LONDON (Alliance News) - Eurasia Mining PLC Monday said it has received state approval for expanded multi-site reserves at its West Kytlim site at the Ural mountains in Russia.
The platinum group metals and gold exploration and development company, with operations in eastern Russia, said the State Reserves Commission has approved increased reserves at the site, which are sufficient to expand production to multiple sites rather than a single site operation which was originally planned.
In September the company said this was the scenario preferred by the State Reserves Commission and will allow the company to efficiently use its equipment and infrastructure and cut costs because it will achieve economies of scale by producing more.
The company lodged a Russian standards compliant report for approval of reserves in the discovery area of the Tylai Kosvinsky Placer on its West Kytlim Licence in September 2013.
Eurasia said it will be able to provide details of the updated reserves once formal registration has been published.
On Monday, Eurasia said the next step to mining will be the application for a Discovery Certificate, followed by the application for an enlarged mining licence. The company said the timescale for this process is at the discretion of authorities, but the company is hopeful that the process can be completed by the middle of the year.
The company also noted that in February, the Russian Duma adopted amendments to its "subsoil law" which would shorten the time required for final permitting at the West Kytlim Project.
Eurasia Mining shares were up 20% to 0.540 pence, putting it in the top three AIM risers in early trading Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Eurasia Mining (EUA)