TIDMEUA
RNS Number : 1807H
Eurasia Mining PLC
09 March 2018
Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
New contractor appointed at West Kytlim, commencement of site
work
Eurasia, the London listed platinum group metals and gold
producer, is pleased to announce the commencement of site works for
the 2018 field season at its West Kytlim Project in the Ural
Mountains. Terms have now been finalised with OOO Techstroy of
Nizhny Tagil ("Techstroy").
Christian Schaffalitzky, Executive Chairman at Eurasia commented
"We are very pleased with this result which comes after extensive
discussions, predominantly technical in nature, over the past
number of months. We are very much looking forward to a successful
mining season at West Kytlim and to working together with our new
partners Techstroy. Site works have already commenced, in this the
first week of March, a marked improvement on last year. This means
we can take full advantage of the full mining season at Malaya
Sosnovka starting now and aim to break ground at the Kluchiki area
later this summer. In a show of good faith the contractors
mobilised equipment to site a week ahead of final signing of the
contract. We look forward to reporting on progress from the site in
the near future."
Highlights:
- Machinery and equipment mobilised to site with stripping works to commence immediately.
- Revised flow sheet to incorporate a trommel and scrubber arrangement prior to sluice.
- Mining to initially focus on the Malaya Sosnovka site which
contains 275,000m(3) of productive gravels and 84 kilograms raw
platinum.
- Mining to progress to the larger Kluchiki site which contains
893,000m(3) of productive gravels for 319 kilograms raw
platinum.
- Targeted productivity ranging 50,000m(3) to 70,000m(3) per month at a single working site.
- Options for deploying further washplants remain available to
both Eurasia and Techstroy, who are permitted under the contract to
deploy a second washplant during the 2018 mining season.
- Techstroy to manage mining, trucking and beneficiation of
platinum bearing gravels, including construction, delivery and
installation of mining and processing equipment in accordance with
a mine design agreed between the parties.
- Techstroy to be further responsible for site clearance,
preparatory and stripping works, washing of gravels and land
rehabilitation.
- Eurasia to be responsible for the upgrade of the sluice
concentrate to a saleable product at the existing onsite
laboratory, as well as platinum refining and revenue
distribution.
- Eurasia maintain complete project ownership and management of
the mining license, the ongoing program to upgrade resources to
reserves ahead of mining, and new licence applications on ground
adjacent to the current mining licence.
- Sales revenues to be split 65%/35% in favour of the contractor
with no further financial consideration. The distribution of sales
revenue to be managed by Eurasia as and when payments are made in
accordance with the existing metals refining and sales agreement
between Eurasia and the metals refinery in Ekaterinburg (see RNS
dated 28 July 2016).
Background to the agreement
Techstroy, based in Nizhny Tagil is an alluvial mining
contractor with experience at mining operations in the Perm Oblast
(Eastern Ural Mountains) including at the Suria Kazanskaya alluvial
gold mine. Extensive technical discussions have been ongoing with
Eurasia mining engineers over the past six to eight weeks,
including a site visit in late January 2018. A thorough evaluation
of the 2017 mining season was undertaken as well as comprehensive
mine scheduling for the 2018 season. Techstroy have committed a
fleet of mining equipment to the project including two Komatsu
excavators, three bulldozers, one loader and five Kamaz 6520 ore
trucks. Eurasia's Directors are confident the contractor has the
necessary skill set and balance sheet to execute a successful
mining operation in 2018 and in subsequent years.
Eurasia's West Kytlim Project is the second largest alluvial
platinum reserve in the world currently, with 2,283 kilograms of
raw platinum in reserves (defined to GKZ C1 and C2 standard) with
resources and resource potential to a further 10 tonnes of raw
platinum. For a more detailed reserves and resources summary please
see RNS dated 05 December 2017.
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
Glossary of Key Terms
A,B, C1 and C2 - Categories of ore body defined under the
Russian Standard as having met minimum requirements of exploration
information and knowledge.
JORC - The Australian code for reporting of exploration results,
mineral resources and ore reserves, as published by the Joint Ore
Reserves Committee of the Australian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Minerals
Council of Australia.
GKZ - Russian state commission on mineral reserves which ensures Gosstandart compliance.
Reserves - Probable and Proven Reserves (or equivalent depending
on the Standard used). Closely comparable to Russian Standard C1
but may contain material of Russian Standard categories A, B, C1
and C2.
Resources - Inferred, Indicated and Measured Resources (or
equivalent depending on the Standard used). Closely comparable to
Russian Standard C2 but may contain material of Russian Standard
categories A, B, C1and C2.
Russian Standard - Referring to the Gosstandart of Russia, the
national Russian standard on mining and minerals as published by
the National Certification Body of the Russian Federation and
adhered to by GKZ and
Rosnedra. - Russian federal agency for subsoil use which
oversees the work of GKZ and manages the state balance of mineral
resources.
Russian Standard - Referring to the Gosstandart of Russia, the
national Russian standard on mining and minerals as published by
the National Certification Body of the Russian Federation and
adhered to by GKZ and Rosnedra.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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