Eurasia Mining PLC Project Update (6505P)
September 04 2017 - 2:00AM
UK Regulatory
TIDMEUA
RNS Number : 6505P
Eurasia Mining PLC
04 September 2017
Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
Projects update and Monchetundra off-take agreement
negotiations
Eurasia, the platinum, palladium, iridium, rhodium and gold
production and development company, is pleased to report progress
towards submission of the production license application for its
Monchetundra Project, following the issue of the discovery
certificate for the project's 1.9 million ounce palladium
equivalent (platinum and palladium) Reserves and Resources,
announced on 17 July 2017.
Highlights:
Monchetundra Project
- All necessary contracts covering mine design, blasting, mine
surveying, ecological monitoring and land rehabilitation have now
been assigned to third parties. Assigning these contracts is a
necessary step towards a successful mining license application.
- The application for a mining license is expected to be
officially lodged, on schedule, in September.
- Off-take agreement negotiations are progressing with Glencore
(the third largest international commodity trader and resource
project investor), Sinosteel (China's state owned EPC contractor
and a major mining investor and commodities importer into China)
and other major players that cannot be disclosed at this stage, for
the entirety of the life of mine output. It is hoped an agreement
will be reached with one of these parties in the near future and
this agreement will integrate with Eurasia's already agreed, and
signed, Engineering, Procurement, Construction and Financing
("EPCF") contract with Sinosteel which includes financing of $150
million as a 10 year facility at 6m LIBOR plus 3.5 per cent.
West Kytlim
- Mining at West Kytlim, Eurasia's operating platinum, gold,
iridium and rhodium mine in the Ural Mountains is progressing.
- An increase in reserves was calculated over the mining area at
Malaya Sosnovka owing to higher than expected mining grades and ore
body extensions discovered in the 2016 mining season. These
reserves increases have been approved and are being developed as
part of the 2017 mining season.. Separately a mining allotment and
quota has been agreed over the Kluchiki Area for the next season of
production in 2018.
- A total of 1,490 metres of resource upgrade drilling was
completed earlier in the year, at the Bolshaya Sosnovka and
Kluchiki areas. All of these samples have now been processed to
allow conversion of C2 category reserves to C1 category reserves.
This work, managed by Eurasia but funded by Eurasia's contractor
Region Metall, ensures mineable reserves for the 2018 and 2019
mining seasons.
- A further 390 metres of large diameter infill sampling is
planned for the autumn of this year.
- In addition, revenue from the sale of metals has commenced
from the refinery at Ekaterinburg, with shipments now occurring on
a regular basis.
Background to Monchetundra Project off-take agreement
negotiations
Eurasia notes an increased interest from refineries seeking
Platinum Group Minerals ("PGM") and copper/nickel concentrates
fueled by a tightening in the international supply of quality
concentrates. The status-quo situation of recent years is reversing
and refineries, reacting to a looming shortage of quality
feedstocks, are reaching for quality upstream assets. This is well
demonstrated by a recent transaction in the PGM and copper/nickel
refining space over the Kevitsa Mine in Finland (270 kilometres
West of Monchetundra) purchased by Boliden for a cash consideration
of $712 million. The Kevitsa Mine is considerably lower grade than
Monchetundra, although of larger tonnage. For more information
please visit our web address below;
http://eurasiamining.co.uk/operations/monchetundra
2017, to date, has seen solid performance by all metals in the
Monchetundra Project concentrate, namely palladium (an increase of
36.73 per cent year to date ("YTD")*), platinum (increased 9.88 per
cent YTD), gold (increased 13.6 per cent YTD), copper (increased 31
per cent YTD) and nickel (increased 19 per cent YTD). This price
environment has benefited the negotiations regarding the off-take
of mine product at the Monchetundra Mine, as well as the sale of
platinum and palladium at the West Kytlim mine.
*Sources: Kitco, infomine, prices valid as at 30th August
2017.
We look forward to updating the market on developments at
Monchetundra and West Kytlim in the near future.
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
This information is provided by RNS
The company news service from the London Stock Exchange
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