LONDON (Alliance News) - Amur Minerals Corp shares rose on Monday after it laid out its "operational blueprint" for the Kun-Manie nickel sulphide project in Russia which will cost the company around USD1.85 billion over 15 years.
Amur shares were up 13% to 32.85 pence per share on Monday morning.
The miner said the operational blueprint, which was designed after the company was awarded a exploration and production license from authorities, suggests the existing resources can sustain a 15 year mine life at 6.0 million tonnes per year, but said infill drilling will be needed.
"This operation blueprint contained within our pre-economic assessment, represents ten years of successful exploration at Kun Manie, along with a total redesign of the project. As we worked on the study, we challenged all past and previous assumptions," said Chief Executive Robin Young.
Production will come from four open pits and two underground operations to produce a simple flotation concentrate, which will then be smeltered. The operating cost per tonne or ore will be around USD34.86.
Initial capital expenditure will be around USD1.38 billion, expended over a two-year period whilst the project is constructed, and sustaining capital expenditure will total USD474 million over the 15 year mine life.
"Moving forward through infill drilling, metallurgy and more detailed engineering studies, we will continue to search for ways to optimise the project so that it delivers the highest possible value to the shareholders. We are comfortable with the final values we have generated as a company, however, we are compiling a Request for Proposal from three independent companies," said Young.
In a separate statement Monday, Amur said its pretax loss for 2014 was USD1.4 million, narrowing from the USD3.8 million loss in 2013 after it booked a USD1.2 million gain from the fair value movement on derivative financial assets compared to a small loss in 2013.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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