Regional Targets
Beyond the immediate proximity of Ban Phuc and Suoi Phange/Ban Mong, AMR has also identified a number of exploration targets with the potential to support additional stand-alone mining operations. The experience gained through the operation of the Ban Phuc mine and processing plant positions AMR well to quickly develop a pipeline of additional nickel sulphide mines from its strategic licence areas.
A number of other regional targets exist, including:
- Ban Khang: Surface exploration has indicated Ni-Cu-PGE mineralization in rock chip samples, and significant untested EM anomalies have been identified coincident with this deposit and nearby dykes.
- Ban Trang: A dyke-like body dominated by pyroxenites within a high strain zone. Elevated PGE contents support a magmatic origin for the sulphide.
- Suoi Tao: Differentiated mafic-ultramafic rocks which have intruded Ban Mong and Sap Viet Horizon sediments in a tectonically favourable part of the Ta Khoa anticline. Drilling and rock chipping has identified magmatic, disseminated Ni-Cu-PGE sulphides.
- Suoi Hao: Mafic-ultramafic sills with evidence of ductile deformation, associated with marble and pelites of the Ban Tang Horizon. The intrusives contain both massive and disseminated sulphides with a magmatic signature, the former intersected in drill core.
- Adit 7: An exploration adit which demonstrates a magmatic semi-massive sulphide deposit associated with an altered ultramafic dyke.
- Others: Other areas with early stage indications of mineralization that may be considered further during exploration include Ban Bo, Ban Chang and Co Muong.
Nickel Smelter Development
The issuance of the Exploration License further supports AMR's plan to construct a nickel smelter in Vietnam. As previously announced on 10 January 2013, the construction of a smelter would enable AMR to significantly enhance the economics of Ban Phuc and future regional mines by substantially reducing export tariffs (currently an export tariff of 20% applies to nickel concentrate compared to a tariff of 5% for nickel matte). Further to the improved fiscal conditions, AMR would also benefit from significantly reduced transportation costs.
Initial engineering studies have already been completed indicating low capital costs for a smelter facility at Ban Phuc. AMR intends to proceed with further feasibility work and will provide additional updates as appropriate.
Company Profile
AMR is one of the few new sources of nickel sulphide supply globally. AMR commenced commercial production from its Ban Phuc nickel project in Vietnam in mid-2013. The Ban Phuc project currently produces over 6,400 tonnes of nickel and 3,200 tonnes of copper per annum contained in concentrate, plus a cobalt by-product.
In addition to in and near-mine expansion projects, Ban Phuc provides a cash-generative operating platform from which AMR can continue to focus on developing a new nickel camp within its 150km2 of concessions located throughout the highly-prolific Song Da rift zone, where AMR has a number of advanced-stage nickel exploration targets.
For further details on AMR, please refer to the technical report entitled "NI 43-101 Technical Report - Ban Phuc Nickel Project" dated February 15, 2013 available on SEDAR or the AMR website Forward-Looking Statements
This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding completion of the project, the commencement of production and the achievement of expected benefits, potential mineralization and reserve and resource estimates, exploration results and future plans and objectives of AMR are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AMR to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from AMR's expectations are disclosed under the heading "Risk Factors" in AMR's Annual Information Form, and elsewhere in AMR's documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. Such forward-looking statements are based on a number of material factors and assumptions, including: that contracted parties provide goods and/or services on the agreed timeframes; that on-going contractual negotiations will be successful and progress and/or be completed in a timely manner; that application for permits and licences will be granted/obtained in a timely manner; that no unusual geological or technical problems occur; that plant and equipment work as anticipated and that there is no material adverse change in the price of nickel. Although AMR has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this press release. AMR disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.