TIDMAMC
RNS Number : 4845I
Amur Minerals Corporation
19 June 2017
19 June 2017
AMUR MINERALS CORPORATION
("Amur" or the "Company")
RESULTS FOR THE YEARED 31 DECEMBER 2016
CHAIRMAN'S STATEMENT
With pleasure, I present Amur Minerals Corporation's (the
"Company" or "Amur") financial results, our most recent and current
operating agenda and the results of the 2016 advancements and
developments on progressing our wholly owned Kun-Manie nickel
copper sulphide deposit toward production. Located in the Far East
of Russia near the largest three international nickel consuming
markets of China, Korea and Japan, we entered 2016 in a financially
stable position on the back of having been granted the Detailed
Exploration and Production Licence in the middle of 2015.
Strongly positioned in Q1 2016, Amur implemented an aggressive
programme targeting its completion on or about 1 January 2018. The
programme was designed to develop a comprehensive project
implementation plan to be defined at a Definitive Feasibility Study
("DFS") level. The resultant report is to be used to identify and
implement funding alternatives for the construction and development
of Kun-Manie, with the potential to be one of the world's top 10
annual nickel production operations.
Key accomplishments of our programme are summarised herein.
Detailed information and a summary of our numerous successes over
the course of 2016 have been outlined by Mr Robin Young, our Chief
Executive Officer following my report to shareholders.
Operational Programme
Entering 2016 in a solid financial position having arranged
financing in the amount of 12.5 million Sterling (US$ 18.75
million), we set out an aggressive two-year plan to move the
project forward toward the completion of a Definitive Feasibility
Study ("DFS"). This plan was developed and initiated at the
beginning of 2016 targeting its completion on 1 January 2018. The
major objectives of the two-year plan included the following:
-- 2016 Drill Programme: All drilling for 2016 and into the
foreseeable future is to be focused on upgrading Inferred resources
to that of Indicated allowing for inclusion in the definition of a
Mining Ore Reserve. Areas of newly identified resources will be
immediately infill drilled on drill spacing suitable for
designation of Indicated resources. Mineral Resource Estimates
("MRE") are to be completed in accordance with JORC (2012)
reporting standards.
-- Mineral Resource Estimates: Post the completion of the 2016
drill season, newly reported Mineral Resource Estimates ("MRE")
were expected to be compiled using a cut-off grade ("COG") of 0.4%
nickel. The increase in the COG allows the Company to evaluate
resources likely to be mined at lower nickel prices whilst
simultaneously permitting us to identifying the preferred mining
method. The MRE was to be constructed in a manner allowing the
Company to define a preferred mining approach (comprised of open
pit or underground production methods).
-- Mining Ore Reserve ("MOR"): The MOR estimates are to be based
on audited operating costs and externally derived metallurgical
test work specific to each deposit. Mining is planned using open
pit and underground approaches. Hence, the MOR will be defined
based on the mining approach that produces the highest net
operating profit per ore tonne. Based on typical construction loan
financing structures which range from 5 to 7 years, the Company
targeted the identification of a MOR inventory of 60 million tonnes
representing a 10 year production period. The 60 million tonne
selection represents approximately 1.5 times a typical project
finance loan life period which is typically required by funding
source which ensures a company's ability to repay a loan covering
the preproduction construction period and start up requirements.
Identification of the MOR is to be completed in accordance with
JORC (2012) standards.
-- Metallurgical Test Work: The definition of the final
metallurgical flowsheet and plant design is a critical step in
defining the economic potential of Kun-Manie. Numerous options are
available to the Company and require careful consideration to
provide an optimal plant design. These options to be included in
the design in the metallurgical test programme included
consideration of potential commercial smelter off take agreements,
the ability to generate multiple concentrate streams for off take
options by commodity, the potential of generating a separate
concentrate(s) for streaming by-product metals and determination of
a concentrate which could be treated at a company owned furnace
allowing for low grade matte generation.To fully evaluate the
alternatives, a staged process was defined thus allowing for the
results of each stage to be used to refine each ensuing
metallurgical assessment phase. The first phase consisted of the
completion of bench scale test work to define maiden grade recovery
curves at Kubuk ("KUB") and the Flangovy area of Maly Kurumkon /
Flangovy ("MKF"). The comprehensive set of grade recovery curves
defining metallurgical recoveries and preliminary slag forming
composition of the concentrate by deposit, each deposit could be
ranked by its metallurgical response and would enable confirmation
that MKF remained the priority deposit at which the proposed mining
operation would begin. Moving from bench scale work to larger scale
production style testing which is more accurate and reflective of
production, a representative sample from existing core is to be
selected and processed allowing for a more accurate and definitive
evaluation of the metallurgical responses of the ore than would be
defined by the less accurate bench scale grade recovery work. The
final phase of test work on concentrate production is to be
implemented using a substantially larger representative sample
allowing for the evaluation of the various potential options
described above and derivation of the final plant flowsheet and
plant design.
-- Large Scale Metallurgical Test Work: Follow on
pyrometallurgical test work on the concentrate derived from the
large scale metallurgical test work will be undertaken. The results
will allow the Company to fully evaluate the flowsheet, technical
and economic potential of an owner operated furnace converting all
or at least a substantial portion of the concentrate to a low grade
matte for sale to the international market.
-- Site Ancillary Facilities: Development of site ancillary
facilities is necessary to ensure the full implementation of the
final selected design for the Kun-Manie operation. This is planned
for definition as a later stage component since the final MOR and
plant design will impact the scale and cost of these components.
These components include power generation on site, fuel and tank
farms to support power generation and mining operations, tailing
handling and placement, housing and employee support and
operation's administration and facilities.
-- Road Access: A major component to the success of the
operation will be the completion of an estimated 320-kilometre long
access road linking the project site to the Baikal Amur ("BAM")
rail line. This road will allow for resupply and support of the
mine and for the transport of concentrate to the BAM rail line
where a support facility will be built. Representing approximately
30% of the initial capital cost (US$ 160 million), design and
construction of the access road is key to the successful
implementation of the project. A four-phase approach has been
defined. The first stage was the selection of the better of three
preliminary existing routes to be completed by qualified road
construction specialists during which preliminary assessment of the
route and access to road construction materials would be evaluated.
The selection of the route, topographic and hydrological maps were
to be compiled along the selected road corridor for use in the next
phase. The second phase is comprised of a desktop design using the
available digital information to select a more specific route which
will be field verified and any necessary adjustments to the final
route could be identified and included reducing geological and or
hydrological hazards. The third phase is comprised of the detailed
engineering including the acquisition of detailed geotechnical and
hydrological information for road and bridge designs, finalisation
of the road design and related bridge and water crossing design.
