Member Info for mac4671

No CAW, pit optimisation is pit optimisation, see here, and also see differences between greenfield and brownfield -

For a greenfield site, these questions may include:

What is the ultimate pit limit?
What capacity should the plant be?
Is it worth acquiring a neighboring lease?
What should internal phases look like?

Alternatively, for a brownfield operation, the questions may be:

Are the existing phases still valid?
Should one mining area develop before another?
Will capital expenditure to increase mining rates add value to the mine?
While these questions are not unsolvable, they are complex and involve many stages of problem definition and analysis.

The industry’s go-to method
The current approach to solving these problems involves a mixture of optimization techniques and heuristics. This approach consists of three primary steps:

Find the ultimate pit limit
Select internal phases
Determine mining and processing schedules

After selecting the ultimate pit limit, revenue factor shells from LG or Pseudoflow algorithms are generally used to determine candidate shapes for internal phases. Phase selection is a highly iterative process considering items like operational geometries, total volume, and ore delivery to processing.

https://www.deswik.com/news/a-new-approach-to-pit-optimization/

GLA

"· Block Modelling and open pit contouring and optimisation complete for 6 of 9 Rosgeo JV projects." - Sept 2021

All going into the same plan, hence why they know they can toll treat ore to the original plant -

"Each of the four open pit deposits, which are located directly adjacent to Monchetundra, have already been studied by Eurasia with block modelling and open pits' optimisations performed by the Company. According to the due diligence done by Eurasia, the ores are suitable for toll treatment over distances of 5 to 8km with beneficiation and mineral processing at the proposed plant site between the Company's open pit deposits at Loipishnune and West Nittis"

Eurasia has all the exploration data for the entire area there, they have done for years now -

"Eurasia is pleased to announce the results of its 2009 drilling and exploration programme, comprising a comprehensive analysis and interpretation of its Monchetundra (36.2km2) and Volchetundra (210km2) platinum group metals (PGM) projects, located on the Kola Peninsula in north-west Russia. Both licences are held in Joint Venture with Anglo Platinum as a 40% shareholder."

GLA

They've already planned the pits on 6 of the 9, well, we know that from a long time ago, they've probably got all 9 complete mid 2022 tbh.

Rosenedra tpi possibly only shows recent applications for resource extraction licenses, Rosgeo will already hold licenses pertaining to exploration of all Rosgeo JV areas. Depending on info the DFS holds will depend on what assets get pulled into production and when. They could indeed create a long term 25 year plan where NKT and NYUD come online initially with West Nittis and Loipishnune pits and then plan to add other JV assets at later stages of the long term mining plan. It matters not though as we know that they have pits planned on 6 Rosgeo JV assets as the bare minimum due to being told so in RNS.

It's simply what they're doing, asessing the assets thoroughly for development, the golden part is that they've already explored the area back in Anglo JV days when they held a 36km2 license covering the entire area under one license umbrella.

I wouldn't worry about Rosenedra updates, those were all up on twitter back in Febuary, it's old news.

The pits are planned as it's stated so in our official RNS, when they wpuld come online will always be a question however!

GLA

This green box must be missing me going by the title of its thread lol

I'm just sat waving goodbye to October -

"has budgeted a further £527,000 for statutory reporting on this asset to November 2022"

"The Group has spent £682,419 on a development programme for the Monchetundra asset during 2021 and has budgeted a further £527,000 for statutory reporting on this asset to November 2022, keeping the asset in good standing while strategic options for the project's development are considered."

"The Company continues to progress discussions with regard to the potential sale of its assets, appointing KPMG Russia as agent in May 2022, and has set aside sufficient funds to complete and submit a Definitive Feasibility Study for the Monchetundra project in November 2022."

Come on BOD give us some news please, we've waited long enough now!

GLA

Certainly interesting. West move out and BRIC's move in. It was always logical and marries our RNS releases quite nicely!

"We will allow our partner friends to mine our resources, why not?" - Indeed, why not. BRIC's partners have a very large portion of the World's population under their umbrella and are currently expanding. Saudi looking to join etc.

Makes you lean on a BRIC's consortium that little bit more imho

Good find!

