Eurasia Mining Regulatory News (EUA)

26 Mar 2007 07:02

Eurasia Mining PLC26 March 2007 EURASIA MINING PLC ("Eurasia" or the "Company") DRILLING RESULTS FROM VOLCHETUNDRA Highlights Drilling results from Volchetundra with PGM mineralization in three zones indiscovery hole VT-17 • 44.6 metres at 1.7 g/t of platinum and palladium, and • 18.5 metres at 1.9 g/t of platinum and palladium, and • 1 metre at 11 g/t of platinum and palladium Eurasia Mining plc (EUA) is pleased to announce the results of drilling atVolchetundra on the Kola peninsula, Russia, one of three licence areas held bythe PGM (platinum group metals) joint venture between Eurasia and AngloPlatinum, of which Eurasia is the Manager. Commenting on the results, Christian Schaffalitzky, Managing Director ofEurasia, said: "We are delighted with these first results from Volchetundrawhich reveal a totally new discovery of thick zones of PGM mineralization in apreviously virgin intrusive. We are excited by the opportunity of exploringaround this discovery. We are particularly encouraged by the occurrence of twotypes of higher unit value (Pt current price $1,200/ounce = $40 per gm, Pd $320/ounce = $10/gm), and the upper thick unit being Palladium dominant. Suchdifferences are typical of major deposits such as the Bushveld or the depositsunder evaluation by Puma and Barrick 70km to the east of Volchetundra." Anglo Platinum, the world's largest platinum producer, is funding the firstUS$10 million of exploration spending in return for a 40% stake in the jointventure - expected to underpin operations until at least the end of 2008.Eurasia holds the remaining 60% stake in the joint venture. The discovery drillhole (VT-17) on the northern half of the Volchetundra licencearea intersected several zones of PGM mineralisation, the full details of whichcan be seen on the company's website www.eurasiamining.co.uk The shallowest zone extends in depth from 68.35 to 112.95m (intercept of 44.6m)with an average grade of 1.7 grams per tonne (g/t) platinum and palladium(Pt+Pd). Within this interval, 27.55m grades 2.2 g/t Pt+Pd. The ratio Pd:Ptvaries from 1.5 to 3:1, as detailed on the table. A second zone from 144.9 to 163.4m (intercept of 18.5m) grades 1.9 g/t Pt+Pd, ofwhich 4.4 m grades 3.6g/t Pt+Pd and 7.3 m grades 2.6 g/t. The ratio of Pd:Ptvaries from 0.3 to1.1:1. A third zone of interest was located at 170.2m, with a 1m section assaying 11g/tPt+Pd. The ratio Pd:Pt is 0.8:1. The platinum and palladium is associated with weak sulphide mineralisation from1 to 3% within a transitional zone between the Volchetundra ultramafic intrusivemargin represented by feldspathic pyroxenite and norite and the main rocks ofthe intrusion represented by leucogabbro. All mineralised intervals arecharacterised by irregular coarse-grained and pegmatoidal texture. The nearest drillholes to VT-17 completed by Eurasia are located along strike400m to the north and south but it is not evident whether these intersectcorresponding intervals. To the north, VT-18 had three intervals of low grade(less than 1g/t Pt+Pd). 400m to the south, two drillholes, VT-5/1 and VT-10/1,also located intervals of low grade (less than 1g/t Pt+Pd). The VT-17 drillhole was part of a diamond drilling programme conducted atVolchetundra late in 2006 that totaled approximately 1500 metres, with furthersamples awaiting analysis at Mechanobr in St. Petersburg. The next phase ofdrilling is planned to commence during April and May following the thaw.Systematic drilling near VT-17 will be the first priority but the zone formspart of the 27km long intrusion being explored in the Volchetundra licence, mostof which had not been drill tested prior to this campaign. Volchetundra is one of three licences held by the PGM joint venture betweenEurasia and Anglo Platinum in the Kola Peninsula. All three projects are locatednear the city of Monchegorsk which has an established mining and mineralprocessing infrastructure and a mining history of over 80 years. The jointventure's three Kola Peninsula licences cover a total of 450 sq km on ageological trend where the Canadian groups Barrick Gold and Consolidated PumaMinerals Corporation are carrying out advanced exploration and feasibilitystudies on nearby deposits. 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 please contact: Christian Schaffalitzky, Michael Martineau orMichael de Villiers, Eurasia Mining Plc: +44 (0) 20 7495 4877 Laurie Beevers, W H Ireland: +44 (0) 7903 164 004 Allan Piper, First City Financial Public Relations: +44 (0) 20 7436 7486 Nicholas Bealer, King & Shaxson Capital Limited +44 (0) 20 7426 5975 This information is provided by RNS The company news service from the London Stock Exchange