Last checked at 15 Sep 2021 07:00
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN EU REGULATION NO. 596/2014, INCORPORATED INTO UK LAW BY THE EUEOPEAN UNION (WITHDRAWAL) ACT 2018 AND IS IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 7 OF THAT REGULATION.
15 September 2021
Eurasia Mining Plc
Monchetundra Detailed Mining Plan
Eurasia Mining Plc ("Eurasia" or the "Company"), the palladium, platinum, rhodium, iridium and gold producing company is pleased to announce that a detailed mining plan has been completed for the first 5 years of the life of mine of Loipishnune open pit and the West Nittis open pit, both of which form part of the Monchetundra project.
Summary Highlights:
· Updated results of block modelling and open pit optimisation have created the opportunity to increase phase one ("Phase One") annual ore production by 1.7 times (from 1Mtpa to 1.7m Mtpa) compared to the Russian Feasibility Study (the "FS") throughput. The FS was approved by the State Commission on Mineral Reserves as announced on 3 April 2017. Phase One includes Loipishnune open pit and West Nittis open pit only
· Revised production profile has resulted in the metal grades in the first year of production amounting to 2.6 g/t of palladium and 3.5 g/t in total of palladium, platinum and gold at West Nittis open pit mine. A revised production profile at Loipishnune has also resulted in the following grades: 1.8 g/t of palladium and 3.1 g/t in total of palladium, platinum and gold in the first year of production
· Phase One annual metal production has now been calculated to be equal to 128 Koz of palladium equivalent, over 70% higher than the volume projected in the FS. This production volume does not include Monchetundra Flanks and Rosgeo JV projects which will be separately announced
· Mining equipment selection has also been revised with the focus on the use of electric shovels, following the same ESG friendly strategy focused on low-cost electricity connection and electric excavators that is being implemented at West Kytlim now, to be implemented on our Kola projects
· The site infrastructure layout drawing has been developed to include all major infrastructure elements
· Extensive power generation spare capacity exists on the local grid, represented by predominantly green energy sources: hydro and nuclear (please refer to the details below)
· A tailings storage location has been identified for the life of mine (please refer to the details below)
· The local topography and precipitation have resulted in the formation of numerous bodies of water in the immediate vicinity of the operations (please refer to the details below)
· The logistic infrastructure is more than sufficient for the planned operations capacity (please refer to the details below)
· Labour is supplied from 4 mining towns: nearby Monchegorsk, Apatity (80km), Kirovsk (80km), Olenegorsk (35km)
Further details on the electricity supply:
· Spare capacity that already exists on the local grid includes the following green energy sources:
o hydro stations (only 44% utilised of about 2GW local hydro capacity) and
o nuclear stations (60% utilised out of about 2GW)
· Some of the current regional industry is not sustainable in the long term and many mining operations are approaching the end of their lives. Hence additional energy capacity will be available going forward
· Within 5 km of the site, there are 7 power supply centres owned by IDGC of North-West PJSC. These substations currently carry loads at 30-60% of capacity
· The HV powerline passes over the mine site.
Further details on the tailing storage:
· Tailing storage facility (the "TSF") site has the capacity to safely accommodate the tailings generated from the operations for the life of mine
· The TSF is close to the processing plant reducing pumping costs
· Tailings and waste dump sites chosen so as not to sterilize potential resources
· Pre-stripping overburden material from open pits will form the first stage walls
· Spillway will be constructed; however, flood risk is assessed to be minimal
· No population centres are in the vicinity: the sites are significantly remote from any local communities
· Tailings will be pumped and gravity assisted to the TSF.
Further details on the water supply:
· Large amount of surface streams exists in the valleys to the north-west of the mining area
· Measured streams are available throughout the year
· Water will be sourced from the streams for bulk storage and treatment
· Potable water to be delivered to the facilities by specialized vehicles
· Centralized hot water supply systems from electric boilers are to be arranged at the camp industrial site and plant
· The source of industrial water for the operations and fire-fighting water for the industrial site, pits, explosives warehouse and plant will be the settling pond of the plant water recycling system.
Further details on transport and logistics:
· All year highway connected to the site and railway is within a few km to the site
· Transportation of heavy machinery is readily achievable
· Murmansk seaport operates throughout the year without freezing
· The nearest airport is Murmansk - numerous daily flights to Moscow and Saint Petersburg.
Christian Schaffalitzky, Executive Chairman of Eurasia commented: "The Directors are delighted that we are making significant progress in all our work streams on both the operational front and on the strategic front".
James Nieuwenhuys, CEO and Managing Director of Eurasia commented: "Eurasia's Board members are glad that we are able to consistently execute in a timely manner delivering superior value to all our shareholders".
Consent for release
Christian Schaffalitzky, FIMMM, PGeo, CEng, is a director of the Company. He has reviewed the information in this announcement and consents to the inclusion of the information in the form and context in which it appears here. He is a Competent Person for the purposes of the AIM Rules for Companies.
A copy of this announcement is also available on Eurasia's website at:
https://www.eurasiamining.co.uk/investors/news-announcements.
For further information, please contact:
Eurasia Mining Plc
Christian Schaffalitzky/ Keith Byrne
+44 (0)207 932 0418
SP Angel Corporate Finance LLP (Nomad and Joint Broker)
Ewan Leggat / David Hignell / Adam Cowl
+44 (0)20 3470 0470
Optiva Securities (Joint Broker)
Christian Dennis
Tel: +44 (0) 20 3137 1902
About Eurasia Mining Plc
Eurasia Mining plc is a palladium, platinum, rhodium, iridium and gold producing company, operating the established West Kytlim Mine in the Urals, and also the operator of the Monchetundra Project comprising two predominantly palladium open pit deposits located 3km away from Severonickel, one of Norilsk Nickel's largest base metals and PGM processing facilities, near the town of Monchegorsk on the Kola Peninsula.