Amur Minerals Corporation 2017 Maiden Kubuk Drill Update (2452K)

TIDMAMC

RNS Number : 2452K

Amur Minerals Corporation

06 July 2017

06 July 2017

AMUR MINERALS CORPORATION

(AIM: AMC)

2017 Maiden Kubuk Drill Update

Amur Minerals Corporation ("Amur" or the "Company"), a nickel-copper sulphide mineral exploration and resource development company focused on its Kun-Manie project in the Russian Far East, is pleased to report its 2017 maiden set of drill results for the Kubuk ("KUB") deposit.

Included are all results for the period from 5 May 2017 through 30 June 2017. Infill drilling, to convert existing JORC Inferred resource to Indicated, has been completed, mineral dip limit determination at depth has been completed to define the potential deep limits of mining and resource expansion drilling has been successfully initiated.

Highlights:

-- Resource expansion at KUB has thus far been successful and an additional total of 300 metres of mineralised length in excess of 0.4% nickel and at a minimum thickness of 3.0 metres has been identified within six drill holes. Additional ore has been identified at both the eastern limit ("LK") (100 metre extension) and at the western limit ("BK") (200 metre extension) of the KUB JORC resource.

-- The 200 metre westernmost extension of the BK target is located within the 2,500 metre long undrilled target linking the KUB and Ikenskoe / Sobolevsky ("IKEN") deposits. Four holes averaging 19.8 metres in thickness, 0.80% nickel and 0.21% copper have been completed. A fifth hole is presently under analysis by Amur's site sample preparation facility and substantial sulphide mineralisation is present indicating likely economic grades of nickel and copper are present.

-- Additional resources have also been identified at the LK target for a distance of an additional 100 metres eastward from the KUB deposit in the direction of a 1.0 kilometre long eastern target. Limited drilling indicates mineralisation of 3.8 metres averaging 1.02% nickel and 0.28% copper. Substantial nickel and copper anomalies based on geochemical sampling and trenching within the remaining 900 metres of the eastern target remain untested, representing additional expansion potential.

-- Infill drilling of the currently defined Inferred Mineral Resource Estimate of 10.9 million tonnes averaging 0.74% nickel and 0.20% copper has been completed. Eight infill holes have defined an average of 0.80% nickel and 0.27% copper at an average thickness of 22.6 metres per ore hole. The infill drilling is intended to convert the Inferred resource to Indicated.

-- Drilling along the northern limit of the MRE model has been completed to define the potential mining limits of the mineralisation at depth. Six holes have been completed and the down dip limits of the mineralisation have been identified by four of the six holes. The two holes that intersected mineralisation indicated an average thickness of 7.0 metres per ore hole with grades of 0.74% nickel and 0.18% copper. Additional limited drilling may be required to fully establish the deeper limits of the economic mineralisation.

-- Resource expansion drilling at KUB is currently the primary drill objective with metallurgical drilling planned for later in this year's drill campaign.

-- All reported analytical results have been internally derived using Niton XL2 500 X-Ray Fluorescence units ("RFA"). Final independently generated Alex Stewart Laboratory ("ASL") results will supplant the RFA results and will be the source of information for future resource estimates. Two batches of samples have been transported from the project site with the first delivered to ASL and now under analysis. The second batch of samples is in transit from Khabarovsk to Moscow.

The drill programme at KUB has been undertaken in a phased approach with the initial focus on defining the limits of the mineralisation at depth along a 600 metre long area and the completion of infill drilling to convert Inferred resource to Indicated.

Having successfully completed these two objectives, drilling is now focused on resource expansion on two KUB targets (BK and LK), which remain to be drill tested. The largest target (BK) is the trend between the IKEN and KUB deposits totaling 2,500 metres in length with the second target (LK) being a kilometre in length located immediately to the east of KUB. Drilling is now being conducted in a step out basis from both IKEN and KUB. Approximately 1,800 to 2,000 meters remain to be drilled to determine if the IKEN and KUB are one larger deposit approaching five kilometres in length. Successful drilling along this target could result in the combined length of KUB and IKEN forming the largest deposit at Kun-Manie.

