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

Location
Amur Oblast, of the Russian Federation.

Project Owner/s
Amur Minerals Corporation (AMC).

Project Description
The Kun-Manie project has a total Joint Ore Reserve Committee- (Jorc-) compliant mineral resource estimated at 155.1-million tonnes having a nickel equivalent grade of 1.02%, equating to 1.58-million equivalent tonnes of nickel.

A prefeasibility study has proposed two operational scenarios for the project and both include:

• the construction and operation of all facilities required to mine and process six-million tonnes of ore a year;

• a 338-km-long access road linking the mine site to the Baikal Amur rail line, allowing for the resupply of and concentrate delivery from the mine site;

• the supporting rail station;

• the shipment of saleable product to the Port of Vladivostok; and

• incumbent offtake agreement considerations.

The study has established that the project is technically and economically viable for both production scenarios.

The base case scenario, or toll smelt option, represents the quickest and lowest initial capital-cost investment pathway to revenue generation and comprises the sale of concentrate (freight-on-board Port of Vladivostok) to a buyer based on typical nickel industry offtake net smelter return schedules.

Payable nickel for the toll smelt option is projected to be 24 306 t/y.

The second scenario uses the same opera­tional considerations used in the toll smelt option; however, it includes the addition of an AMC-constructed and -operated electric furnace/flash smelter located at AMC’s BAM rail station.

This owner-operated facility is planned to treat the sulphide concentrate generating a low-grade matte, which will be shipped to the Port of Vladivostok. This furnace/flash smelter option includes the consideration of typical intermediate nickel product offtake terms.

The furnace/flash smelter option has a similar lead time to revenue generation, although its initial capital expenditure is higher than that of the toll smelt option.

The low-grade matte product is expected to produce substantially increased revenues derived from credits related to the recovery of by-product metals not available to the toll smelt option. Payable nickel, and credits for copper, cobalt, platinum and palladium for the furnace/flash smelter option will average 29 155 nickel equivalent tonnes.

Production is planned to be mined from four openpit operations and one underground operation. Subsequent to a three-year construction period, production of six-million tonnes a year is planned, covering a 15-year production life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The toll smelt option has a net present value (NPV), at a 10% discount rate, of $614.5-million and an internal rate of return (IRR) of 29.3%. The furnace/flash smelter option has an NPV, at a 10% discount rate, of $987.4-million and an IRR of 34.7%.

Both options have a payback of three years.

Capital Expenditure
Initial capital expenditure for the toll smelt option is estimated at $570.4-million, and for the furnace/flash smelter option $695-million.

Planned Start/End Date
Not stated.

Latest Developments
The rock mechanics (geomechanical) study for mining at Amur Minerals’ Kun-Manie project, in Russia, has been completed and approved by authorities, confirming that the project can be implemented as an openpit operation.

The study, compiled by the Mining Institute of the Far Eastern Russian Academy of Sciences (MIFERAS), was based on the regional tectonic setting and project-specific data derived from the testing of exploration drill core.

It confirms that openpit operations can be implemented at the Maly Kurumkon/Flangovy and Vodorazdelny deposits, and at the area identified as ISK (the now continuous orebody from Ikenskoe/Sobolevsky through Kubuk). 

Differing final pit slope angles and operational parameters accounting for the variability of the geomechanical characteristics unique to the waste and ore rock types of, and within, each deposit have been identified for use in the determination of the final ultimate pit designs and reserve reporting. 

For any remaining deeper ores, it has also been confirmed that conventional underground extraction methods can be used.

The MIFERAS work substantially updates previously completed geomechanical analysis undertaken by SRK.

"Once openpit operations are completed, and if the ore located below the ultimate pit limits is substantial, it has also confirmed that late mine life extraction of deeper ores using conventional mining methods can be implemented,” Amur CEO Robin Young has said.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
AMC, tel +7 4212 755615.