RNS Announcement: The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
West Kytlim Mining update Sept 2018
Eurasia Mining, the PGM and gold production company, here provides a further update from its West Kytlim Mine, the second largest alluvial platinum mine in the world (after Konder in Russia) which the company brought to industrial scale production in May of this year. The mine continues to exceed Directors' expectations in terms of daily production targets and run of mine grades. Shipments of the mine product, a raw platinum concentrate, to the Ekaterinburg precious metals refinery are ongoing, commensurate with payments from sale of Platinum, Palladium, Rhodium, Iridium and Gold.
Eurasia's subsidiary Kosvinsky Kamen, and the mine's contractor Techstroy, have also jointly decided to progress with the much larger Kluchiki open pit, 2 kilometres to the south west of Malaya Sosnovka open pit. Forestry clearing began at Kluchiki in July 2018. Machinery and equipment were deployed to the site in August 2018, with full production following directly.
Overview:
· Total production now stands at 141.5 kg (4,549 ounces total raw platinum from 3 May to 19 September 2018).
· Monthly production averaging greater than 30kg raw platinum.
· Mining ongoing at Kluchki open pit, with current state approved reserves of 893,000m3 of platinum and gold bearing gravels.
· The nature of platinum bearing gravels, sedimentary units, clay and boulder content and the general mining scheme are largely similar at Kluchiki Open Pit.
· Grades continuing to exceed reserve grades by a considerable margin. Total average grade from production to date circa 1g/m3 raw platinum.
Christian Schaffalitzky, company Chairman has highlighted: "We are pleased to provide some further details on the production performance at our West Kytlim Mine, which we believe has been a great success story this year. We are clearly well ahead of our internal target revenue for the year, and with two months of production remaining in the season. Commencing work early on at Kluchiki open pit means we believe we are in an excellent position to ramp up to full scale production in 2019. Our contractor Techstroy in cooperation with our own direct staff at site have operated an efficient and safe worksite throughout the year.
The mining license application at the Monchetundra Project has now reached the very final stage, and we now look to a successful conclusion to the mine permit application. No administrative or technical issues have been highlighted to the Company".
Kluchiki open pit - further details
Kluchiki open pit occurs within a few kilometres of Malaya Sosnovka open pit, downstream in the Tylai river system and within the West Kytlim mining license awarded to Eurasia's subsidiary Kosvinsky Kamen, and which is valid until 2040. Reserves and resources were identified in the area and achieved state approvals as part of the feasibility study approved in early 2014 (see RNS dated 22 April 2014). As per the 2014 feasibility study and reserves report a total of 319kg raw platinum has been identified at Kluchiki.
Further infill drilling was undertaken at Kluchiki in 2017 and 2018 as part of a broader and continuing reserves drilling program at Kluchiki and also Bolshaya Sosnovka, an area targeted for development after Kluchiki. A report on the drilling program will follow shortly.
Russian standard C1 and C2 Reserves were recalculated for the Kluchiki Area following the 2018 drilling program. In accordance with the applicable laws and regulations complete reserves statement will be provided on receipt of confirmation of the reserves from the subsoil agency.
A further video blog is in process at Kluchiki site for release in the week following this announcement.
Our shareholders are again directed to the company's media outlets where coverage of the mine operation is ongoing. This includes: twitter.com/eurasiamining and the company's Vimeo channel at https://vimeo.com/user71951711
Enquiries:
Eurasia Mining Plc
Christian Schaffalitzky
+44 (0)207 932 0418
First Equity Limited (Joint Broker)
Jason Robertson
Tel: +44 (0)20 7374 2212
Optiva Securities (Joint Broker)
Christian Dennis
Tel: +44 (0) 20 3137 1902
WH Ireland Limited (Nomad and Joint Broker)
Katy Mitchell / James Sinclair-Ford
+44 (0)161 832 2174
