Amur minerals increased kung magnier resources

13 May 2016

Amur Minerals Company announced the completion of the evaluation of resources of Kubukarea, field Kung Magnier (Amur region). In comparison with the previous evaluation, the resources of the copper-nickel ore of Kubuk area increased by 25% to 25.7 million tons. Average nickel content is estimated at 0.52%, copper -. 0.15%. Projected resources of nickel rose by 12% to 133 thousand tons, copper -. by 20%, to 39.4 thousand tons, platinum group metals – by 33%, up to 7.2 tons. As a result, total resources of Kung Magnier increased to 164.7 million tons of ore, including 740.1 thous. tons of nickel, 212.9 thous. tons of copper and 42.3 tons of platinum group metals. Measured and revealed resources amount to 107.2 million tons of ore, or 484.1 thous. tons of nickel with a content of 0.48%, and 136.6 ths. tons of copper with a content of 0.12%. Project Kung Magnier involves processing for 15 years, of 90 million tons of ore. Forecasted EBITDA of the project for the lifetime is $ 1.4 billion in case of producing concentrate and $ 3.48 billion at the full cycle with the production of cathodes. Pre-feasibility study, approved in 2007, has shown that the project is profitable at the price of nickel $ 16.53 thousand. per 1 ton. According to the Amur Minerals’ evaluation, capital investment in Kung Magnier will amount to $ 1.5 billion, and the Company has already invested $ 30 million in the project. It is planned to build four open and two underground mines. The ore will be processed using flotation, the nickel-copper concentrate will be delivered by BAM through Ulak station for further processing. Amur Minerals has the license for Kung Magnier exploration since April 2004, but it expired in December 2014. In May of last year it was re-arranged.