Eurasia Mining Regulatory News (EUA)

3 Apr 2008 07:01

Eurasia Mining PLC03 April 2008 Eurasia Mining Plc ("Eurasia Mining" or the "Company") Drilling Results from Kola Peninsula Eurasia Mining is pleased to announce drilling results from the Kola Peninsulawhich the directors believe are "the best indicators yet" of the potential foropen pit mineable resources at the Volchetundra licence area. The explorationcosts for Volchetundra, in north-west Russia, are being funded by the world'slargest platinum producer, Anglo Platinum Limited ("Anglo Platinum"). The results follow the completion of two new boreholes in an area wherepotentially mineable platinum group metals (PGMs) have been identified byearlier drilling. The encouraging indicators come from results from one of the new boreholes,taken together with results from previous drilling. Grades of up to 2.25 gramsper tonne (g/t) compare favourably with those within the nearby Federova Depositwhich the mining giant Barrick Gold has already advanced to the feasibilitystudy stage. The second, deeper borehole, provided higher grades but fromgreater depth with a one metre section grading 14.3 g/t. Volchetundra is one of three Eurasia PGM projects located on the Kola Peninsulain north-west Russia, where the company is working as part of a joint venturewith Anglo Platinum. Anglo Platinum is earning an initial 40% interest in thejoint venture company by funding the first US$10 million of exploration on thelicence area. A 2008 drilling programme is also planned on the neighbouringMonchetundra licence. Eurasia's joint venture agreement with Anglo Platinum also covers the separateWest Kytlim exploration licence for alluvial platinum in the central Urals.There, Anglo Platinum is funding work up to completion of a feasibility study toearn a 50% interest. Mining is planned to commence as soon as practicable afterreceiving the necessary permits. The combined 2008 budget for all of the joint venture projects is over US$6million, to be funded entirely by Anglo Platinum. The drilling results are set out below. Kola Projects During a 2007 drill campaign, drilling continued in targeted areas along theprospective 40 km long 'Marginal Zone' where wide zones of potentially bulkmineable PGM mineralization have already been identified. Results have beenobtained from two new drill holes, VT 27 and VT 40. Drill hole VT 27 at the Ol'che target area intersected PGM mineralization in azone extending from the surface to 65.9 meters; intersections within this zoneare as follows: Hole From To Width Pt+Pd Pd:Pt ratio (m) (m) (m) (g/t) VT 27 1 17.6 16.6 0.7 3.0:1 25.9 29 3.1 0.83 4.5:1 31.3 59 27.7 1.6 2.9:1 including 38.7 45 6.3 2.25 5.0:1 62.9 65.9 3 0.94 5.2:1 Drill hole VT 27 is located 600m to the south of VT 17, the original Ol'chediscovery hole drilled in 2006; which contained the following, previouslyreported intersections: Hole From To Width Pt+Pd Pd:Pt ratio (m) (m) (m) (g/t) VT 17 68.4 113 44.6 1.7 1.5:1 - 3:1:1 144.9 163.4 18.5 1.9 0.5:1 170.2 172.7 2.5 4.7 0.7:1including 170.2 171.2 1 11 0.8:1 Intersections in the discovery drill hole VT 17 and the follow-up VT 27, 600meters along strike, are, the directors believe, the best indicators yetobtained by the Company, of potential for open pit bulk mineable resources onthe Volchetundra Licence area. The widths and grades of these two intersectionsappear similar to those which comprise the Federova Deposit, (Barrick Gold),which occurs in a very similar geological environment and is locatedapproximately 70 Km east of Volchetundra. Barrick have recently published aPlatinum and Palladium (Pt+Pd) inferred resource grade of appoximately1.4 g/tfor Federova. Barrick plan to complete feasibility studies for the Deposit bythe end of 2008. Pre-feasibility metallurgical testing indicated likely Pt andPd recoveries of respectively 80 and 83%. The ground to the south of VT 27 is open and untested; this area will be a majorfocus for drilling during 2008. Drilling also commenced at Yukspor, a second target area located 3 km south ofOl'che. Hole VT 40 returned 3.2m @ 5.2 g/t Pt + Pd with Pd/Pt = 1.5, including1.0m @ 14.27 g/t Pt + Pd with Pd/Pt = 1.25:1 as follows: Hole From To Width Pt+Pd Pd:Pt ratio (m) (m) (m) (g/t) VT 40 217.4 218.5 1.1 1.36 1.57:1 218.5 219.6 1.1 0.86 2.44:1 219.6 220.6 1.0 14.27 1.25:1 This hole is located in the northern part of the prospective target area,initially defined by surface sampling. In 2007, one trench 500 m to the southreturned 2.2m @ 12.9 g/t Pt + Pd with Pd/Pt = 2.6. Drilling in the more remotesouthern half of the prospective target area, will commence as soon as weatherconditions permit. The combined total strike length covering the Ol'che and Yukspor areas currentlyunder drill test is 3.8 km. Much of the planned 6,000 m drilling programme for2008 at Volchetundra will focus on this area. Reconnaissance drilling is alsoplanned to test already identified additional targets along the 40 km longprospective 'Marginal Zone' within the intrusive complex. A separate 6,000 m drilling programme is also planned on the MonchetundraExploration licence at Kola for 2008. There, work will focus on furtherdelineation of a preliminary resource identified in 2006-7. A number of holesare also planned to test new targets generated from a highly successfulgeophysical survey completed on the licence area in late 2007. The Kola PGM licences, which also include West Imandra, are all held by Eurasiain a joint venture with Anglo Platinum Limited, which is earning a 40% interestin the projects by expending the first $10 million for exploration. Update - West Kytlim projects As previously mentioned, the joint venture agreement with Anglo Platinum alsocovers the West Kytlim exploration licence for alluvial platinum in the centralUrals. On that licence, Anglo Platinum is funding work up to completion of afeasibility study to earn a 50% interest. In early 2008, a Russian compliantmining plan with reserve estimates for West Kytlim was submitted for approval byvarious authorities, and form the basis for future mining. It is the intentionof the joint venture company to commence production at the earliest possibletime. Start-up however will be conditional on the receipt of all the necessarypermits and approvals. The combined budget for the Joint Venture Projects in 2008 is over $6 million,100% of which will be funded by Anglo Platinum. Consent for release Christian Schaffalitzky, FIMMM, PGeo, CEng, is a director of the Company. He hasreviewed the update and consents to the inclusion of the exploration informationin the form and context in which it appears here. He is a Competent Person forthe reporting of these results. For further information contact: Christian Schaffalitzky/Michael de Villiers, Eurasia Mining plc: +44 (0) 20 7932 0418Laurie Beevers/Katy Mitchell W H Ireland Ltd: +44 (0) 161 819 8724Allan Piper, First City Financial Public Relations: +44 (0) 20 7242 2666 This information is provided by RNS The company news service from the London Stock Exchange