Company Update

Released : 24.03.2017 07:00

RNS Number : 4006A
Eurasia Mining PLC
24 March 2017
 

Eurasia Mining plc (AIM: EUA)

("Eurasia" or the "Company")

 

Company Update

 

Eurasia is pleased to update shareholders on the three projects currently being worked by the Company.

 

Highlights

 

·    Production work has commenced at the Malaya Sosnovka Area within the West Kytlim Alluvial Platinum and Gold Mine. An increase in the reserves for the Malaya Sosnovka area has also been submitted for approval

 

·    First review and additional information has been completed by the Reserves Committee assessing the Feasibility Study and Reserves Report for Monchetundra in Kola

 

·    Discussions on project finance underway for the Semenovsky Tailings and exclusivity period extended

 

 

West Kytlim

 

Site preparation for the coming mining season proceeds at pace, with 2 Komatsu 355 bulldozers, 2 Komatsu (350 and 400) excavators and an additional diesel power plant delivered to site. The small wash plant is operational. The large wash plant is being upgraded now and the upgrade is expected to be completed in April 2017.

 

Excavating and stockpiling commenced at the Malaya Sosnovka deposit, continuing from where work stopped at the end of the previous mining season. Exploration drilling commenced on 4 March 2017 at the adjacent Bolshaya Sosnovka deposit. 206m have been completed to date of approximately 1,400m planned for 2017 at both the Bolshaya Sosnovka and Kluchiki deposits.

 

As per standard practice under the Russian system, a technical report must be written for each new area to be mined. This report is then assessed by the relevant authority which issues a Mining Allotment for that area and the extraction of the reserves therein. A Technical Design Report for the first-stage of mining at the Kluchiki deposit has been approved by the authorities and a Mining Allotment was issued in March 2017. This is for a design volume of 645,000m3 of stripping and 362,000m3 of gravels containing 108kg of raw platinum. These reserves are scheduled for development in 2018.

 

In addition, as a result of new information resulting from mining work in 2016 at the Malaya Sosnovka deposit, an increase to the reserves at Malaya Sosnovka has been submitted for approval to the Reserves Commission. It is expected this will increase the previously approved reserves by approximately 15% at this open pit deposit.

 

Monchetundra

 

At the end of 2016 the Company submitted its documentation for a TEO (Feasibility Study) and reserves approval at Monchetundra. The Reserves Committee (GKZ) responded in February 2017, meeting with the Company's team to discuss the reports in detail. The Company has provided answers to all additional queries and awaits final approval. When the TEO and the reserves are approved, the next step will be the award of the Discovery Certificate that allows the Company to receive the production licence.

 

 

Semenovsky Tailings Project (STP)

 

The main activity on this project is looking at the optimal route to mining, using project finance or else a (risk-free for Eurasia) revenue-sharing structure similar to that in place at West Kytlim. In order to provide time for this process the owner has agreed to a further extension of the exclusivity period, previously announced on 22nd December 2016 until 31 May 2017.

 

 

Commenting on progress, Managing Director Christian Schaffalitzky said: "We are pleased with progress in all three projects which are advancing as planned. At West Kytlim we have just started the production work for the year. At Monchetundra the project is coming to fruition and we expect the approval of the TEO and the reserves. At STP, we are seeking a financing structure that would avoid dilution for Eurasia shareholders. In the view of the Board, we are happy that the Company is steadily securing its future and making a platform for further development of Eurasia for our shareholders.  Eurasia will be attending two investors conferences in the coming weeks; Master Investors Show on Saturday 25th March 2017 and the UK investor show on April 1st 2017. We would be pleased to discuss these updates in person at these upcoming events.".

 

Enquiries:

Eurasia Mining Plc

Christian Schaffalitzky/Michael de Villiers

+44 (0)207 932 0418

WH Ireland Limited

Katy Mitchell/Nick Prowting

+44 (0)161 832 2174

Beaufort Securities

Elliot Hance

+44 (0)207 382 8300

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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