The final stage is the construction of the road.
-- Ulak Support Facility: The final major component of the
Kun-Manie operation is the design and construction of an Ulak based
support facility. Located immediately adjacent the BAM rail line, a
support facility is planned allowing for the delivery of supplies
and material to the mine along the 320 kilometre access road. Also
included is a concentrate storage facility from which concentrate
can be shipped to the international markets or delivered into the
company owned concentrate treatment facility from which a low grade
matte can be generated.
Progress and Milestones
Substantial progress set out in related our 1 January 2016
planned programme has been made over the course of 2016 and into Q1
of 2017. To highlight our major accomplishments, I note the
following:
-- Record drill productivities have been attained with a total
of 19,785 metres having been completed at MKF during the 2016
season. The drill cost per metre of US$ 40 was the lowest ever
recorded during a field season and includes drilling, labour, fuel,
consumables and analytical results.
-- A newly compiled MRE for RungePincockMinarco ("RPM") reported
10 February 2017, substantially upgraded the 1 January 2016
reportable MRE. Drilling during 2016 confirmed continuous
mineralised higher grade structures to be present and the MRE was
modelled based on a 0.4% nickel COG. The current Kun-Manie MRE
averages a nickel equivalent grade of 1.03% within a 101.3 million
tonne resource. Containing approximately 1.05 million tonnes of
nickel equivalent metal, the nickel equivalent tonnage has been
increased by 22.5% from 853 thousand nickel equivalent tonnes. It
is also noted that the configuration and thicknesses of the
mineralisation are conducive to both open pit and underground
mining.
-- An increase of over 118% in the Measured and Indicated nickel
equivalent tonnage has been identified based on the highly
successful 2016 drill programme at MKF. Successful infill drilling
of areas previously identified as Inferred resource and the
application of drilling all newly discovered mineralisation at a
spacing allowing for the new resource to be assigned to the
Indicated category is the reason for such a large expansion of the
Measured and Indicated resource. The global Measured and Indicated
nickel equivalent tonnage was increased from 383,200 tonnes to
836,300 tonnes. The near 450,000 tonne nickel equivalent expansion
of Measured and Indicated resource alone is larger than many nickel
sulphide companies report within their total resource inventory.
The average nickel equivalent grade was also increased from 0.72%
to 1.03% (an increase of 43%). On a mineralised tonnage basis, the
Measured and Indicated resource contains 80 million ore tonnes
which can be used in the definition of an MOR.
-- As noted, the shift in drilling for Measured and Indicated
has been highly successful and positioned the Company to consider
various funding options. Based on the adoption of drilling for
reserve approach, the Measured and Indicated resource inventory now
totals more than 80 million nickel equivalent tonnes for inclusion
in the definition of the MOR. This component of the resource
indicates the potential to define the MOR of 10 to 13 years at a
nominal production rate of 6.0 million tonnes per year (it is
assumed that approximately 85% of the Measured and Indicated
resource will be converted to MOR). Successful conversion of this
portion of the resource to reserve is likely to cover the payback
period of a construction loan. Such loans typically range from five
to seven years and financial institutions underwriting such loans
prefer to fund an operation that has an MOR equal to 150% planned
for processing over the life of the loan. The 2017 drill programme
will be targeting a 10.9 million tonne Inferred resource at KUB as
well as resource expansion down dip, to the east and to the west.
Drilling is also planned at IKEN focused on resource expansion. The
Company plans to infill drill any newly discovered mineralisation
for inclusion in the Indicated resource category.
-- In an RPM mining trade off study for MKF conducted in late
2016 and reported in Q1 2017, a first stage analysis of the
mineable potential of MKF was completed. The study confirmed the
Company's conclusion that both open pit and underground production
are viable and the combination would result in improved economics
as opposed to open pit mining only. Using the 10 May 2016 study,
compiled by SRK Consulting (UK) Ltd ("SRK"), RPM identified the
mining potential to consist of a diluted mineable reserve totaling
44.5 million tonnes (approximately 7.5 years of mine production)
averaging 0.75% nickel and 0.19% copper along the 2,100 metre long
deposit model (excluding the 900 metre extension identified by the
2016 drill results). The total tonnes of mined nickel were
projected to be in the order of 332,200 with copper totaling 83,500
copper tonnes. More than 87% of plus 0.4% COG resource from the
total 2,100 metre long deposit (including Inferred) was identified
to be suitable for mining. Based on the highly supportive and
confirmatory work, the Company will have an independent and
qualified consulting group derive a MOR at four deposits based on
deposit specific operating costs per tonne, metallurgical
recoveries of the recovered metals and the selection of the
appropriate mining method(s) for each deposit. In addition, rock
slope stability for open pit consideration, underground support
requirements and hydrological considerations will be included in
the definition of the MOR.
-- Work by SGS Minerals ("SGS") has confirmed metallurgical
recoveries vary by deposit based on whole core and grade recovery
curve determination. Across all deposits, metallurgical recovery
increases with increasing grade. For MKF, Gipronickel Institute
("Gipro") (a subsidiary of Norilsk Nickel) also completed a large
scale bulk metallurgical test on a near half-tonne bulk sample
having an average grade of 0.70% nickel and 0.19% copper.
Metallurgical recoveries for both nickel and copper will exceed
80%. Having established that higher recoveries increase with
increasing mined grade and that MKF mining potential study is
projected to extract an average nickel grade of 0.75%, it is
anticipated metallurgical recovery could be higher. However, use of
the current 80% recoveries for nickel and copper at MKF will
provide a degree of conservatism in future evaluations. A larger
scale bulk metallurgical sample comprised of 7.4 tonnes of core
from MKF will be processed to allow for the determination of the
process flowsheet and plant design from which the sulphide
concentrate will be generated. The metallurgical test work
programme for this sample will assess various alternatives
including the potential to generate multiple concentrate products
for consideration in off take agreements and the specific design of
a furnace for a company owned concentrate treatment facility
capable of producing a low grade matte.
-- Ground based geophysics completed near the proposed
processing plant site has identified potential sources of water for
industrial use in the treatment of ore. A drill programme is
planned for the 2017 season to define the amount of water available
from underground sources. Additional geophysical work is planned
for this season in the western area of the hydrological
licence.
