Amur Minerals (AMC.L) has updated the resource estimate on its Kun-Manie nickel project in Russia, and the current resource contains 155 million tonnes with a nickel-equivalent grade of 1.02% for 1.58 million tonnes of nickel-equivalent. The ‘true’ nickel grade is approximately 0.75% whilst the project also contains 0.21% copper, 0.015% cobalt, 0.16 g/t platinum and 0.17 g/t palladium.
According to the company, this is now the third largest greenfield nickel sulphide projects, and with a discovery cost of less than 2 cents per pound of nickel, Amur was able to efficiently prove up the value of the property. For every meter that has been drilled at Kun-Manie, almost 35,000 pounds of nickel was added to the resource estimate.
This resource update concludes the exploration programs at Kun-Manie, and we don’t expect to see any resource expansion drill programs until the project goes into production. After all, it wouldn’t make much sense to include even more resources in the mine plan as the marginal value of these additional tonnes and pounds would be reduced to almost zero due to discounting.