GLA

All open pits are sold imho. That's why we have never received any info on them, that includes the planned open pits for the Rosgeo JV acquisitions.

A hint comes from the NKT underground NPV we were given, because at the time they stated that the open pit CPR was done but no NPV details have ever been released.....NDA's! -

"· The Competent Person's Report ("CPR") has been prepared by WAI covering the open pit part of the NKT as well as the underground part of the NKT."

Just some musings for the real shareholders to think about over the weekend, have fun!

GLA

Never has it been solely about NYUD, the acquisition of other significant Rosgeo JV PGM and battery metals open pit deposits has been mentioned a long time ago now -

"Christian Schaffalitzky, Executive Chairman commented: "The Directors are delighted that professional institutional investors offered to support Eurasia's fundamentals and its strategic options, as we continue to develop the Company including the upcoming acquisitions of Nyud, Moroshkovoe and other significant Rosgeo JV PGM and battery metals open pit deposits."

"· Block Modelling and open pit contouring and optimisation complete for 6 of 9 Rosgeo JV projects." - Sept 2021 - i bet all 9 were done a long time ago now! So, why the silence, well, see the next statement -

"In May we received a proposal for the potential acquisition of substantially all of the Company's assets and the Board decided to focus on this potential asset sale. Since then, we have seen additional interest from other parties. We have attracted top talent and top tier partners and advisers to prioritise and execute our strategy."

Pit optimisation done, JORC's done TBC, DFS TBC.......all lead to any potential buyer being able to accurately assess what they're wanting to buy and table a binding offer!

GLA

Now, gaining the licenses, a topic which has came up an awful lot. The people who bring it up quite often have forgot an important thing, we have the ex managing director of Rosgeo as our Kola Subsidiaries CEO -

"Kola Subsidiaries' New CEO Appointment"

"Konstantin Firstov, former Managing Director of Rosgeo has been appointed as CEO of Eurasia's 100% subsidiary Yuksporskaya Mining Company / Yuksporskaya Gornaya Kompaniya ("YGK") (for more details on YGK please see below)."

"James Nieuwenhuys, CEO and Managing Director of Eurasia commented: "The Board members are confident that Konstantin's experience, as the head of Achinsk open pit mining operations and as Managing Director of Rosgeo, augmented with my extensive EPC experience to manage turn key construction and commissioning will be important at Rosgeo JV projects going forward, while the West Kytlim expansion is already in good hands of our in-house team on the sites"."

Literally just passing licenses between old work colleagues!

GLA

The reason they moved at speed during due diligence -

"Each of the four open pit deposits, which are located directly adjacent to Monchetundra, have already been studied by Eurasia with block modelling and open pits' optimisations performed by the Company. According to the due diligence done by Eurasia, the ores are suitable for toll treatment over distances of 5 to 8km with beneficiation and mineral processing at the proposed plant site between the Company's open pit deposits at Loipishnune and West Nittis."

Quite simple, they had already explored the area during Anglo JV days, hence why they have already invested $8.3m across the assets -

"Eurasia will be the operator of the JV and, if it chooses to do so, will develop the Additional Assets by implementing an EPCF (Engineering, Procurement, Commissioning and Financing) structure similar to that signed with Sinosteel for the Monchetundra open pit mines.

In total Eurasia has already invested some US$8.3 million across the Additional Assets."

When you've already done the exploration and have the data at hand, it allows you to move at speed!

GLA

I'm sure people recall the part in RNS which stated that Rosgeo JV assets are toll treatable to the planned Monchetundra plant. What does that mean, well, it means that they are working on a mining plan for the whole district. Pits were planned for 6 Rosgeo JV assets a long time ago, that only left 3 to do the relevant planning on -

"operational geometries, total volume, and ore delivery to processing"

It also means that the relevant engineering plans for said plant will have been altered greatly from the original Sinosteel MT plant, in order to accomodate the far greater ore processing capacity.

The DFS must include the Rosgeo JV aspect, simply because the planned plant there has to be altered to accomodate the greater ore capacity coming from the planned Rosgeo JV pits imho

Just some weekend musings!

