Eurasia Mining Regulatory News (EUA)

9 May 2007 07:01

Eurasia Mining PLC09 May 2007 Eurasia Mining plc ("Eurasia" or "the Company") URALS DRILLING UPDATE May 9, 2007: AIM-quoted Eurasia Mining plc has completed an exploration drillingprogramme on a portion of its West Kytlim licence area in the Urals, Russia. The drilling programme was fully funded by Eurasia's 50:50 joint-venturepartner, Anglo Platinum, the world's largest platinum producer and was carriedout on one of two large potential areas of production on virgin alluvialterritory discovered by Eurasia in the West Kytlim area 13 months ago. Earlydrilling indicated average grades of platinum as high as 335 milligrams percubic metre (mg/m3) - in a region where small producers are already extractingalluvial platinum economically at grades as low as 100 mg/m3. The completion of the latest drilling programme, which focussed on the area mostlikely to form part of the first stage of mining at West Kytlim, is an importantmilestone in the completion of the bankable feasibility study. Eurasia expectsto complete a reserve report shortly which can be lodged with the relevantauthorities, a necessary step once the conversion of the exploration licenceinto a mining permit is required. Feasibility studies continue and upon the completion of a bankable study thejoint venture will examine how best to implement the project. Issues currentlyunder consideration include the use of mining plant owned by a local partner,Production Artel Yuzhno-Zaozersky Priisk, investment in a new washing plant andproject finance options. Plans are meanwhile advancing for further bulk testingto be carried out this summer. Alluvial mining is a significant component of the mining industry in Russia,with over forty operators in gold and less than six in platinum. Approximately120,000 ounces of platinum was produced from alluvial mining in 2006, whileallivial gold production is estimated at 2 million ounces for the same year. 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 Martineau orMichael de Villiers, Eurasia Mining Plc: +44 (0) 20 7495 4877Laurie Beevers, W H Ireland Limited: +44 (0) 161 832 2174Allan Piper, First City Financial Public Relations: +44 (0) 20 7242 2666Nicholas 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