LONDON (Alliance News) - Eurasia Mining PLC Wednesday said it has restarted development studies at the Monchetundra PGM licence area in Russia and said although it has received significant interest from third parties about the licence, it is important to "progress the asset on the ground".
The Monchetundra PGM licence area is over the Kola Peninsula and is a joint venture with Anglo Platinum Ltd, a subsidiary of mining giant Anglo American PLC.
Eurasia discovered near-surface, high-grade platinum and palladium mineralisation at the license back in 2010, but no drilling has been conducted on the license since 2013. That drilling confirmed the presence of a "hanging wall" of copper-platinum group metal type ore.
The planned work programme on the licence area includes a drilling programme to allow the calculation of resources and sufficient core samples for metallurgical testwork. Additional drilling for hydrogeological tests will be carried out, as well as for base-line environmental sampling.
Eurasia is aiming to continue conducting work on the licence to submit a feasibility study in late 2015 or early 2016, in order to secure a discovery certificate from Russian authorities.
A discovery certificate allows a company to apply for a production licence for its projects in Russia.
"Receipt of a discovery certificate should increase the inherent value of the project and enables the company to apply to partially extend the licence area into open unlicensed ground where it is believed the mineralisation extends," said Eurasia.
However, the company is considering offers from third parties concerning the license despite continuing to work on the license area.
"We have received a significant amount of interest in the Monchetundra asset from third parties and detailed discussions are continuing," said Managing Director Christian Schaffalitzky.
"Should the company crystallise substantial value from our Monchetundra interests it would be a highly significant achievement, however whilst discussions continue it is important to progress the asset on the ground," he added.
By securing a discovery certificate for the licence and by pursuing various exploration and development steps, we believe we can add significant value to our interests and increase the degree of commercial interest, for any parties wishing to engage with the project," said Schaffalitzky.
Eurasia shares were up 2.9% to 0.900 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Eurasia Mining (EUA)