Amur Minerals Corporation (LON:AMC) said it drilled 19,785 metres at its huge Kun-Manie nickel project in the Russian Far East in the 2016 season at reduced costs.
Actual costs per metre were estimated to be around US$40.17 largely thanks to the purchase of the group's own LF-90 Boart Longyear rig which drilled more than 13,000 metres.
Contract drilling rates would have meant it would have had to pay out around US$83.40 per metre and Amur reckons it has saved a total of US$575,000 over the season.
The total operating cost for the season was put at US$1.68mln, including the winter ice road cost of US$122,000.
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Among the highlights of the work was the expansion of the length of the Maly Kurumkon / Flangovy (MKF) deposit to 3,000 metres from 2,100 metres.
The firm built 82 new drill pads and completed 21 metallurgical holes. Geophysical work to identify potential sources of underground water for the treatment of the ore has also been completed.
A total of 23 trenches were completed at Kubuk to among other things, identify additional drill targets to the east of the currently drilled out resource.
Chief executive Robin Young said: ''As we wrap up the reporting phase of our 2016 field season, we anticipate the release of positive information related to increased resource expansion and high grade mineralisation, the development of reserves and additional metallurgical test work."
Amur shares surged on Monday as it revealed it had inked a memorandum of understanding (MOU) with China’s largest nickel company Jinchuan.
The agreement relates specifically to engineering, design, procurement and construction activities at Kun-Manie.
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.