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 a 350 km ice road to its Kun-Manie project and has begun restocking supplies for the 2018 field season.

Nine vehicle convoys are transporting the supplies that have been marshalled at the company's Ulak rail station siding, on the Baikal–Amur rail line, to Kun-Manie.

The completion of the ice road represents one of the achieved milestones, which are required under the financing agreement entered into by the company on February 13 for the subsequent advance of a loan, Amur has said.

“This is the most cost-effective way to resupply our operation. Upon completion of the restocking effort, the company will be in a position to diamond core drill a planned 15 000 m and undertake several site investigation studies to gather additional information for engineering design considerations.”

Other milestones required are the completion and announcement of the resource update, updated openpit design, the openpit or underground trade-off study and the updated prefeasibility project economics, all of which the directors believe will be completed before the date that the company can exercise its option to give notice for a further loan advance.

“Two further milestones to be met are that the total daily traded value for the 30 days prior to the second advance date is greater than the total daily traded value for the 30 days prior to the initial advance date, and that the volume weighted average price (VWAP) of the second advance date is 50% greater than the VWAP on the initial advance date,” Amur CEO Robin Young has said.

"With the construction of the winter ice road being completed on February 15, a week earlier than the previous year, our 30-man transport team will continue to deliver supplies, fuel, spares and materials to site.

Operating 24/7 the company expects successful and complete resupply of the site. The resupply will enable Amur to finish the majority of the company’s site investigative work to progress the project to a final production decision and design.

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.