REG - Eurasia Mining PLC - Corporate Update

Eurasia MiningAnnouncement

21/12/2022 10:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221221:nRSU4730Ka&default-theme=true

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 2022 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
(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
(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 £4 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 £5.6 million, with
additional VAT credits of circa £2 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
(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)  +44 (0) 20 3470 0470

 Jeff Keating / David Hignell / Adam Cowl
 Optiva Securities (Joint Broker)               +44 (0) 20 3137 1902

  Christian Dennis

 

 

 

 

 

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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFLFIIFFLLFIF