Eurasia Mining PLC Mining Update From West Kytlim (5801N)

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RNS Number : 5801N

Eurasia Mining PLC

10 May 2018

Eurasia Mining plc (AIM: EUA)

("Eurasia" or the "Company")

Mining update from West Kytlim

Eurasia, the PGM and gold production company is pleased to provide an update from its West Kytlim Mine, the second largest alluvial platinum mine in the world, which is now fully operational for the 2018 mining season. Following a general thaw at the start of May the operation has now achieved several successive days at near full capacity, with all machinery now operating to specification and as planned. Grades in platinum bearing gravels are considerably higher than had been expected and as a result initial production figures are also increased.

OVERVIEW:

-- West Kytlim Mine is approaching capacity of circa 2,000m(3) per day, water is now free flowing and all equipment functioning according to specification;

-- No unauthorised or unplanned stoppages reported since an initial trial of the equipment on 3(rd) May 2018;

   --      Initial trial reports grades approaching 1g/m(3) ; 

-- A total of 4.6 kg of raw platinum was produced from 3rd May to 9th May inclusive with 1.3kg produced on the 9th May. The 1.3kg produced in a day represents what the directors believe could be possible with this process in the future;

-- Mining, washing of platinum bearing gravels and upgrade of concentrate has been continuous every day from 3(rd) May to date.

Christian Schaffalitzky, Executive Chairman commented: "We are very pleased at the level of professionalism and experience shown by the newly appointed contractor, Techstroy, in the opening weeks of this year's mining season. The Directors believe that the 4.6kg produced over the first 6 days is remarkable considering the total production of just 6kg by our previous contractor in the 2017 mining season. Grades seem to be consistently and considerably higher than we had calculated, and the machinery operating very efficiently in terms of costs, ore volumes and precious metal recovery. We may look forward to more continuous production updates from site in the coming mining season."

HIGHLIGHTS:

An initial 'first fill' test was completed successfully at the West Kytlim alluvial platinum and gold mine on 3(rd) May 2018. 500m(3) of gravels were processed to test the new scrubber/tromell arrangement. The concentrate produced was collected and upgraded at the on-site laboratory. This first sample returned 428g raw platinum, for an average grade approaching 1g per m(3) .

Several successive days of continuous production have followed, the largest amount produced in a single day being 1.3kg raw platinum on 9(th) May 2018.

Shipments to the refinery in Ekaterinburg are expected to commence by contracted security professionals on 11(th) May 2018 and further updates will be provided in due course, as appropriate.

A site visit by Eurasia's auditor Grant Thornton UK was carried out on 7(th) and 8(th) of May. The site visit is a necessary element in Eurasia's audit process and ensures best industry practices in health and safety, mine site security and corporate and social responsibility.

Mining at 2,000m(3) per day is expected to continue for the foreseeable future until either (i) the end of the mining season in early November 2018 or (ii) when the platinum and gold bearing reserves at Malaya Sosnovka are expired. When the latter occurs mining is anticipated to progress to the much larger Kluchiki area. Eurasia's contractor (Techstroy) holds in reserve a further trommel/scrubber which can be mobilised to site as required. The next fully permitted site, containing 893,000m(3) of gravels, is the Kluchiki site which may, at the contractor's discretion, be developed during this year by mobilising a second washplant, with both sites operating concurrently. Further updates regarding the 2018 mine plan for the West Kytlim Project will be provided in due course.

A video blog is to be filmed on site in the week commencing 14(th) May and broadcast soon thereafter. A mine plan for the Malaya Sosnovka area currently being worked has been uploaded to the Eurasia website and can be viewed at https://www.eurasiamining.co.uk/operations/west-kytlim.

Consent for release

Christian Schaffalitzky, FIMMM, PGeo, 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.

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Enquiries:

Eurasia Mining Plc

Christian Schaffalitzky/Keith Byrne

[phone]

WH Ireland Limited

Katy Mitchell/James Sinclair-Ford

[phone]

This information is provided by RNS

The company news service from the London Stock Exchange

END

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May 10, 2018 02:00 ET (06:00 GMT)