TIDMEUA
RNS Number : 4730K
Eurasia Mining PLC
21 December 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN
REGULATION NO. 596/2014 (AS IT FORMS PART OF RETAINED EU LAW AS
DEFINED IN THE EUROPEAN UNION (WITHDRAWAL) ACT 2018) AND IS IN
ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 7 OF THAT
REGULATION.
21 December 2022
Eurasia Mining Plc
Corporate Update
Eurasia Mining Plc ("Eurasia" or the "Company"), the palladium,
platinum, rhodium, iridium and gold producing company, provides a
general update on operational matters for the Urals and Kola
operations, the possible sale of the Company's Russian assets and
sanctions legislation.
Highlights:
West Kytlim
- Washing of gravels has finished for 202 2 with our team and
machinery now refocussing on the winter stripping programme.
- Total production for the 2022 season is approximately 200kg of
raw platinum concentrate (up 77% from 113kg in 2021) from the
Bolshaya Sosnovka and Kluchiki areas with a total average grade of
363mg/m(3) and a notable high-grade seam at Kluchiki providing
3.7kg raw platinum from just 3,800m(3) of gravels (grading
984mg/m(3) ).
- Grid electric power is now available at site with the power
line construction completed, the high voltage substation
construction completed, and all necessary peripherals completed and
commissioned.
- Electric dragline (70m/11m(3) ) is now fully assembled and is
under final high voltage electrical testing and the contractual
72-hour continuous performance test.
- Eurasia's electric dragline operators have had on the job
training during the circa one year-long assembly period. Another
training programme has just been completed.
- A late season infill drilling programme to determine the final
2023 mine design has been completed.
Monchetundra
- Concluded final infill and geotechnical drilling programmes for both open pits.
- Definitive feasibility study (the "DFS") for the Loipishnune
and West Nittis open pits has been submitted for approval.
Christian Schaffalitzky, Executive Chairman of Eurasia
commented: "We are encouraged by the progress made at both projects
through the course of a challenging year. Our strategy remains as
previously announced - to continue to develop our assets while
working with counterparties in BRICS countries regarding the
possible sale of our Russian assets, a process which we appreciate
has now run on longer than the Company's management team
anticipated."
James Nieuwenhuys, CEO of Eurasia commented: "The West Kytlim
mining season has proven to be a success both in terms of the
smooth running of the mining operation and the implementation of
both the power line and dragline projects over the course of just
one mining season, and this despite geopolitical challenges. We are
grateful to our staff for their dedication and focus to keep these
projects on budget and on time and look forward to the positive
impact of predominantly electrically powered mining and processing
through the 2023 season."
Further detail
West Kytlim
Electric Dragline and Powerline
The dragline operates with a 70m boom and 11m(3) bucket and has
a designed earth-moving capacity of around 150,000m(3) per month.
The machine is intended to replace several diesel-powered
excavator-bulldozer combinations and all of the stripping capacity
contracted out for the 2022 mining season and is also less limited
in terms of stripping depth.
The dragline will operate initially in the Ust-Tylai North area
for the 2023 season. Appropriate upgrades to the mine site's health
and safety protocols, including the appointment of a permanent
health and safety officer, are in place to deal with the potential
hazards of high-voltage electricity required to operate the
machine.
Through the course of the 2022 season, a 35Kv powerline has been
installed from the village of Kytlim to the mine site over a
distance of some 24 kilometres, following the route of a line
operational in the 1970's. The work involved clearing the route,
installation of 286 powerline posts as well as construction and
commissioning of a dedicated sub-station and hook-up point. Power
in the Sverdlvosk Oblast is predominantly renewable and hydro
derived so that the project's overall CO2 emissions from both
diesel machinery and on-site diesel-based electricity generation is
reduced to back-up use only.
The Company has stockpiled all of the mine product (a 'black
sand' concentrate containing platinum, palladium, iridium, rhodium
and gold) from the 2022 mining season at West Kytlim for later
refining. A final decision will shortly be made on the optimal
strategy for refining concentrate with platinum prices now trending
higher, and above US$1,000/oz, following significant price
volatility through the season and USD/RUB exchange rates rebounding
from 50's ruble per US$1 in June 2022 to 60's ruble per US$1 now. A
further announcement regarding the concentrate will be made in due
course.
