LONDON (ShareCast) - Russian nickel and copper developer Amur Minerals revealed it still has more than $2m cash after drilling 7,200 metres in the last year.

Amur, which is expecting its mining licence this year, increased the known areas of mineralisation at its Maly Kurumkon and Ikenskoe ore bodies of its Kun-Manie project and begun delineation of a new deposit.

Exploration results have expanded the potential size of the project and upgraded the economic upside of the deposits with improved metal grades.

Battling the permafrost in the Russian Far East, close to the Chinese border, the company has enjoyed the lowest ever incurred at site by acquiring of a lightweight exploration rig that cut costs by as much as $75 per metre. The savings have already covered the acquisition cost of the rig as well as improving flexibility for drilling programmes.

The company doubled the mineralised strike length of Maly Kurumkon and found numerous areas contained at least 1.0% nickel, which had not been encountered to such an extent in its previous drilling.

Drilling along the same trend further east at Gorny revealed a new 500 metre long ore zone that could be linked Maly Kurumkon but needs further in-fill drilling, while reconnaissance work along the trend identified other potential targets to both east and west.

Executive chairman Robert Shafer said: “looking to the remainder of an exciting 2013, the Company will continue to be very busy.”

Priorities for the current year include the award of a mining licence, continued drilling along the Kurumkon Trend and an update to the 2007 prefeasibility study.

“The update of the resources and reserves based on drill results through 2012 should provide considerable increase in JORC compliant resources and reserves,” he said.

At the end of December, Amur had roughly $2m cash in hand and on the date of these results this stands at an unaudited $2.1m, with payments from a finance agreement with equity capital provider Lanstead Capital “approximately balancing Company expenditures”.

Chief Executive Officer Robin Young added: "Resource estimates are currently being compiled, the results of which will begin the programme to refine and optimise the positive 2007 prefeasibility study."

Shares in Amur Minerals were down 4% to 9p at 11:45 on Friday.

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