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Amur Minerals Corporation (LON:AMC) is making rapid progress drilling at its nickel/copper Kun-Manie prospect in Far East Russia where results have exceeded expectations.
Its Maly Kurumkon/Flangovy (MKF) drilling programme has thus far focused on what the company refers to as “Area A”, at the west end of MKF, and the high grade nickel and copper results have been better than anticipated, the company said.
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The mine developer made an early start to the drilling season, and revealed that higher-than-anticipated drilling rates have resulted in the completion of 38 holes, with 7,469 metres having been drilled, which is almost half of the planned total amount scheduled for the year.
Rapid and record progress on drilling
A record number of metres have been drilled since 5 May 2016. “This is more than have ever been completed in a single field season. The greatest previous total was 7,201.9 metres completed in 2012,” the company revealed.
Within Area A, drilling of a 2.1mln tonne high grade, i.e. greater than 0.5% nickel, inferred resource has now been completed. The data set within the previously defined inferred resources area indicates the zone to be 25.2 metres in average thickness, up from the previous estimate of 15.8 metres announced in April 2016.
The average length weighted grade of the holes within the inferred resource area has also increased from 0.81% nickel to 0.88% nickel. Copper content increased from 0.21% to 0.25%.
The total length of MKF has been increased to 2,600 metres. Additional potential remains further to the west within Area A and the company will continue to drill further step-outs in increments of 100 metres until the metagabbro (a type of metamorphic rock) is intersected in the drilling.
The newly discovered high-grade mineralisation in excess of 0.5% nickel averages 21.8 metres per hole containing 0.99% nickel and 0.24% copper, Amur revealed.
A quick change of plan
"Last month we were pleased to report that the acquired 2016 drill results for the western area of Maly Kurumkon - Flangovy were successfully delineating the limits of the mineralisation and the likely conversion of a two to three million tonne block of Inferred resource to that of Indicated. We were also able to inform our shareholders that we had identified the presence of the thick, high grade zone located along the entire length of the deposit,” said chief executive Robin Young, providing a bit of exposition for those who have not been following the Amur story.
“This discovery of the pipe provides us with the additional potential to increase the tonnage and average grade of ore within this Inferred block during the next resource update. We were in the final stages of defining the western limit of the mineralisation and planning to shift our efforts to the collection of the metallurgical sample along the central area of Maly Kurumkon - Flangovy.
“Results from the first drill hole in June immediately modified to our plans. This first hole intersected the high grade pipe where mineralisation was not anticipated to be present based on surface geological information. We immediately expanded the step-out drill programme and have now extended the pipe a further 400 metre long along bringing its total length to 2,600 metres. Two of the holes have intersected mineral thicknesses of 50 metres which contain nickel grades ranging from 0.82% to 0.98%. This new mineralisation should add substantially to the resource inventory and contribute to the project potential,” Young said.
According to the CEO, the rapid adjustment to the programme was possible due to Amur’s ability to generate preliminary analytical results at site.
Shares rose in early trading before falling back to stand 2.3% off at 4.2p.
Amur's house broker SP Angel said in a note: "Thanks to an early start of the drilling season this year, the company is moving nearly one month ahead of the planned exploration works schedule."
Shore Capital's mining specialist Yuen Low said the update suggested MKF is at least 2.6km long and could add "substantially" to resources.
"In brief, the latest drilling results were encouraging." he said.