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General mining & base metals

Amur Minerals to advance Kun Manie with new estimates

Amur Minerals has kicked off the process to update resources at Kun Manie in the Russian Far East..

Amur Minerals (LON:AMC) unveiled positive results from analysis of 2015 drilling at part of its Kun Manie project in the Russian Far East and has kicked off the process to update resources there.

Independent laboratory results showed grades from the Maly Kurumkon / Flangovy (MKFL) deposit had understated both the nickel and copper by around 5%.

The thickness of the intervals cut and the contained nickel and copper were also shown to be are suitable for both open cast and underground mining, Amur said.

The mining firm has now hired well-known consultant SRK to update the resource at the Kubuk and MKFL deposits so this can be included in the definitive feasibility study (DFS) - a key component to getting the project off the ground.

These two resource estimates will reflect a combined production scenario of open cast and underground, rather than just open cast as an EBITDA analysis had assumed earlier last year.

Amur's chief executive Robin Young said: "The availability of this information allows us to move forward with the update of resources and reserves at both Kubuk and Maly Kurumkon - Flangov.

"These two deposits contain nearly two thirds of the nickel at Kun-Manie representing more than 413,000 tonnes of nickel.

"Enhanced modelling of these two deposits to account for the two production scenarios of open cast and underground will allow for the development of reserves and an optimised production schedule.

"This is a key element for inclusion in the definitive feasibility study of Kun-Manie."

Last month, the group said it had completed its £12.5mln funding. Crede Capital, a US finance firm, will provide the funds in five staged payments for shares of £2.5mln each.

The money will pay for a substantial portion of the Definitive Feasibility Study and related engineering and design work at the Kun-Manie nickel-copper sulphide project.

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