The AIM quoted mine developer today said that new metallurgical test work has shown better nickel and copper recoveries compared to the Kun Manie pre-feasibility study, which was completed in 2007.

Projected nickel recoveries increased to 77.8 per cent compared with 75.9 per cent as estimated in the PFS, while copper recovery increases significantly to 90.4 per cent compared with 72.9 per cent. Also cobalt recovery increase to 68.6 per cent from 57 per cent. 

Additionally Amur said there’s potential for a reduction in the amount of magnesium oxide in the metal concentrate, which could potentially reduce any penalties at the smelter.

Amur emphasised that increased metal recoveries and reduced penalties would ultimately reduce the cost per pound for the product produced at the Kun Manie mine.

"The SGS results are a significant step forward in the evaluation of Kun-Manie,” said chief executive Robin Young.

“The results indicate that there is substantial potential to increase metal recovery into concentrate, possibly improve the concentrate grades and ultimately improve the 2007 SRK pre-feasibility cash flow model results.  

“An across the board technical improvement appears likely and provides us with a series of options to optimise the project."

Amur said that further work is required to finalise the metallurgical design. And this is being scheduled to take place after this year’s drill programme – which will provide fresh core for testing.

Kun Manie, located in Amur Oblast, in Russia's Far East, was projected by the PFS to be an open-pit mine, producing 16,000 tonnes of nickel concentrate a year.

Amur Minerals Corporation (LON:AMC) has taken another step forward in the permitting process for the Kun Manie nickel project in Russia with the completion of an essential report.

It explained this morning that the Research Center Of The Institute For Geological Exploration Of Base And Precious Metals (TSNIGRI) – a federal agency - has compiled a comprehensive report which values the projected recovered metals within the complex concentrate of the Kun-Manie project.  

The value is based on the estimated recovered metals of nickel, copper, cobalt, gold, silver, platinum, palladium and sulphur.  

Amur said that the report, which is integral in determining the fee it must pay for the mining licence on approval, has now been sent to Russia’s Ministry of Economic Development (MED).

The MED will now review the report as part of the permitting process.

"Amur is pleased that TSNIGRI has undertaken and completed the task of valuing the projected value of the concentrate and ore based on the Russian metallurgical test work,” said chief executive Robin Young.

“This report is an important step forward in the mining licence approval process and we will closely monitor the review by the MED and will update shareholders as the document is reviewed and processed by the MED."

Far East Russia-focused Amur Minerals (LON:AMC) said it has stepped up progress concerning its Kun-Manie nickel-copper-sulphide project as it announced interim results for 2011 this afternoon.

The firm is continuing to work with various Russian Federation officials and agencies to advance its application for the mining licence covering Kun-Manie. Executive staff from the firm have been working with the Amur Oblast authorities, as well as members of the Duma, in order to lobby Federal agencies to grant the mining licence.

Meanwhile, the Amur Minerals has received the first partial batch of analytical results from reconnaissance exploration work in the area and will make a further announcement when the results are verified. The primary objective of this work is to identify drill targets for next year. 

A number of financings have resulted in the firm boosting its cash reserves from US$3.1 million to US$5.1 million during the first half of the year to the end of June, and Amur remains debt free.

“In the 6 month period we have significantly improved the financial position of the company and we are working with the Russian authorities to amend both the Mining Law and to advance the mining application,” said Robin Young, Amur’s chief executive officer.  “At Kun-Manie we are confident that the resources within the licence area can be increased significantly and we have commenced engineering work as we look to production.  The initial sample results from this season's work have been received and we will announce these shortly. We continue to advance what we believe to be a major nickel project.”

During the six months to June 30, Amur made a loss of £2 million (H1 2010: £1.4 million).

In mid-afternoon trading today, the firm’s shares were down a quarter of a penny at 9.65 pence each.

Russia-focused industrial metals explorer Amur Minerals (LON:AMC) is continuing exploration on its flagship project, Kun-Manie, with results indicating that there is substantial potential to increases resources there.

