Last checked at 21 Jun 2016 07:00
Eurasia Mining plc (AIM: EUA)
("Eurasia" or the "Company")
Mining start-up at West Kytlim
Eurasia Mining plc, the PGM and gold mining company, is pleased to announce that the start up operation at its West Kytlim platinum and gold mine has commenced. As reported on 25 May 2016, SK Region-Stroy ("SKRS"), have been appointed contractors for this work.
As also set out in the announcement dated 25 May 2016, under the terms of the agreement SKRS will cover all capital and operating costs. In return, revenue from the sale of platinum and gold concentrates sold to the refinery is to be split 70:30, with Eurasia receiving 30%. Eurasia will manage the collection and transportation of the precious metal concentrates and the distribution of income.
Earth-moving equipment has already been engaged for several weeks at the mine site carrying out preparatory works including pit protection drainage ditches, tailings storage ponds and stockpile areas. Accommodation, maintenance and fuel storage facilities have been installed. Access to forestry areas is advancing on schedule. Soil removal will be carried out directly after tree felling. In line with our environment management plan the soils will be stockpiled for restoration after mining. Stripped overburden will be used in the construction of mine site hydro-technical infrastructure.
Outcropping Ore Blocks 4 and 5 at Malaya Sosnovka are scheduled to be processed first. Blocks 1, 2 and 3 follow immediately and will be processed by late October or early November.
Total gravel Reserves to be processed in the start-up operation is 277,000 m3; this should be considered in the context of total life of mine Reserves plus Resources of 13.8 million m3 (see announcement of 22 April 2014) Estimated life of mine for the entire project is a minimum of 10 years based on three concurrent wash plant sites; two utilizing dragline mining with a third using excavators and trucks in an expanded similar scheme to that currently underway at Malaya Sosnovka (see announcement of 25 May 2016) . An electric powerline will be constructed over the winter of 2016 to power draglines and other plant. The initial diesel operation and hydraulic plant, as described above, is the first step on route to significant capital expansion planned for 2017. The capital cost for the expansion will be covered by the contractor.
Some pictures showing the arrival of the machinery on site are available through our company twitter feed and on our website, www.eurasiamining.co.uk.
MD Christian Schaffalitzky commented; ' We are very impressed with the speed at which SKRS have been able to mobilise men and equipment and make the circa 600km long journey from their operating base. This is excellent progress demonstrating their motivation and capacity for the task at hand. Key Eurasia management staff and mining engineers are also in the camp at the site to direct the initial mining project. This is a very exciting time indeed and we are delighted to be taking a step closer to our promise of first platinum and gold production in 2016.'
We look forward to updating on further developments in the very near term.
Consent for release
EurGeol Christian Schaffalitzky, FIMMM, PGeo, MIEI, 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 purposes of the reporting of these results.
Enquiries:
Eurasia Mining Plc
Christian Schaffalitzky/Michael de Villiers
+44 (0)207 932 0418
WH Ireland Limited
Katy Mitchell/Liam Gribben
+44 (0)161 832 2174
Beaufort Securities
Elliot Hance
+44 (0)207 382 8300