West Kytlim Mining operation update - July 2016

RNS Number : 3145F

Eurasia Mining PLC

27 July 2016

 

Eurasia Mining plc (AIM: EUA)

("Eurasia" or the "Company")

West Kytlim Mining operation update - July 2016

Eurasia Mining plc, the PGM and gold mining company, is pleased to update on developments at its West Kytlim platinum and gold mine. As reported on 21 June 2016, machinery and personnel from both Eurasia and its contractor SK Region-Stroy ("SKRS") are working at the site building necessary infrastructure and preparing open pits for mining.  Work remains on schedule with the first black sand platinum and gold bearing concentrates planned for shipment for refining by mid -August 2016.

Highlights:

-      Machinery including two excavators, two bulldozers, three dump trucks and one loader are being operated on a shift rota;

-      Water pond to manage processing water now fully excavated;

-      Work is continuing on a trench to protect the open pit from water ingress;

-      Southern end of tailings dump retaining wall now complete, work continues at the northern end;

-      Some washplant components including conveyer belts and parts of the sluices have arrived, other components due;

-      Construction has commenced on the field laboratory which will upgrade concentrates ahead of shipping for refining.

Further detail

Excellent progress has been made by the team onsite at the West Kytlim Project in the five weeks since commencing the operation. The preparatory work necessary to organise a safe, effective and environmentally sound work site to mine an alluvial orebody is now well advanced. As described previously, (see RNS's date 25 May 2016 And 21 June 1016), the current phase of operations is a start-up operation utilising diesel powered machinery to produce near and at surface ore bodies in the area known as Malaya Sosnovka. Significant capital expansion to include draglines operating on mains grid power is planned for year 2 and for the projected ten-year life of mine.

        Once preparatory work has been completed the focus will immediately shift to production from the 5 defined reserve blocks in the Malaya Sosnovka area. Critical elements of the washplant have arrived to site ahead of time while other longer lead time parts are now due. The washplant when constructed will have sufficient capacity to fulfil the 2016 mining schedule. A second washplant owned by Eurasia is being refurbished and can be used to process a small volume of metal bearing gravels before the main washplant is installed.

Documentation and reporting;

The Exploration Project Report covering upgrade of Resource blocks to Reserves, on the entire 21Km² mining licence will be submitted in the coming weeks. Under the terms of the agreement with SKRS, Eurasia are responsible for exploration on the licence which will be phased to ensure supply of sufficient reserves for the mining operation.

Christian Schaffalitzky, MD at Eurasia Mining commented'

"Our 2016 field season is off to an excellent start thanks to the experienced field personnel in both Eurasia and SKRS. As a consequence we are now a matter of weeks away from producing our first concentrates for refining with no major delays envisaged. We anticipate that the final components of the washplant will be delivered and the washplant commissioned within two to three weeks, which gives us enough time to complete the tailings dam and install the final elements of the mine design, including the facility for upgrading to a shippable black sand concentrate. We are also finalizing our plans for metal refining which will be announced shortly."

Enquiries:

 Eurasia Mining Plc

Christian Schaffalitzky/Michael de Villiers

[phone]

 WH Ireland Limited

Katy Mitchell/Liam Gribben

[phone]

 Beaufort Securities

Elliot Hance

[phone]

 

END

 

 

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