Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
West Kytlim DFS approval, Reserves upgrade and Production expansion strategy
Eurasia Mining, the palladium, platinum, iridium, rhodium and gold production Company, is pleased to report that the feasibility study of permanent conditions (equivalent to a Definitive Feasibility Study ('DFS') in Western minerals industry reporting codes) has now been approved by the authorities for the Kluchiki Area, where mining is currently ongoing. A revised reserve calculation, prepared in accordance with the DFS is also scheduled for approval by the Russian Government, in accordance with the Russian Mining standard. The reserves at Kluchiki were recalculated after reserves infill drilling, performed in 2018, expanded the ore bodies at that location and upgraded the calculated reserves from C2 to C1 category ore.
Furthermore, a new strategy for reserves approvals has been adopted by the Company going forward. All Russian category C2 Reserves at all areas on the West Kytlim license are expected to be upgraded to C1 category in a single drilling program. The drilling program of circa 2,600 m of shallow drilling, 140m of which has already been drilled at the Bolshaya Sosnovka area, is fully funded. The Company expects this drilling program to be completed during 2019 in parallel with mining, and are excited about the opportunity this presents to increase capacity at site
Highlights:
· Kluchiki DFS now approved by Russian Mining authorities.
· A new strategy for reserve upgrade drilling has been adopted by the Company and is aimed at allowing major capacity expansion. All C2 reserves within the mining license are anticipated to be upgraded to C1 category ore.
· The drilling program is fully funded and now underway.
Production of raw platinum is ongoing at site with recent new additions to the washing circuit reported to be working well.
Chairman Schaffalitzky commented:
"The new drilling program is designed to save time and cost by reducing the reporting required for approvals at individual sites. It also creates the potential to open the project up to much greater production volumes and, by potentially lifting the majority of ore to higher reserve categories, could increase the market value of the asset. We look forward to updating on the program as it progresses throughout this year."
Further detail:
Kluchiki DFS approval:
The Kluchiki 'feasibility study of permanent conditions', considered equivalent to a DFS in western mineral industry reporting codes', has been approved at a sitting of the Uralnedra Reserves Commission (the Russian Mining Authority). A revised reserves statement, on which the DFS is based, is now scheduled for approval at a later sitting of the Reserves Commission and is aimed at bringing all reserves at the Kluchiki area to Russian C1 category. A final statement on the total current approved reserves at Kluchiki will be issued in due course.
A new strategy for reserve upgrade drilling designed to streamline statutory reporting and allow for capacity expansion:
All C2 reserves within the mining license at the Ust Tylai, Ust Tylai Right, Bolshaya Sosnovka and Kosva Valley areas are anticipated to be upgraded to C1 category ore in an aggressive drilling program to be carried out in parallel with production during 2019. The fully funded program aimed at raising all reserves to C1 category will use drill rigs operated by Eurasia's drilling contractor is now underway. A second shift will be added to the on-site laboratory to process samples generated.
Shareholders are encouraged to follow the non-regulatory progress at the mine site through the Company's media channels including:
https://vimeo.com/user71951711
https://twitter.com/eurasiamining
https://www.voxmarkets.co.uk/listings/LON/EUA/
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Christian Schaffalitzky, FIMMM, PGeo, CEng, is a director of the Company. He has reviewed the update and consents to the inclusion of the exploration information in the form and context in which it appears here. He is a Competent Person for the purposes of the reporting of these results.
Enquiries:
Eurasia Mining Plc
Christian Schaffalitzky/Keith Byrne
+44 (0) 207 932 0418
WH Ireland Limited
Katy Mitchell/ James Sinclair-Ford/Matthew Chan
+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
Further background to the West Kytlim Mine:
West Kytlim is currently the second largest alluvial platinum mine globally, based on 2018 production figures, and is expected to be the world's largest PGM alluvial mine in 2019. The operation was brought to industrial scale production in 2018, with a total of 165kg raw platinum produced from May to November 2018 for a revenue of £2.57m. A complete summary of the 2018 mining season can be found in the Company's annual report available on the Company website at https://www.eurasiamining.co.uk/investors/financial-reports.