-- Selection of the preliminary access road route was completed
during the year and detailed topographic and hydrological maps have
been compiled allowing for the next stage of the road design
process to be implemented. A specific route will be selected,
examined and adjusted as necessary to allow for detailed
engineering, design and construction. This is a major component of
the project and nearly a third of the initial capital expenditure
of Kun-Manie is projected for this critical component to the
successful completion of the project.
As indicated above, the Company has made significant progress
over the course of 2016, some of which have been reported as post
2016 events. We have identified the presence of much higher grades
available to mining, substantially increased our Measured and
Indicated resource, confirmed that our future MOR will likely be
substantially higher in grade than previously planned, that our MOR
will likely be of sufficient size and grade to allow for project
financing and begun to establish key metallurgical results for the
treatment and eventual sale of concentrate and or low grade matte
for the Kun-Manie ores. These are all important achievements
allowing for the continued advancing of the project toward a final
project design and decision to initiate production. Our aggressive
plan to advance the project has already shown substantial and
multiple benefits and we shall continue to proceed with our Q1 2016
programme.
A great deal of work remains to be accomplished to attain our
final object of the decision to place Kun-Manie into production and
to fund the construction of the project.
The above accomplishments would not have been possible without
the full support, success and dedication of our ZAO Kun-Manie staff
headed by our General Director Mr Anatoly Velma. We are already
benefitting from our Russian team's activities in 2017 as they have
once again fully set up the Company to complete another field
season of drilling and onsite engineering activities with the
transport of new record tonnages over our winter ice road.
For additional information and a more in-depth review of our
2016 results, our Chief Executive Officer, Mr Robin Young has
provided significant detail on the successes of 2016 presented
below.
Funding of Activities
The aggressive two-year programme was established on the basis
of the Crede CG III Ltd. ("Crede") placing in the total amount of
GBP12.5 million (US$ 18.75 million) to be delivered to the Company
in five tranches at 90 day intervals. As at year end 2015, the
Company reported available cash to be GBP6.4 million (US$ 9.6
million). Entering the year, four of the five GBP2.5 million (US$
3.75 million) tranches remained to be settled providing an
additional GBP10.0 million (US$ 15.0 million) during 2016. Given
the 1 January 2016 cash position and scheduled delivery of an
addition GBP10.0 million (US$ 15.0 million) via the Crede placing,
a total projected cash position of GBP16.4 million (US$ 24.6
million) was available covering the two-year period of 2016 and
2017.
The budget to implement the aggressive two-year programme was
estimated to require GBP13.3 million (US$ 20.0 million) leaving
approximately GBP3.0 million (US$ 4.5 million) for coverage of the
Group's administrative costs covering the two-year period. With a
defined budget and funding commitments to cover the DFS programme,
the Company established a fast track plan to attain the DFS and
implemented it in very early Q1 2016.
Two significant events occurred during 2016 which are now
beginning to impact the compilation of the aggressive DFS plan.
Firstly, on 23 June 2016, the UK voted to exit the European Union.
This resulted in a substantial and rapid devaluation of the Pound
Sterling reducing the cash available to the programme by 20%.
Secondly, shareholders opted to discontinue the final two Crede
tranches totalling GBP5.0 million (US$ 7.5 million). The
combination of these two events has resulted in a shortfall of
approximately GBP7.8 million (US$ 9.8 million) for completion of
the DFS.
In response to these events, the Company has revisited all
working relationships and initiated cost cutting measures by
utilising a larger component of qualified Russian companies,
entered negotiations with Chinese companies to reduce anticipated
higher costs associated with western companies and undertaken
substantial portions of the DFS work internally under the direction
of independent qualified organisations that are a part of the DFS
compilation plan. Presently, we will continue to advance the work
on the DFS as aggressively as possible and are identifying specific
aspects of the DFS which are not as critical to the determination
of the economic viability of the project.
Financial Overview
The Company remained debt free throughout the period with cash
reserves of US$ 8.2 million as at 31 December 2016.
In March 2016 and June 2016, the Company completed tranches 2
and 3 of the financing agreement entered into with Crede CG III Ltd
("Crede") in 14 December 2015 providing a further GBP5 million of
funding. This is in addition to the GBP2.5 million provided in
December 2015.
As part of the Crede financing agreement the Company issued 17m
warrants in December 2015 and a further 24.5 million warrants for
tranche 2 in March 2016 and 48 million warrants for tranche 3 in
June 2016. During the period all 17 million warrants of tranche 1
and 10m warrants of tranche 2 were exercised leaving 62.5 million
warrants outstanding as at 31 December 2016. In accordance with
financial reporting requirements, the fair valuation of these
remaining warrants as at 31 December 2016 is US$ 3.3 million which
must be reported as a financial liability at fair value through the
profit and loss on the statement of financial position. After the
year end, the remaining 14m of tranche 2 warrants were exercised on
28 April 2017.
In total the Company has spent US$2.3 million on capital
equipment during the period (US$0.6 million for the same period in
2015) and US$3.5 million on exploration costs (19,785 metres
drilled) (US$2.2 million in the same period in 2015) (5,821
meters).
The Company incurred an operating loss of US$5.77 million (2015:
US$0.7 million). Administration costs for the year were US$3.8
million (2015: US$4.1 million) of which US$1.4 million was
attributable to Net Foreign Exchange losses. Employee costs,
including Directors Fees, were US$1.1 million (2015: US$1.0
million) due to the strengthening of the Russian Rouble and the
addition of Mr. Gazzard to the Company's board. There was no
financial income earned for the year (2015: US$2.2 million) as the
Company had successfully completed the financing agreement with
Lanstead Capital L.P in October 2015.
Key Non-Executive Board Additions
To assist us with meeting the new challenges that await us in
2017 and into the future, we brought two new nonexecutive directors
to the Board - Mr Paul Gazzard and Mr Ljupco Naumovski. These
strategic appointments add addition experience and further
strengthen the Board providing an increased breadth and depth of
knowledge and experience which is essential in moving the Company
forward.
Mr. Robert W. Schafer
Non-Executive Chairman
16 June 2016
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Enquiries:
Company Nomad and Broker Public Relations
Amur Minerals Corp. S.P. Angel Corporate Finance LLP Yellow Jersey
Robin Young CEO Ewan Leggat Dominic Barretto
Soltan Tagiev Harriet Jackson
+7 (4212) 755 615 +44 (0) 20 3470 0470 +44 (0) 7544 275 882
CHIEF EXECUTIVE OFFICER'S OPERATIONAL SUMMARY
With pleasure, I present a detailed and comprehensive technical
summary of our activities completed during year under review. As we
began our move from an exploration based company into a
preproduction scenario, 2016 was an extremely busy and successful
year.
