LONDON (ShareCast) - Shares in mining group Amur Minerals jumped on Thursday, after the company reported that a pit study on its Kun-Manie nickel-copper-sulphide project in Russia had unveiled a potential 70% increase to the target inferred resources.
The miner said the survey had revealed successful in-fill drilling at Kun-Manie could increase the inferred resource estimate by as much as 70% to a total of 67m tonnes, containing an average 0.59% of nickel and 0.18% of copper.

Amur added it will begin in-fill drilling at the Maly Kurumkon, Flangovy, Kubuk, Ikensoe and Sobolevsky deposits at the site, indicating that the study had also identified the potential for further reserve expansion by adding ores recoverable by underground mining which is being examined at present.

"Though simple in design, the conceptual open pit study has identified near-term drill priorities key to rapidly developing reserves that are necessary for obtaining bankability for Kun-Manie," said group chief executive Robin Young.

Analysts at SP Angel welcomed the news, pointing at the company's successful track record in converting of Inferred resources to different categories.

"The study shows that 'In-fill drilling' should also allow for a significantly increase the mine life allowing for a better return on capital," the said in a note.

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