TIDMAMC
RNS Number : 8357B
Amur Minerals Corporation
10 March 2014
10 March 2014
AMUR MINERALS CORPORATION
(AIM: AMC)
AEROSCRAFT AND AMUR MINERALS CORPORATION (AIM: AMC)
SIGN MEMORANDUM OF UNDERSTANDING
MOU TO EXPLORE INFRASTRUCTURE DEVELOPMENT REDUCTION
VIA USE OF AEROSCRAFT FLEET
Amur Minerals Corporation ("Amur" or the "Company"), a nickel
copper sulphide exploration and development company, is pleased to
announce that it has entered into a Memorandum of Understanding
("MOU") with Aeroscraft Corporation (Aeros), America's most
innovative FAA-certified lighter-than-air (LTA) manufacturing
company, to establish a strategic partnership to explore
utillisation of Aero's heavy lift vehicles in supporting project
logistics on the Company's proposed base metal operation located in
the far east of Russia.
The MOU considers the potential to utilise Aeros heavy lift
vehicles to reduce the high start-up capital cost requirements
related to accessing the Company's Kun-Manie project. The Kun-Manie
nickel copper sulphide project, with JORC resources in excess of an
830,000 nickel equivalent tonnes and a positive independently
compiled prefeasibility study ("PFS") by SRK Consulting Ltd
("SRK"), requires the construction of a 320 kilometre long access
road to the site. The successful completion and development of the
Aeros vehicles, a new type of Rigid Variable Buoyancy Air Vehicle,
designed to control lift in all stages of air or ground operations,
including the ability to off-load heavy payloads without the need
to re-ballast, and their subsequent use could eliminate the need
for the construction of an access road to the project site. In
addition, the design, engineering and construction lead time can
potentially be eliminated providing a shortened construction
phase.
Emerging Partnership Overview:
-- The Company and Aeroscraft are in discussion to undertake the
utilisation of two Aeroscraft ML868 (250 tonne lift) vehicles on a
multi-year basis to move equipment, supplies, materials and
concentrate to and from the Kun-Manie project site. Use of the
ML868's could result in the Company not having to construct an
access road from the rail station at Verknezeisk to the project.
This could result in the elimination of at least $US 140 million in
road construction costs as estimated in the SRK Consulting Ltd
("SRK") prefeasibility study ("PFS). In addition, rail and truck
freight costs could be substantially reduced.
-- Amur would be a launch partner for the Aeroscraft ML868 vehicles.
-- The intent of the Company and Aeroscraft is to enter into a
service user/customer agreement once the companies have mutually
established the transport requirements, costs, benefits and
structure of a commercial relationship on the successful launch of
the ML868 anticipated within the next two years, which falls within
the Company's time frame to implement construction.
-- By taking advantage of the Aeroscraft innovative capabilities
such as vertical takeoff and landing, independence from ballast, a
cargo handling system, fuel efficiency, and its successful launch,
the Company would also eliminate the environmental impact related
to the construction and operation of the road as well as numerous
bridges required to access the remote project.
-- The flexibility of the Aeroscraft system could allow the
Company to deliver materials directly to the site from the original
supplier facilities. This could reduce transport costs related to
the haulage of supplies to the site. Concentrate could also be
delivered directly to year round operational port facilities for
the delivery of the nickel, copper, cobalt and PGM product to a
smelter. Fuel could be transported directly from the refinery to
the site.
Commenting on today's partnership, Robin Young, CEO of Amur
Minerals Corporation, stated:
"The Board is pleased to announce the MOU with Aeroscraft
Corporation. This partnership in the innovative use of developing
heavy lift transport could substantially reduce our anticipated
capital expenditure to develop Kun-Manie and shorten the upfront
construction period. We look forward to providing additional
updates as Aeroscraft moves toward its final release of its
commercial vehicles."
