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 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
The Kun-Manie nickel/copper sulphide project has now been sufficiently explored, with numerous studies having confirmed its technical and economic potential to produce class-one nickel suited for the expected growth of the electronic vehicle market.

Amur has unveiled a four-pronged strategic plan for the future development of the project, focusing on the engineering to a bankable feasibility study (BFS) level, off-site infrastructure, the engagement of a strategic partner and advancing a phased funding approach.

The strategic plan will also address the technical and financial challenges that a junior miner, such as Amur, faces when it controls 100% of the largest undeveloped nickel sulphide project immediately adjacent to the world’s three largest nickel consumers.

Under the engineering portion of the plan, Amur is compiling a prefeasibility study identifying requirements for and the costing of engineering works required to take the Kun-Manie project to a BFS level.

The company expects project funding to eventually be implemented through a consortium of financial institutions, and that the work will be completed to internationally recognised standards, including Equator Principles related to environmental approvals.

There is the potential that the BFS work will be undertaken in conjunction with one or more strategic partners and this may influence the engineering works required to be undertaken in the lead-up to the start of project construction.

In terms of off-site infrastructure, development on the access road for the project will be completed in a series of steps, with the next being the completion of detailed ground survey work. This will allow for the refinement of final route selection to appropriately identify bridging requirements along the route.

Amur is holding discussions with Russian State authorities and Russian infrastructure funding organisations to identify and develop financing options for the access road.

The plans for a rail siding are at an early and high-level stage of development. Amur has said that it will continue developing the plans for the identification of a rail siding location and include the required costing for the acquisition and construction plans.

Referring to the transport requirements of the project, Amur has said that it will continue working with vehicle logistics company GEFCO, under the memorandum of cooperation signed in July 2018, to develop definitive logistical solutions to support project construction, mine operation and product transport.

Further, Amur has identified potential partners in Russia, China, Japan and South Korea, which will undertake site visits to Kun-Manie.

In terms of the phased funding segment of the plan, Amur is completing detailed plans for and the costing of the engineering work to complete a full BFS. There is a strong possibility that this engineering work will be undertaken with a strategic partner. Should this be the case, funding for this work may be a product of a strategic partner agreement, which may be at either the company or asset level, according to Amur.

The near-term funding objectives for the company will be to maintain the company in a strong financial position while it continues to advance the project up the mining value curve, and identify and engage with the necessary expertise to assist Amur in developing Kun-Manie to its full potential.

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.