RE: Monty the monster22 Jan 2020 22:18
"Under the agreement, RPM will fund the first $10 million of Kola expenditure
before both parties fund in proportion to their equity interest. On completion
of a bankable feasibility study or the completion of the $10 million
expenditure, which ever is the sooner, RPM have 90 days to purchase the 20% held
by Eurasia for $6 million or $5 per ounce of platinum group metals in Russian C1
and C2 categories, whichever is the lesser. Should they exercise this option,
Eurasia would hold 40% of the projects through UAP. RPM can also opt to require
UAP to purchase this interest under the same conditions. Exploration expenditure
totaling approximately $589,000 incurred during 2004 and 2005 will also be
refunded, of which Eurasia's liability represents $246,000.
Eurasia's planned exploration programmes will target mineralization in a major
group of ultramafic and mafic intrusive rocks that occur in several areas within
the Kola region. They are very similar to geological host rocks for PGM
mineralization elsewhere around the world, including the Norilsk Complex of
Russia and the Bushveld Complex of South Africa. The areas examined by Eurasia
and selected for exploration work comprise at least three large intrusions.
Exploration work in 2004 and 2005 on the three areas included trenching,
drilling and geochemical work, with samples collected in 2005 currently awaiting
analysis. Pending these results, a preliminary exploration program to include
drilling on all three areas has been drawn up.
The most advanced area is at Monchetundra, located close to the city of
Monchegorsk. Drilling has identified four platinum bearing horizons with
different characteristics. Two are palladium rich while the other two carry
higher platinum grades. High grade results include intersections of 3.58 to
38.78 grams per tonne (g/t) of combined platinum and palladium, with the high
grades over intervals of 0.4 to 2.8 metres. Lower grade intersections at some
points overlap and extend beyond them - for example 35.9 metres and 13.4 metres
of 1.94 g/t and 2.2 g/t of combined platinum and palladium, respectively. The
work completed to date allows Eurasia to plan a detailed drilling program to
assess continuity along strike and down dip. There is good evidence that the
zones are continuous, except in an area where faulting has disrupted the
geology. During 2005 additional drilling was completed on two of the horizons
for which analytical results are expected in the coming weeks."
GLA
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