LONDON (Alliance News) - Amur Minerals Corp Monday said it has continued to progress the definitive feasibility study for the Kun Manie project in Russia that is expected to be completed by the end of 2017.
Amur said the nickel copper sulphide project is expected to sustain production of polymetallic concentrate for around 15 years, mining 5.0 million tonnes of ore annually, sourcing that from four open pits and two, possibly three, underground operations.
A flotation concentrate will be generated that can be smelted by a toll smelting company or by a smelter that is owned by Amur.
Some elements of the definitive feasibility study have been completed, including the geological assessment and the resource estimates. Future updates of the resource will be compiled for the discovery of new mineralisation at Maly Kurumkon/Flangovy and other drilling activity.
Amur said compiling mining reserves, based on metallurgical work and preliminary operating costs, will be initiated in the near term, and the final terms for completion of the mining evaluation are under negotiation.
Bench scale metallurgical test work is under final review by management and will be released in the near term, and Amur said that will provide metallurgical recovery information that will be "key" to defining the reserves at the project.
Amur will collect a large-scale bulk metallurgical sample during the drill programme that will be carried out this year to help design the plant for the project, define the process flow sheet and establish the composition of the concentrate so that the smelter can be designed accordingly.
The sample will be transported to Khabarovsk at the end of the 15,000 metre drill programme for shipment to one of the short-listed metallurgical companies experienced in nickel sulphide process design, concentrate generation and smelting of the concentrate, Amur said.
Independent contractors and engineering groups have been identified and short listed for design of on-site infrastructure, road access and power design for the optional owner-operated furnace.
"We are pleased to provide a detailed plan of the major steps related to our Kun-Manie definitive feasibility study and the progress we have made to this point in time. There is a great deal more to be accomplished over the next 18 months and we plan to issue updates on the global progress toward its completion, as well as any key developments generated during the completion of this milestone document," said Chief Executive Robin Young.
Amur shares were trading up 2.0% to 4.08 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Amur Minerals (AMC)