TIDMAMC
RNS Number : 6995O
Amur Minerals Corporation
11 August 2014
11 August 2014
AMUR MINERALS CORPORATION
(AIM: AMC)
Mining Licence Update
One-time Conversion Payment
Amur Minerals Corporation ("Amur" or the "Company"), the
nickel-copper exploration and development company focused on base
metal projects located in the Far East of Russia, is pleased to
report continuing progress in its efforts to attain the Kun-Manie
production licence. In August 2014, Russian authorities issued a
newly updated calculation of the one-time payment for the
forthcoming mining licence. The calculation is derived from the
reserves registered by Amur with the GKZ (State Committee on
Reserves) as well as anticipated production volumes, average grade,
mine life and recent metals prices. The one-time payment is
23,610,272 rubles (US$655,000).
Whilst the Government has been calculating the updated payment,
the Company has been working with Russian authorities in finalising
the terms and conditions of the production licence. The finalised
terms and conditions along with the required one-time payment
calculation will be submitted to the Ministry of Economic
Development ("MED") for its review and approval.
MED's approval of the payment and terms and conditions of the
application, will allow Rosnedra to forward the application to the
Ministry of Natural Resources, its parent organisation, and then
onward to the Government of Prime Minister Dmitry Medvedev for
final approval. Government approval will not include review by the
Foreign Investment Advisory Council.
Concurrent with the ongoing finalisation of the terms and
conditions effort, the application is in advanced stages of review
by the state security organs of the FSB and the Ministry of Defense
("MOD"). Updated reports include the period since September 2013
when the FSB and MOD provided their last reviews. The Anti-Monopoly
Board ("FAS") has already completed its updated review.
Highlights:
-- Amur Minerals continues to advance in obtaining its
production licence for Kun Manie with the issuance of the updated
one-time payment.
-- The one-time payment of 23.6 million rubles ($655,000, down
from $818,000 estimated in May 2013) must be made within one month
of the registration of the mining licence.
-- The payment is a key part of the terms and conditions for the
mining licence and the package will be shortly sent to the Ministry
of Economic Development for its approval.
-- The mining licence application for Kun Manie is also in late
stage review by the FSB and the Ministry of Defense. With MED
approval and the updates by the FSB and MOD, Rosnedra and the
Ministry of Natural Resources will prepare documentation for
forwarding of the application to the administration of the Prime
Minister for the final review and approval.
Robin Young, CEO of Amur Minerals Corporation, commented:
"Amur continues to work closely with the Russian government to
convert our licence from exploration to production and the updated
one-time payment calculation is another important step in that
direction. Obviously it is in the interests of the Russian state to
get paid for the mining rights and move the project towards its
logical goal, which is large scale production at the earliest
possible date; And that is what our shareholders desire. We are
grateful for the professionalism of our counterparts in the
Government who are crucial to achieving a positive outcome at Kun
Manie."
Enquiries:
Company Nomad and Broker Public Relations
Amur Minerals S.P. Angel Yellow Jersey
Corp. Corporate Finance
LLP
Robin Young Ewan Leggat Dominic Barretto
CEO Laura Harrison Kelsey Traynor
+44 (0) 7981 +44 (0) 20 +44 (0) 77
126 818 3463 2260 6853 7739
Notes to Editors
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.
For further information, see the Company website.
www.amurminerals.com.
The website has been updated to include Company events with the
following link.
http://amurminerals.com/events/past/?action=tribe_list&tribe_paged=1
Discussion
The Kun-Manie exploration licence area is approximately 950
km(2) and is located 700 km northeast of the city of
Blagoveshchensk located on the Chinese border. Amur commenced
seasonal field work on the licence in 2004 and issued a JORC
compliant statement covering the three deposits of Maly Kurumkon,
Vodorazdelny and Ikenskoe in 2007.
Since 2007, exploration and drilling has been conducted on an
ongoing basis and an updated resource estimate has been compiled in
in late 2013 wherein resources are reported from five deposits
located along the prolific Kurumkon Trend.
The five deposits contain a total Measured, Indicated and
Inferred resource of 120.8 million tonnes averaging 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. A
total contained nickel equivalent is indicated to be 830,000 tonnes
using 2 December 2013 metal prices. Metal prices utilised to
determine the nickel equivalent value were US$13,378 per tonne for
nickel, US$7,009 per tonne for copper, US$1,350 per ounce for
platinum and US$714 per ounce for palladium.
The estimation of the resource has been compiled by SRK
Consulting (UK) Ltd ("SRK") using geostatistical methods and has
been reported using the JORC Code.
Further, SRK has undertaken sufficient work studies to determine
that all of the reported resource has reasonable prospects for
eventual economic extraction. A detailed summary of the SRK
resource estimate is presented at the end of this announcement. The
summary provides information by deposit and resource category as
set forth by JORC resource reporting standards.