GLA

Now, the decision on the Rosgeo JV was made a long time ago and they had done the optimisation work on 6 jv assets, as per relevant RNS. For those that don't know, that means they have planned the open pit for Rosgeo JV assets -

James Nieuwenhuys, CEO and Managing Director commented: "We have decided to advance the Rosgeo JV, as its projects' potential has become more evident during the course of the confirmatory work being done by Wardell Armstrong International in relation to both PGM and battery metals (nickel, copper and cobalt) that are future facing metals in relation to the fast-growing hydrogen and EV markets respectively."

For a greenfield site, these questions may include:

What is the ultimate pit limit?
What capacity should the plant be?
Is it worth acquiring a neighboring lease?
What should internal phases look like?

Alternatively, for a brownfield operation, the questions may be:

Are the existing phases still valid?
Should one mining area develop before another?
Will capital expenditure to increase mining rates add value to the mine?
While these questions are not unsolvable, they are complex and involve many stages of problem definition and analysis.



The industry’s go-to method
The current approach to solving these problems involves a mixture of optimization techniques and heuristics. This approach consists of three primary steps:

Find the ultimate pit limit
Select internal phases
Determine mining and processing schedules


After selecting the ultimate pit limit, revenue factor shells from LG or Pseudoflow algorithms are generally used to determine candidate shapes for internal phases. Phase selection is a highly iterative process considering items like operational geometries, total volume, and ore delivery to processing.

https://www.deswik.com/news/a-new-approach-to-pit-optimization/

GLA

.......

We know from the 5 year mining plan that they were looking to add both flanks and rosgeo jv assets into the production volume -

"pleased to announce that a detailed mining plan has been completed for the first 5 years of the life of mine of Loipishnune open pit and the West Nittis open pit, both of which form part of the Monchetundra project."

"This production volume does not include Monchetundra Flanks and Rosgeo JV projects which will be separately announced"

They gave certain things away over the course of the regular news flow period, the evident planning for production of the wider district area there which is all supported by the ERDC agreement is an example.

I would agree with lovelyboy that there is further consideration to pay for the Rosgeo JV asset licenses however. They can delay any license transfer by simply not making the earnout consideration until a stage that suits them, my current feeling is that the entire district (Eurasia's first mover advantage) is being sold to a relevant consortium who will take it all to production. Any buyer only requires the license at point of binding agreement, so, that can be left right until the very last minute imho. The licenses would still arrive and simply go the buyer almost instantaneously.

It is going to be very interesting to see exactly how they've planned all of this due to the conflict situation, we'll only get that when binding agreement terms to vote on arrive imho

Weather's lovely outside, so, i hope you all have a good afternoon enjoying it while we wait!

GLA

Whatever the simpler procedure is via ERDC, the BOD appear to be fully content with it all -

"establishment of a simpler procedure of land allocation for mining in the Arctic."

"The main objectives of economic development in the Russian Arctic were defined in the "Strategy for the Development and National Security in the Arctic Zone of the Russian Federation for the period until 2035" (which covers the major part of the Kola Projects potential life of mine) and include the implementation of a special economic regime in the Arctic that promotes private investment in mining, creation of new and modernization of existing industrial facilities and the development of new mines. These tasks can be achieved through a series of measures, an example of which is the establishment of a simpler procedure of land allocation for mining in the Arctic."

It probably is a little tough to be fair, but it clearly states mining license support in the relevant RNS -

"(iv) assistance with other matters which may include various issues including, but not limited to mining licensing support."

https://www.lse.co.uk/rns/EUA/binding-agreement-signed-with-erdc-0lmg1zzthzmqqkk.html

I'm just fortunate to have done my research many years ago, so, i know what the BOD are doing with WK and MT, it becomes quite obvious when you know the old license size areas and correlate them to what the BOD have managed to gain back at WK with flanks apps and at Monchetundra with the Rosgeo JV. These things are quite easily looked into via relevant satellites, or, failing that, many people on twitter were overlaying the license areas onto satellite imagery to show people the land grabbing of previous held Anglo JV areas. All explored back in those days and paid for by good old Anglo!

The beauty of Monchegorsk is that it was previously operated for Copper a very very long time ago, so, there is also a lot of historical data from those days. Anglo JV work etc is all info on top of anything done previously, there's been quite the sum spent over the long term on exploration around Monchegorsk tbh, fortunately the clean energy revolution provides relevant parties with the opportunity to exploit the resources.

