Amur Minerals Corporation (AIM: AMC), the nickel-copper sulphide exploration and resource development company focused on the far east of Russia, is pleased to provide a progress update on the compilation of the Company’s Permanent Conditions TEO (“TEO”) for the Kun-Manie (“KM”) project.
Following on from the update announced on 1 June 2020 on the generation of a copper concentrate, along with that of a nickel concentrate, using industry-standard sulphide floatation methods, the Company is pleased to announce that it has been provided with non-binding indicative offtake terms for both the nickel and copper concentrates. The KM metallurgical testwork programme for the TEO is being conducted by Gipronickel Institute (“Gipronickel”, a subsidiary of Norilsk Nickel).
Having these terms and conditions are key to establishing sufficient and supportive documentation that a marketable product can be generated, which is a requirement for approval of the TEO.
The provision of the potential revenue terms allows the Company to commence the following TEO tasks:
· Report reserves based on varying cutoff grades for the alternative intermediate products. Reserves will be initially reported in accordance to that required for a TEO and per the Russian reserve classification system.
· Update of the mine plan and production schedule.
· Update of the operating costs and metallurgical recoveries based on the process flowsheet identified by Gipronickel. Optimised open pits will be finalised allowing for reporting of the open pit mining reserves. Deeper, potentially underground recoverable ores will also be evaluated to determine the optimal interface depth between open pit and underground operations.
· Evaluate varying metal equivalent cutoff grades that will be utilised with mineralised tonnages and average metal grades for nickel, copper, cobalt, platinum, palladium, silver and gold included.
· Update of the economic analysis using the above information.
The February 2019 Pre-feasibility Study (“PFS”) provided two production options which where both based on the generation of a single concentrate. The first being the generation of a single bulk concentrate that would be sold as a concentrate, and the second being an owner operated furnace producing a Low Grade Matte (“LGM”) that would subsequently be sold onward to an offtake vendor.
The metallurgical work completed by Gipronickel since issuance of the February 2019 PFS and the potential to generate and market both a nickel concentrate and a copper concentrate, and the increased potential for playability on other metals contained within the separate concentrates is anticipated to have a material impact in the Net Present Value (“NPV”) and Internal Rate of Return (“IRR”) of the KM project.
Robin Young, CEO of Amur Minerals Corporation, commented:
“Gipronickel Institute’s metallurgical test work has provided us with the cornerstone information to the TEO study work that is underway. Knowing the content and composition of the concentrates has allowed us to establish the potential payable schedules for the economic metals and the level of deductions for the slag forming and deleterious constituents. These potential payable schedules and deductions are based on input from an internationally recognised metal trader. The combined Gipronickel and trader sourced information is now being utilised to update operating costs enabling reporting of our reserve, mine production schedule and TEO related economic assessment.
Regarding delivery of the TEO in December 2020, we remain on schedule and are successfully working from remote locations providing for the safety of our staff.”
Adam Habib, Advisor to the Board, commented:
” One of the key TEO filing requirements is to have entered into a Non-Binding Indicative Offtake Agreement providing proof of interest in the purchase and sale of an Intermediate Product. Since joining Amur as an advisor in February of this year, one of my tasks has been to survey, advance and identify any additional offtake trading organizations and their related trading terms and conditions that may be suited for working with Amur and its Intermediate Products. This was completed during the coronavirus lockdown period and we are pleased to say that we have been able to work with an internationally recognised metals traders in the world. We intend to take the Non-Binding Indicative Offtake Agreement forward into a binding version in the future .”
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