TIDMEUA
RNS Number : 6909N
Eurasia Mining PLC
26 September 2019
Eurasia Mining PLC (AIM:EUA)
('Eurasia' or 'the Company')
Monchetundra flanks application submitted
Eurasia Mining PLC, the palladium, platinum, iridium, rhodium
and gold producing company, is pleased to announce that an
application for an exploration tenement adjacent to and surrounding
the deposits at Loipishnune and West Nittis within the Monchetundra
project, has now been submitted to Rosnedra for approval. Eurasia
is developing the Monchetundra Project towards production following
the issue of a mining permit for the circa 2Moz (2PGE + Gold)
palladium dominated deposit and the award of an Engineering,
Procurement and Construction (EPC) contract, with an associated
mine finance package, to Chinese company Sinosteel. The EPC
contract relates to the development of two open pittable deposits
at Loipishnune and West Nittis, however the directors believe there
is a strong case for further resources in the on-strike
continuation of these deposits, which are included in the applied
for Flanks area.
Highlights:
-- Flanks area application now submitted to Rosnedra. Eurasia's
TGK (Eurasia's 80% subsidiary) as the production license holder has
exclusive rights to the flanks areas which the directors believe
have the potential, given drilling success, to increase the
resources severalfold.
-- An 8km(2) area has been applied for to cover on-strike
continuation of mineralisation at both the Loipishnune and West
Nittis open pittable reserves.
-- Significant resource potential has been identified by
previous exploration in the area and is recorded in Russian state
archives, notably in the Nittis Kamuzhaya Travanya (NKT) Massif
area to the north of West Nittis, which contains resources of
Palladium, Platinum, Gold, Nickel, Cobalt and Copper. The area
between the Loipishnune and West Nittis deposits is also
highlighted as having significant potential, further details of
which can be found below.
× The Monchegorsk Complex and Monchetundra Massif, which host
the West Nittis and Loipishnune deposits are known to contain type
examples of the majority of the layered intrusion and contact
hosted PGM deposit types recognised globally.
× Regionally, the mineralisation in the Monchegorsk area is
recognised (as outlined below) as being genetically related to the
Fedorova Pana layered intrusion which contains the Fedorova tundra
deposit controlled by Barrick and containing 1.2m oz Platinum and
5.5m oz palladium. With the submission of this Flanks application,
and the already state approved reserves in the Loipishnune and West
Nittis deposits, directors believe Eurasia to be well established
as a dominant player in the PGM space the region.
Executive Chairman at Eurasia Christian Schaffalitzky
highlighted 'It has always been quite clear that the mineralisation
at West Nittis was in fact clipping the edge of a much larger
potential target in NKT, as a contact hosted PGM target - in fact
the area was partially mined for high grade copper and nickel veins
in the past but never systematically explored for palladium and
other PGMs. Whilst outlining the resource at West Nittis the area
was not available as an exploration license. Similarly, at the
Loipishnune deposit there is strong support for further on strike
extensions to our identified ore body which were not sufficiently
outlined prior to the submission of our mine plan. On receipt of
the flanks area exploration license these areas will become high
priority brown field exploration targets which the directors
believe may increase the resources for the project
severalfold.'
Further detail:
As per Russian subsoil licensing legislation, the holder of a
mining right is granted an automatic and exclusive right to apply
for exploration tenements directly adjacent to approved resources.
Eurasia have previously utilised this right in application for
exploration ground adjacent to the West Kytlim project. After
desktop studies and analysis of available literature a final
outline was agreed for the Monchetundra flanks application in
August 2019, and an application submitted to the necessary
authorities on 23(rd) September 2019. The Monchetundra deposit
comprises two separate deposits - namely the Loipishnune and West
Nittis deposits - both of which demonstrate clear on-strike
continuation of mineralisation beyond the limits of the current
approved resource and mining rights.
The applied for area comprises a significant portion of a zone
to the north and west of the West Nittis deposit known as the
Nittis Kamuzhaya Travanya (NKT) Massif, an area previously mined
for high grade nickel and copper mineralisation and with
significant resources in PGM. Further potential resources exist in
the on strike continuation of the mineralisation at Loipishnune as
it extends into the area between Loipishnune and West Nittis,
beyond the current mining license, in fact several early 'discovery
holes' drilled by Eurasia in 2006 occur in this area, and contain
intervals of 8.4 g/t (Pt+Pd) over 3.6m (Drillhole UM-3, see RNS
dated 5th November 2006).
State archive information.
State archive information at the Apatity branch of the
Territorial fund of geological information was consulted during the
application process, as part of the due diligence process in
outlining the exploration tenement, and to detail the grounds for
the exploration license. The application is largely based on the
Company's in-house database however the potential in the area was
also highlighted by a variety of previous workers and exploration
campaigns in the area. These are demonstrated in the graphic below
as figure 1.
http://www.rns-pdf.londonstockexchange.com/rns/6909N_1-2019-9-25.pdf
Figure 1 : Graphic showing the flanks application area submitted
for approval on 23rd September 2019. State archive information
including resource calculations for other occurrences in the area
is also shown, however there is no guarantee that all the resources
outlined in these occurrences will result in mineable reserves. The
inferred resource calculations in the areas are largely based on
state funded early drilling campaigns with resources later
calculated and approved for submission to the state archive by
Russian subsoil licensing agencies.
Notable occurrences are at NKT where a Russian category P
resource (similar to an Inferred Resource under the JORC
classification) was provided to the Company by the Apatity branch
of the Territorial fund of geological information. The resource was
calculated by the state funded research group Rosgeologia in 2017
and comprises Ni - 298,000 t; Cu - 229,000 t; Co- 11,300 t; Pt -
18.5 tonnes/594,000 oz; Pd - 55 tonnes/1.7moz; Au - 7.6
tonnes/0.24moz; Ag - 185 tonnes/6moz. Eurasia has not verified this
resource, and therefore it cannot be relied upon, but it is
provided an indicative of potential in the area.
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
+44 (0)207 932 0418
WH Ireland Limited (Nomad and Joint Broker)
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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