2016 - A Field Season of Records and First Accomplishments
The 2015 and 2016 field seasons were focused on resource
expansion and the upgrade of Inferred resource to that of Indicated
at MKF, our largest deposit. In addition, engineering field work
required for inclusion in the planned operational design of the
Kun-Manie nickel copper sulphide project was undertaken.
As a result of an early start to the field season (5 May 2016)
and additional drilling capacity, the Company completed a record
number of drill meters (19,785 metres) than the originally planned
15,000 metres of drilling at the MKF deposit. Infill and step out
drilling as well as the acquisition of a bulk metallurgical sample
were successfully completed resulting in a substantial expansion
and upgrade of the Mineral Resource Estimate ("MRE").
Globally, our accomplishments over the 2016 drill season
included the following:
-- A record tonnage of 500 tonnes of supplies, fuel, materials
and newly purchased earthmoving equipment (including the newly
purchased capital equipment) was transported over the Q1 2016
winter ice road in preparation for the season.
-- Two newly purchased Caterpillar D9R dozers increased our
total dozer fleet to five allowing for construction of 13.3
kilometres of drill roads and 82 drill pads. The acquisition of a
Caterpillar 320D2L excavator substantially enhanced the ability for
road construction in challenging areas of steep relief.
-- The purchase of a new Boart Longyear LF-90 diamond core rig
doubled our drilling capacity bringing our rig total to two. The
LF-90 also provided us with the increased capability to drill
deeper targets which our single LF-70 was not capable of
reaching.
-- During the 2016 season, a record total of 19,785 metres were
drilled within 83 holes. This total was nearly triple our previous
historical high of 7,201.9 metres completed in 2012 and nearly
5,000 metres more than planned for the 2016 season. Project wide
drilled metres now total 58,084.3.
-- A total of 63 holes expanded the MKF known mineralised limits
of the resource with ore intersections averaging 0.73% nickel and
0.21% copper based on a COG of 0.2% nickel. Typical thicknesses of
the mineralisation averaged 13.3 metres per mineral interval. Using
the newly defined COG of 0.4% nickel, continuous mineable
thicknesses were clearly identified in step out and infill drilling
throughout the MKF deposit. Having an average interval thickness of
10.5 metres and averaging 0.88% nickel and 0.24% copper, these
structures were determined to contain more than 75% of the MKF
drill identified metal.
-- At the end of the drilling season, 31 October 2016, the
length of MKF had been expanded by 40% (900 metres) bringing MKF's
total continuous length to 3,000 metres. At the eastern end, the
final row of drill holes contain ore grade mineralisation
indicating that potential resource expansion remains to the east
possibly linking the MKF deposit to the Gorny deposit. Successful
drilling in this area could result in linking MKF and Gorny
providing for a total continuous orebody length of more than 5,000
metres.
-- The current drill spacing along the entire 3,000 metre length
of the MKF deposit has been completed at a spacing suitable for the
majority of the MKF JORC resource to be classified as Indicated
resource which is suitable for use in the determination of Mining
Ore Reserve ("MOR") along its entire drill defined length.
-- A total of 21 drill holes were completed to acquire a bulk
metallurgical sample totalling 7.4 tonnes for use in the
determination of process plant flow sheet design and engineering as
well as the completion of subsequent pyrometallurgical test work
for the design of a flowsheet and the engineering of a furnace for
the construction of an owner operated concentrate treatment
facility to generate a low grade matte.
-- Substantial resource expansion remains to be drill tested.
This includes a 500 metre long segment between the eastern limit of
MKF and Gorny. Successful drilling would result in the merge of MKF
and Gorny creating a single deposit approaching nearly 5,000 metres
in length. The second largest target is located between IKEN and
KUB and immediately to the east of KUB. The total untested target
is nearly 3,500. Successful drilling of these targets would link
IKEN and KUB creating a single deposit approaching a total length
of 5,500 metres.
-- Geophysical surveys were completed in the vicinity of the
planned processing plant location for the identification of
subsurface water sources for use in processing of the ore and to
identify potable water sources to support a 1,000 staff operation.
Specific water well locations were identified and are planned for
drilling during the 2017 field season.
-- Based out of the Kun-Manie site, a ground survey undertaken
by a qualified road design engineer was completed identifying the
preferred of three routes proposed for the 320 kilometre long
access road. Begun in late 2016 and completed in Q2 2017, a four
kilometre wide corridor from Kun-Manie to the Ulak rail station
located on the Baikal Amur ("BAM") rail line has been
topographically and hydrologically mapped to further allow for
design of the access road.
Substantial Mineral Resource Expansion
The JORC (2012) RPM independently derived MRE has been
considerably increased over that reportable as of 1 January 2016
(compiled by SRK 8 April 2015). As of 10 February 2017, the MRE
within the four largest deposits located at Kun-Manie is now
estimated to contain 101.3 million tonnes of mineralisation. Using
a 0.4% nickel only cut-off grade ("COG"), the average nickel
equivalent grade is estimated to be 1.03% containing a total of
1.04 million nickel equivalent tonnes have been drill defined in
all JORC resource categories. The substantial expansion of the MRE
is the result of a combination of the 2015 and 2016 highly
successful infill and step out drill programmes completed on our
largest deposit, MKF. Major increases to the MRE since 1 January
2016 include the following:
-- An increase of 22.5% in the total nickel equivalent tonnes
from 854,300 tonnes to 1,046,900 tonnes has been derived for all
JORC resource categories. The average nickel equivalent grade has
increased by 45% from 0.71% to 1.03%.
-- The combined Measured and Indicated JORC resource represents
80% (81.2 million tonnes) of the global MRE. The total nickel
equivalent tonnage for these resources has been increased by 118%
from 383,200 tonnes to 836,300 tonnes. The average nickel
equivalent grade of the Measured and Indicated categories was
increased by 43% from 0.72% to 1.03%. The Measured and Indicated
JORC resource is the source from which a MOR estimate and
production schedule are defined.
-- The newly derived MRE using a 0.4% nickel COG, allows for
determination of open pit and underground production considerations
and the optimisation of mine production based on a comparison of
operating profit per tonne of ore by mining method.
