Recovery abounds
On 10 February, Amur Minerals Corp (LON:A7L) announced a 50kt (or 6.8%) headline increase in contained resource nickel tonnes, but a 214kt (or 41.7%) underlying increase (ie at a constant cut-off grade). This follows the January announcement of metallurgical test results by Gipronickel on a c half tonne sample of ore from Maly Kurumkon-Flangovy. Over seven metals, average recoveries were 13.0% higher than those derived from earlier bench-scale tests. The results represent the first production-scale test work from the Kun-Manie licence area and, owing to their larger size, are expected to be more reflective of actual production processes.
Resource now >1Mt contained Ni (9.3Moz AuE)
Based on our end-FY16 cash estimate, we calculate an enterprise value for Amur of US$56.3m, which equates to US$73.47 per total nickel resource tonne. That being the case, a headline resource increase of 50.0kt Ni should have added US$3.7m in (pro rata) value to Amur, while a like-for-like increase of 213.7kt should have added US$15.7m – cf an estimated cost of drilling of c US$1.3m.
To read the entire report Please click on the pdf File Below