Eurasia Mining Regulatory News (EUA)

15 Nov 2006 07:02

Eurasia Mining PLC15 November 2006 Eurasia Mining Plc ("Eurasia" or the "Company") New drill results indicate strong potential for platinum group metals targets Eurasia Mining plc is pleased to announce successful drilling results indicatingpotential for underground and open-cast platinum mining targets on its JointVenture Monchetundra licence in the Kola Peninsula of north-west Russia. The results, from drilling up until last August, show platinum plus palladiumgrades ranging between 1.7 and 8.4 grams per tonne (g/t) across two of the fourzones currently being drilled at Monchetundra - Zone 2 and Zone 3. Zone 2 contains intercepts of PGM at a width and grade which could be ofinterest for underground mining. This horizon has been identified on two drillhole lines which are 400 meters (m) apart. Section Hole No. From (m) To (m) Interval (m) Pt+Pd (g/t) Line 105 MT-4 75.6 78.6 4.0 1.7 MT-3 149.6 150.6 1.0 3.6 Line 109 UM-3 187.4 191.0 3.6 8.4 Ongoing drilling is designed to test for continuity of mineralization betweenthese traverses and also explore Zone 2 over the remainder of its projected 6 kmstrike length. A further 5 km of strike length where geological knowledge iscurrently low also remains to be tested. The second target, in Zone 3, consists of wide intercepts of low grademineralization that are considered a target for open pit mining. Themineralization is associated with sulphides, including pyrrhotite andchalcopyrite; it appears to be transgressive and not restricted to oneparticular rock association. Section Hole No. From (m) To (m) Interval (m) Pt+Pd (g/t) Line 126 UM-7 83.0 89.7 6.7 1.8 UM-7 112.7 128.0 15.3 2.2 Line 132 MT-6 43.7 61.7 18.0 1.7Line 136 UM-9 38.8 74.7 35.9 1.8 As with Zone 2, the drilling lines on Zone 3 are widely spaced and infilldrilling is required to test continuity of mineralization between them. Average platinum to palladium ratio 0.6:1. A further 4,000 metres of drilling to test the mineralised zones is planned for2007, at up to 80 locations. Eurasia Managing Director Christian Schaffalitzky said: "The results endorse thepotential for platinum group metals (PGM) mineralisation on the Monchetundralicence. Although this is still an early step in our assessment of itscommercial potential, we are particularly encouraged by the substantial widthsand relatively high platinum to palladium ratio of the mineralisation, in viewof the fact that the price of platinum is approximately three times higher thanpalladium. We look forward to releasing additional results over the comingmonths." Monchetundra, near the city of Monchegorsk on Russia's Kola Peninsula, is one ofthree licences held within the Eurasia / Anglo Platinum Joint Venture in theregion. Initial appraisal work is also underway on the other two licences,Volchetundra and West Imandra. As set out in the announcement dated February 13th 2006, Anglo Platinum, theworld's largest platinum producer, is funding the first US$10,000,000 ofexploration spending in return for a 40% stake on all three licences - expectedto underpin operations until at least the end of 2008. Eurasia holds theremaining 60% stake in all three licences. Spending at Monchetundra has to datereached around US$800,000 with around twice that amount earmarked for the nextphase of drilling on the two most promising zones - Zone 2 and Zone 3. The Joint Venture's three Kola Peninsula licences cover a total of 450 sq km ona geological trend where the Canadian groups Barrick Gold and Consolidated PumaMinerals Corporation are carrying out advanced exploration and feasibilitystudies on nearby deposits. For further information contact: Christian Schaffalitzky, Michael Martineau orMichael de Villiers, Eurasia Mining Plc: +44 (0) 20 7495 4877Laurie Beevers, W H Ireland: +44 (0) 7903 164 004Allan Piper, First City Financial Public Relations: +44 (0) 20 7436 7486Nicholas Bealer, King & Shaxson Capital Limited +44 (0) 20 7426 5975 Further details of exploration work at Monchetundra will be provided on thecompany's web site www.eurasiamining.co.uk This information is provided by RNS The company news service from the London Stock Exchange