Name of the Project
Kun-Manie nickel/copper sulphide project.

Location
The project is located within the Amur Oblast of the Russian Far East.

Client
Amur Minerals.

Project Description
As at December 31, 2016, five deposits had been identified at the Kun-Manie project – Maly Kurumkon/Flangovy (MKF), Gorny, Vodorazdelny (VOD), Ikenskoe/Sobolevsky (IKEN) and Kubuk (KUB).

A mineral resource estimate has been compiled for MKF, VOD, IKEN and KUB, which has established:
• measured and indicated resources of 81.2-million tonnes grading 0.76% nickel, 021% copper, 0.015% cobalt, 0.17 g/t platinum, 0.18 g/t palladium, and
• inferred resources of 101.3-million tonnes grading 0.76% nickel, 0.20% copper, 0.015% cobalt, 0.17 g/t platinum, and 0.18 g/t palladium as at February 10, 2017.

The existing resource at Kun-Manie is projected to support ore production of six-million tonnes a year for 15 years.

Production will include openpit and underground longhole retreat methods. Near-surface mineralisation will be mined by openpit, and deeper continuous high-grade mineralisation will be subject to underground extraction.

Openpit production is planned to be derived from all four deposits. The MKF and KUB deposits will eventually transition to underground production. MKF is the largest of the four deposits and is planned as the start-up deposit for production.

About 18 000 t/d of ore is planned for processing. 

The plant design will allow for the crushing of the ore and two-stage grinding followed by classic sulphide flotation. An estimated 394 000 t/y of concentrate is expected to be produced. 

Tailings will be placed in an impoundment area, which has been determined to hold about 90-million tonnes of waste covering a 15-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Project value is estimated at between $550-million and $700-million.

Duration
Not stated.

Latest Developments
Amur Minerals has completed the restocking and mobilisation of all machinery, spares and supplies needed to complete the 2018 field season at its Kun-Manie nickel/copper project.

The resupply transport effort began on February 15 and was completed on April 10.

This year's field season will be focused on gathering information for inclusion in project engineering study work and operational design for consideration and incorporation into the necessary documentation related to project financing.

Further resource expansion potential remains; however, these areas will be drilled once operations have begun.

Field operations have been initiated with the start of the construction of the required roads and drill sites.

Full-scale summer activities are expected to be under way by mid-May.

Drilling will include acquisition of a metallurgical sample from the Ikenskoe/Sobolevsky and Kubuk deposits and the mineralised area between the two deposits. Infill drilling of a high-grade area currently defined to be inferred by the Joint Ore Reserves Committee standard is also scheduled.

Throughout all four planned mining areas, closely spaced drill holes will be completed in accordance with Russian reserve reporting standards as part of the requirement for final mine plan approvals.

In addition, the personnel responsible for completion of the resupply have now transitioned into the final site preparation stage for the arrival of the remaining summer field crew component. The total staff on site will be in the order of 100 individuals.

Key Contracts and Suppliers
RPMGlobal Asia (openpit designs).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Amur Minerals, CEO Robin Young, tel +74212 755615.