Igor Pasternak, CEO of Aeroscraft Corporation, added:
"Amur's proposed resource-rich mining operation in the Russian
Far East for whom Aeroscraft utilisation will disrupt
infrastructure development requirements and reduce capital
expenditures, streamline intermodal logistics, and lessen
environmental impacts. We look forward to a long and productive
partnership that should add significant value for investors of both
organizations."
Enquiries:
Company Nomad and Broker Public Relations
Amur Minerals S.P. Angel Corporate Finance Yellow Jersey
Corp. LLP
Robin Young CEO Ewan Leggat Dominic Barretto
Laura Littley Kelsey Traynor
+44 (0) 7981 126 +44 (0) 77 6853
818 +44 (0) 20 3463 2260 7739
Public Relations
Aeroscraft Company
John Kiehle
Director of Communications
1 (323) 201-8374
or john.kiehle@aeroscraft.com
Erica Irigoyen
PR Associate
1 (323) 201-8373
erica.irigoyen@aeroscraft.com
Notes to Editors
About Amur Minerals:
Amur Minerals Corporation (AMC) is a developing mineral
exploration company focused on base metal projects in the far east
of Russia. The Company's principal asset is the Kun-Manie sulphide
nickel, copper project located in Amur Oblast, with JORC resources
in excess of an 830,000 nickel equivalent tonnes and a positive
independently compiled prefeasibility study ("PFS) by SRK
Consulting Ltd ("SRK"). During the last ten years, five deposits
have been identified and drilled at Kun-Maine. The mineral
inventory contains Measured, Indicated and Inferred resources
totaling 120.8 million tonnes with an average grade of 0.54% nickel
and 0.15% copper. The total contained tonnage of nickel is
estimated to be 650,600 tonnes with copper being 178.400 tonnes.
This equates to 1.4 billion pounds of contained nickel and 0.4
billion pounds of copper. A total of 16.9 tonnes of platinum and
18.0 tonnes of palladium are also present as by product metals.
In 2007, a positive prefeasibility study ("PFS") was compiled by
SRK Consulting Ltd ("SRK") wherein capital and operating costs
estimates were compiled and an NPV of $US 84 million (10% discount
rate) was determined. The design of the project was based on three
drilled deposits identified at that time. Three open cast mines
would provide sulphide ore to a conventional flotation mill
designed to beneficiate 4.0 million tonnes of ore per annum. In
order to construct, supply and maintain the operation, a 320
kilometre long access road from the nearest rail station on the BAM
rail line to the east where the proposed mine is to be located. The
road must be completed to permit the construction of the operation
as well as resupply the site. The road would also be utilised to
transport saleable concentrates to the rail system for ultimate
delivery to a smelter located 5,300 kilometres distant.
The PFS detailed design of the road consisted of a one lane
width with a signal switching system permitting two-way traffic.
The final construction cost was estimated to be in the order of $US
140 million which included cost savings by the use of existing
roads present along the planned route. This road cost centre
represented nearly 40% of the SRK initial capital cost estimate of
the operation. The cost per kilometre to construct the road ranged
from $US 150,000 (flat lying to rolling hills) to $US 1,000,000 (in
mountain terrain). Transport costs of supplies, materials and
concentrates was projected to average approximately $US 19.95 per
tonne. The rail transport cost for the concentrate was estimated to
be in the order of $US 39.50 for the concentrate. Therefore, the
total transport related costs per tonne were estimated to be of the
order of $60.00 in Q4 2007 dollars.
Over the course of the last six months, the Company has reviewed
the design of the road and associated costs to account for
inflation and to consider various upgrades to the proposed road
allowing access the project site. The design was upgraded to allow
for swifter full dual direction traffic and to increase the usage
of the road to a full year round operation consisting of 350 days.