Current (10 February 2017) Kun-Manie Mineral Resource
Estimate
The 10 February 2017 MRE is stated in accordance with JORC
(2012) standards which are based on drill identified mineral that
has the potential to become a MOR. During 2016, the Company
contracted RPM to independently update Amur's MRE for its four
largest deposits at Kun-Manie for the determination of an MOR that
can be open pit and or underground mined. The updated MRE allows
the Company to compile an optimised a mine production plan and
schedule including all drill information through year end 2016.
This will incorporate both open pit mining of near surface ores and
mining subsequently transitioning into the underground mining of
deeper ores and ores located immediately adjacent the open pit
production areas.
As a first step reporting MRE statements in compliance with JORC
standards and as RPM is the company of record for reporting MRE's
on behalf of Amur, RPM completed a JORC mandatory site visit in
August 2016 during which a comprehensive audit of the Company's
field procedures, sample preparation methods, quality control and
analytical results were reviewed in detail. RPM confirmed that Amur
utilises industry standard procedures and exploration information
is suitable for the compilation of JORC (2012) compliant resource
estimation.
The JORC 10 February 2017 MRE inventory exceeds 101 million
resource tonnes averaging 1.03% nickel equivalent grade. Untested
expansion not included in the current MRE remains at MKF toward the
Gorny deposit, between the Ikenskoe / Sobolevsky ("IKEN") and Kubuk
("KUB") covering an untested length of 3,000 metres and to the east
of Kubuk having a target length of 1.0 kilometre. By deposit and
resource category, the inventory is distributed as follows:
RPM Ordinary Kriging Mineral Resource Estimates
February 2017
0.4% Nickel Cutoff Grade
Resource Ore Ni Cu Co Pt Pd Eq Contained Metal (1,000's
Classification Mt % % % g/t g/t Ni t)
(%)
---------------- ------ ----- ----- ------ ----- ----- ----- -----------------------------------------------------
Ni Cu Co Pt Pd Eq
(000's) (000's) (000's) (t) (t) Ni
(000's)
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
MKF
--------------------------------------------------------------------------------------------------------------------------
Measured
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Indicated 57.5 0.77 0.22 0.015 0.15 0.16 1.05 445 124 8.9 8.8 9.3 602.5
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
M+I 57.5 0.77 0.22 0.015 0.15 0.16 1.05 445 124 8.9 8.8 9.3 602.5
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Inferred 3.4 0.80 0.22 0.017 0.16 0.15 1.06 27 7 0.6 0.5 0.5 36.2
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
MKF TOTAL 60.9 0.78 0.22 0.015 0.15 0.16 1.05 472 131 9.5 9.3 9.8 639.3
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
IKEN
--------------------------------------------------------------------------------------------------------------------------
Measured 10.1 0.66 0.18 0.011 0.21 0.25 0.94 67 18 1.1 2.1 2.5 94.6
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Indicated 6.3 0.61 0.14 0.011 0.20 0.25 0.87 39 9 0.7 1.2 1.6 54.7
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
M+I 16.4 0.65 0.05 0.003 0.06 0.25 0.91 106 27 1.8 3.3 4.1 149.3
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Inferred 4.7 0.84 0.20 0.016 0.19 0.23 1.14 40 9 0.8 0.9 1.1 53.9
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
IKEN
TOTAL 21.1 0.69 0.17 0.012 0.20 0.25 0.96 146 36 2.6 4.2 5.2 201.8
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
KUB
--------------------------------------------------------------------------------------------------------------------------
Measured -
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Indicated 3.6 0.87 0.21 0.016 0.18 0.19 1.17 31 8 0.6 0.6 0.7 41.6
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
M+I 3.6 0.87 0.01 0.001 0.01 0.20 1.17 31 8 0.6 0.6 0.7 41.6
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Inferred 10.9 0.74 0.20 0.015 0.16 0.14 1.00 81 22 1.7 1.7 1.5 109.5
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
KUB TOTAL 14.5 0.77 0.20 0.016 0.16 0.15 1.04 112 30 2.3 2.3 2.2 149.5
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
VOD
--------------------------------------------------------------------------------------------------------------------------
Measured 0.6 0.74 0.22 0.012 0.29 0.32 1.16 5 1 0.1 0.2 0.2 7.1
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Indicated 3.2 0.85 0.21 0.017 0.16 0.16 1.13 27 7 0.5 0.5 0.5 35.8
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
M+I 3.8 0.85 0.01 0.001 0.01 0.19 1.13 32 8 0.6 0.7 0.7 42.9
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Inferred 1.0 0.81 0.22 0.016 0.17 0.16 1.07 8 2 0.2 0.2 0.2 11.1
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
VOD TOTAL 4.8 0.83 0.21 0.016 0.18 0.18 1.12 40 10 0.8 0.9 0.9 54.0
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
TOTAL
--------------------------------------------------------------------------------------------------------------------------
Measured 10.7 0.67 0.18 0.011 0.21 0.25 0.95 72 19 1.2 2.3 2.7 101.7
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Indicated 70.5 0.77 0.21 0.015 0.16 0.17 1.04 542 148 10.7 11.1 12.1 734.6
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
M+I 81.2 0.76 0.29 0.021 0.23 0.18 1.03 614 167 11.9 13.4 14.8 836.3
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Inferred 20.1 0.77 0.20 0.016 0.17 0.16 1.05 156 40 3.3 3.3 3.3 210.6
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
TOTAL 101.3 0.76 0.20 0.015 0.17 0.18 1.03 770 207 15.2 16.7 18.1 1,044.5
---------------- ------ ----- ----- ------ ----- ----- ----- -------- -------- -------- ----- ----- ---------
Factors in the Determination of the Nickel Equivalent Grade
1 February 2017 Metal Pricing
Pricing Nickel Copper Cobalt Platinum Palladium Total Ni
US$ Eq
Value Tonnes
----------- ----------
Imperial $4.54 $2.69 $16.90 $996.00 $760.00
/ lb / lb /lb / oz /oz
---------- ---------- -------- --------- ---------- ----------- ----------
Metric $10,006 $5,929 $37,248 $32,026 $24,437
/t / t / t / kg / kg
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
Measured 720.44M 112.65M 44.70M 73.66M 65.98M 1,017.43M 101,680
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
Indicated 5,423.34M 877.46M 398.55M 355.49M 295.69M 7,350.52M 734,600
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
M+I 6,143.78M 990.10M 443.25M 429.14M 361.67M 8,367.95M 836,280
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
Inferred 1,560.96M 237.15M 122.92M 105.68M 80.64M 2,107.36M 210,606
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
TOTAL 7,694.74M 1,221.32M 558.71M 534.83M 442.32M 10,451.92M 1,044,549
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
% Value
Content 73.6% 11.7% 5.3% 5.1% 4.2% 100.0%
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
Key observations include the following:
-- The thicknesses of the MRE resource zones range from a
minimum of 3.0 metres to more than 60 metres and represent mineable
thicknesses for both open pit and underground production
methods.
