Amur Minerals Corporation (LON:AMC) shares strengthened in Thursday’s early deals as its project development process in Russia continued to make progress, with indicative revenue terms confirmed by the authorities.
The company, in a statement, said that it has now been provided with non-binding indicative offtake terms for both the nickel and copper concentrates due to be produced at the Kun Manie (KM) mine project.
It comes after an update earlier this month which confirmed the metallurgical approach, with the generation of a copper concentrate and a nickel concentrate, using industry-standard sulphide floatation methods.
KM’s metallurgical testwork programme for the TEO - a Russian equivalent to a project feasibility study - is being conducted by Gipronickel Institute, a subsidiary of Norilsk Nickel.
Securing the revenue terms is key to establishing sufficient and supportive documentation for the project’s marketable product, Amur noted.
"Gipronickel Institute's metallurgical test work has provided us with the cornerstone information to the TEO study work that is underway,” Robin Young, Amur chief executive said in a statement.
“Knowing the content and composition of the concentrates has allowed us to establish the potential payable schedules for the economic metals and the level of deductions for the slag forming and deleterious constituents.
“These potential payable schedules and deductions are based on input from an internationally recognised metal trader. The combined Gipronickel and trader sourced information is now being utilised to update operating costs enabling reporting of our reserve, mine production schedule and TEO related economic assessment,” he added.
Young noted that the TEO programme remains on-schedule for completion by December 2020.
The company pointed out that having indicative revenue terms means it can now advance an updated reserves report, based on varying cut-off grades for intermediate products, as well as an update to the mine plan and production schedule.
It also, significantly, allows for updates for operating costs and metallurgical recoveries along with the broader economic analysis of the project.
On AIM, Amur shares were up 2.35% changing hands at 1.28p, after initially starting 8% stronger.