Eurasia Mining PLC West Kytlim Mine - Additional License Issued (5873K)
December 17 2018 - 1:00AM
UK Regulatory
TIDMEUA
RNS Number : 5873K
Eurasia Mining PLC
17 December 2018
Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
West Kytlim Mine- additional license issued
Eurasia Mining plc (AIM: EUA), the palladium, platinum, iridium,
rhodium and gold producing company, is pleased to announce that it
has been officially informed that the Company will be granted an
additional 71.1km(2) exploration license at its West Kytlim Open
Pit Mine in production in the Ural Mountains, Russia. This area was
applied for under exclusive rights granted for new applications
adjacent to existing mining licences. The Company believes that the
new areas have potential for future reserves of the said
metals.
The Company has been informed by Uralnedra, the agency
responsible for subsoil licensing and mine permitting in the area
of the Company's West Kytlim Mine, that a resolution approving the
granting of an additional exploration permit adjacent to and
surrounding the current West Kytlim mine permit has now been
issued. The area adds an additional 71.1km(2) of prospective ground
to the West Kytlim Project in production since 2018 and contains
areas already worked by Eurasia within a previous exploration
permit.
The new area, referred to previously as the 'Flanks' or 'West
Kytlim Flanks' was submitted for licensing in February 2018 and has
been fully assessed by Uralnedra and all other relevant parties to
the granting of new exploration permits. The Uralnedra resolution
confirms that an exploration license over the new ground will be
issued to the Company in due course as a new exploration
license.
Highlights:
- Additional exploration license surrounding the West Kytlim
Open Pit Mine Permit awarded to Eurasia's subsidiary Kozinsky
Kamen.
- Sediments hosting West Kytlim mine mineralisation are known to extend into the new area
- Potential to add significantly to the resource base and life
of mine for the operational West Kytlim project.
- The Minutes of the Uralnedra committee meeting to be published
within 5 days, and the final award of the exploration permit to
proceed within 30 days.
- Revision of available prior exploration data to be compiled to
outline areas for follow up investigation.
Further details:
West Kytlim is Eurasia's operating alluvial palladium, platinum,
iridium, rhodium and gold mine where the Company produced 165kg
(5,300 ounces) raw platinum plus significant credits for palladium,
iridium, rhodium and gold during 2018. The mine is fully permitted
for production on a 21.5km(2) mining license valid through
2040.
Under Russian subsoil licensing rules, where a Company or entity
holds a mining permit the Company has the automatic right to apply
for exploration ground directly adjacent or surrounding the already
identified mineral reserves, to a limit of 5km. This application
shall be uncontested and further protects the rights of the company
to which the mining permit has been attributed, in the event that
additional mineral reserves exist within the same deposit, but
outside the contours of an approved mining permit. This, the
directors believe, is the case at the West Kytlim deposit where
further mineralisation is known to occur within the river system
hosting the West Kytlim Reserves and Resources.
The Company has already begun work on the exploration strategy
for this ground, initially focused on a desktop review of the
Eurasia dataset, with input from prior mining operations and
dredging in the area. The style of mineralisation, mode of
exploration and potentially future mining on this new license will
be consistent with the approach that was successful in outlining
Reserves at the West Kytlim Mine. A new department is to be
established within Kozvinsky Kamen, Eurasia's 68% owned subsidiary
and licensed party, to focus on Brownfield Exploration directly
proximal to the West Kytlim deposit, as production of the known and
state approved Reserves continues at the West Kytlim Mine.
While no definitive assessment of the resource potential in the
new area can currently be made, the Directors are confident the
area should add considerable value and increase the life of mine at
the West Kytlim Project. Several areas within the new license have
already been drilled by Eurasia in exploration campaigns from 2006
to 2016. All data pertaining to these identified resources will now
be compiled, to outline areas of specific interest for follow up
investigation. These will then be integrated into a broader
resource and reserve development strategy aimed at extending the
resource base and mine life at the West Kytlim Mine.
A further announcement will follow on issue of the license, and
will include any relevant conditions the license may be subject
to.
A graphic illustrating the location of the new exploration
permit has now been added to the company webpage at;
https://www.eurasiamining.co.uk/operations/west-kytlim
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Enquiries:
Eurasia Mining PLC Tel: +44 (0)207 932 0418
Christian Schaffalitzky / Keith Byrne
WH Ireland Limited (Nominated Adviser Tel: +44 (0)161 832 2174
& Broker)
Katy Mitchell / James Sinclair-Ford
First Equity Limited (Joint Broker) Tel: +44 (0)20 7374 2212
Jason Robertson
Optiva Securities (Joint Broker)
Christian Dennis Tel: +44 (0) 20 3137 1902
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END
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