Robin Young, CEO of Amur Minerals, commented:

"Ralph Waldo Emerson stated, "Do not go where the path may lead, go instead where there is no path and leave a trail." This quote characterises this year's drill programme at Kun-Manie. Our new trail for resource expansion is now in full swing at our Kubuk and Ikenskoe / Sobolevsky deposits. We are drill testing the largest target with a length of 2,500 metres located between the two deposit, similar to the approach which was successfully implemented at the Maly Kurumkon / Flangovy deposit. Our drilling along this target could ultimately result in the linking up of the two deposits, creating a single deposit up to five kilometres in length and thus, making it the longest single deposit at Kun-Manie. Successful drilling could well result in a substantial increase in both the resource and reserve.

"Working in the steepest and most challenging terrain at Kun-Manie, our new trail is comprised of drill roads and drill pads that are being constructed along the length of this target. Both drill rigs are now drilling some of the deepest holes on site as we follow newly defined mineralisation outward in incremental steps."

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    S.P. Angel Corporate     Yellow Jersey 
      Corp.            Finance LLP 
  Robin Young          Ewan Leggat        Charles Goodwin 
       CEO            Soltan Tagiev        Harriet Jackson 
                                             +44(0)7544 
 [phone]    [phone]          275 882 
 

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

Please follow the links at the end of this RNS to view figures depicting drill hole locations and available RFA drill results completed as at 30 June 2017.

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 13 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 located worldwide. Mr. Young is responsible for the content of this announcement which includes results reported by Runge Asia Ltd ("RPM").

For further information, see the Company website at www.amurminerals.com.

2017 Kubuk Drill Programme Objectives

During the season, 4 drill objects are planned for completion at KUB. These include:

-- Definition of the mineralised limits at depth and near the outcrop allowing for the determination of potential mining limits at KUB. Based on the 10 February 2017 Runge Asia ("RPM") defined Mineral Resource Estimate ("MRE") limits, the potential resource limits have been defined along the northern limit over a 600 metre length. Completed.

-- Infill drilling allowing for the conversion of existing Inferred resources to Indicated. The area where infill drilling has been completed contains 10.9 million Inferred ore tonnes averaging 0.74% nickel and 0.20% copper. Completed.

-- Resource expansion at two targets referred to as BK and LK. The largest target is BK and has a total target length of 2,500 metres, located between the IKEN and KUB deposits. Presently, BK is being drilled using a step out approach in the westward direction from KUB and in the eastward direction from IKEN. The LK target is a 1,000 metre long area which lies to the east of the KUB resource model. In Progress.

   --     Obtain additional metallurgical sample for use in process flowsheet determination.  Planned. 

Global Drill Progress to Date

As of 30 June 2017, a total of 8,548.8 metres have been drilled at both KUB and IKEN. A total of 41 holes representing approximately 43% of the total 2017 budgeted metres (20,000 metres) have been completed.

Kubuk Drill Progress

From 5 May 2017 through 30 June 2017, the Company's LF90 Boart Longyear rig has drilled 4,685.0 metres of NQ diameter core within 21 holes at KUB averaging 223.1 metres per hole. (The Company's LF70 continues drilling at IKEN) A plan map of the KUB drill hole locations is provided in a link at the end of this RNS.

Kubuk Drill Summary by Objective

 
      Drill Objective        Holes    Total     Average Length 
                                      Metres          (m) 
--------------------------  ------  ---------  --------------- 
 Mineral Limit Definition      6     1,462.0        243.7 
     Infill Definition         8      1,148.0        143.5 
     Resource Expansion        7      2,075.0        296.4 
    Metallurgical Sample       0        0.0           0.0 
         Collection 
--------------------------  ------  ---------  --------------- 
           Total              21     4,685.0        223.1 
--------------------------  ------  ---------  --------------- 
 

Definition of Mineralisation

The Company MRE's are based on a 0.4% nickel only cutoff grade ("COG") at a minimum potential mining thickness of 3.0 metres. The reported analytical results and mineralised intervals within this RNS are based on these criteria. Internal waste (<0.4% nickel and less than 3.0 metres) is also included in the determination of reported thickness and grades of the contained metal. By inclusion of this internal waste, a more accurate representation of potential mining grades is provided.

Mineral Limit Drill Results

A 600 metre length of the KUB deposit has been drilled to identify the mineralised limits delineated by the 10 February 2017 RPM Mineral Resource Estimate ("MRE") for the purpose of determining the mine production limits. Of the 6 holes, only two intersected mineralisation. The two mineralised holes contain an average of 7.0 metres of mineralisation with a nickel grade of 0.74% and a copper grade of 0.18%. Additional drilling in the vicinity of these two holes may be implemented later in the season. A comprehensive hole by hole summary is provided in the link at the end of this RNS.

