38 C
Mining News

Eurasia Mining has a diverse portfolio of Russian precious metals projects

Eurasia Mining plc is a Russia-focussed explorer and developer with exposure to platinum and other metals across a broad portfolio.

The company’s major projects are the Montechundra gold project in the Kola Peninsula north European Russia and the West Kytlim alluvial platinum project situated in the Ural Mountains.

Supported by

At Montechundra, a Chinese partner has signed an engineering, procurement and construction contract for a 130,000 ounce plant.

Meanwhile, at West Kytlim, a Russian joint venture partner has agreed to put up the capital to start and fund an ongoing mining operation that’s scheduled to last for at least 12 years, following a successful first season’s mining in 2016.

Eurasia also has the Semenovsky tailings project in the Republic of Bashkiria, Russia, which consists of 2.9 mln tonnes of mine waste grading over 1 gram per tonne gold.

Big Chinese backing at Montechundra represents a real endorsement

A feasibility study was officially submitted for approvals at the Russian State Commission on Mineral Reserves (“GKZ”) on 22nd December 2016. The study envisages the economic extraction of the reserves already identified at two open pit targets on Eurasia’s 80% owned Monchetundra licence.

The reserves, when approved, will represent the maiden reserves defined for the license.

In addition, an Engineering Procurement and Construction contract is already in place with Sinosteel, a major Chinese state owned group operating primarily in mining, trading, equipment manufacturing and engineering.

The signed EPC Contract has an obligation for Sinosteel to provide US$150m financing, subject to certain conditions, with production to commence on a turn-key basis by Sinosteel.

That’s big money earmarked for what really could turn out to be a significant project and, when announced, really boosted Eurasia’s share price.

West Kytlim: an attractive geological setting with a long history of mining

Alluvial Platinum was first discovered in the Ural Mountains in 1824. Since that time the region has yielded in excess of 500 tonnes of platinum mined from a number of placer fields, the largest of which is estimated to have produced more than 240 tonnes.

The fields comprise natural, gravity-driven economic concentrations of platinum formed in stream and river sediments eroded and drained from platinum-bearing hard rock.

Placers of this type are attractive development targets owing to a tendency to high concentrations of platinum and relatively low-tech and low cost mining and processing requirements.

Development work at West Kytlim commenced in the third quarter of 2016. The plan is for a contractor to share revenue with Eurasia on a 30:70 basis, mining C2 state-approved reserves of 2,283 kilogrammes of platinum.

Further upside at Semenovsky

Internal economic calculations assuming the use of a cyanide leach circuit show gold recoveries greater than 25%. Current estimates put mine life at 8.5 years and annual production at an average of 4,938 ounces of gold and 682,000 ounces of silver per annum.

This would generate total revenues of US$57 million at a projected gold price of US$1,135 per ounce and projected silver price of US$16 per ounce (gold and silver prices as at 20 December 2016). Free cashflow would total US$33m or US$3.8 million per annum.

The company is working in conjunction with partner Metal Tiger on this project.

Source: Proactive investors

error: Content is protected !!