The finer details of DFS, who the potential buyers are, what price etc is something we're all waiting for. Hopefully we don't have much longer to wait.

We've waited three quarters of the time so far to hear more about this now -

"Eurasia has 24 months in which to decide whether to select some or all of the assets to develop."

.......

GLA

It's the same as West Kytlym saint, all of their flank applications is just moving back into a far larger area that they once held and explored there in Anglo JV days -

"Eurasia announces that it has been awarded a two year extension to its 171.3 sq km West Kytlim exploration licence in the Central Urals, Russia, where it has a Joint Venture agreement with Anglo Platinum."

https://www.lse.co.uk/rns/EUA/extension-to-licence-y0y1rgauxiwoyoj.html

That is all Eurasia have done since Anglo left, regain the old explored ground by various means. WK is by flank applications, one after another, Monchetundra is mainly through the Rosgeo JV.

GLA

It's not an argument saint, it's a conversation saint.

MT + Flanks is about 8km2, we'll say 9km2 for arguments sake. Where's the other 27.2km2? -

"comprehensive analysis and interpretation of its Monchetundra (36.2km2)"

The other 27.2 comes from what is known today as the Rosgeo JV assets, they're simply going back to their old ground.

GLA

Saint, do explain how it will be hard for Eurasia to gain the licenses to the area that they held in a previous JV?

That's what you're all trying to suggest, that Eurasia will somehow magically have problems gaining the licenses to an old license area that they held in Anglo JV days. What you are suggesting makes no sense, even more so when Eurasia hold all of the exploration data for the area from years of Anglo JV work.

Think about it!

GLA

Possibly saint, but, it's a double edged sword. A company floating out on the market valued at $300m but holding licenses for say NPV $5bn. No one could resist a bargain like that and many hostile takeover attempts would probably take place.

The BOD are working in the best interests of themselves, make no mistake about that, but, here they are large shareholders, Dmitry the largest, so, when they work for the best interests for themselves they inevitably work for the best interests of all shareholders. They gain the most from the asset sales, so, they will do absolutely everything to protect their interests and rightly so!

GLA

"I believe, would give the SP a boost." - But would full value be factored into the share price? No it wouldn't.

They're simply getting the wider old Anglo Jv license area back, not sure why any of you would think that is difficult for Eurasia when Eurasia hold all of the Anglo JV exploration data for the area. Do explain.

GLA

All of the info that is required to be added to todays for sale situation comes from many years ago -

"Eurasia is pleased to announce the results of its 2009 drilling and exploration programme, comprising a comprehensive analysis and interpretation of its Monchetundra (36.2km2) and Volchetundra (210km2) platinum group metals (PGM) projects, located on the Kola Peninsula in north-west Russia. Both licences are held in Joint Venture with Anglo Platinum as a 40% shareholder."

https://www.lse.co.uk/rns/EUA/exploration-update-kola-lm3av5onl7erthw.html

If you wonder it is costing Eurasia very little at this stage, well, it's because Anglo funded most of the work a very long time ago, the BOD of Eurasia were simply persistent and carried on after Anglo left. It's took them a very long time to arrive at this stage, but, funding for Monchetundra only goes to November 2022, that's what their budget that they put in place for the DFS etc states, so, we don't have long now to see what value their persistence and hard work over the years will bring here!

GLA

You're welcome Lenoman.

The reason Eurasia are in the Monchegorsk driving seat is because they hold a lot of the exploration info for the area. They gained all of that in Anglo JV days when one larger 36km2 (approx) license covered all areas -

"Significant exploration work has been undertaken on the property to date, much of this under Joint Venture with Anglo Platinum with Anglo funding operational activities. That joint venture formally ended in 2014 when Anglo took a strategic decision to focus on their South African PGM operations. As a result Eurasia Mining was able to re-acquire Anglo's interest and retain for the company and shareholders the benefit of the considerable multi-year exploration expenditure on the property."

https://www.lse.co.uk/rns/EUA/strategic-and-operational-update-7dsdelsdkxz5jen.html

Moving to things like JORC is very straight forward for Eurasia due to them having all of the exploration data from those Anglo JV days!

GLA