Average Drill Results

Mineral Limit Determination

 
  Hole         From        To    Length   Ni     Cu 
    ID          (m)        (m)     (m)    (%)    (%) 
---------  -------------  -----  ------  -----  ----- 
   449                       No Ore 
---------  ------------------------------------------ 
   450                       No Ore 
---------  ------------------------------------------ 
   454         238.0      243.0   5.0    0.80   0.16 
---------  -------------  -----  ------  -----  ----- 
   455                       No Ore 
---------  ------------------------------------------ 
  C456         92.3       95.3    3.0    0.97   0.14 
---------  -------------  -----  ------  -----  ----- 
               100.0      103.0   3.0    0.40   0.07 
---------  -------------  -----  ------  -----  ----- 
               184.0      187.0   3.0    0.77   0.37 
---------  -------------  -----  ------  -----  ----- 
  C460                       No Ore 
---------  ------------------------------------------ 
                           7.0 
                            m 
 Average       3.5 m       Per    14.0 
 or Total   Per Interval   Hole     m    0.74%  0.18% 
---------  -------------  -----  ------  -----  ----- 
 

Infill Drill Results

The KUB deposit contains 14.5 million resource tonnes at an average grade of 0.77% nickel and 0.20% copper. Of this, the majority of the resource is classified as Inferred resource by JORC (Dec 2012) standards. Approximately 10.9 million Inferred tonnes have been estimated by RPM at the average grades of 0.74% nickel and 0.20% copper.

Kubuk MRE Summary

 
    Resource       Ore     Ni     Cu     Co      Pt     Pd     Eq                     Contained Metal (t) 
  Classification    Mt      %      %      %      g/t    g/t    Ni 
                                                               (%) 
----------------  -----  -----  -----  ------  -----  -----  -----  ------------------------------------------------------- 
                                                                        Ni         Cu         Co      Pt    Pd       Eq 
                                                                     (1000's)   (1000's)   (1000's)   (t)   (t)       Ni 
                                                                                                                   (1000's) 
----------------  -----  -----  -----  ------  -----  -----  -----  ---------  ---------  ---------  ----  ----  ---------- 
    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   0.21   0.16    0.18   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 
----------------  -----  -----  -----  ------  -----  -----  -----  ---------  ---------  ---------  ----  ----  ---------- 
 

Infill drilling of 8 holes has been completed, all of which have intersected mineralisation. The average thickness per hole is 22.6 metres at an average nickel grade of 0.80% and copper being 0.27%. The drill results replicate the estimated MRE grades for the Inferred category and the Company believes that the infill drill programme will upgrade a substantial portion of the Inferred resource to that of Indicated.

Average Drill Results

Infill Drill Results

 
  Hole         From        To    Length   Ni     Cu 
    ID          (m)        (m)     (m)    (%)    (%) 
---------  -------------  -----  ------  -----  ----- 
   446          6.8       37.7    30.9   0.82   0.25 
---------  -------------  -----  ------  -----  ----- 
   447         40.5       47.2    6.7    0.86   0.22 
---------  -------------  -----  ------  -----  ----- 
   448         82.0       98.3    16.3   0.88   0.22 
---------  -------------  -----  ------  -----  ----- 
   451         200.2      228.3   28.1   0.62   0.35 
---------  -------------  -----  ------  -----  ----- 
   452         196.7      214.0   17.3   0.85   0.28 
---------  -------------  -----  ------  -----  ----- 
               219.4      251.2   31.8   0.82   0.27 
---------  -------------  -----  ------  -----  ----- 
  C457         58.6       61.6    3.0    0.60   0.15 
---------  -------------  -----  ------  -----  ----- 
               125.0      131.0   6.0    0.81   0.35 
---------  -------------  -----  ------  -----  ----- 
  C461         61.0       64.0    3.0    0.43   0.12 
---------  -------------  -----  ------  -----  ----- 
  C462         55.1       70.0    14.9   1.05   0.23 
---------  -------------  -----  ------  -----  ----- 
                          22.6 
               17.6         m 
 Average         m         Per   158.0 
 or Total   Per Interval   Hole     m    0.80%  0.27% 
---------  -------------  -----  ------  -----  ----- 
 

Resource Expansion Drill Results

The recently initiated resource expansion phase at KUB has generated positive results. Additional resources have been drill identified immediately adjacent the RPM resource model limits in both the east (LK) and west (BK) directions.

