Amur Minerals Corporation (LON:AMC) has identified its preferred route for a road from its Kun-Manie nickel/copper sulphide project to the rail station at Ulak.
The company said the projected cost in dollar terms of constructing the road is likely to be lower than previously expected, largely as a result of the decline in the value of the rouble.
The road is planned to be 316 kilometres in length, and eight metres in width, and should be capable of handling the transport of concentrate and supplies to and from the site in the far eastern part of Russia.
Five major bridges will be required with an estimated 200 stream and drainage crossings having also been identified.
The western portion of the road, some 180 kilometres in length, will be constructed along exist, albeit narrow, roads created by other mining companies in the past. The eastern portion will be constructed in the mountainous terrain of the Stanovoy Range; there is no infrastructure along the eastern section of the route is present.
In far-east Russia, permafrost is a constant concern, and Amur said permafrost conditions vary along this route and will need to be considered in the detailed design of the road.
Having identified its preferred route, the company will initiate the next stage of road design comprised of the development of surface topographic maps for use in route selection, road design and construction planning.
"We have now identified our preferred route from the rail station at Ulak to our Kun-Manie nickel copper sulphide project. With this significant step now complete, we are moving onto the generation of topographic maps, which will enable us to precisely select the route of the road and to compile the first design,” said Robin Young, chief executive officer of Amur.
“After we verify the designed route, we will be able to undertake necessary design adjustments to account for any special considerations and conditions along the route. Subsequently, the capital cost of this critical component can be finalised. We anticipate a reduction in the cost to construct a kilometre of the access road over that which has been used in the past to evaluate our project economics," Young revealed.
Shares rose 0.4% to 4.42p on the news.