Amur Minerals Corporation Drilling Expands Kubuk Resource (3709M)

TIDMAMC

RNS Number : 3709M

Amur Minerals Corporation

28 July 2017

28 July 2017

AMUR MINERALS CORPORATION

(AIM: AMC)

Drilling Expands Kubuk Resource

Newly defined mineralisation has potential to significantly expand mining potential

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 provide an update on its drill results for the Kubuk ("KUB") deposit.

Drill results from 30 June 2017 through to 21 July 2017 continue to expand the resource westward towards the Ikenskoe / Sobolevsky ("IKEN") deposit. Drilling, at a spacing used by RPMGlobal Asia Limited ("RPM") to identify Indicated resources, has extended the 10 February 2017 resource limits in both the strike and dip directions. The newly defined mineralisation has an average thickness per drill hole (10) of 14.3 metres (21.5 metres - resource model) averaging 0.78% nickel (0.80% - resource model) and 0.20% copper (0.20% - resource model). This newly defined mineralisation has the potential to significantly expand the underground mining potential at Kubuk.

Highlights:

   --     Successful resource expansion drilling continues at KUB. 

-- Spatially, the limits of the mineralisation by now have been expanded by approximately 50% from that of the 10 February 2017 resource model, which contains 14.5 million ore tonnes and a total of 112,000 nickel tonnes (at 0.77%) and 30,000 tonnes of copper (at 0.20%). Mineralisation averages approximately 20 metres in thickness.

-- The newly defined mineralisation averages approximately 14.3 metres thickness per ore hole with average grades of 0.78% nickel and 0.20% copper having been identified.

-- Two substantial targets remain undrilled, each containing substantial resource expansion potential.

-- To the west of KUB, the largest existing drill target, having a total length of 2,500 metres, is present. Successful drilling along this target could result in the joining of the IKEN and KUB deposits to create a single large deposit of more than four kilometres in total length.

-- The second target lies to the east of KUB, identified by geochemical sampling and trenching, this one kilometre long target area also requires drilling.

-- In the near future, drilling will likely shift to the eastern target to allow for the continued safe construction of drill roads and drill pads located at the western limits of the newly defined mineral limits. Once completed, and safe operating conditions are established, the focus of drilling will shift back to the western target.

-- 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.

The ongoing resource expansion drill phase at KUB has been highly successful with probable conversion of Inferred resource to that of Indicated and the identification of additional contiguous economic grades of mineralisation being identified in both the eastern and western directions from the 10 February 2017 resource model.

Drilling continues at the IKEN deposit progressing eastward toward the KUB deposit. Results from the IKEN drill programme are reported in separate RNS releases.

Robin Young, CEO of Amur Minerals, commented:

"We are pleased with the continued progress at Kun-Manie. Drilling at Kubuk continues to identify new resources of economic grade. Having added additional resource potential, at both the eastern and western limits of deposit, and having drilled them at a spacing used to define Indicated resources, we are pleased to be adding to the mining potential of Kun-Manie. We believe we have added as much as another three years to our production through resource conversion to Indicated resource and newly defined mineralisation.

"Substantial resource expansion potential remains at both ends of the Kubuk deposit. More than 3,000 metres of target length remains to be drilled, with the largest potential being located in the west toward our Ikenskoe / Sobolevsky deposit. Drilling at Ikenskoe / Sobolevsky is also underway and we look forward to updating the market with these results in the near future."

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                PR 
  Robin Young          Ewan Leggat         Charles Goodwin 
       CEO            Soltan Tagiev        Harriet Jackson 
                                           Dominic Barretto 
                                             +44(0)7544 
 [phone]    [phone]          275 882 
 

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

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-July-27-Kubuk.pdf

http://amurminerals.com/content/wp-content/uploads/Kubuk-audio-27-July-2017.mp3

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 RPMGlobal Asia Limited ("RPM").

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

Global Summary of Kubuk Drilling

A comprehensive review of all 2017 Kubuk drill results is provided within the information below.

2017 Kubuk Drill Programme Objectives

To date, two of the stated four drill objectives have been successfully completed at KUB:

-- 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 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 is part of a larger 2,500 metre long target covering the area between the IKEN and KUB deposits. Presently, the BK is being drilled using a step out approach in the westward direction from KUB. The LK target is a 1,000 metre long area which lies to the east of the 10 February 2017 KUB resource model. In Progress.

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

Global Drill Progress to Date

As of 23 July 2017, a total of 52 holes have been completed with 13,028 metres having been drilled at both KUB and IKEN representing 65% of the 2017 budgeted metres (20,000 metres) have been completed.

Kubuk Drill Progress

From 5 May 2017 through 23 July 2017, the Company's LF90 Boart Longyear rig has drilled 7,136.0 metres of NQ diameter core within 27 holes at KUB averaging 264.3 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        13     4,526.0        348.2 
    Metallurgical Sample       0        0.0           0.0 
         Collection 
--------------------------  ------  ---------  --------------- 
     Average or Total         27     7,136.0        264.3 
--------------------------  ------  ---------  --------------- 
 

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

As of 22 June 2017, a 600 metre length of the KUB deposit had been drilled to identify the limits of the mineralisation delineated by the 10 February 2017 RPM Mineral Resource Estimate ("MRE"). This component of the drill programme was conducted to determine open pit and underground mine production limits. Of the six holes, only two intersected economic levels of 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 immediate vicinity of these two holes may be implemented later in the season although these are of a low priority.

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 averaging 0.77% nickel and 0.20% copper. Of this, approximately 10.9 million Inferred tonnes have been estimated by RPM at the average grades of 0.74% nickel and 0.20% copper which required infill drilling allowing for its conversion to Indicated resource for inclusion in mine reserve definition.