The firm said that its total Russian-approved reserve stands at 31.7 million tons of ore, with averages of 0.64 percent nickel and 0.18 percent copper. This reserve also contains 3,960 tons of cobalt, 189,400 ounces of platinum and 213,800 ounces of palladium.

The area for the proposed mining licence at Kun-Manie, in Russia’s Far East, is approximately 15 kilometres long and up to three kilometres in width. Amur said that reconnaissance mapping and sampling conducted along its length indicate that this area exhibits features that could expand nickel and copper mineralisation beyond the limits of three deposits that have already been drilled.

The firm, which released its final results for 2010 this morning, said that the first phase of a two-year exploration programme will be continued at Kun-Manie this summer. The focus for this year will be drill target definition, as well as the preparation of drill roads and drill sites for a substantial drill programme planned for 2012.

Meanwhile, the firm’s mining licence application is still under review by the Ministry of Economics – the last agency review required.

Cost control measures at Amur were maintained with company executives remaining on 40 percent salary reductions, the enhancement of detailed line-by-line cost estimation and budget variance reporting to identify where additional cost reductions could be made and chief financial officer duties being assigned to an external consultant.

During the year, Amur’s loss from operations increased to US$1.9 million (2009: US$1.6 million). But the firm ended up making a pre-tax profit of US$365,000 (2009: US$1.7 million) thanks to financial income.

Amur Minerals Corporation (LON:AMC) has resumed exploration work on the Kun-Manie nickel project in far east of Russia.  

Work is currently focused on the Maly Krumkon, Kubuk and Ikenskoe deposits.  

Amur’s team is carrying out geochemical sampling and geophysical surveys. This morning it confirmed that trenching and drill road construction has now started. 

The planned work programme will include the verification assaying for metallurgical sampling, detailed metallurgical testing, as well as resource and reserve updates along with production optimisation of the drilled reserves. Environmental studies are also planned.

The work programmes will be carried out on the mining licence area that is presently under review by the Ministry of Economic Development. In this area Amur has already defined a JORC resource of over 340,000 tonnes of nickel and 95,000 tonnes of copper at Kun-Manie.    

Amur also told investors that it is short-listing engineering and construction companies, skilled in base metal extraction and remote project construction. Additionally Amur said that talks have been underway with South Korean contracts, after a technical presentation in Blagoveshchesk, Amur Oblast. 

The company applied for a mining licence back in April.  Back then Amur chief executive Robin Young said:  We have filed for our mining licence application and are working with key individuals and groups to improve the investment environment for our project as well as those related to other foreign investors working within Russia.  

"We will continue to work with the Russian Federation agencies and will continue to provide input and insight to assist in removing any regulatory constraints related to our project. 

"The board remains confident that we will ultimately obtain the mining licence at Kun-Manie."

The company plans to issue 25 million new shares to Lanstead at 10 pence each, an 18 percent discount to the current price of 12.25 pence.

The new funds have been earmarked for working capital purposes and to accelerate exploration and engineering work at the Kun-Manie nickel-copper project in Russia.

"We are very pleased with the continued support of Lanstead, an existing shareholder,” chief executive Robin Young said. 

“The funds from this placing and the prior Lanstead settlements will provide increased flexibility and allow us to accelerate and undertake additional exploration and evaluation at Kun-Manie.”   

He adds: “The application for the nickel copper mining licence at Kun-Manie is currently under review and the company has provided additional unsolicited information to the Ministry of Economic Development, members of the Duma and government agencies in Amur Oblast.  

Back in December Amur shares spiked over 35 percent when it revealed that it had received the green light from three of the four Russian agencies required to grant the mining licence.

The Ministry of Economic Development is the only one yet to give its verdict on Kun-Manie. 

Amur Minerals (LON:AMC) has found a new mineralised area within the Kun Manie copper-nickel project in Far East Russia.

