Eurasia Mining PLC Platinum Production Update (0449P)

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RNS Number : 0449P

Eurasia Mining PLC

23 May 2018

Eurasia Mining plc (AIM: EUA)

("Eurasia" or the "Company")

Platinum Production Update

Eurasia Mining plc (AIM: EUA) ("Eurasia Mining" or the "Company") the PGMs (Platinum Group Metals) and Gold mining company is pleased to provide an update on platinum production at its West Kytlim Mine - the second largest alluvial platinum reserve in the world.

As reported by RNS on 10(th) May 2018, the mine at West Kytlim is now fully operational and has achieved full throughput capacity for an extended period with no unplanned stoppages. Shipments of the mine product in the form of raw platinum nuggets have commenced to the Ekaterinburg refinery, a major privately-owned refinery. To date mine operations have produced up to 1.8kg of raw platinum daily.

Overview:

   -      West Kytlim platinum mine now fully operational. 
   -      Washplant has achieved designed capacity of 130m(3) /hour over a minimum 18-hour day. 

- Total raw platinum produced of 11.8Kg to 16(th) May 2018. Suggested average grade over the period approximately 771mg/m(3) .

- Processing of the first stockpiled ore reserve is now near complete, with mining to progress to further stockpiles and later the main reserves of the Malaya Sosnovka Area.

- Full team of personnel now on site from Eurasia's contractor Techstroy and Eurasia's subsidiary Kosvinsky Kamen providing geological expertise as well as operating the onsite laboratory which upgrades sluice concentrate to mine product.

- Future development of the mine site, including the Kluchiki Area targeted for development later in the year will be assessed with our contractor in early June and an agreement reached on expansion of the operation to potentially develop two sites concurrently.

Christian Schaffalitzky, Executive Chairman commented: "We are delighted at the continued progress made at our West Kytlim mine and indeed it is very satisfying to achieve full operational capacity. Techstroy continue to meet our high expectations this year and we have excellent working relations now established.

"We look forward to the 2018 mining season with renewed excitement and shareholders can expect regular updates on progress at West Kytlim and other developments across the Company."

Summary of West Kytlim Mining Operation

   -      Washplant, water pumps and diesel fleet being operated on a 2-shifts per day basis. 

- Laser surveying of the open pit to be carried out every two weeks to establish total gravels washed and therefore run of mine grade.

- An estimated total of 15,300m(3) of gravels were washed to 16(th) May 2018 for a total raw platinum produced of 11.8Kg. Suggested average grade over the period approximately 771mg/m(3) .

- Stripping of overburden from the main reserve blocks has been contiguous with the gravel washing operation.

The mine at West Kytlim is based on a tried and tested alluvial mining system used throughout the world on gold bearing sands and river course gravels. The key item of equipment is a trommel which is a continuously rotating cylindrical screen driven by diesel generated electric power. Precious metal bearing gravels are fed to the trommel using an excavator and are washed by an array of high pressure jets as they pass through under gravity. Oversize material is washed and discharged to waste, while material small enough to pass through the screen falls to a sluice arranged perpendicular to the trommel. The sluice then separates higher density platinum bearing nuggets from lower density sand and other rock fragments. Washing is discontinued daily to empty the sluice mats and for general maintenance and housekeeping.

The capacity of the washplant is a function of the nature of gravels washed; variables such as residence time, speed of rotation and volume of water applied all control the recovery of metal and should be adjusted according to the nature and importantly the clay content of gravels washed.

The total amount of gravel processed, measured in volume terms, requires in-pit surveying using GPS and laser guided instruments. Grades can then be back-calculated as gravels washed (meter(3) )/ Raw platinum recovered (gram). Directors believe a monthly analysis of key production numbers and run of mine grade to be the basis of a fully representative estimate.

A graphic showing details of the Kluchiki area is available on our website 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                               Tel: [phone] 
 Christian Schaffalitzky / Keith Byrne 
WH Ireland Limited (Nominated Adviser & Broker)  Tel: [phone] 
 Katy Mitchell / James Sinclair-Ford 
First Equity Limited (Joint Broker)              Tel: [phone] 
Jason Robertson 
 

About Eurasia Mining PLC (LSE: EUA)

Eurasia Mining is a long-established platinum and gold focused production and exploration company quoted on the London Stock Exchange AIM market, with an operating mine in the Ural Mountains and a USD$2 billion dollar valued in-situ multi-commodity deposit at Monchetundra. In addition, Eurasia maintain an interest in the Semonovsky Gold in Mine Tailings Project, an asset demonstrating potentially low-cost new-term gold production potential.

Eurasia's two core projects are:

The West Kytlim operating mine (of which the Company owns 68%), which is the second largest alluvial platinum reserve in the world currently, with 2,283 kilograms of raw platinum in reserves, with resources and resource potential to a further 10 tonnes of raw platinum;

The Monchetundra Project (of which the Company owns 80%), has state approved reserves and resources of 2 million ounces of palladium equivalent (predominantly palladium, and includes 28,124 tonnes of copper and 30,410 tonnes of nickel), resulting in a total in-situ metal value of approximately USD$2 billion, before metal recoveries and all costs. Eurasia has in place (signed October 2016) an EPCF (Engineering Procurement Construction and Financing) contract with Sinosteel, a state owned Chinese corporation focused on mining.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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May 23, 2018 06:31 ET (10:31 GMT)