-- The global Kun-Manie MRE is now defined to be comprised of
101.3 million mineralised tonnes having a nickel equivalent ("Ni
Eq") grade of 1.03%. Containing more than 1.0 million nickel
equivalent tonnes, the nickel equivalent grade has been increased
by 38% from the 1 January 2016 MRE 0.74% Ni Eq grade.
-- By commodity, the global average grade of nickel is 0.76% (an
increase of 40% from 0.54%), copper is 0.20% (an increase of 33%
from 0.15%), cobalt is 0.015%, platinum is 0.17 g/t and palladium
is 0.18 g/t. Approximately 85% of the metal value is attributable
to the combination of nickel and copper. The remaining 15% is
attributable to cobalt, platinum and palladium. Minor gold and
silver is also present and have not been estimated or reported.
-- The Company focuses on drilling resources possessing a high
probability of being converted to that of a MOR. Presently,
approximately 80% (81.2 million tonnes) is classified as Measured
and Indicated resource. Averaging 1.03% nickel equivalent, a total
of 836,300 nickel equivalent tonnes are contained within the
Measured and Indicated resource which is targeted for MOR
definition.
-- The majority of the resource increase is the result of the
highly successful MKF drill programmes of 2015 and 2016. MKF now
contains 60.9 million mineralised tonnes having an average 1.05%
nickel equivalent grade containing a total of 639,300 nickel
equivalent tonnes. From 1 January 2016, the total contained nickel
equivalent tonnage (all resource categories) within MKF has been
increased by 61%.
-- It is anticipated that the MKF deposit will be the deposit
from which production will be initiated. This deposit has been
drilled at a spacing allowing for the majority of the
mineralisation to be classified as Indicated. The total Indicated
MRE (convertible to MOR) for MKF now stands at 57.7 million tonnes
of ore averaging 1.05% nickel equivalent containing 602,500 nickel
equivalent tonnes. MKF contains 69% of the Measured and Indicated
resource presently identified at Kun-Manie and its easternmost
mineralised limits are not yet fully defined.
Mining Potential
Using the 10 May 2016 MRE for MKF, RPM conducted a mining trade
off study intended to verify the Company's conclusions that open
pit and underground mining would result in a more optimal economic
result. In late 2016 and prior to completion of the 2016 drill
season and MRE update of 10 February 2017, it was confirmed by RPM
that a combined open pit and underground operation was appropriate
for consideration at MKF and that similar results could be derived
at IKEN and KUB. Using all resource categories including Inferred,
RPM identified that MKF could produce the following mining
potential:
-- A potential open pit and underground diluted mineable reserve
totaling 44.5 million tonnes averaging 0.75% nickel and 0.19%
copper along the 2,100 metre long deposit model (excluding the 900
metre extension identified by the 2016 drill results). The total
tonnes of mined nickel were projected to be in the order of 332,200
with copper totaling 83,500 recovered copper tonnes. Based on a COG
of 0.2% nickel, more than 87% of the total 2,100 metre long
resource was considered to be mineable by the combination of open
pit and underground mining.
-- Open pit production from MKF would be derived from three
small open pits extracting the near surface ore within the western
area of MKF. From these pits, production was projected to be 12.85
million ore tonnes averaging 0.63% nickel and 0.18% copper per ore
tonne. A total of 43.7 million tonnes of waste resulted in a
stripping ratio of 3.4 tonnes of waste per mined ore tonne. A total
of 29% of production would be derived by open pit mining.
-- Using an underground long hole retreat mining method and West
Australia mining costs which are anticipated to be substantially
higher than Russian production costs, a total of 31.7 million
tonnes of ore were indicated for production and the average mined
ore grades are projected to be in the order of 0.79% nickel and
0.19% copper. The underground production component from MKF was
estimated to represent 71% of the mining total.
-- The RPM mining trade of study on MKF represents a substantial
upgrade over the Company's Preliminary Economic Analysis ("PEA")
wherein a total of 45.5 million tonnes of ore were projected to be
mined at an average grade of 0.53% nickel (approximately 241,000
nickel tonnes) and 0.15% copper (approximately 69,300 tonnes). The
newly defined RPM mining potential recovers an additional 91,000
tonnes of nickel (38% increase) and an additional 14,200 tonnes of
copper (20% increase). The additional metal is derived from
increased mining grades as the PEA and RPM studies indicate nearly
the same projected mineable tonnage.
MKF Production PEA Study RPM Study
Parameters (1 January 2016 (10 May 2016
MRE) MRE)
Total mineable 45.5 million 44.5 million
reserves tonnes tonnes
Total tonnes 241,000 tonnes 332,200 tonnes
of mineable
nickel
Average nickel
grade 0.53% 0.75%
Total tonnes 69,300 tonnes 83,500 tonnes
of mineable
copper
Average copper
grade 0.15% 0.19%
Underground 28.1 million 31.7 million
production tonnes tonnes
Open pit production 17.4 million 12.9 million
tonnes tonnes
-- The indicative results for the MKF mining trade off study are
considered to be conservative. The RPM analysis did not include any
of the 2016 drill results which have substantially increased the
resource size and grade. In addition, the majority of the MKF
resource is now considered to be Indicated by JORC category and is
considered to be suitable for inclusion in the estimation of the
MOR. Finally, the RPM analysis utilised West Australia mining costs
and not Russian based unit costs which are substantially lower and
could further expand the mining potential by lowering the COG in
the underground resource category.
-- The RPM study confirms the Company's conclusion that
underground mining is likely viable and represents a substantial
basis for identification of higher grade ores suitable for
generating greater operating profits per ore tonne. The planned
compilation of the MOR will include similar trade off studies for
the deposits of MKF, IKEN, and KUB. The newly defined models of 10
February 2017 will be utilised for determination of the MOR based
on audited operating costs.
Metallurgical Advances
During 2016, SGS completed bench scale test work on a series for
samples from KUB and Flangovy to define the final set of grade
recovery curves for each of these two deposits at Kun-Manie.
Results confirmed:
-- The comprehensive results confirmed that metallurgical
recoveries increase with increasing grades at all deposits. Not
being optimised tests, the results were considered to be
conservative but suitable for use in the determination of potential
recoveries.
