TIDMAMC
RNS Number : 1790D
Amur Minerals Corporation
17 February 2020
17 February 2020
AMUR MINERALS CORPORATION
(AIM: AMC)
Metallurgical Results Update - Copper Concentrate Test Work
Status
Amur Minerals Corporation ("Amur" or the "Company"), the
nickel-copper sulphide exploration and development company focused
on the far east of Russia, is pleased to announce Gipronickel's H2
19 metallurgical test results and the status of the ongoing test
work to establish the feasibility of generating a saleable copper
concentrate. Gipronickel's phased approach has thus far identified
design and operations specific parameters, the flowsheet used to
process the representative ten tonne bulk sample to obtain a bulk
nickel copper sulphide concentrate and is now in the midst of
copper concentrate generation test work using a portion of the bulk
sulphide concentrate. Successful generation of a copper concentrate
could positively and materially enhance the project economics as
all previously reported concentrate sale options within the
February 2019 Pre-Feasibility Study ("PFS") fully excluded any
consideration for copper derived revenues as per available off take
agreements available to the study.
Based on available historical metallurgical test results and
additional H2 19 bench scale test work, a metallurgical processing
flowsheet was identified for processing a ten tonne representative
bulk sample (containing 0.76% nickel) proportionately derived from
the planned mining areas.
Sample splits from the bulk sample have been processed utilising
varying operating parameters and differing ratios of reagents to
identify the optimal flowsheet. Gipronickel reports nickel recovery
over the life of the mine will be in the order of 79.5% yielding a
bulk concentrate containing 7.91% nickel. For copper, a recovery of
82.9% is projected with the bulk concentrate averaging 2.12%
copper. Pre-Feasibility Study ("PFS") recoveries were projected to
be in the order of 80.2% for nickel and 79.9% for copper.
In addition to confirming the PFS utilised nickel and copper
recoveries, test work has established key operating parameters
defining power requirements for ore treatment. Drop weight ("DWT")
and semi-autogenous grinding ("SAG") tests have established the
size and specifications required for the comminution (crushing and
grinding) circuit necessary to process the nominal six million ore
tonnes per year. Reagent usage has also been determined. This
information provides key input to updating both capital and
operating costs.
Going forward, test work on the bulk concentrate derived from
the ten tonne bulk sample is now being conducted to determine if a
separate saleable copper concentrate can be generated in addition
to that of a nickel concentrate. Successful generation of a copper
concentrate could substantially increase the estimated project
revenue as project financial appraisals previously reported in the
Company's PFS have specifically excluded all revenue generation
potentially attributable to copper. Generation of a separate copper
concentrate could provide additive value by streaming funds
alongside other forms of financing.
Robin Young, CEO of Amur Minerals Corporation, commented:
"With the sum total of our metallurgical test work and the work
that has been completed during the last five months, Gipronickel
has delineated specific operational parameters related to the
processing of all Kun-Manie ores that have been drill identified
over the life of the project. The global metallurgical test work
programme has identified the preferred processing flowsheet,
related processing equipment and reagent consumption for ore
treatment. Metallurgical recoveries of approximately 80% for nickel
and 82% for copper are highly similar and within 3% of the results
presented and utilised in the February 2019 Pre-Feasibility Study.
This important information allows for refinement of both capital
and operating costs at the process plant for inclusion in the
Russian Feasibility Study (a TEO) and subsequent update into
western feasibility study level documents.
"The current phase of work could well provide a substantial
upgrade to economic potential of the project. Work is underway to
determine the ability to generate separate copper and nickel
concentrates. A saleable copper concentrate would substantially
enhance project revenues as all previous work has been based on
nickel only derived revenues. Important information such as the
copper and other metal contents and the composition of the included
waste minerals within the copper concentrate will enable us to
determine the full economic impact on the overall project economics
and most importantly, allow for identification of specific copper
stream purchasers."
Sequential Highlights:
-- Gipronickel completed test work on a 172 kg sample from the
Maly Kurumkon / Flangovy area. In conjunction with previously
completed work by Sibsvetmetniproyect, SGS Minerals and
Gipronickel, Gipronickel identified a preferred flowsheet to
process an industrial scale bulk sample containing the projected
life of mine ore types.
