Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
Project Update: Semenovsky Gold Tailings Project
Eurasia Mining plc, the Russia focused PGM and gold exploration and development company, here working in partnership with Metal Tiger plc (LON:MTR), is pleased to report further progress at the Semenovsky Tailings Project (STP) in Bashkiria, Russia.
Highlights:
- Russian Pre-Feasibility Study equivalent - the TEO of Conditions - which was submitted to Bashnedra, the local Bashkirian Mines Department, has now been approved;
- Metallurgical testing of the STP is now fully underway with 5 metallurgy focused drill holes completed and core logging by Eurasia geologists is on-going;
- Metallurgical samples have been shipped from the site to Ekaterinburg to be prepared for onward shipment for metallurgical analysis with results to follow shortly thereafter.
Christian Schaffalitzky, Managing Director of Eurasia Mining commented "Approval of the TEO of Conditions is a major step forward for the STP and allows us to continue at pace with our other due diligence work and to lay the foundations for the commencement of processing plant construction later in the year.
We are also very pleased to see activity on the ground at Semenovsky with the metallurgical testing underway. This is a very key part of our project due diligence and we look forward to receiving, analysing and releasing the findings to market at the earliest opportunity.
Plant construction at Semenovsky is scheduled to commence in Q4 2016 subject to satisfactory completion of remaining due diligence and timing of final permits."
Background to Semenovsky Tailings Project
In November 2015, Eurasia, in partnership with Metal Tiger, signed an exclusive option to acquire 67% of STP with the Russian registered licence holding company Golden Sands. Eurasia is now in detailed discussion on exercising the option.
TEO of Conditions (Russian Pre-Feasibility Study Equivalent) Approval
Progress has been made in statutory licensing obligations, as the company has received written notice of approval of the project TEO of Conditions (Russian equivalent of a Pre-Feasibility document). This document demonstrates the economic extraction of the contained gold and silver reserves according to a specific processing scheme. The expert panel within the Bashkirian Mines Department approve of the scheme as proposed.
The draft TEO of Conditions was submitted to the Bashkiria Mines Department (Bashnedra) on the 2nd of February 2016. The expert panel reviewed the document reported, as per the standard approvals process; their recommendation being that the TEO be approved. The TEO was subsequently approved by Bashnedra by written notification on the 21st of April 2016. A Reserves Report, of which the TEO is an integral part, is now being approved.
For further details and project economics from this TEO document please see RNS dated 12th February 2016.
Metallurgical Testing Progress
A drilling programme was completed between the 19th and 21st of April. Five drill holes to the bottom of the tailings dam were undertaken to extract samples for further metallurgical studies. This is an integral part of Eurasia and Metal Tiger's project due diligence as a study performed on these samples will confirm the metallurgical aspects of the proposed process flow sheet.
The five drill holes from which a metallurgical sample will be taken are intended to be representative of the entire tailings dam. Metallurgical analysis will consist initially of a cyanide bottle roll tests according to best industry practice, and will proceed to detailed mineralogical investigations including work to optimise the parameters of the proposed processing route at STP.
Dialogue on a proposed bulk sampling program at industrial scale and using a nearby operating mine continues in parallel to this study and we look forward to updating should a cost-benefit analysis of this option prove practical.
Enquiries:
Eurasia Mining Plc
Christian Schaffalitzky/Michael de Villiers
+44 (0)207 932 0418
WH Ireland Limited
Katy Mitchell/Liam Gribben
+44 (0)161 832 2174
Beaufort Securities
Elliot Hance
+44 (0)207 382 8300
Loeb Aron
John Beresford-Peirse
+44 (0)207 628 1128
