-- adds broker comment, share price --
Amur Minerals’ (LON:AMC) Flangovy target at Kun-Manie should be amenable to underground mining, its recent in-fill drill programme has indicated.
The company has just finished its 2015 programme at Flangovy, one of its main deposits at the nickel prospect in Far East Russia.
The programme focused on inferred resources and confirmed continuity of mineralisation throughout the 800 metre long target from a total of 26 holes.
Average grades were 0.79% with 0.21% copper with an average 26.9 metres of mineral in each hole.
The continuity of high grade mineralisation makes it suitable for underground mining in structures that were typical of those associated with a Tier 1 producer, Amur said.
Final assay results are scheduled for December, when the resource overall for the entire Maly Kurumkon/Flangovy deposit will be updated.
A programme of in–fill drilling at Maly Kurumkon, another target, began this month and will run into next year.
Robin Young, chief executive, said confirmation of the continuity should allow for resources to move up from Inferred to Indicated.
"The most significant of these accomplishments is the identification of mineralised ore comprised of underground mineable thickness typical of a Tier 1 operation.
“The 2015 drilling confirms that nearly 80% of the nickel is contained within these structures averaging more than 1.0% nickel.”
Young added Amur was also analysing targets at Kubuk and a part of Ikenskoe/Sobolevsky to establish if additional Tier 1 production mineralisation can be identified.
He expects the company to remain ‘extremely busy’ during the cold winter season.
House broker SP Angel added the drilling had doubled the intensity of the grid spacing and points to a potential establishment of the Indicated resource in the area.
Following this, Flangovy may be included in the future reserves updates used to form the basis for the Kun Manie project development.
Shares edged up to 12.33p.