Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
West Kytlim Production 2019
The Company is pleased to update shareholders on the West Kytlim platinum, palladium, rhodium, iridium and gold mine, and the plans for the coming year.
A contract for the 2019 season has now been agreed between Eurasia's subsidiary Kosvinsky Kamen ('KK') and Uralmetmash (formerly Techstroy) to carry out mining of PGM and gold at the West Kytlim mine.
Highlights:
- Work is expected to commence on site immediately, with first concentrate production expected in April, as and when running water becomes available
- Work to continue initially at the Kluchiki area, where work finished on schedule in November 2018
- Platinum revenues to be split on a 65%/35% basis, in favour of the contractor
- Refinery contract between KK and the Urals precious metal refinery also renegotiated to include an extra percent payment on London Metal Exchange ('LME') Platinum prices (now at 98% LME, from 97% in 2018)
The Directors of Techstroy, the contractor employed at the West Kytlim mine for the 2018 season who achieved production well in excess of target (a total of 165kg raw platinum against a targeted 100kg), have now registered a new company, Uralmetmash, as a special purpose vehicle to focus on the West Kytlim Project. The roles and responsibilities of each of the parties shall remain largely as before, with Uralmetmash responsible for pit development, mining, ore trucking, washing and disintegration - while KK remain responsible for concentrate upgrade, shipment of mine product and distribution of metal sales revenues.
Commenting on this agreement, Executive Chairman Christian Schaffalitzky said: "We are pleased to be working again with the team that proved so effective during 2018. They were a very efficient operator last year, with a zero accident record, and financially motivated to develop the asset in a sensible manner. Furthermore, we are looking at ways to improve metal recoveries, based on the measured efficiency of the existing process flowsheet. We look forward to updating shareholders on progress and also our longer term development strategy for the West Kytlim reserves and resources before the season commences."
Further details:
Uralmetmash intend to move on site immediately to prepare for mining, to include stripping of overburden and stockpiling of ore in preparation for washing, which can commence once the seasonal thaw is underway. The thaw can be expected sometime in April 2019.
Further state approved reserves are present elsewhere at Kluchiki and the Company awaits formal approval of a refreshed reserve assessment for this area, which was submitted on completion of a drilling program in 2017/8 (see announcement dated 25 October 2018). A second washplant can be commissioned on approval of this reserve calculation.
Eurasia and KK personnel continue to work on an enlarged exploration program for the West Kytlim Project, to include the recently approved Flanks exploration license and ensure adequate reserves available for future mining seasons. Work on analysis of the previous mining seasons performance has commenced and a sampling program has been outlined for the tailings of the 2018 season. This information will input to proposed modifications to the current circuit, with the possible addition of a jig to recover finer raw platinum fractions. The addition of a hopper to better control the loading of gravels to the front of the circuit, and achieve a more constant flow of material into the trommel, is also expected to improve recovery during the 2019 season.
Enquiries:
Eurasia Mining Plc
Christian Schaffalitzky
+44 (0)207 932 0418
WH Ireland Limited
Katy Mitchell/James Sinclair-Ford
+44 (0)161 832 2174
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
