Amur Minerals Corporation Gipronickel Institute MKF Metallurgical Results (8443T)

TIDMAMC

RNS Number : 8443T

Amur Minerals Corporation

11 January 2017

11 January 2017

AMUR MINERALS CORPORATION

("Amur" or the "Company")

Gipronickel Institute MKF Metallurgical Test Results

Significant value expected to be added to Kun-Manie Project

Amur Minerals Corporation (AIM: AMC), the far east Russian sulphide nickel copper explorer, is pleased to announce encouraging results from Gipronickel Institute's ("GI") metallurgical test work programme on the half tonne metallurgical sample of ore from the Maly Kurumkon / Flangovy ("MKF") deposit, located within the Company's Kun-Manie production licence area in the prospective Amur Oblast region of Russia.

The results, collected from the largest of the Company's five deposits, present key information relating to metallurgical recoveries and process design parameters for the processing of the nickel, copper and additional by-product metals of MKF.

Highlights:

-- GI (a subsidiary of Norilsk Nickel) is a Russian certified institute highly qualified in the design of nickel processing plants specialising in the recovery of various metals contained within nickel ores. GI has successfully completed its audit of previously completed metallurgical test work by Sibsvetmetniproyect ("SIB") and SGS Minerals ("SGS") and has also completed the first production scale metallurgical test of ores from the MKF deposit.

-- The GI test results have been derived for a 443.9 kilogramme bulk sample consisting of half core collected from three drill holes located within the MKF deposit. The sample included all ore and waste rock types, the comprehensive mineral suite and the potential average grade of the ore that will be processed from the MKF deposit. The average grade of the sample was 0.70% for nickel and 0.17% for copper.

-- Initially, GI confirmed that higher metallurgical recoveries can be obtained, compared to what was previously reported by SIB and SGS. This can be accomplished by the implementation of a two stage grinding process which had not been previously considered in detail. After initial grinding, a first stage concentrate is generated by flotation. The reject from the first stage is then reground allowing for recovery of a second nickeliferous concentrate by flotation.

-- Using Russian manufactured equipment, Russian reagents, and the newly identified grinding configuration, GI determined that the metallurgical recoveries are 80.63% for nickel, 83.78% for copper, 61.4% for cobalt, 59.6% for platinum, 82.3% for palladium, 63.7% for gold and 70.5% for silver.

-- The newly defined recoveries represent a substantial increase in previously projected recoveries based on SIB and SGS metallurgical results. Using the average grade of the half tonne bulk sample (0.70% for nickel and 0.17% for copper), the SGS recoveries were anticipated to be 69.2% (approximately 11.4% lower than GI) for nickel and 77.9% (approximately 3.9% lower than GI) for copper. The newly generated GI results, are expected to be more reflective of the actual production process. This should allow for an increase in anticipated revenues expected from the MKF deposit once mining commences.

-- The final concentrate grades are 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% has also been identified. The improved 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 lead to potential savings in the capital expenditure for the construction of the concentrate treatment facility where a Low Grade Matte ("LGM") is planned for production. An 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 the LGM facility.

-- In addition, GI has also identified various potential adjustments and test work considerations related to the use of foreign based products which could further enhance recoveries. These considerations are to be evaluated during the processing of the 7.5 tonne metallurgical sample obtained in the 2016 drill programme which is currently inventoried in the Company's core and sample storage facility in Khabarovsk.

-- The grade of the half tonne sample also approximates that of the open pit / underground production trade-off study by Runge, Pincock and Minarco ("RPM"). RPM projected the MKF mining grade to be in the order of 0.75% nickel and 0.19% copper. A total of 45 million ore tonnes were defined as a potential reserve. This mining tonnage and these grades were based on the SGS metallurgical recoveries of 69.2% for nickel and 77.9% copper. Hence, use of the GI metallurgical recoveries should result in an increase in potential revenues associated with the RPM trade-off study reserves.

The GI results have identified simple modifications to the flow sheet allowing for a substantial improvement in the metallurgical recoveries of all economic metals into a concentrate suitable for the generation of a LGM. The newly defined recoveries are provided in the following table and also include a comparison with the previous results based on SGS generated grade recovery curves.

MKF Metallurgical Recovery Comparison

Half Tonne Bulk Sample Grade

 
    Recovery      Nickel   Copper   Cobalt   Platinum   Palladium   Silver   Gold 
       (%) 
---------------  -------  -------  -------  ---------  ----------  -------  ------ 
 SGS (Average)    69.2%    77.9%    53.3%     49.5%       58.3%     49.5%    53.4% 
---------------  -------  -------  -------  ---------  ----------  -------  ------ 
       GI         80.6%    83.8%    61.4%     59.6%       82.3%     70.5%    63.7% 
---------------  -------  -------  -------  ---------  ----------  -------  ------ 
 

Robin Young, CEO of Amur Minerals, commented:

"The Gipronickel Institute's work on a production sized Maly Kurumkon / Flangovy sample has substantially added to the economic potential of the Kun-Manie project. With recoveries of 80.6% for nickel and 83.8% for copper, additional metal should be recovered whilst operating costs will remain nearly the same. Revenues could be increased by as much as 10% for nickel and 6% for copper. Capital cost savings may also be attained if the Company decides to establish an owner operated concentrate treatment facility to generate a Low Grade Matte.

In addition to these very positive results, there are substantial upside considerations that could further enhance the economics of the Kun-Manie project. We are nearing completion of a resource update which will include all drilling completed in 2016, which we expect will result in a substantial increase in the resource. An updated mine plan including the new 2016 drill defined resource should also increase the economic potential by expansion of the mining reserve. We look forward to reporting the resource update when Runge, Pincock, and Minarco have completed the compilation of the resource. It is anticipated that the results will be available to the Company during this quarter."

Enquiries:

 
    Company         Nomad and Broker      Public Relations 
  Amur Minerals    S.P. Angel Corporate     Yellow Jersey 
      Corp.            Finance LLP 
  Robin Young          Ewan Leggat        Dominic Barretto 
       CEO            Laura Harrison       Harriet Jackson 
  [phone]      [phone]      [phone] 
 

For additional information, visit the Company's website, www.amurminerals.com.

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

Notes to Editors

The information contained in this announcement has been reviewed and approved by the CEO of Amur, Mr. Robin Young. Mr. Young is a Geological Engineer (cum laude), a Professional Geologist licensed by the Utah Division of Occupational and Professional Licensing, and is a Qualified Professional Geologist, as defined by the Toronto and Vancouver Stock Exchanges. An employee of Amur for 12 years, previously Mr. Young was employed as an exploration and mine geologist, mining engineer, construction manager of a mine startup as well as independent consultant with Fluor Engineers, Fluor Australia and Western Services Engineering, Inc. during which time his responsibilities included the independent compilation of resources and reserves in accordance with JORC standards. In addition, he has been the lead engineer and project manager in the compilation of numerous studies and projects requiring the compilation of independent Bankable Studies utilised to finance small to large scale projects worldwide. Mr. Young is responsible for the content of this announcement which includes information derived by Gipronickel Institute, SRK Consulting (UK) Ltd, Runge, Pincock and Minarco, SGS Minerals and Sibsvetmetniproyect.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 11, 2017 02:00 ET (07:00 GMT)