Eurasia Mining Share Discussion Threads

[book5] 15/5/2019 14:11

RR

So we know which Far East alluvium PGM miner is browsing through today rns
I bet They have a washer plant for selling, good to contact them
;)

[red rook] 15/5/2019 13:08

Total production for the 2018 season reached 165 kg raw platinum. WK is currently the second largest alluvial platinum mine globally. First place goes to Kondyor, operated by Russian Platinum in Russia's Far East, which produced 275kg raw platinum in 2018. Russian Platinum is one of the leading Platinum Group Metal (PGM) producers in the world.

So with only one wash plant, and in the first full season of production, WK needs another 111kg to rival and exceed Kondyor. No wonder the BOD is confident that they ... 'can grow its West Kytlim operation to become the largest alluvial platinum mine globally.' If they can demonstrate similar/improved production this season WK must be a potential target for a takeover in its own right. Prove up and sell up at a significant premium.

Also, as stated in the CS's statement ... 'The Directors' believe West Kytlim mine cash flows, from a single operating and contracted washplant, notwithstanding considerable final settlements of loans through 2018 (which made the Company debt free) are now sufficient to make significant contributions to the running of the Company at Group level.'

[book5] 15/5/2019 12:30

The impatient

[pennstreet] 15/5/2019 12:26

Who keeps selling!!

[book5] 15/5/2019 11:27

Plus side:
-alluvial Reserves at 1gr/cubic meter, no need for heavy expensive installations
-small mining units with relatively small lorries, excavator widely available
-preparation works on site extend during autumn, early spring without need of water

Neg side-
- water 6 month per year

My conclusion is: metal can be extracted economically, so there will be an agreement for more mining units

[book5] 15/5/2019 10:59

Per mining site, The main plant costs are excavators and trucks
Washer plants is probably less than 10% of the costs per mining unit
Can they rent/lease this equipment or need to buy it?
Reserves upgrade will help in the contract negotiations, 14 year contract 1000 kg very good

[red rook] 15/5/2019 10:28

Regarding Wash-Plants:--------------------------

Wash-plants of the through-put used at WK are not that expensive. These are portable and common pieces of mining equipment. Further, they would most likely be leased and not purchased. So little up-front money required. The contractor currently operating at WK has most likely leased all its equipment.

The calculation that CS must make is whether the addition effort/responsibility required in running the operation in-house, and the extra revenue generated, is worth the loss in flexibility ( ie laying people off ..etc ) if they decide to sell up in the near future.


Regarding the updated reserve report from Uralnedra:--------------
With alluvial mining calculating/modelling reserves and resourses from exploratory data is not as good an indicator of the potential that is actually present in the ground as production data. That is what is being discussed with Uralnedra.

As explained in the previous RNS dated 29 April 2019, regarding the updated reserve report from Uralnedra:
''The option of using information from the 2018 and subsequent mining seasons to apply a factor to measured resource and reserve grades, thereby lifting the measured grade and contained reserves of the deposit significantly, is being discussed with Uralnedra.
It is standard practice in the industry generally for mining data to supersede exploration data, especially for alluvial deposits of this nature. Further clarity on this matter will be achieved by demonstrating production data from the 2019 season, the second year of production at the mine.''


When it arrives I expect a significant/material upgrade in WK's measured resource and reserves. This will be on the back of the exceptional results of last year, the improvements introduced to the washing circuit for this year, and the experience gained.

[aidenabettin] 15/5/2019 10:22

When does the mining season end?.Cant be far away!!!!!!

[ekuuleus] 15/5/2019 10:10

np, sorted the representation.

[ekuuleus] 15/5/2019 10:01

anyone going to the AGM?

If shares are in CREST nominee accounts, what do you need to prove ownership.

[excellance] 15/5/2019 09:43

Tc1
Sale of part or all of Eurasia is always an option.

[book5] 15/5/2019 09:36

Exc
Agree

Cc
Agree

[thechinaman1] 15/5/2019 09:32

“The Company's aim is to achieve these goals through self-funded exploration for marketable resource projects in various commodities, by developing these projects to operating mines, or by joint venturing or straightforward sale of these assets to realise a return on investment.“..... note last option.
TC

[excellance] 15/5/2019 09:31

Seems to me that the original deal was based on the assumption of much lower grades, but because of the nugget effect grades are considerably higher, and that means we are giving far too much away imho.

So we either change the deal or go in house.

[book5] 15/5/2019 09:22

The vat brought back 65:35

[charles clore] 15/5/2019 09:15

Am I right? WK contractor last Summer says we are doing so well so now we want to change the deal immediately to 70:30 in our favour. EUA in the middle of the season and realising the contractor has them over a barrel has no choice but to comply. HOWEVER, CRAFTY CS does a quick calculation and works out that if EUA raises another 500k we could have our own washplant and that would give the company much more leverage over the contractor. So the contractor agrees to return to the 65:35 contract for 2019 and EUA waits for the upgrade whereupon they will operate the second washplant independently. Just a thought

[book5] 15/5/2019 09:13

Contractor requires long contract or we need to buy some plant

[driver101] 15/5/2019 09:10

Great set of figures, you only have to multiply by future wash plants to see how undervalued the company is. Still nothing priced in for MT. Wk and MT at this stage we should’ve over 2p in comparison to other mining companies.

[book5] 15/5/2019 09:08

Good be good to lease equipping to contractor and reduce %
In a couple of years with equipment ours we can take over contractor, or impose better conditions

[lew stules] 15/5/2019 09:06

I would think that it is in the contractors interest to install a second wash plant for sure.

[excellance] 15/5/2019 09:02

that being the case it brings into question the logic of using contractors

[excellance] 15/5/2019 09:01

i wonder about the reasoning behind ongoing discussions re a second wash plant. it looks to me like we want one but the contractor doesn't, so maybe its because they cant finance one yet, so we've raised finance to get the thing on site, and we'll operate it for the time being?

[russiaguru] 15/5/2019 08:57

2nd Wk season so ongoing costs also more staff on ground will be needed if 2 washplants

[excellance] 15/5/2019 08:56

im happy with these results up to 31 dec 2018

the question is, what happens next?