Amur Minerals resource estimate surges at Kun-Manie

Russia-focussed nickel-copper sulphide mineral exploration and resource development company Amur Minerals Corporation announce on Friday that Runge, Pincock, Minarco had completed a comprehensive resource update.

The AIM-traded firm said the results showed an increase on the mineral resource estimate for the four largest nickel-copper sulphide deposits located within the Kun-Manie mining licence.

It said the global Kun-Manie resource is 101.3 million ore tonnes, having a nickel equivalent grade of 1.03% equating to a total of 1.04 million equivalent tonnes of nickel based on 1 February 2017 metal pricing, with a total in-situ value estimated to be $10.5bn.

The newly reported global MRE was increased by an additional 31.7 million tonnes of new ore, a 45.6% increase; an additional 210,500 tonnes of new nickel, 37.8%; and 62,500 new tonnes of copper, 43.5%.

Amur said the global average grade of nickel was 0.76%, copper was 0.20%, cobalt was 0.015%, platinum was 0.17 g/t and palladium was 0.18 g/t.

By JORC resource categories, more than 80% - or 81.2 million ore tonnes - was classified as ‘measured and indicated’, and was therefore available for conversion to a mining ore reserves for inclusion in a mine plan.

The new MREs were calculated using a higher cutoff grade of 0.4% nickel, the board explained, and allowed for the determination of MOR using a combination of open pit and underground mining options.

Amur projected the breakeven nickel price, based on the new data, to range from $3.40 to $5.70 per pound.

“The substantial increase in the total Mineral Resource Estimate is primarily due to the highly successful 2016 drill season at Maly Kurumkon-Flangovy,” said CEO Robin Young.

“The updated results now make it possible to identify the mining ore reserves available to open pit and underground production.”

Young said with more than 80 million ore tonnes of the 101.3 million resource tonnes classified as measured and indicated resource, the board anticipated having two thirds of its life of mine reserve defined.

“It is rare to see a junior resource company have such a large asset with so much of it drilled to such a high level of confidence.

“Reserve definition is the next stage which will include an audit of our mining costs.

“Based on this information, production of 40,000 to 60,000 nickel tonnes per annum to concentrate is anticipated and would place Amur in the top 10 producers of nickel in the world, ranking around number eight.”