Eurasia Mining PLC West Kytlim DFS update (3564H)
December 03 2020 - 1:00AM
UK Regulatory
TIDMEUA
RNS Number : 3564H
Eurasia Mining PLC
03 December 2020
EURASIA MINING PLC
("Eurasia" or "the Company")
West Kytlim DFS update
Eurasia Mining plc, the palladium, platinum, rhodium, iridium
and gold producing company, operating the established West Kytlim
Mine in the Urals, and also the operator of the Monchetundra
Project comprising two predominantly palladium open pit deposits
near base metal and PGM processing facilities close to the town of
Monchegorsk on the Kola Peninsula, is pleased to announce West
Kytlim definitive feasibility study ("DFS") update.
Definitive Feasibility Study
As previously announced, the Company had engaged
GeoInvestProject ("GIP") to prepare the DFS for its West Kytlim
project. The DFS has now been approved by the working meeting of
the Russian State Committee on Reserves. The final approval is
expected to happen this month. The DFS approval is an important
milestone for the West Kytlim project for several reasons:
1. It eliminates single asset risk by allowing production at
several open pits concurrently and shifting the equipment between
them when and if required to provide for consistent production
volumes to be achieved.
2. Concurrent mining allows for the increase in production
volumes compared to the sequential approach to mining adopted by
the contractors prior to Eurasia taking over the project as
owner-operator this year.
3. The DFS allows all year-round mining operation for stripping,
earth moving and mining activities to happen also in winter months
(while the water is frozen) in preparation for the next season and
also to stockpile the ore for treatment.
Early preparations for 2021 production
DFS preparation and approvals were the main focus of the Eurasia
team at West Kytlim this year, while concurrently the Company also
started preparation for 2021 early this year based on the lessons
learnt from the delayed 2020 mining permit (the issue of which was
previously announced in the interim financial report on 30
September 2020). West Kytlim produced 1,525 oz of raw platinum this
season. The lessons learnt and preparation activities for 2021
include:
1. Technical project documentation preparation for 2021
production has been assigned to GIP, which has successfully
performed on the preparation and approval of the DFS.
2. Early application for permission from forestry authorities,
that was identified by the Company as a major bottleneck in
previous years, as well as early applications for other
permits.
3. Acquisition of additional equipment to increase the
production volumes in anticipation of the concurrent mining at
several open pits, for example a Komatsu D155 bulldozer has already
arrived and commissioned on site to add to overburden stripping,
earth moving and stockpiling machinery at West Kytlim that is in
operation all year-round.
4. Early stripping, earth moving and stockpiling activities for
2021 production have already started.
COVID-19 prevention
Strict measures in relation to prevention allowed for zero
COVID-19 cases at West Kytlim production sites to date and Eurasia
is maintaining its COVID prevention discipline going forward.
Comments
Christian Schaffalitzky, Executive Chairman commented: "The
Directors are delighted with the finalisation of the DFS and the
approval process aimed at production increase in these exciting
times for PGMs especially for palladium and rhodium. The Company is
committed to its strategy, while also adding value to its projects.
Further announcements will be made in due course".
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
ENQUIRIES:
Eurasia Mining Plc
Christian Schaffalitzky/ Keith Byrne
+44 (0)207 932 0418
SP Angel Corporate Finance LLP (Nomad and Joint Broker)
Ewan Leggat / David Hignell / Adam Cowl
+44 (0)20 3470 0470
Optiva Securities (Joint Broker)
Christian Dennis
Tel: +44 (0) 20 3137 1902
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