By Jaime Llinares Taboada
Shares in Amur Minerals Corp. dropped Friday after the company published financial estimates for its Kun-Manie nickel copper sulfide project in the Russian far east.
The project will involve initial and life-of-mine capital expenditure of around $1.0 billion, an independent report found.
Shares at 0943 GMT were down 0.54 pence, or 22%, at 1.91 pence.
Open pit mining operation costs are forecast at $14.79 per metric ton of ore, and all other costs total $33.25 per ton of ore.
The London-listed mining company said metal recoveries are anticipated to be 73.5% for nickel and 52.3% for copper.
The report is now under review by the Russian authorities, which will establish the reserves available for open pit mining.
In addition, Amur noted speculation regarding the inclusion of Kun-Manie as a priority mining investment project. The company clarified that the project was included in the government’s list in 2015, but that doesn’t mean new funding has been provided.
“The company works closely with a large number of agencies in Russia to secure funding for Kun-Manie and will announce any funding that is secured,” it said.
Kun-Manie has been estimated a measured and indicated mineral resource of 148.3 million tons of ore, yielding 1.1 million tons of nickel and 310,000 tons of copper.
Write to Jaime Llinares Taboada at firstname.lastname@example.org; @JaimeLlinaresT