Amur Minerals Corporation has signed a letter of intent that could see it working closely with IG Copper (IGC) in regards to development of their sulphide deposits in Russia’s Far East. The two companies are looking at ‘synergies’ in processing their sulphide concentrates.
Amur’s Kun-Manie Nickel-Copper Project and IGC’s Malmyzh Copper-Gold Project in Khabarovsk Krai are close enough to consider a jointly-owned processing plant.
AIM-listed Amur is currently planning a treatment facility next to the Baikal-Amur Magistral railway that would have access to hydro-electric power and a ready source of transportation.
Amur said in a statement, “Both companies recognise that substantial work is required to complete final evaluation of the metallurgical recoveries, concentrate generation, transport and development of final saleable products for their individual projects.
“Because of the relative proximity of the projects, there may be a substantial benefit in undertaking a collaborative effort in the combined processing of the concentrates, which could identify mutually beneficial options and solutions to both companies’ project potential and economics.”
The letter of intent was signed last Saturday at the Eastern Economic Forum in Vladivostok.
If the deal delivers a tangible collaboration, it may enhance the economics of Kun-Manie, which is the focus of definitive feasibility study.
Amur’s CEO Robin Young said, “Development of a mine presents numerous challenges. A project must be technically and economically viable in its own right.
“As our team works toward completion of our definitive feasibility study in evaluation of Kun-Manie, opportunities arise which could enhance the project through mutual support and participation on a project such as this and in particular to our final treatment of the concentrate.
“We look forward to evaluating the potential synergies between IG Copper and Amur.”
The Kun-Manie project in Amur Oblast has with JORC-compliant resources in excess of 830,000 nickel equivalent tonnes and also contains the by-product metals of copper, cobalt, platinum, palladium, gold and silver. This resource places it among the 20 largest nickel-copper sulphide projects in the world with substantial potential to further expand the resource immediately adjacent to the drill identified deposits of which there are five.
Eurasian Minerals is IGC’s largest shareholder with 42%. The Malmyzh exploration and mining licences are held by a joint venture between IGC (51%) and Freeport-McMoran Exploration Corporation (49%), with IGC operating and managing the project.