Amur Minerals updates on operating costs review

Amur Minerals said a review of its internally derived operating cost estimates is well advanced and being completed by Runge Asia Ltd.

"The independent assessment will allow the company to establish the mining potential of its Kun-Manie nickel copper project located in Amur Oblast of the Russian Far East," it said.

"Runge's review and development of Russian based operating costs will provide critical information for the evaluation of the economic potential of Kun-Manie," said Amur's chief executive, Robin Young, in a statement.

"The final costs will permit Amur to undertake the generation of an independent estimate of the mining potential for all four of our deposits."

He added that the mining potential evaluation would be involved and intricate in order to ensure that Amur established an optimised mine plan and production schedule.

"At present, two mining methods, open pit and underground, have been identified at three of our four deposits. With each of the deposits differing in terms of metallurgical recoveries and operating cost, this will not be a rapid nor easy task," he said.

"Having production derived from four deposits does present opportunity. We can consider the blending of ores and target extraction of the higher operating profit tonnages from multiple locations, not just one deposit."

Young said multiple challenges also provided multiple opportunities to increase production of higher profit tonnages at earlier stages in the life of the project.

At 12:38 BST, shares in AIM-listed Amur Minerals were down 0.41% to 6.03p.