-- The work on the 172 kg sample and existing historical results
has defined the overall mineralogy and host rock chemical
composition (predominantly peridotite with lesser peroxinites).
Ores contain approximately 5% total sulphides with the main ore
minerals of pentlandite (82% of the total nickel - note 93.3% of
the cobalt occurs in association with the nickel), chalcopyrite
(98.6% of the total copper), as well as nickel enriched pyrite and
pyrrhotite. Minor ore minerals include cubanite, sphalerite,
valerite and violarite. The sulphide ore minerals are present in
veinlet and disseminated forms.
-- Bench scale sieve sizing analyses based on grinding test work
indicate economic minerals are evenly distributed. It was noted
that with finer the grind sizes, the amount of slime generated
material also increases. Five suppressants and flotation reagents
were tested to establish the process flow sheet for completing the
test work on the 10 tonne bulk sample.
-- Open and locked cycle tests using varied reagents amounts and
blends confirm that nickel and copper recoveries increase with
increased use of reagents during flotation. The comprehensive
results of the bench scale work and that of the historical work,
provided key information for the design of the 10 tonne bulk sample
processing flowsheet.
-- DWT and SAG mill test work have established the parameters
for determination of power requirements for the processing plant,
especially the high demand comminution (crushing and grinding)
circuit.
-- Globally, the bench scale test work programmes has
established the specifications of plant equipment and consumables
required to process six million tonnes of ore per annum. This
information allows for design of the ore processing plant and the
related capital and operating cost considerations.
-- Processing of the ten tonne representative bulk sample
included nine test configurations (equipment and reagents being
varied). From this information, a nickel recovery curve was
generated and retention times within various areas of the plant
were identified. Key information to sizing of major items of
equipment for the plant.
-- Based on the flowsheet and varied parameters used in
processing of the ten tonne bulk sample, the projected recovery of
all sulphides to the bulk concentrate is approximately 84.9%. These
sulphides contain 79.5% (80.2% PFS) of the nickel and 82.9% (79.9%
PFS) of the copper.
-- The composition of the bulk concentrate is 7.9% nickel (9.7%
PFS), 2.1% copper (2.6% PFS), 0.163% cobalt (0.13% PFS) with slag
forming contents of 15.0% S (14.8% to 17.4% PFS), 3.0% Al(2) O(3)
(3.4% to 4.9% PFS), 15.0% MgO (14.3% to 16.6% PFS), and 22.4% Fe
(18.9% to 22.0% PFS). Gipronickel's selected flowsheet recovers
approximately 20% to 25% more concentrate than projected in the
PFS. To obtain a 9.7% nickel grade in the concentrate, increased
reagent usage can be utilised. In this case, nickel recovery would
be reduced to approximately 76.5%.
-- All previous metallurgical work has been conducted on the
basis of generating a single all metal bulk concentrate. Off take
agreements available to the Company during the compilation of the
PFS allowed for nickel payable contents only, nothing else. Test
work to generate a payable copper concentrate is now underway. In
the February 2019 PFS, a total of 137,000 tonnes of copper were
projected to be contained within the nickel concentrate. At a
copper price of $2.50 per pound ($5,510 per tonne), the total value
of copper contained in the concentrate would be in the order of
US$750 million before consideration of the site costs related to
generation of a separate copper stream, its transport from the site
to a copper smelter and the terms that would be applied by the
smelting company.
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 Blytheweigh
LLP
Robin Young CEO Richard Morrison Megan Ray
Soltan Tagiev Tim Blythe
+44 (0) 20 7138
+7(4212)755615 +44(0)20 3470 0470 3203
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 and a qualified person as
defined by the AIM Rules for Companies. An employee of Amur for 15
years, previously Mr. Young was employed as an 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 was the lead
engineer and participant 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.
For further information, and Company updates see the Company
website at www.amurminerals.com and twitter page @
amur_minerals.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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