Eurasia Mining plc
("Eurasia" or the "Company")
West Kytlim Platinum Project - Progress Update
Eurasia Mining plc (AIM:EUA), the precious metal exploration and development company working in Russia, is pleased to announce further progress towards mining at its West Kytlim alluvial platinum project.
Highlights:
- West Kytlim Production Licence award process now complete with payment of Licence fee;
- Development of West Kytlim platinum production operations fully underway including Mine Technical Design planning, Forestry applications and planning for additional mine exploration programme to enhance and expand mine ore feed;
- Economic modeling has confirmed a mine model including electrically powered draglines and plant commencing 2016;
- Kosvinsky Kamen (Eurasia's 75% owned Russian Subsidiary) granted membership of the Union of Gold Producers of the Ural Mountains.
Christian Schaffalitzky Managing Director of Eurasia Mining commented "We are delighted to confirm to shareholders that the West Kytlim Production Licence award process has been finalised and that, after a long period of build up, the Company now holds a Production Licence. We believe this is absolutely key to unlocking the value of Eurasia Mining through production, revenue and profit generation, moving us toward a financially self sustaining business.
We are now making large steps forward in our Mine Development Plan with a focus on achieving first production in 2016 with all the financial advantages that awards the Company and its shareholders, and a further update will be provided on this timetable in due course.
Alongside West Kytlim, advanced discussions continue with regard to a potential capital investment into our Monchetundra project, or the disposal of our interest in Monchetundra. There can be no guarantee that any transaction will proceed unless and until formal transaction documentation has been finalised. In the meantime we hope to shortly announce first results from our significant drilling and trenching programme currently underway at the Monchetundra project.
The Company is also in the late stages of commercial discussions in respect of additional precious metals opportunities which are being considered at present and in respect of which additional information will be provided as appropriate, in due course."
Production Licence Update
The process of converting the West Kytlim licence to a Detailed Exploration and Production Licence has now been completed and a one off payment in respect of subsoil use has been made to the relevant Russian authority. A one off payment amount of 2,126,000 Roubles (approximately £21,000) has been transferred to the Ministry for Subsoil Use in respect of legal rights to mine reserves of platinum and gold at Eurasia's West Kytlim Licence.
· Payment was made by Eurasia's subsidiary Kosvinsky Kamen in one payment amount on the 27th October 2015.
· The licence was officially awarded in early October 2015 (see RNS dated 6th October) and this payment of the amount calculated by the Ministry for Subsoil Use represents the completion of the transaction.
· The licence is valid for the period up to 15 October 2040.
West Kytlim Operational Progress
Further progress towards development of the West Kytlim Mine includes the following items
· The programme for detailed exploration has been completed in house by Eurasia's exploration geology team and will be lodged with authorities in due course.
· Drafting of the Mine Technical Design, contracted to external experts, is continuing and is expected to be completed by year-end.
· Applications have been made to the Forestry Department to allow clearing of land on the route of the proposed power line to site, as well as in the area of a new company field camp.
· Kosvinsky Kamen (Eurasia's 75% owned subsidiary) has been granted membership of the Union of Gold Producers of the Ural Mountains. This body has regular access to government administration and policy formulation.
Economic modeling of various scenarios for the development of the mine site has demonstrated that electrically powered draglines and plant, working from 2016, would be the most favorable economic scenario. For this reason it is proposed to begin work on power line construction as soon as possible. The route of a previous power line will likely be followed.
Contacts:
For more information please contact:
Eurasia Mining:
Christian Schaffalitzky / Michael de Villiers
Tel: +44 (0) 207 932 0418
Katy Mitchell, WH Ireland Limited
Tel: +44 (0) 161 832 2174