Some photographic updates of the dragline in a final state of
assembly are available to view on the Company's website via:
https://www.eurasiamining.co.uk/operations/west-kytlim
Monchetundra
DFS
The DFS report for the Loipishnune and West Nittis open pits,
which incorporates work from numerous contractors, consultants and
laboratories has now been completed. Following submission, a notice
has been received from Rosnedra, the relevant state authority,
acknowledging receipt. An independent expert's review of each of
the study's chapters follows, with a final opinion on the study and
agreement of any parameters described within.
NKT/Monchetundra Flanks
Work continues on the assessment of the NKT Project, contained
within the Flanks license adjacent the Monchetundra (West Nittis
and Loipishnune) mining license, which may be developed as a
standalone project or as a project combined with Monchetundra (West
Nittis and Loipishnune) deposits. In accordance with the
exploration license's requirements, a diamond core drilling
programme at several locations has so far produced 5,488m of drill
core testing for both near surface high-grade veins and
disseminated Ni, Cu, PGE mineralisation, as well as greater width
'bottom lode' mineralisation as a possible continuation on strike
of the mineralisation at West Nittis. A study undertaken by Wardell
Armstrong International in the Second Half of 2021 (please refer
for details to our website at
https://www.eurasiamining.co.uk/investors/technical-reports )
demonstrates the economic potential of the bottom lode
mineralisation as an underground room and pillar mining operation,
with a potential overlying or concurrent open pit operation.
Rosgeo and other exploration license interests on the Kola
Peninsula
A new application for an exploration license for the Nyud area
has been progressed by Rosgeo and the Company will update
shareholders on receipt of this license in due course. The Nyud
project will form the basis for the evaluation of other projects
within the Rosgeo Agreement. Separately, the Company, through its
subsidiaries, is advancing a 100% owned exploration license
application in the Monchegorsk area which is currently being
reviewed by the relevant authorities. The exploration and mining
license tenements held by Eurasia and under application position
Eurasia at the forefront of Kola Ni, Cu and PGE exploration.
Possible sale of Russian assets
The Company continues to focus on selling its Russian assets, a
process led by Mergers and Acquisitions Officer Dmitry Suschov with
support from Artem Matyushok, Non-Executive Director of the
Company, as well as from the Company's Representative Office in
Japan.
At present there can be no guarantee that the Company will enter
into any binding agreements regarding the sale of these assets.
Further updates regarding the sale process will be made as
appropriate.
Cash Position
The Company's cash position (to mid-December), following
expenditure on key capital items for the West Kytlim Mine,
including the dragline and powerline project, stands at
approximately GBP4 million held in sterling and dollar denominated
accounts outside of Russia. Additionally, the Company holds the
2022 West Kytlim mine product with an approximate value of GBP5.6
million, with additional VAT credits of circa GBP2 million
available against future production. Following the acquisition of
additional diesel machinery and the dragline during 2022, the mine
at West Kytlim is now fully equipped for the 2023 mining
season.
Sanctions
Following the update provided in the Company's Interim Results
announcement dated 30 September 2022, the Company continues to
monitor and review all relevant sanctions legislation with its
legal advisers.
Further announcements regarding the potential impact of any
further UK or EU sanctions will be made as appropriate.
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 +44 (0) 20 7932 0418
Christian Schaffalitzky / Keith
Byrne
SP Angel (Nominated Advisor and
Joint Broker)
Jeff Keating / David Hignell /
Adam Cowl +44 (0) 20 3470 0470
Optiva Securities (Joint Broker)
Christian Dennis +44 (0) 20 3137 1902
NOTES TO EDITORS
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.
A parallel business development strategy based on the Hydrogen
Economy forms a new development arm of the Company. The Company's
more recent focus on the international hydrogen and alternative
fuel supply markets has been strengthened by the appointment of two
Japan-based Directors, Tamerlan Abdikeev and Kotaro Kosaka, as well
as the creation of a representative office in Japan (noting the
Japanese government's commitments to the hydrogen supply chain and
hydrogen as the primary alternative to fossil fuel based
combustion), and more recently, the appointment of Artem Matyushok,
a senior hydrogen industry executive.
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END
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December 21, 2022 05:05 ET (10:05 GMT)
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