Licence Extension and Drillin

RNS Number : 0197Y

Eurasia Mining PLC

15 December 2010

 



Eurasia Mining plc

("Eurasia" or the "Company")

LICENCE EXTENSION AND DRILLING UPDATE

·      Monchetundra licence extension granted for 2 years; and

·      Monchetundra drilling results including intercepts up to 10.28 g/t Palladium equivalent in the West Nittis contact zone as well as discovery of a new hangingwall zone of PGM mineralization in an intersection returning 2.66 g/t Platinum and 8.2 g/t Palladium.

Monchetundra Licence

Eurasia is pleased to announce that its exploration licence at Monchetundra in the Kola Peninsula in Russia has been extended for a further two years to December 2012. This will enable the Company to continue to progress the exploration work at the site. As previously announced, Eurasia holds a 60% interest in this licence through its 40% holding in Urals Alluvial Platinum Limited ("UAP"), owned jointly with Anglo Platinum, the balance of 20% being held by Eurasia alone. The majority of the exploration work has been funded by Anglo Platinum, with Eurasia acting as manager and operator.

Drilling Results 

Eurasia is also pleased to announce the results of a recent diamond drilling programme at Monchetundra. This drilling was completed on a sub-area known as "West Nittis" and targeted shallow, flat dipping, open pittable mineralization  in an area where no previous drill testing had been undertaken by the Company.

A total of 1,316 metres in 9 drill holes were completed and from this work the basal mineralized zone was confirmed in 7 holes. The zone, broadly stratabound and dipping at 10-30° degrees to the east, consists of sulphide mineralization which contains base metals with platinum group metals (PGM). Traverse drill hole spacing was 100 meters, with an area of coverage of approximately 1100m long and 700m wide. 

The intersections from this initial programme show Pd equivalent grades up to 10.28 g/t Pd, incorporating the precious metal and base metal grades, as can be seen from the table below:

Hole No	Interval (meters)	Length (meters)	Pt g/t	Pd g/t	Au g/t	Cu %	Ni %	Pd equiv g/t
MT-76	102.0-105.9	3.9	0.39	3.19	0.20	0.40	0.48	10.28
MT-77	44.6-51.3	6.7	0.65	3.67	0.15	0.36	0.12	7.87
MT-78	77.0-82.2	5.2	0.18	1.22	0.07	0.13	0.21	4.16
MT-79	138.0-140.8	2.8	0.27	1.53	0.14	0.15	0.21	4.89
MT-80	177.1-181.4	4.3	0.21	1.15	0.08	0.09	0.22	4.13
MT-81	88.2-90.0	1.8	0.25	1.71	0.10	0.21	0.33	6.24
MT-81	96.3-100.4	4.1	0.17	0.92	0.06	0.13	0.20	3.72
MT-82	38.9-43.3	4.4	0.11	0.64	0.07	0.07	0.11	2.30

Of considerable significance was the discovery in Hole MT-79 of a high grade PGM, (low base metal) zone at a depth of 37.3 meters in the hanging wall of the deeper targeted basal mineralization. This zone appears to be related to a vertical structure associated with a later dyke intrusion.

A shallow hanging wall intersection associated with copper sulphide mineralization was intersected in the same hole at a depth of 17.3m.

The intersection are as follows:

Hole No	Interval (meters)	Length (meters)	Pt g/t	Pd g/t	Au g/t	Cu %	Ni %	Pd equiv g/t
MT-79	17.3-19.0	1.7	0.14	2.50	2.37	0.95	0.15	12.19
MT-79	37.3-43.2	5.9	2.66	8.20	0.26	0.06	0.07	15.96

Additional drilling is underway to further test these hanging wall structures, as they would add significantly to any open pittable resource defined in the West Nittis sub-area.

Future Work at Monchetundra

Following the issue of the two-year extension to the Monchetundra licence, it is Eurasia's intention to progress to detail the resource potential of the West Nittis zone. Together with the previously drilled resource at Loypishnun in the southern part of the licence area, the Company intends to focus on developing mine plans to allow the application for a production licence to be made during the term of the extension.  This work will be conducted in parallel with mine preparatory work, such work would commence immediately on approval of Eurasia's production licence area application.

Commenting on the developments at Monchetundra, Christian Schaffalitzky, MD, said: "While we are delighted that the licence has been extended, we are also very excited by the new discoveries made at West Nittis. The results greatly enhance the value of the Monchetundra licence and we look forward to seeing the results of further drilling in the coming months".

 For more information please contact:

Eurasia Mining
Christian Schaffalitzky / Michael de Villiers	Tel: [phone]
Katy Mitchell, WH Ireland Limited	Tel: [phone]

 

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