-- As defined by SGS Minerals, recoveries generally decrease
from west to east and vary by deposit due to the nickel silica
(which is unrecoverable nickel) content.
-- Globally, the grade recovery curves indicated a single
concentrate would contain from 8.8% to 12.0% combined nickel and
copper. Nickel recoveries would vary from 61% to 83% with copper
recoveries varying from 77% to 91%. The recoveries are dependent on
the grade of the ore delivered to the mill. Higher grade nickel and
copper ores display higher recoveries. Recoveries of by-product
metal will range from 50% to 65% for cobalt, platinum and
palladium.
-- The MRE update indicates that higher grades will be mined
than originally anticipated on 1 January 2016 which will have
higher recoveries.
As bench scale test work is based on smaller samples and is
often not fully optimised, the Company undertook the first large
scale metallurgical test of the MKF ores. Completed by Gipronickel
Institute ("Gipro"), a subsidiary of Norilsk Nickel, a 443.9
kilogramme bulk sample averaging 0.70% for nickel and 0.17% for
copper was tested.
Results indicated the following:
-- Metallurgical recoveries of 80.6% for nickel, 83.8% for
copper, 61.4% for cobalt, 59.6% for platinum,
-- 82.3% for palladium, 63.7% for gold and 70.5% for silver were identified.
-- The Gipro results are more reflective of the actual production process.
-- The final concentrate grades were projected to be 8.58% for
nickel, 2.10% for copper, 0.15% for cobalt, 1.26 g/t for platinum,
1.91 g/t for palladium, 0.6 g/t for gold, and 7.82 g/t for
silver.
-- An improved mass pull of less than 7% was identified. The
Gipro mass pull indicates that a total of 394,000 tonnes of
concentrate will be generated from 6.0 million mined ore tonnes.
This is a reduction from the previously identified 420,000 tonnes
of concentrate and could result in a potential savings to the
initial capital expenditure related to the construction of the
concentrate treatment facility where a low grade matte is to be
produced. Additional reduction in the transport fleet may be
possible as the total concentrate tonnage is approximately 26,000
fewer tonnes than previously planned for transport from the mine to
our Ulak station along the BAM rail line.
During 2016, a 7.4 tonne bulk metallurgical sample collected by
core drilling was obtained for the next phase of metallurgical test
work. From this sample, multiple analyses will be conducted to
determine the final flow sheet design and engineering of the
process plant. Metal recoveries and the composition of the
concentrate will be determined to allow for determination of the
quality of the concentrate and its impact on any commercial off
take agreements that may be established. In addition, the
pyrometallurgical characteristics of the concentrate must be
defined for use in the evaluation and design of a company owned
furnace intended to generate a low grade matte.
Hydrological Assessment
During 2016, the first phase of work was completed to identify
subsurface water sources for use in the treatment of ore during
processing. Geophysical surveys were completed in the vicinity of
the planned processing plant location for the identification of
subsurface water sources for use in processing of the ore and to
identify potable water sources to support a 1,000 staff operation.
Specific water well locations were identified and are planned for
drilling during the 2017 field season. In addition, the acquisition
of field data was completed during the winter season to establish
the amount of available water from the Maya River located to the
south of the planned plant location. Potable water sources will
also be drilled during 2017 which will be required by site
personnel once operations are begun.
Access Road
During the 2016 field season, three previously identified access
road routes were inspected in the field by a qualified road
engineer allowing for identification of the preferred access road
route. Totalling approximately 320 kilometres in length, selection
of the preferred preliminary route also included the identification
of potential sources of road construction materials. A four
kilometre wide corridor centred on the anticipated route has been
topographically mapped including detailed information of river and
stream drainages necessary for bridge and water crossing design
work.
Staged work is planned for the finalisation of the road route,
its design and detailed cost to construct. The first phase it the
identification of the route followed by a field inspection wherein
geological and hydrological hazards will be identified allowing for
final route designation and preliminary costing for capital
expenditures and operating costs. This work will be followed by the
acquisition of geotechnical and hydrological data gathering
allowing for a final detailed design to be completed including the
road and bridging requirements. The road will be classified as a
Technical Road (gravel surfaced) having an 8 to 10 metre operating
surface. As this is a Technical Road it will be owned and
maintained by the Company.
This is an infrastructure project and therefore is considered to
suitable for financing via the Far East and Baikal Region
Development Fund ("FEDF"). Such funding of similar infrastructure
projects has historically been implemented through low interest
loans. It is also important to note that the Company is also
considering the use of UK based bridges and should the total cost
of the road (or major sections) exceed 20%, additional low interest
funding may also be available via the UK Export Finance and
Department of International Trade ("UKEF"). The Company is in
discussions with FEDF and the UKEF regarding potential funding
assistance.
Outlook
The 2017 field programme includes 10,000 metres of planned
resource drilling at KUB and 5,000 metres of planned resource
drilling at IKEN. Sufficient supplies for 20,000 metres have been
delivered to the project site. The objectives at KUB is the
conversion of a 10.9 million tonne Inferred resource block to
Indicated, step drilling and the acquisition of metallurgical bulk
sample. For IKEN the it is planned undertake step out drilling in
the direction of KUB and to also collect a bulk metallurgical
sample.