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 
----------------  -----  -----  -----  ------  -----  -----  -----  ---------  ---------  ---------  ----  ----  ---------- 
 

This infill drilling component consisted of eight holes and was completed 16 June 2017. All holes intersected economic levels of mineralisation. The average mineralised thickness per hole was 22.6 metres at an average nickel grade of 0.80% and copper being 0.27% replicating the estimated MRE grades (0.74% nickel and 0.20% copper) for the Inferred category. The Company believes that the infill drill programme will upgrade a substantial portion if not all 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 ongoing resource expansion drilling component of KUB has expanded the mineral resource immediately adjacent the 10 February 2017 RPM resource model at both its eastern and western limits. Substantial expansion to the resource remains to be drilled.

At the west end of KUB, geochemical and geophysical results indicate that mineralisation could continue westward for an additional 2,500 metres, potentially linking the KUB and IKEN deposits together creating a large deposit ("ISK") up to four kilometres in total length. At the west end, 10 holes have been completed, all of which have intersected mineralisation along strike and in the down dip direction from previous drill holes (completed in 2013). The length of new mineralisation is projected to be approximately 500 metres. Averaging 14.3 metres per hole, the grade of the mineralisation is projected to be 0.780% nickel and 0.20% copper. Mineralisation is open to the west and requires drilling to define the full extent of the mineralisation and is planned for additional drilling during 2017.

Resource expansion drilling at the western end of KUB follows:

2017 Kubuk Western Resource Expansion Results

 
 Hole ID     From (m)      To (m)    Length   Ni    Cu     RNS 
                                       (m)    (%)   (%) 
---------  -------------  ---------  ------  ----  ----  ------- 
   453         314.9        329.1     14.2   1.03  0.22  6 July 
---------  -------------  ---------  ------  ----  ----  ------- 
               335.8        338.8     3.0    0.59  0.31 
---------  -------------  ---------  ------  ----  ----  ------- 
  C463         386.0        389.0     3.0    0.69  0.24  6 July 
---------  -------------  ---------  ------  ----  ----  ------- 
  C464         277.0        290.5     13.5   0.58  0.18  6 July 
---------  -------------  ---------  ------  ----  ----  ------- 
               332.5        335.5     3.0    0.44  0.21 
---------  -------------  ---------  ------  ----  ----  ------- 
  C465         295.6        308.8     13.2   1.07  0.22  6 July 
---------  -------------  ---------  ------  ----  ----  ------- 
               322.0        351.4     29.4   0.73  0.20 
---------  -------------  ---------  ------  ----  ----  ------- 
  C466         339.5        345.0     5.5    1.19  0.31  27 July 
---------  -------------  ---------  ------  ----  ----  ------- 
  C467         374.0        380.0     6.0    0.71  0.15  27 July 
---------  -------------  ---------  ------  ----  ----  ------- 
  C468         404.4        416.5     12.1   0.80  0.21  27 July 
---------  -------------  ---------  ------  ----  ----  ------- 
               419.6        422.6     3.0    0.53  0.12 
---------  -------------  ---------  ------  ----  ----  ------- 
  C469         400.2        403.2     3.0    0.68  0.23  27 July 
---------  -------------  ---------  ------  ----  ----  ------- 
               409.5        422.1     12.6   0.61  0.18 
---------  -------------  ---------  ------  ----  ----  ------- 
  C470         393.3        407.4     14.1   0.81  0.15  27 July 
---------  -------------  ---------  ------  ----  ----  ------- 
               410.7        415.0     4.3    0.88  0.11 
---------  -------------  ---------  ------  ----  ----  ------- 
  C471         390.2        393.5     3.3    0.59  0.13  27 July 
---------  -------------  ---------  ------  ----  ----  ------- 
                                     143.2 
 Average       9.0 m       14.3 m       m 
 or Total   Per Interval   Per Hole   Total  0.78  0.20 
---------  -------------  ---------  ------  ----  ----  ------- 
 

In addition to safety reasons, the current phase of drilling in this western area shall be paused and subsequently resumed upon completion of ongoing additional drill road and drill pad construction.

At the eastern limit of the resource model, a large one kilometer long target has been defined based on geochemical sample results and exposures of anomalous nickel within trenches remains largely untested by drilling. Three holes (two in ore) have been completed immediately adjacent the edge of the resource model and have 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 of this large target remain to be drilled. Drilling within this larger area is planned to be conducted whilst drill road construction is in progress at the western end of KUB.

Eastern Resource Expansion Drill Results

 
   Hole         From        To    Length   Ni     Cu     RNS 
    ID           (m)        (m)     (m)    (%)    (%) 
----------  -------------  -----  ------  -----  -----  ------ 
   C458         46.5       51.0    4.5    0.73   0.16   6 July 
----------  -------------  -----  ------  -----  -----  ------ 
   C459         30.2       33.2    3.0    1.45   0.47   6 July 
----------  -------------  -----  ------  -----  -----  ------ 
                            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. Three batches of samples have been shipped to ASL with the first batch delivered on 28 June 2017 and laboratory testwork now complete and under management review. The second batch of samples have also been delivered to ASL and testwork is underway. The third batch of samples are now in transit Moscow, Russia. ASL results will be reported when management review is complete.

Alex Stewart Laboratory Sample Status Update

 
 Batch   Number Of        Status 
   ID     Samples 
------  ----------  ----------------- 
                     Under Management 
   1        665           Review 
   2        774         In Analysis 
   3        273         In Transit 
------  ----------  ----------------- 
 

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

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July 28, 2017 02:01 ET (06:01 GMT)