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AMG Mineracao Provides Update on Mineral Resource Estimates for Mibra Mine

AMG Advanced Metallurgical Group N.V. is pleased to announce that its subsidiary AMG Mineração has updated its mineral resource estimates for its Mibra mine in Brazil in accordance with CIM Definition Standard and Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101") Guidelines.

The Technical Report on Mineral Resources states that AMG Mineração's Mibra mine has 20.3 million tonnes of measured and indicated resources, an increase of approximately 38% compared to the previous Mineral Resource Statement completed in 2013. Those resources include lithium, tantalum, niobium and tin. This report is based upon drillings and research done during the 2016-2017 core drilling campaign and certain economic assumptions that reflect today's current market prices and extraction costs.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, commented, "The increase of our lithium resources, reflected in the updated 43-101 statement, affirms our target to double annual production capacity of lithium concentrate to 180k MT by 2020 as the next step in our lithium strategy. In support of this target, preliminary engineering work is currently being performed by both Hatch and Outotec."

Based upon AMG's targeted production level of 180k MT of lithium concentrate from 2020 onwards, AMG estimates that the current life of the mineral resource is approximately 20 years, based upon current extraction and processing costs, and current economic conditions.

Compared to the previous Mineral Resource Statement, which was completed in 2013:

  • the measured and indicated mineral resource increased by 5.5 million tonnes, to 20.3 million tonnes, an increase of approximately 38%
  • the inferred mineral resource decreased by 0.4 million to 4.2 million tonnes, indicating a positive migration from inferred to measured and indicate resources

The detailed table of the mineral resources is below:

Mineral Resource Statement*, SRK Consultores do Brasil Ltda., March 30, 2017

Domain Quantity Grade
('000s tonnes) Li
(ppm)
Li2O (%) Ta (ppm) Ta2O5 (ppm) Nb
(ppm)
Sn (ppm)
Measured Mineral Resources              
A 3,224 4,685 1.01 289 353 52 267
C - - - - - - -
F 197 3,670 0.79 377 461 45 565
Total Measured 3,421 4,626 1.00 294 359 52 284
Indicated Mineral Resources              
A 11,989 5,130 1.10 293 358 46 258
C 4,842 4,545 0.98 228 278 64 685
F 37 4,179 0.90 428 523 49 773
Total Indicated 16,868 4,960 1.07 275 335 51 382
Total Measured & Indicated 20,289 4,904 1.06 278 339 51 365
Inferred Mineral Resources              
A 2,434 4,714 1.01 309 377 45 204
C 1,787 4,895 1.05 231 282 63 842
F - - - - - - -
Total Inferred 4,222 4,790 1.03 276 337 53 474

*Mineral resources are not mineral reserves and do not have a demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimates. The mineral resources are reported within a conceptual pit shell at a cut-off grade of 80 ppm of Ta considering a selling price of R$316 per pound of Ta2O5, R$130 per tonne of feldspar and R$1,860 per tonne of concentrate 5.5% Li2O, a metallurgic recovery of 55 percent of tantalum, 65 percent of lithium, 10% mass recovery for feldspar.

The mineral resource estimates have been prepared in accordance with the classification standards adopted by the Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects. The construction of the mineral resource was a collaborative effort between AMG and SRK staff from the Belo Horizonte and Toronto offices. Mr. Caymon Assumpção (MAIG#5551), of AMG, constructed the wireframe interpretation of the boundaries of pegmatite dikes and provided input to all stages of resource modelling. The mineral resource modelling work was completed by Ms. Camila Passos (APGO#2431) with the assistance of Dr. Oy Leuangthong, PEng (PEO#90563867) for the geostatistical analysis. Pit optimization was conducted by Mr. Italo Koyama, a mining engineer in the Brazil office. The overall process benefited from the senior review of Dr. Jean-François Couture, PGeo (APGO#0196, OGQ#1106).

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).

Source: http://www.amg-nv.com/

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