Amur Minerals (LON:AMC) shares soared on Tuesday on the back of the results of its Kun-Manie Pre-Feasibility Study.
The study covered two possible outcomes for production. The first is a Toll Smelt option, which the company said will provide ‘the swiftest path to revenue generation’.
The second will involve the company constructing of an electric furnace/flash smelter.
Should the company go ahead with the Toll Smelt alternative, this would Kun-Manie would have a net present value of $614.5 million after tax, on a long-term nickel price of $8.00 per pound.
Robin Young, CEO of Amur Minerals Corporation, commented:
“We believe that [the review] it puts the Company in a strong position and provides attractive economics to invite discussions with varied parties to strengthen our team and deliver production at Kun-Manie.
“Additionally, there is significant potential for further upside to this PFS, following the Company’s successful drill programme last year, which yielded a number of positive results including expansion of the mineral resource estimate and mine life.
Amur Minerals is a nickel copper sulphide mineral exploration company. It was founded back in 2004. Its operations are focused in the East of Russia and its subsidiaries include ZAO Kun-Manie and Irosta Trading Limited.
Shares in the London-listed company are currently +7.24% as of 14:05PM (GMT).