Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
Receipt of Discovery Certificate for Monchetundra Reserves and Resources
Eurasia, the platinum production and gold exploration company, is pleased to announce that it has now been granted a discovery certificate for its Monchetundra Project's 1.9 million ounce palladium equivalent (platinum and palladium) global Reserves and Resources. This follows its official application for a discovery certificate, announced on 15 June 2017.
Eurasia, through its local subsidiary Terskaya Mining Company, has now been officially credited as the discoverer of these Reserves and Resources and holds an exclusive right to apply for and receive a mining licence for their extraction.
Overview:
· The Discovery Certificate has been processed quicker than had been anticipated, being awarded just under a month after Eurasia submitted its application.
· State approved Reserves and Resources within the Monchetundra Project comprise Russian standard C1 and C2 categories of 55.9 tonnes (1.9 million ounces) palladium equivalent.
· The Company expects to submit an application for a Mining Licence at Monchetundra in the near future.
· Eurasia intends to progress the development of Monchetundra using a similar model to that which has proven successful at its West Kytlim mine.
· The Company has further advanced talks with refineries in the country with regards to concentrates such as those produced from Monchetundra.
· At West Kytlim, production has commenced from two production units.
Christian Schaffalitzky commented: "Once again, a heart-felt thank you to our team in Russia for advancing the project through to this stage. The rate of progress at Monchetundra, from submission of our Feasibility Study, through Reserves Approval to issue of a Discovery Certificate, has been impressive by any international standard. We look forward to progressing our Mining Licence application as we move towards development of this major asset."
As previously announced, global, state approved Reserves and Resources within the Monchetundra Project comprise Russian standard C1 and C2 categories of 55.9 tonnes (1.9 million ounces) palladium equivalent (palladium and platinum) at two open pittable locations, West Nittis and Loipishnune. These open pits also contain significant gold and base metal credits including 2.0 tonnes of gold, 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 ("PGM") and Base metal mines, the total in-situ metal value of these Reserves and Resources, before metal recoveries and all costs, is calculated as 1.7 billion USD at today's metal prices. However, there is no guarantee that this figure will be achieved by Eurasia.
The Discovery Certificate has been processed quicker than had been anticipated, a testimony to the efficiency of the officials at Rosnedra, the Federal Agency for subsoil use. The documents and articles relating to the application for a Mining Licence have been progressed and the Company expects to submit this in the near future.
It remains Eurasia's stated intention to progress the development of the Monchetundra Project using a similar model to that which has proven to be successful at West Kytlim, which is by contracting a suitably qualified operator and selling operating costs for a share in the top line sales.
In addition, Eurasia have further advanced talks with refineries in the area and note a growing appetite for lower Sulphur PGM and base metal concentrates such as those at Monchetundra and the Kevitse project, recently purchased by Boliden for a cash consideration of $712m.
Meanwhile at West Kytlim, the Company's operating alluvial platinum mine with gold credits, located in the Ural Mountains, production has commenced from two production units (washplants). A larger washplant commissioned by our operating contractor is now in production in parallel with Eurasia's own smaller washplant. Further updates will be provided in due course, as appropriate
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/Michael de Villiers
+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
Blytheweigh
Tim Blythe/Camilla Horsfall
+44 (0)207 138 3204
