Eurasia Mining PLC Company Update (4006A)
March 24 2017 - 2:00AM
UK Regulatory
TIDMEUA
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
645,000m(3) of stripping and 362,000m(3) 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 22(nd) 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
25(th) March 2017 and the UK investor show on April 1(st) 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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