26th Feb 2019 12:31
LONDON (Alliance News) - Amur Minerals Corp on Tuesday said the pre-feasibility study for its Russian Kun-Manie nickel-copper sulphide project demonstrates "value, scale, and viability".
Shares in Amur were up 14% at 3.32 pence on Tuesday.
Amur, a mineral exploration and development company, said the study gives two production scenarios resulting in a six million tonnes per annum production rate. These include a toll smelt option, which would generate revenue the most quickly, and would involve selling the concentrate straight to a purchaser.
Taking the toll smelt option, Kun-Manie would have a net present value of USD614.5 million after tax based on a long-term nickel price of USD8.00 per pound.
The study also proposes construction of a flash smelters to convert the concentrate into low grade matte and capture extra revenue from by-product metals. This would produce a net present value after tax of USD987.4 million based on the same nickel price.
The Kun-Manie JORC mineral resource estimate is for 155.1 million ore tonnes, which is complised to a nickel equivalent grade of 1.0% for a total of 1.6 million equivalent tonnes of nickel.
The construction period would be 3 years and the production period would be 15 years with an option to extend the life of the mine.
"The [pre-feasibility study] provides a robust review of Kun-Manie's value, scale and viability and it is our intention to explore further the strategic options that will enhance the company's continued development of the project. We believe that it puts the company in a strong position and provides attractive economics to invite discussions with varied parties to strengthen our team and deliver production at Kun-Manie," said Amur Chief Executive Robin Young.
"Additionally, there is significant potential for further upside to this [study], following the company's successful drill programme last year, which yielded a number of positive results including expansion of the mineral resource estimate and mine life," Young added.
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