RNS Number : 2988K
Eurasia Mining PLC
01 September 2021
 

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.

 

1 September 2021

 

Eurasia Mining Plc

 

Share Price Movement and Progress Update

Eurasia Mining Plc ("Eurasia" or the "Company"), the palladium, platinum, rhodium, iridium and gold producing company notes the movement in the Company's share price yesterday and notes that the share price remains below the 26.5p price at which the $20m private placement, assisted by H.C. Wainwright, with US professional institutional investors was completed on 26 May 2021 and would like to announce the following summary:

·      Significant developments have been made at our operating West Kytlim mine, the world's largest alluvial PGM mine, with 3 washing plants launched to production and several open pit areas being stripped including one at Kluchiki and two at Bolshaya Sosnovka as opposed to one area and one plant in previous years - single asset risk is therefore eliminated at West Kytlim. Electricity grid connection and electric dragline are on track to be commissioned as announced via RNS on 11 August 2021 to further reduce the mine's carbon footprint, improve Eurasia's ESG credentials and reduce the cost of production that is already in the lowest quartile of the global PGM cost curve.

 

·      Rosgeo has confirmed to Eurasia that the process on the license for Nyud and Moroshkovoe open pit deposits is in an advanced state.

 

·      Block modelling and open pit optimisations are now complete for 6 out of 9 Rosgeo JV projects that in total represent 104.6Moz of platinum equivalent resource (according to the Russian State Cadastre of Mines) as announced via RNS on 26 March 2021.

 

·      The Monchetundra Definitive Feasibility Study (DFS), contracted to CKE and EMR (both defined below), is in the final stages of its development further to the successful completion of geotechnical and other studies performed by Gipronickel (an engineering arm of Norilsk Nickel) as well as an audit by Wardell Armstrong International.

 

Further details on the Monchetundra Definitive Feasibility Study

The following tests have successfully been accomplished by Gipronickel (an engineering arm of Norilsk Nickel) including but not limited to physical and mechanical tests to determine the average density, the true density, porosity, the speed of propagation of longitudinal and shear waves of the rocks, the rock hardness coefficient, uniaxial tension along generatrixes, uniaxial compression, the water absorption, the natural moisture content of rocks, measurements of the physical properties of the rocks.

Detailed metallurgical tests have successfully been completed by Mekhanobr Engineering that possesses the 90-years of experience in detailed design of base metals and precious metals processing facilities, industrial processing operations, tailing storage facilities, etc. More than 250 mining-and-processing operations have been constructed using their designs, now effectively operating in Russia and abroad.

Central Kola Expedition (CKE) has accomplished the majority of work related to the DFS that, amongst other items, included drillhole digital database compilation, wireframe and block modelling, and open pit optimisations. A detailed mining plan for the first 5 years of the mine is expected to be completed within 2 weeks. CKE has significant experience on the Kola Peninsula working for Russian mining majors including Norilsk Nickel, Polymetal, Acron, Eurochem and Severstal as well as for international mining majors including Anglo American Platinum, Barrick, B2Gold and Kinross.

Wardell Armstrong International has undertaken site visits and audited the Monchetundra drill core storage at the warehouse owned and managed by CKE, the quality assurance and quality control procedures and the work done by Gipronickel, CKE and other professional contractors of Eurasia.

EMR (Engineering of Mineral Resources) that has an excellent track record cross-referencing Russian reserves with reserves under the JORC Code is coordinating the DFS for the purposes of the Russian authorities.

 

Christian Schaffalitzky, Executive Chairman of Eurasia commented: "The Directors are delighted that our hard work on Kola that started as a joint venture with Anglo American Platinum in 2005 and is finishing as a joint venture with Rosgeo, a much stronger partner for doing business in Russia, is coming to a successful conclusion with DFS, JORC reserves as well as the EPCF (engineering, procurement, construction and finance) contract already signed. The Board is committed to execute on the strategy as announced on 12 May 2021".

 

James Nieuwenhuys, CEO and Managing Director of Eurasia commented: "The Board members are encouraged that the DFS is advancing well for Monchetundra, while the CPR under the JORC Code is being finalised for our Rosgeo JV projects including Nyud and Moroshkovoe. The work has been done well ahead of schedules stipulated by our license agreements. We are executing on Kola as we have done in the Urals, successfully delivering on our promises".

 

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.

 

Regulatory information

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.  

 

 

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.

 

About Wardell Armstrong International

Wardell Armstrong International is a multidisciplinary Environmental, Engineering and Mining consultancy operating in the UK and internationally helping clients get the best possible financial returns - while doing things in a sustainable, responsible way, continually improving environmental performance in own activities and in the advice to the clients.

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