The upgrade also included design parameters allowing for an
expansion of the operation from 4.0 to 6.0 million tonnes per year
thereby taking advantage of the economy of scale and allowing for
an increase in annual mill throughput. The 2.0 million tonne per
year increase in mill capacity could result in the delivery of 50%
more saleable metal per year. This increase in throughput may be
possible due to the expansion of the resources identified since the
2007 PFS and is presently being examined in greater detail during
the presently ongoing evaluation of open cast production from five
deposits instead of the three available to SRK during the
completion of the 2007 PFS.
The average cost to transport a tonne of material over the road
from the site to the rail station is now estimated by the Company
to be approximately $40.00 per tonne. The increase in the road
transportation costs included the additional upgrade of full
maintenance, snow removal and repair crews and equipment, way
stations / rest stops and emergency facilities.
The rail transport costs per tonne have also substantially
increased since the SRK PFS was compiled in 2007. The newly
provided rail transport rates to deliver the concentrate to the
smelter are in the order of $US 160.00 per tonne including loading
and offloading of concentrate.
The Company is now working with Aeros and has provided a
schedule of tonnage deliverable to and from the site over the
course of the construction cycle and operational period of the 4.0
million tonne a year operation. During the anticipated two year
construction period, approximately 23,000 tonnes of materials will
be moved to the site. Once full scale operation is attained, an
average of 57,000 to 80,000 tonnes of consumable material will have
to be delivered to the site. Concentrate to be transported from the
operation to a year round open sea port will total from between
250,000 and 480,000 tonnes.
The current conceptual design is to deliver the concentrate from
the proposed mine site to the port at Vanino located 880 kilometres
to the southeast. Returning from the port, the craft will load fuel
and consumables at Komsomolsk na Amur to resupply the mine located
620 kilometres away. Both Vanino and Komsomolsk na Amur are along
the same flight path. By successful implementation of the Aeros
system, the Company could substantially benefit from lower startup
capital expenditures and the potential reduction in transport costs
for both consumables required to support the proposed operation and
the shipment of concentrate to a smelter.
The Company and Aeros are evaluating the requirements and
configuration of the heavy lift system to establish the related
costs and specific configuration of the fleet with regard to size
and number. The Company notes that the newly estimated costs have
been derived internally and are based on first principles. These
will be independently verified in the future.
For more information on the Company and its project, see its
website at www.amurminerals.com.
About Aeros:
Founded 27 years ago in the US, the Aeroscraft Corporation
(Aeros) has grown from a small aerostat production manufacturer to
a leading FAA-certified airship producer and R&D firm for the
aerospace industry. Aeros has achieved multiple FAA airship type
certificates and operates with an FAA Production Certificate, while
featuring a product line that includes advanced airships and
tethered aerostats utilised in commercial and government
applications throughout the world. Learn more at
www.aeroscraft.com
An Aeroscraft is a new type of Rigid Variable Buoyancy Air
Vehicle, designed to control lift in all stages of air or ground
operations, including the ability to off-load heavy payloads
without the need to re-ballast. For the first time in history, an
aircraft has been designed to control and adjust buoyant and
dynamic lift, creating a new paradigm for global air transportation
and logistics. Poised to enhance the air transportation industry,
the Aeroscraft will deliver opportunities for business and
consumers globally through access to remote locations and by new
vertical takeoff and landing ("VTOL") cargo delivery capabilities.
The key features of the Aeroscraft include a rigid structure,
vertical takeoff and landing, and operational abilities at low
speed, in hover, and from unprepared surfaces.
The Aeroscraft vehicle is a vertical logistical solution to many
of the difficulties facing the cargo world today, and is poised to
disrupt the current hub-and-spoke distributional model
characterised by intermodal cargo transfers and distribution
delays. The benefits of the Aeroscraft are expected to be globally
transformational and significant to humanity. The Aeroscraft fleet
will introduce global point-to-point air cargo delivery services
for oversised and overweight project cargos, as well as general
cargo, with capability to deliver to virtually any topographical
location in under 72 hours. The network of globally positioned
Aeroscraft vehicles will help take the chain out of the current
supply chain while providing Aeros' clients unlimited
transcontinental reach.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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