At the west end of KUB, geochemical and geophysical results indicate the mineralisation could continue to the west for an additional 2,500 metres. Referred to as the BK target, four holes have been completed confirming the presence of mineralisation down dip of previous drill holes (completed in 2013) along a length of approximately 400 metres. Averaging 19.8 m per hole, the mineralisation is projected to be 0.80% nickel and 0.21% copper. Step out drilling for BK resource expansion presently ongoing.

BK Expansion Drill Results

 
  Hole         From        To    Length   Ni     Cu 
    ID          (m)        (m)     (m)    (%)    (%) 
---------  -------------  -----  ------  -----  ----- 
   453         314.9      329.1   14.2   1.03   0.22 
---------  -------------  -----  ------  -----  ----- 
               335.8      338.8   3.0    0.59   0.31 
---------  -------------  -----  ------  -----  ----- 
  C463         386.0      389.0   3.0    0.69   0.24 
---------  -------------  -----  ------  -----  ----- 
  C464         277.0      290.5   13.5   0.58   0.18 
---------  -------------  -----  ------  -----  ----- 
               332.5      335.5   3.0    0.44   0.21 
---------  -------------  -----  ------  -----  ----- 
  C465         295.6      308.8   13.2   1.07   0.22 
---------  -------------  -----  ------  -----  ----- 
               322.0      351.4   29.4   0.73   0.20 
---------  -------------  -----  ------  -----  ----- 
                          19.8 
                            m 
 Average      11.3 m       Per    79.3 
 or Total   Per Interval   Hole     m    0.80%  0.21% 
---------  -------------  -----  ------  -----  ----- 
 

A fifth hole was completed within the BK target prior to 30 June 2017. However, RFA results were not available for inclusion in this RNS. Substantial sulphide mineralisation has been noted in this hole (C466), which usually indicates economic grades of nickel, and copper are present.

To the east is the LK target which has been defined based on geochemical sample results and exposures within trenches. Having a total target length of 1,000 metres, drilling has confirmed mineralisation continues for an additional 100 metres averaging 1.02% nickel and 0.28% copper. The average thickness identified in the two holes is projected to be 3.8 metres. A total of 900 metres remain to be drilled.

LK Expansion Drill Results

 
   Hole         From        To    Length   Ni     Cu 
    ID           (m)        (m)     (m)    (%)    (%) 
----------  -------------  -----  ------  -----  ----- 
   C458         46.5       51.0    4.5    0.73   0.16 
----------  -------------  -----  ------  -----  ----- 
   C459         30.2       33.2    3.0    1.45   0.47 
----------  -------------  -----  ------  -----  ----- 
                            3.8 
                             m 
 Average        3.8 m       Per    7.5 
 or Total    Per Interval   Hole     m    1.02%  0.28% 
----------  -------------  -----  ------  -----  ----- 
 

Status of ASL Analytical Results

Analytical results reported within this RNS are internally generated by the Company using two Niton XL2 500 X-Ray Fluorescence units ("RFA"). The Company considers these RFA results to be preliminary in nature (within 5%). The RFA results will be replaced by independently verified ASL results, which are used in the derivation of MRE's. To date, all reported 2017 results are RFA based. Two batches of samples have been shipped to ASL with the first batch delivered on 28 June 2017 and laboratory testwork now underway. The second batch of samples is presently in transit to Moscow, Russia. ASL results will be reported when available.

Alex Stewart Laboratory Sample Status Update

 
 Batch   Number Of       Status 
   ID     Samples 
------  ----------  --------------- 
                     Under Analysis 
   1        665         In Moscow 
                      In Transit to 
   2        774           Moscow 
------  ----------  --------------- 
 

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.

Click on, or paste the following link into your web browser, to view the associated PDF document and audio file.

http://amurminerals.com/content/wp-content/uploads/2017-Drill-Results-June-30-Kubuk.pdf

http://amurminerals.com/content/wp-content/uploads/Kubuk-Maiden-audio-6-July-2017.mp3

This information is provided by RNS

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