Eurasia Mining PLC West Kytlim Production 2019 (2018O)
January 28 2019 - 2:00AM
UK Regulatory
TIDMEUA
RNS Number : 2018O
Eurasia Mining PLC
28 January 2019
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
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END
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