10th Mar 2014 10:59
LONDON (Alliance News) - Amur Minerals Corp Monday said it has entered into a memorandum of understanding with Aeroscraft Corp to explore the possibility of using Aeros's heavy-lift vehicles for transport operations in the far east of Russia.
The Russia-focused nickel-copper sulphide mineral exploration-and-development company said the MOU considers the potential to use zeppelins to reduce high start-up capital cost requirements related to accessing the Kun-Manie project near Khabarovsk.
At this point, the site requires a 320 kilometre long access road at a likely cost of USD140 million but the use of the heavy lift vehicles could eliminate the need for this road, providing a shortened construction phase on-site and lower rail and truck freight costs.
Under the terms of the understanding, the company and Aeroscraft are in discussions for two crafts to move equipment, supplies, materials and concentrate to and from the site on a multi-year basis.
Amur said that Aeroscraft's innovative capabilities such as vertical takeoff and landing, independence from ballast, a cargo handling system and fuel efficiency eliminate a range of environmental impacts from the site and could allow the company to transport fuel directly from its refinery to site for power.
The company said it will provide updates on the MOU as Aeroscraft moves towards the launch of certain crafts with the next two years, which is within Amur's time frame to implement construction.
Amur is currently building a new economic model for the site following an announcement of Russian tax cuts and improvements in the company's resources during 2013.
Chief Executive Robin Young told Alliance News in February that he was mulling the idea of using zeppelins for transport at the site, stating that the deal would be on a contract-only basis where costs depend on tonnage, and he believed it could save the company up to USD500 million if it went to plan.
The Kun Manie site has resources approaching 830,000 nickel equivalent tonnes after increasing the resource at the Kubuk area of the site in December by 20%.
Amur Minerals shares were down 0.4% to 4.43 pence, having risen to 4.83p on the news at the open.
By Tom McIvor; [email protected]; @TomMcIvor1
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