilling has been completed on a greater density using sections spaced approximately 100 metres apart. At Flangovy, a substantial majority of the resource is Inferred resource. The SRK estimated resource for nickel and copper is presented below. Note that differences are present due to rounding. With the exception of the drilling detailed in this announcement, since 2013, there has been no drilling in this deposit.
Maly Kurumkon / Flangovy Global Resource
| Resource Category |
Tonnes (m) |
Ni % | Tonnes Nickel |
Cu % | Tonnes Copper |
| Measured | - | - | - | - | - |
| Indicated | 21.8 | 0.58 | 126,100 | 0.16 | 34,900 |
| Inferred | 31.1 | 0.54 | 168,100 | 0.16 | 50,200 |
| Total | 52.9 | 0.56 | 294,200 | 0.16 | 85,100 |
Resource by Area
| Area | Tonnes (m) |
Ni % | Tonnes Nickel |
Cu % | Tonnes Copper |
| Maly Kurumkon | 24.0 | 0.56 | 135,400 | 0.16 | 38,900 |
| Flangovy | 28.9 | 0.55 | 158,800 | 0.16 | 46,200 |
| Total | 52.9 | 0.56 | 294,200 | 0.16 | 85,100 |
Field and Sample Preparation Procedures
Drilling, core handling, logging and sample preparation procedures remain unchanged for previously audited procedures wherein SRK has signed off on the procedure verifying that industry standards are utilised.
Analytical Procedures
Two types of analytical results are generated for each sample collected at Kun-Manie. The first is an internally derived result using one of two Niton XL2 500 X-Ray Fluorescence units ("RFA"). Use of these units provides a rapid turnaround allowing for knowledgeable decisions to be made in the field. Use of these results is not without risk if a unit has not been rigorously tested and calibrated. This is a complex task as the background mineralisation can result in erroneous results. It is therefore, necessary to utilise the standards provided with the units, to test existing samples that have been analysed by external facilities and to use samples from the types of ore that are to be encountered. No two deposits are the same and care must always be taken to ensure results are reflective of the metal content being reported. Once calibrated and in use, the unit is tested daily at the start and end of each shift to ensure that there was no drift during the course of the shift or damage to the Niton units thereby introducing erroneous information. The reported RFA units provide reasonable but not definitive results and for this reason, the Company reports RFA results to the nearest significant digit of one tenth of a percent. This rigorous process allows the Company to report preliminary but reasonable results in advance of obtaining the final externally derived results which require a minimum of 6 weeks and up to 10 weeks to obtain.
The second source of analytical results is those produced by Alex Stewart Laboratories located in Moscow, Russia. This fully independent, licenced and certified laboratory provides the result that is ultimately used in resource estimation and is of a greater accuracy than that of the RFA unit.
Alex Stewart Laboratory Turnaround
The turnaround time from when a mineralised sample is recovered at the drill rig to obtaining the final analytical result is dependent upon several factors. The Company provides a monthly helicopter flight to the site to provide fresh food stuffs, undertake staff changes and provide required spares. On the return flight, the sample pulps are delivered to Khabarovsk staff and then are transshipped by rail to ASL's Russian facility in Moscow. On receipt of the ASL results, the Company then carefully examines the data to ensure that the external results are accurately reported. This is accomplished by the insertion of known and blank samples. If there is any notable difference within the reported results from these hidden samples, the Company will request a re-assay of the sample batch. Once samples are verified as representative, these become the master result available for future use in resource estimation and metallurgical test work.
Maiden Results Report
The 2015 drill results are provided in the table below. The attached link presents a schematic of the Maly Kurumkon / Flangovy deposit.
http://www.rns-pdf.londonstockexchange.com/rns/9029X_-2015-9-2.pdf
| Flangovy Drill Core Results | ||||||||
| RFA Results | ||||||||
| Diamond Core Hole Results 0.2% Ni Cut Off Grade |
Anticipated Target | |||||||
| Hole # | Depth (m) |
From (m) |
To (m) |
Length (m) | Ni (%) |
Cu (%) |
||
| C300 | 150.0 | 121.0 | 122.5 | 1.5 | 0.2 | 0.0 | 12.5 m at 0.3% | |
| C301 | 31.0 | Barren | Barren | Establish Outcrop Limit Hidden | ||||
| C306 | 374.8 | 316.0 329.6 356.5 |
328.7 346.0 374.0 |
12.7 16.4 17.5 |
1.0 0.7 0.7 |
0.2 0.2 0.3 |
Step Out Extends Flangovy 400 metres to East |
|
| Total | 555.8 | |||||||
Awaiting ASL results.
This information is provided by RNS
The company news service from the London Stock Exchange
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