The Company is in the process of undertaking further work to
update its previous technical studies and facilitate producing a
reserve statement in due course. This will incorporate newly
estimated Q1 2014 updated capital and operating costs, the higher
metallurgical recoveries derived in 2012 by SGS Minerals, and lower
net profits tax. The study will also assess alternative power
generation options, road design considerations and alternative
considerations such as heavy lift zeppelins, and the potential of
generating near final marketable product on site and the
determination of specific metallurgical test work required to
assess the final configuration of the operation.
JORC Resource Estimate - 2 December 2013
(zero cut off grade)
Orebody Tonnage Ni Ni Cu Cu Pt Pt Pd Pd
Mt % t % t g/t kg g/t kg
================= ======== ===== ======== ===== ======== ==== ======= ===== =======
Kubuk
Measured - - - - - - - - -
Indicated - - - - - - - - -
Subtotal - - - - - - - - -
Inferred 20.6 0.58 118,900 0.16 32,900 0.1 3,000 0.1 2,400
Total 20.6 0.58 118,900 0.16 32,900 0.1 3,000 0.1 2,400
Gorny
Measured - - - - - - - - -
Indicated - - - - - - - - -
Subtotal - - - - - - - - -
Inferred 7.6 0.31 23,900 0.09 7,000 0.2 1,600 0.2 1,900
Total 7.6 0.31 23,900 0.09 7,000 0.2 1,600 0.2 1,900
Ikenskoe
Measured 14.9 0.52 77,100 0.13 19,700 0.2 2,700 0.2 3,000
Indicated 7.7 0.39 29,800 0.10 7,800 0.1 1,100 0.2 1,300
Subtotal 22.6 0.47 106,900 0.12 27,500 0.2 3,800 0.2 4,300
Inferred 11.5 0.62 70,800 0.14 16,300 0.2 2,300 0.2 2,500
Total 34.1 0.52 177,700 0.13 43,800 0.2 6,100 0.2 6,800
Vodorazdelny
Measured 0.8 0.57 4,700 0.17 1,400 0.3 200 0.3 200
Indicated 4.8 0.66 31,200 0.17 8,200 0.1 600 0.1 600
Subtotal 5.6 0.64 35,900 0.17 9,600 0.1 800 0.1 800
Inferred - - - - - - - - -
Total 5.6 0.64 35,900 0.17 9,600 0.1 800 0.14 800
Maly Krumkon
Measured - - - - - - - - -
Indicated 21.8 0.58 126,100 0.16 34,900 0.1 2,400 0.1 3,000
Subtotal 21.8 0.58 126,100 0.16 34,900 0.1 2,400 0.1 3,000
Inferred 31.1 0.54 168,100 0.16 50,200 0.1 3,000 0.1 3,100
Total 52.9 0.56 294,200 0.16 85,100 0.1 5,400 0.1 6,100
Total Measured 15.8 0.52 81,800 0.13 21,100 0.2 2,900 0.2 3,200
Total Indicated 34.3 0.55 187,100 0.15 50,900 0.1 4,100 0.1 4,900
Sub-total 50.1 0.54 268,900 0.14 72,000 0.1 7,000 0.1 8,100
Total Inferred 70.7 0.54 381,700 0.15 106,400 0.1 9,900 0.1 9.900
Grand Total 120.8 0.54 650,600 0.15 178,400 0.1 16,900 0.1 18,000
----------------- -------- ----- -------- ----- -------- ---- ------- ----- -------
Glossary
DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES
EXTRACTED FROM THE JORC CODE: (December 2012) (www.jorc.org)
A 'Mineral Resource' is a concentration or occurrence of
material of intrinsic economic interest in or on the Earth's crust
in such form, quality and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade, geological characteristics and continuity of a Mineral
Resource are known, estimated or interpreted from specific
geological evidence and knowledge. Mineral Resources are
sub-divided, in order of increasing geological confidence, into
Inferred, Indicated and Measured categories.
An 'Inferred Mineral Resource' is that part of a Mineral
Resource for which tonnage, grade and mineral content can be
estimated with a low level of confidence. It is inferred from
geological evidence and assumed but not verified geological and/or
grade continuity. It is based on information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes which may be limited or of uncertain
quality and reliability.
An 'Indicated Mineral Resource' is that part of a Mineral
Resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated with a
reasonable level of confidence. It is based on exploration,
sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are too widely or
inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be
assumed.
A 'Measured Mineral Resource' is that part of a Mineral Resource
for which tonnage, densities, shape, physical characteristics,
grade and mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable exploration,
sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are spaced closely enough
to confirm geological and/or grade continuity.
An 'Ore Reserve' is the economically mineable part of a Measured
and/or Indicated Mineral Resource. It includes diluting materials
and allowances for losses which may occur when the material is
mined. Appropriate assessments and studies have been carried out,
and include consideration of and modification by realistically
assumed mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors. These assessments
demonstrate at the time of reporting that extraction could
reasonably be justified. Ore Reserves are sub-divided in order of
increasing confidence into Probable Ore Reserves and Proved Ore
Reserves.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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