Amur Minerals Corporation (LON:AMC) chief executive Robin Young described as a “good step forward” the company’s memorandum of understanding (MOU) with China’s largest nickel company, Jinchuan.
The outline agreement relates specifically to engineering, design, procurement and construction activities at Amur’s Kun-Manie deposit in Russia’s far-east.
Boss Young told Proactive: ''Jinchuan have a very good relationship with Russia and it presents an opportunity for us to get good quality engineering and from one of the potential markets we anticipate moving our concentrate into.''
He told interviewer Andrew Scott: ''It's a good step forward for us and it's our opening gambit in China as we move forward there.”
WATCH: Andrew's Proactive's interview with Robin Young
Located in Amur Oblast, Kun-Manie is one of the largest remaining sulphide projects in the world and not far from the Chinese border.
Nickel sulphide projects are notable for the ease with which the material they produce is processed in comparison to the now increasingly common laterite mines.
The measured and indicated resource at Kun-Manie is 107mln ore tonnes containing 484,100 nickel tonnes and 136,600 copper tonnes.
This places it in the top tier of nickel copper sulphide projects in the world with substantial potential for further expansion.
The project also contains the by-product metals of cobalt, platinum, palladium, gold and silver.
Geographically, it has the potential to supply the three largest nickel consuming markets in the world including China, Japan and South Korea.
What next?
A definitive feasibility study of the project is currently underway, which should help sketch in the detailed economics of Kun-Manie for potential financiers.
The expectation is that key report will be compiled and published by the end of next year.
However, Amur has made some progress in this regard already including preparing a shortlist of potential engineers for the design of the mine and plant.
A large scale bulk metallurgical sample from this season's 15,000m drill programme will be used to define a process flow sheet, and help with the design of the smelter.
Meanwhile, finalising the mining reserves, based on metallurgical work and preliminary operating costs, will be started in the near term.
Kun-Manie can sustain 15 years of operations at an annual rate of 5mln tonnes of ore for the production of polymetallic concentrate. Mining is planned at four open pits and two (possibly three) underground operations.
At 2.50pm, the shares were changing hands for 4.5p, up almost 30% on the day.
Broker SP Angel said the outline deal “offers an exciting opportunity to study development options for the project”.