Eurasia Mining PLC Monchetundra Mine Permit Update (6915D)
02 February 2018 - 6:00PM
UK Regulatory
TIDMEUA
RNS Number : 6915D
Eurasia Mining PLC
02 February 2018
Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
Monchetundra mine permit update: resolution issued by
Rosnedra
Eurasia, the London listed platinum group metals and gold
producer, is pleased to announce an update regarding the
application for a mining permit at the Monchetundra Project on Kola
Peninsula, submitted late 2017.
A review of the Monchetundra mining permit application has been
completed by the Federal Anti-Monopoly Service (FAS) and all
relevant divisions within Rosnedra. The official draft Resolution
of the Government of the Russian Federation for the mining permit
has been forwarded by RosNedra to the Ministry for Defence (MOD)
and the Federal Security Service (FSB) for their approval.
Highlights:
- Rosnedra has approved a draft of the mining permit and has
forwarded the relevant documentation to MOD and FSB.
- Once the mining permit is approved early stage operations can commence at Monchetundra.
- Mining permit application progressing considerably quicker than the company expected.
Christian Schaffalitzky, Executive Chairman at Eurasia commented
"We are very pleased with this result and the efficiency of the
officials at Rosnedra in processing this application. The
experience of our staff in Russia, gained from successfully
processing a similar mining permit for our West Kytlim Project has
proven invaluable. We look forward to providing further positive
news in due course."
The application has now progressed from Rosnedra, who manage the
entire mine permitting process, to the MOD and FSB.
Background to the project:
Monchetundra is a major Platinum Group Metals ('PGM') and base
metals project with state approved reserves plus resources of 2
million ounces of palladium equivalent of PGM with additional base
metal and gold credits. A discovery certificate, guaranteeing
mining rights was issued to the company in July of 2017. The mining
permit application was finalised in Q4 of last year and submitted
to Rosnedra (See RNS dated 05 December 2017).
As previously announced, state approved reserves and resources
within the Monchetundra Project comprise Russian standard C1 and C2
categories of 55.9 tonnes (about 2 million ounces) palladium
equivalent (predominantly palladium) at two open-pittable
locations, West Nittis and Loipishnune. These open pits also
contain significant gold and base metal credits including 28,124
tonnes of copper and 30,410 tonnes of nickel. The full Reserves and
Resource Statement is set out in the announcement dated 31 May
2017.
To note, for the purposes of correlating the scale of this
deposit to other international platinum group minerals and base
metal mines, the total in-situ metal value of these Reserves and
Resources, before metal recoveries and all costs, is calculated as
2.1 billion USD at today's (Jan 31 2018) metal prices. However,
there can be no guarantee that this figure will be achieved by
Eurasia
For more information please see our website at;
www.https://www.eurasiamining.co.uk/operations/monchetundra
Engineering Procurement Construction and Financing (EPCF)
Contract
An EPCF contract to develop the mine at Monchetundra is already
in place with Sinosteel, a state owned Chinese corporation focused
on mining, and was agreed in October of 2016 (see RNS dated 10
October 2016. The contract provides for Sinosteel to undertake the
mine and processing plant construction and commissioning on a
turnkey, commercial arms-length basis. 85 per cent (or
US$149,600,000) of the contract value has been arranged as
debt-based by Sinosteel with this element of plant construction
costs to remain on the Sinosteel balance sheet until such time as
the plant is operating at full capacity and to designed
specification.
Discussions continue with other third-party service providers
regarding the running of the mine at Monchetundra. The company
hopes to emulate the contract mining arrangement utilised at West
Kytlim by contracting the mining operation to a reputable
international specialist company with experience in Russia, while
maintaining control of the project for a percentage of gross
revenue.
Consent for release
Christian Schaffalitzky, FIMMM, PGeo, CEng, is a director of the
Company. He has reviewed the update and consents to the inclusion
of the exploration information in the form and context in which it
appears here. He is a Competent Person for the purposes of the
reporting of these results.
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
Christian Schaffalitzky/Keith Byrne
+44 (0)207 932 0418
WH Ireland Limited
Katy Mitchell
James Sinclair-Ford
+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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