Mr R Young
Chief Executive Officer
16 June 2017
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016
2016 2015
US$'000 US$'000
Non-current assets
Exploration and evaluation assets 17,167 11,513
Property, plant and equipment 2,736 649
--------- ---------
19,903 12,162
--------- ---------
Current assets
Inventories 756 512
Other receivables 768 1,230
Cash and cash equivalents 8,199 9,613
--------- ---------
9,723 11,355
--------- ---------
Total assets 29,626 23,517
--------- ---------
Current liabilities
Trade and other payables 416 539
Derivative financial liabilities 3,295 370
--------- ---------
3,711 909
--------- ---------
Net current assets 6,012 10,446
--------- ---------
Non-current liabilities
Rehabilitation provision 166 139
Total liabilities 3,877 1,048
--------- ---------
Net Assets 25,749 22,469
========= =========
Equity
Share capital 60,293 54,093
Share premium 4,904 5,648
Foreign currency translation
reserve (12,427) (15,310)
Share options reserve 3,575 3,907
Retained deficit (30,596) (25,869)
--------- ---------
Total equity 25,749 22,469
========= =========
The financial statements were approved by the Board of directors
and authorised for issue on 16 June 2017 and were signed on its
behalf by:
Mr B Savage Mr R Young
Director Director
CONSOLIDATED INCOME STATEMENT
FOR THE YEARED 31 DECEMBER 2016
2016 2015
US$'000 US$'000
Administrative expenses (3,768) (4,114)
Operating loss (3,768) (4,114)
Finance income
Fair value movements on derivative
financial 4 2,224
instruments (2,007) 1,184
Loss before taxation (5,771) (706)
Income tax expense - -
Loss for the year attributable
to owners of the parent (5,771) (706)
============= ============
Loss per share
Basic and diluted US$(0.011) US$(0.002)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2016
2016 2015
US$'000 US$'000
Loss for the year (5,771) (706)
=========== ========
Other comprehensive income items
that may be reclassified to
profit or loss
Exchange differences on translation
of foreign operations 2,883 (3,463)
Total other comprehensive income
for the year 2,883 (3,463)
Total comprehensive income for
the year attributable to owners
of the parent (2,888) (4,169)
=========== ========
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2016
2016 2015
US$'000 US$'000 US$'000 US$'000
Cash flows from operating
activities
Payments to suppliers and
employees (2,210) (3,090)
-------- --------
Net cash outflow from operating
activities (2,210) (3,090)
Cash flow from investing
activities
Payments for exploration
expenditure (2,863) (2,141)
Payments for property,
plant and equipment (1,670) (610)
Interest received 4 -
-------- --------
Net cash used in investing
activities (4,529) (2,751)
Cash flow from financing
activities
Proceeds from issue of
shares (net of issue costs) 6,589 3,618
Cash received from settlement
of derivative financial
asset - 10,789
-------- --------
Net cash generated from
financing activities 6,589 14,407
-------- --------
Net (decrease)/increase
in cash and cash equivalents (150) 8,566
Cash and cash equivalents
at beginning of year 9,613 1,389
Effect of foreign exchange
rates (1,264) (342)
-------- --------
Cash and cash equivalents
at end of year 8,199 9,613
======== ========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2016
Share Share Foreign Share Retained Total
capital premium currency options deficit
translation reserve
reserve
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 1
January 2015 48,949 6,473 (11,847) 2,306 (25,163) 20,718
--------- --------- ------------- --------- --------- --------
Loss for the
year - - - - (706) (706)
Other comprehensive
income for the
year - - (3,463) - - (3,463)
--------- --------- ------------- --------- --------- --------
Total Comprehensive
income for the
year - - (3,463) - (706) (4,169)
Issue of share
capital 4,887 - - - - 4,887
Equity settled
share based
payments - - - 1,691 - 1,691
Costs associated
with issue of
share capital - (825) - - - (825)
Exercise of
options 257 - - (90) - 167
--------- --------- ------------- --------- --------- --------
Balance at 31
December 2015 54,093 5,648 (15,310) 3,907 (25,869) 22,469
--------- --------- ------------- --------- --------- --------
Loss for the
year - - - - (5,771) (5,771)
Other comprehensive
income for the
year - - 2,883 - - 2,883
--------- --------- ------------- --------- --------- --------
Total Comprehensive
income for the
year - - 2,883 - (5,771) (2,888)
Issue of share
capital 6,185 - - - - 6,185
Equity settled
share based
payments - - - 712 - 712
Costs associated
with issue of
share capital - (744) - - - (744)
Exercise of
options 15 - - (14) 14 15
Options expired - - - (1,030) 1,030 -
--------- --------- ------------- --------- --------- --------
Balance at 31
December 2016 60,293 4,904 (12,427) 3,575 (30,596) 25,749
========= ========= ============= ========= ========= ========
1. Basis of prePARATION
a) Statement of compliance
The financial statements have been presented in thousands of
United States Dollars and prepared in accordance with International
Financial Reporting Standards as adopted by the European Union
(IFRS). The principal accounting policies adopted in the
preparation of the financial statements are set out in note 3 to
these financial statements. The policies have been consistently
applied to all the years presented, unless otherwise stated.
b) Going concern
These consolidated annual financial statements are prepared on a
going concern basis.
The Group operates as a natural resources exploration and
development company. To date, the Group has not earned significant
revenues and is considered to be in the exploration stage. In May
2015 the 20 year 'Detailed Exploration and Production Licence' was
issued to the Company's wholly owned subsidiary, ZAO Kun-Manie. The
production licence expires on 1 July 2035.
The Directors have prepared cash flow projections to December
2018 which indicates that the Group has sufficient funds to cover
its recurring expenditure, budgeted exploration programmes and
capital commitments. Should any unforeseen cash demands arise the
Directors consider that further funds could be raised or action
could be taken to reduce the cost base in a timely fashion. The
Directors therefore consider that it is appropriate to prepare the
financial statements on a going concern basis.
c) Loss per share
Basic and diluted loss per share are calculated and set out
below. The effects of warrants and share options outstanding at the
year ends are anti-dilutive and the total of 95.3 million (2015:
56.6 million) of potential ordinary shares have therefore been
excluded from the following calculations:
2016 2015
US$'000 US$'000
Number of shares
Weighted average number of
ordinary shares used in the
calculation of basic earnings
per share 547,940,724 436,576,884
Net loss for the year from
continued operations attributable
to equity shareholders (5,771) (706)
============ ============
Loss per share for continuing
operations
Basic and diluted earnings US$(0.011) US$(0.002)
per share
d) Events after the reporting date
On 6 January 2017 the Company appointed Mr Lou Naumovski to the
Board as a Non-Executive Director, effective 2 January 2017.
On 12 January 2017 the Company issued 500,000 new ordinary
shares to Jett Capital Advisors LLC following the exercise of
warrants at an exercise price of 4.68 pence per new ordinary
share.
On 30 January 2017 the Company issued 500,000 new ordinary
shares to Jett Capital Advisors LLC following the exercise of
warrants at an exercise price of 4.68 pence per new ordinary
share.
Annual Accounts
Copies of the Group's Annual Accounts will be posted to the
shareholders today and are available for download from the
Company's website at www.amurminerals.com.
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
and a Competent Person for the purposes of the AIM Rules for
Companies.
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
FR UKUARBWANAAR
(END) Dow Jones Newswires
June 19, 2017 07:33 ET (11:33 GMT)
Amur Minerals (LSE:AMC)
Historical Stock Chart
From Apr 2024 to May 2024
Amur Minerals (LSE:AMC)
Historical Stock Chart
From May 2023 to May 2024