Kun Manie, in Far East Russia, is Amur’s flagship project. It currently comprises three main deposits - Maly Krumkon, Ikenskoe and Vodorazdelny.

This morning it revealed the final set of exploration results from the 2010 campaign. Soil sampling between Maly Krumkon and Ikensoe tested a new target, known as Gorni. The company found a 3 kilometre long nickel anomaly which links on to Maly Krumkon.

“These results are excellent,” chief executive Robin Young said.

He adds: "The company has always believed that the Krumkon Trend would ultimately provide us with the potential discovery of additional deposits in adjacent areas as yet not drilled.  

Combined the together the Maly Krumkon, Gorni and the connecting area represents a four kilometre long structure. 

Amur has already set this area as a drill target for future exploration. It highlighted that this target would be around three times longer than the area drilled on Maly Krumkon to date.

At present Maly Krumkon has a total JORC resource containing 136,500 tonnes of nickel and 37,700 tonnes of copper.

Young added: “Whilst this preparatory work moves forward, we continue to lobby and work with the Russian governmental agencies towards the awarding of the mining licence and will update shareholders upon receipt of the news."

The stock extended gains throughout the session, and was trading up more than 87 percent by early afternoon at 9.62 pence.

The licensing process was initiated in January and is being overseen by Rosnedra, the organisation responsible licence applications.

It has told Amur that only the Ministry of Economic Development has yet to give its verdict on the Kun-Manie. 

The Ministry of Defence and Federal Security Service have rubber-stamped application as has the Federal Anti-Monopoly Service.

Amur said the Ministry of Economic Development “will provide its affirmative input and approval in due course”.

Chief executive Robin Young added: "We are pleased to report that the mining application has advanced through the majority of the Russian Federation agencies responsible for the award of the mining licence.  

“Everything is progressing positively and we look forward to updating shareholders in due course."

Amur has has three properties in the region with its principal asset being the Kun-Manie sulphide nickel,-copper project located in Amur Oblast. 

At 8.40 am, the shares were trading up 1.8 pence at 7 pence a share.

With a JORC compliant resource of over a quarter of a million tonnes of contained nickel, Kun-Manie is one of the five largest new nickel sulphide discoveries since the discovery of the Vale-owned Voisey’s Bay development in Newfoundland. 

“This double dose of very positive news is encouraging as we continue to work on obtaining the mining licence at Kun-Manie," chief executive Robin Young said.

"This combination of financing and the potential of doubling the size of our largest deposit at Kun-Manie is indeed fantastic news for our shareholders.”

The company is issuing 38.5 million new shares at 5.25p each. The placing was arranged by Hybridan LLP with both new and existing institutional shareholders participating.

Amur said that the new capital provides sufficient funding into early 2012, and it allows the company to carry out additional exploration at Kun-Manie in 2011.

“The funding provides us with long term financial stability which has not been available to the company since the international global financial crisis began,” Young added.

“The monies could well take us into 2012 while simultaneously providing the company with sufficient funding for exploration during 2011.”

Amur revealed results from a limited exploration programme which included geological reconnaissance, sampling, trenching and geophysical surveys.

Some of the exploration results are still outstanding and they will be announced as they become available.

Amur highlighted that recently received geophysical results, come from an area within and beyond Kun Manie’s largest deposit - the Ikenskoe mineralisation

The company said the results suggest that the Ikenskoe mineralisation continues over an area that is "nearly equal to that already drilled".

The Ikenskoe resource block currently contains 36.4 million tonnes of sulphide resource, which has 162,700 tonnes of nickel and 46,000 tonnes of copper.

The resource represents a significant portion of Kun Manie’s pre-feasibility study reserve.

At Kun-Manie, work is continuing with a view to obtaining a mining licence from the Russian agencies.

The company recently received an extension on its exploration rights until 31 December 2012.

Meanwhile, the company has undertaken a limited field campaign while awaiting the final nod for the mining operations at Kun-Manie.

