Amur Minerals Corporation (LON:AMC) is shifting to a lower-cost, one lane access road to link the planned mine site with the Baikal Amur Rail Line on its wholly-owned Kun-Manie nickel-copper sulphide project.
The nickel-copper sulphide mineral exploration and resource development company focused on the Far East of Russia said the updated estimate based on the one-lane design indicates the average cost to construct a kilometre of the road is US$382,000 including bridges, diversions and culverts.
The group added that the total capital cost of the 338-kilometre long road is anticipated to be in the order of US$129mln.
It noted that previously reported and utilised capital cost estimates per kilometre for the access road ranged from US$500,000 to US$1mln for a two-lane road and approximately US$440,000 for a one lane road.
Amur pointed out that the ability to reduce the width of the road still allows the company to deliver the annual production of up to 400,000 tonnes of concentrate to the rail station and also allow for the back-haul supplies to the mine site.
Robin Young, Amur Minerals’ CEO, commented: “Confirmation of the ability to shift to the lower cost, one lane option is a significant change in the operating configuration planned for Kun-Manie.”
He added: "Following the review of the comprehensive PFS by an independent QP we are comfortable this is a viable option to developing the planned operation."
In morning trading on Friday, shares in Amur Minerals were 3.5% higher at 3.00p.