Eurasia Mining Regulatory News (EUA)

1 Apr 2009 07:00



Eurasia Mining plc

("Eurasia" or "the Company")

Exploration update

Eurasia is pleased to announce an exploration update on ongoing fieldwork undertaken throughout 2008 at its licensed areas in North-West and Central Russia. 

Highlights include:

At Monchetundra, the definition of two mineralised zones with the potential to form an open pittable resource

At Volchetundra, the discovery of low grade platinum group metals ("PGMs") suggests the discovery of a new zone

Drilling ongoing at its joint venture with Anglo Platinum Limited ("Anglo") at West Kyltim with a view to fast tracking the project to production

Seven additional gold exploration licences applied for

Monchetundra

In the second half of 2008 drilling at Monchetundra was focused on two sub-areas where a preliminary resource had been identified in 2007. Drilling concentrated on infilling the areas of interest, as well as testing the edges of the mineralised zones. Of the 23 holes completed totalling 5,706 metres, 10 intersected mineralisation. 

The main result of this exploration phase has been the definition of two mineralised zones with the potential to form an open pittable resource. The limits of these zones have not yet been closed, as they remain partly open on strike. The 2008 drilling program was targeted at defining a resource that could be the focus for early mining. Work in 2009 will focus on producing resource estimates for these areas.

The highlights of these holes are:

MT-68

17.7m @ 1.65 g/t Pt + Pd with Pd/Pt=1.6 between 113.1-130.8m 

MT-69

24.9m @ 1.35 g/t Pt + Pd with Pd/Pt=1.5 between 243.0-267.9m 

MT-72

10.05m @ 2.37 g/t Pt+Pd with Pd/Pt=1.4 between 254.7-264.75m 

10.7m @ 2.34 g/t Pt+Pd with Pd/Pt=1.4 between 272.3-283m (including 3.2m @ 5.25g/t and 1.9m @ 3.6g/t).

MT-73

1.5m @ 4.27g/t Pt + Pd with Pd/Pt=2.3, from 137.3-138.8m

7.8m @ 1.79g/t Pt + Pd with Pd/Pt=3.5, from 141.9-149.7m

0.8m @ 16.37g/t Pt + Pd with Pd/Pt=2, from 289.6-290.4m.

MT-74

3.05m @ 1.87 g/t Pt + Pd with Pd/Pt=1.3 between 115.10-118.15m

15.2m @ 2.14 g/t Pt + Pd with Pd/Pt=1.5 between 123.6-138.8m (including 2m @ 8.78 g/t Pt + Pd with Pd/Pt=1.55).

MT-55

31.9m @ 0.68 g/t Pt+Pd between 144.4 and 176.3 with Pd/Pt=1.7, 

MT 60

13.7m @ 0.93 g/t Pt+Pd between 71.9 and 85.6m with Pd/Pt=1.7 (including 3m @ 1.74g/t Pt+Pd).

MT-67

1.4m @ 3.11 g/t Pt + Pd with Pd/Pt=2 between 9.2-10.6m

2.55m @ 1.09 g/t Pt + Pd with Pd/Pt=2.3 between 23.90-26.45m

15.35 @ 1.57 g/t Pt + Pd with Pd/Pt=1.5 between 33.65-49.00m

5.65m @ 1.22 g/t Pt + Pd with Pd/Pt=1.6 between 63.75-69.40m.

MT-70

3.6m @ 1.42 g/t Pt + Pd with Pd/Pt=2.4 between 176.4-180.0m

4m @ 1.27 g/t Pt + Pd with Pd/Pt=1.4 between 186-190m

4.1m @ 1.13 g/t Pt + Pd with Pd/Pt=1.8 between 192.7-196.8m

0.9m @ 2.5 g/t Pt + Pd with Pd/Pt=1.4 between 210.8-211.7m

4.2m @ 1.51 g/t Pt + Pd with Pd/Pt=3 between 229.3-233.5m.

MT-71

3.9m @ 1.84 g/t Pt + Pd with Pd/Pt=6.3 between 219.1-223m.

The detailed assays are listed on the Company's website www.eurasiamining.co.uk

Volchetundra

At Volchetundra, two areas of PGM mineralization had been discovered in 2007 which were followed up, coupled with an assessment of the potential of the entire 40km long intrusion which hosts the mineralization. The Company continued to intersect low grade PGM from drill results obtained but also identified a new zone related to a new geological target for which we have received preliminary results. Again low grade PGMs were intersected. The wide high grade results obtained in 2007 at Olche and Yukspor have not been repeated, but the recent geophysical results suggest that these zones are related to a cross-cutting trend which has not been tested or defined.

Altogether some 28 holes were drilled totalling 6,590 metres, with only one new hole giving results that warrant follow up.

VT-66

7.75m @ 5.48 g/t Pt + Pd with Pd/Pt=2.6 between 203.85-238.6m.

The Volchetundra licence was due to expire in August 2008 so an application for an extension of the licence was submitted earlier in that year. This application proved successful and the licence has been extended for a further three years. 

By the fourth quarter of 2008, Eurasia's joint venture partner, Anglo, had fully expended the $10 million to complete the earn-in of a 40% interest in the Kola projects, after completion of the 2008 drilling. Anglo decided to remain at 40% for the present, pending clarification of the new legislation in Russia pertaining to foreign investment in PGM mineral projects.

Urals 

In the Urals at West Kytlim, Eurasia has continued drilling on several new areas with potential to host alluvial platinum. To date this work continues to prove successful. In parallel, resource drilling at the Bolshaya Sosvnovka area was completed and a Russian feasibility study submitted and approved by the authorities. In March 2009 a 'Discovery Certificate' was issued to the Company, an important step in the permitting procedure. The Company continue to advance the permitting process to allow mining to commence in 2009. However recent changes to the mining law referred to above have introduced new procedures, some of which have not yet been formalised into structured regulatory steps. The Directors are hopeful that this process will be clarified in the near future but until then it is not possible to predict when production can commence on the West Kytlim project.

On this joint venture, Anglo is earning a 50% interest by funding work up to the point of the completion of a bankable feasibility study. It is expected that this should coincide with any award of mining permits and the commencement of mining. 

Update on Kola Projects

Exploration work continued in 2008 on two of the three project areas held in the Kola Peninsula. The third licence at West Imandra was relinquished as only low grade PGM values were obtained from drilling in this area.

In summary, Eurasia has taken further steps to bring the West Kytlim asset closer to production, completed a targeting drilling programme at Monchetundra with the intention of defining a resource and continued exploration work at Volchetundra. Other targets in the licence area remain to be tested, where narrow high grade results were obtained in 2006.

While the Company has worked mainly on the Anglo funded joint venture projects during 2008, it has also funded its own work on gold exploration. The Company currently has seven gold projects at the application stage in the Far East of Russia.

For more information please contact:

Consent for release

Christian Schaffalitzky, FIMMM, PGeo, CEng, is a director of the Company. He has reviewed the update and consents to the inclusion of the exploration information in the form and context in which it appears here. He is a Competent Person for the reporting of these results.