Eurasia Mining Regulatory News (EUA)

3 Aug 2006 07:00

Eurasia Mining PLC03 August 2006 DRILLING UPDATE Eurasia Mining plc, the AIM-quoted platinum metals exploration group, is pleasedto announce substantial progress on its drilling programmes in Russia. Thisdrilling forms part of Eurasia's $3 million work programmes for 2006, currentlywholly funded by the world's largest platinum producer, Anglo Platinum. In the Kola Peninsula in north-west Russia, drilling programmes continue onEurasia's three projects: West Imandra, Volchetundra and Monchetundra. Each hasintersected horizons where geological conditions suggest platinum group metals(PGMs) may be present. In the central Urals, drilling at West Kytlim also continues to outline twoalluvial platinum resources that the company hopes to develop in 2007. Assaysfrom each of these areas are currently outstanding. Eurasia Managing Director Christian Schaffalitzky said: "We are looking forwardto the first assay results from our Kola projects which will enable us to beginmore advanced definition of their potential. In the meantime we are also lookingforward to the next set of sample results from our West Kytlim project whereadditional traverses across the alluvial terraces and river channels have beencompleted." At West Imandra in the Kola Peninsula, Eurasia has now completed drilling atotal of 2,300 metres in eight drill holes. These constitute the first drillprofile across the ultramafic intrusion comprising the core of the licencedarea. The profile is designed to locate PGM-bearing horizons in bedrock beneaththe glacial cover soils. The first target tested a zone of PGM mineralisation,the presence of which was suggested in at least one horizon from surface outcropsampling. Here a chromite layer gave an assay of 1 gram per tonne of platinumprior to the commencement of Eurasia's drill programme. Near this location, twodrill holes intersected four chromite horizons, with associated disseminatedsulphide mineralisation. Early drill samples have been submitted for assay in StPetersburg. The turnaround time is long, due to heavy workloads during thesummer period, but initial results are expected in the near future, with furtherresults arriving through to the end of the year. Drilling work has also commenced on the other two Kola projects, Volchetundraand Monchetundra. In both of these areas, sulphide mineralisation has beenencountered and the programmes are continuing. Eurasia plans to drill a total of4,000 metres on the two areas during 2006. At West Kytlim in the central Urals, three drill rigs have been working on twoareas defined for resource drilling as part of a feasibility study underwaysince October 2005. Work is progressing well, with 154 holes completed in thefirst six months of 2006 totaling 2,100 metres of drilling. Also bulk sampletesting is underway on trench sample material stockpiled at the end of the 2005field season, following modifications to the wash plant aimed at improving therecovery of fine platinum. This plant is designed to simulate the recoveries ofa full-scale operating plant being considered for the development. In May 2006, Eurasia announced an agreement whereby Anglo Platinum is providingfunding of up to $10 million for the Kola project in return for an initialinterest of 40%. At West Kytlim, Anglo Platinum has a 50-50 joint venture withEurasia and is funding all the work up to the completion of a feasibility study. For further information contact: Christian Schaffalitzky / Michael Martineau, Eurasia Mining Plc: +44 (0) 20 7495 4877 Laurie Beevers, W H Ireland: +44 (0) 7903 164 004 Sarah Samworth, First City Financial Public Relations: +44 (0) 20 7436 7486 +44 (0) 7977 276 023 This information is provided by RNS The company news service from the London Stock Exchange