LONDON (Alliance News) - Resources firm Amur Minerals Corp said Wednesday its recent cost estimate would place among the ten lowest cost nickel producers.
Its in-house C1 cost estimate per pound of nickel from its Kun-Manie mine in the Far East region of Russia ranges from USD2.61 per pound to USD2.77 per pound.
This is based on its previously announced Kun-Manie mining potential of 73 million ore tonnes, producing 6.0 million ore tonnes a month for 12 years and two months.
These results, Amur said, do not take into account its recent increase in the Kun-Manie mineral resource estimate due to drill results from the Ikenskoe-Sobolevsky and Kubuk deposits.
Chief Executive Robin Young said: "We are pleased to provide projections of the C1 fully loaded direct operating costs for our two primary production options which include toll smelting or our building and operating of a low grade matte facility to process our concentrate.
"Comparison of these newly defined costs indicates that Kun-Manie could be a low cost competitor within the nickel industry ranking in the lowest 10 producers by cost and, potentially even as low as fourth. Ranging from USD5,750 to USD6,100 per nickel tonne, we are well below the CRU projected average production cost of USD10,000 per tonne."
Shares were down 0.6% on Wednesday at 5.10 pence each.