The first half saw the discovery of a significant new target close to two previously drilled deposits at Kun-Manie, reduction of administrative expenses and indication of abundant sulphides from newly exposed outcrops near existing deposits.

The post-period accomplishments included a fundraising of £1.2 million and the granting of an extension to the Kun-Manie exploration licence through 2012.

“Amur Minerals has made excellent progress with the identification of new drill targets at Kun-Manie and has obtained an extension to the Kun-Manie exploration licence.

“The company is more financially secure and we are confident as we move forward in our mining licence application,” said chief executive Robin Young.

The campaign was financed by the receipt of a significant value added tax (VAT) refund and by utilizing its existing fuel remaining on site.

Drilling and assays have identified potentially economic levels of nickel and copper mineralisation with characteristics similar to those encountered in the proposed Maly Krumkon pit located to the west.

Successful step out drilling along strike and down dip within the immediate area could result in an increase in both resources and near surface open pit recoverable reserves.

Amur Minerals is currently undertaking reconnaissance and road building on site to prepare for more active drilling in 2011 and 2012.

An additional nickel sulphide mineralisation that was exposed to the south of the Ikenskoe deposit confirmed that it could be substantially larger than presently reported.

On the financial front, Amur posted losses of US$1.4 million, slightly up from US$1.1 million a year ago. The increase was due to large impairment charges incurred in the previous period, which offset the positive impact from salary reductions.

Amur is looking for the necessary funding for exploration, reporting that several parties have expressed an interest in providing finance for the group.

No binding agreements have yet been signed, though Amur said it was confident that necessary funds will be secured and the business will keep going.

“We are excited to have the opportunity to meet the challenges that lie ahead.

“We will continue to work with the Russian government to secure the mining licence for Kun-Manie and obtain waivers from the appropriate Russian agencies which allow for less restrictive ownership constraints,” said chairman  Robert Schafer.

For now, the company is looking to concentrate on the study results collected during the field season.

The company is looking to improve the pre-feasibility report originally prepared in 2007.

Potential improvements to the study include an improved tax structure, new infill drilling, resource and reserve updates, optimisation of production and the alternative of producing a final metal product for sale in place of concentrate sales.

The shares will be placed through broker Hybridan at 3.5 pence per share. Additionally, the company will issue 1.4 million new shares to chief executive Robin Young in lieu of salary  owed to him.

"Over the course of the financial crisis, the company has been successful in the arena of short term fund raising.  Though having met its needs, the company was always constrained by limited financial resources," Young said.

“It is pleasing to be able to structure a financing that targets our short and longer term fund requirements.  It provides us with the flexibility to focus our resources and efforts on advancing Kun-Manie through the Russian regulatory system while simultaneously adding value to the project, the company and for our shareholders,” he added.

The exploration work at Kun-Manie will focus on the areas between the drilled deposits where successful results have the potential to enlarge the stated resource and reserve.

An independently compiled pre-feasibility study of Kun-Manie carried out in 2007 and incorporating a US$7.50/lb nickel price indicates a post tax NPV (net present value) of $84 million with an IRR of 15.7%, which will be updated in the near term using information acquired over the last two years.

Earlier this month, Amur Minerals applied for a two-year extension to its exploration rights on the Kun-Manie licence in Russia’s Far East, while awaiting a decision on its mining application for Kun-Manie, which was submitted to the Russian authorities in January 2010.

Kun-Manie hosts an estimated JORC compliant resource of 341,000 tonnes of nickel and 95,500 tonnes of copper. The GKZ (The Russian State Committee on Reserves) estimate is for 3,960 tonnes of cobalt, 189,400 ounces of platinum and 213,800 ounces of palladium for the three deposits at Kun-Manie.

Last month, Amur told investors that the Ikenskoe deposit at Kun-Manie could potentially expand after nickel sulphide mineralisation was exposed in a road cut south of the deposit. Ikenskoe is the largest of the three drilled deposits on the Kun Manie exploration licence.