Amur Minerals (LON:AMC) has extended the exploration license for its flagship project where new significant targets have been identified. The mining license is currently being reviewed by Russian regulators for approval.
Meanwhile, the company has undertaken a limited field campaign while awaiting the final nod for the mining operations at Kun-Manie.
The first half saw the discovery of a significant new target close to two previously drilled deposits at Kun-Manie, reduction of administrative expenses and indication of abundant sulphides from newly exposed outcrops near existing deposits.
The post-period accomplishments included a fundraising of £1.2 million and the granting of an extension to the Kun-Manie exploration licence through 2012.
“Amur Minerals has made excellent progress with the identification of new drill targets at Kun-Manie and has obtained an extension to the Kun-Manie exploration licence.
“The company is more financially secure and we are confident as we move forward in our mining licence application,” said chief executive Robin Young.
The campaign was financed by the receipt of a significant value added tax (VAT) refund and by utilizing its existing fuel remaining on site.
Drilling and assays have identified potentially economic levels of nickel and copper mineralisation with characteristics similar to those encountered in the proposed Maly Krumkon pit located to the west.
Successful step out drilling along strike and down dip within the immediate area could result in an increase in both resources and near surface open pit recoverable reserves.
Amur Minerals is currently undertaking reconnaissance and road building on site to prepare for more active drilling in 2011 and 2012.
An additional nickel sulphide mineralisation that was exposed to the south of the Ikenskoe deposit confirmed that it could be substantially larger than presently reported.
On the financial front, Amur posted losses of US$1.4 million, slightly up from US$1.1 million a year ago. The increase was due to large impairment charges incurred in the previous period, which offset the positive impact from salary reductions.
Amur is looking for the necessary funding for exploration, reporting that several parties have expressed an interest in providing finance for the group.
No binding agreements have yet been signed, though Amur said it was confident that necessary funds will be secured and the business will keep going.
“We are excited to have the opportunity to meet the challenges that lie ahead.
“We will continue to work with the Russian government to secure the mining licence for Kun-Manie and obtain waivers from the appropriate Russian agencies which allow for less restrictive ownership constraints,” said chairman Robert Schafer.
For now, the company is looking to concentrate on the study results collected during the field season.
The company is looking to improve the pre-feasibility report originally prepared in 2007.
Potential improvements to the study include an improved tax structure, new infill drilling, resource and reserve updates, optimisation of production and the alternative of producing a final metal product for sale in place of concentrate sales.