Eurasia Mining Plc (“Eurasia” or the “Company”) the palladium, platinum, rhodium, iridium and gold producing company provides a general operational progress update for the first quarter of 2023.
The electric dragline, which was fully assembled in the prior quarter, has completed final high voltage electrical testing and the contractual 72-hour continuous performance test. Stripping by the electric dragline is ongoing at site, and further operations await a general thaw and abundant running water in order to commence washing of gravels. The power line and electric dragline projects, both completed last year, are expected to have a positive impact on mining operations for 2023, with a significant reduction in operating costs expected. The diesel requirement over the winter period was reduced compared to the same period in the prior year, with site buildings now running on hydro-derived grid power.
The mine product (a ‘black sand’ concentrate containing platinum, palladium, iridium, rhodium and gold) from the 2022 mining season remains safely stored for later refining. Final decisions regarding the optimal strategy for and the timing of the refining of the concentrate are yet to be made. A further announcement regarding the concentrate will be made as soon as practicable.
The Definitive Feasibility Study for Monchetundra (“DFS”) was submitted in December 2022 and notice acknowledging receipt from Rosnedra, the relevant state authority, was received by the Company. Eurasia recently received a set of questions from the expert panel of the State Reserves Committee, to which the Company responded. A final opinion on the DFS, to be provided by Rosnedra, is anticipated in the coming weeks.
The NKT project comprises a brownfield Tier-1 scale deposit: 305Kt of Nickel, 143Kt of Copper, 57 tons of PGM and Gold (11.2Moz of Platinum equivalent) as estimated by Wardell Armstrong International as JORC-compliant resources for an underground mining operation (see the Company’s RNS dated 16 December 2021 for additional information on NKT).
Eurasia’s current work on NKT focuses on refining the geometry of ore bodies to determine the feasibility of an additional open pit operation, to run in parallel with underground mining. Historical metallurgical reports, which confirm metal recoveries, are also now available to assist the Company. This work may permit an upgrade to higher reserve and resource categories for a subsequent NKT JORC update.
Nyud Project and Rosgeo Agreement
Eurasia’s 100% owned subsidiary Yuksporskaya Mining Company retains an entitlement to 75% of Monchegorskoye LLC, the license owner of the Nyud Project.
The Nyud Project was brought to the Company through a binding agreement entered into with Rosgeo in March 2021. This agreement has now expired following a two year evaluation period.
Future developments regarding the Rosgeo agreement are being considered and further announcements will be made as appropriate.
Possible sale of Russian assets
The Company continues to consider options for the sale of all of Eurasia’s interests in Russia. These include the West Kytlim operating mine, the Monchetundra Project mining license, the NKT brownfield project, and the entitlement to the Nyud brownfield project.
The Board acknowledges shareholder frustration regarding the duration of the sale process, however also notes recent precedent transactions which have successfully completed despite the geopolitical situation. Further updates regarding the sale process will be made as appropriate and, at present, there can be no guarantee that Eurasia will enter into binding agreements.
Christian Schaffalitzky, Executive Chairman of Eurasia, commented:
“We continue to advance our projects in the Urals and Kola Peninsula, despite the ongoing conflict in Ukraine. The winter stripping programme, utilising our new electric dragline, continues at West Kytlim and we anticipate a final opinion on the Monchetundra DFS from Rosnedra in the coming weeks. Concurrently, Eurasia is committed to pursuing the possible sale of our Russian assets. This remains our priority and the Board shares the frustration of our shareholders at the duration of this process. We appreciate the ongoing support of our shareholders and look forward to providing further updates regarding future developments as appropriate.”
The Company’s cash position at the end of March 2023 stands at approximately £3.0 million, held in sterling and dollar denominated accounts outside of Russia.
Additionally, the Company still holds the 2022 West Kytlim mine product with an approximate value of £5.6 million, in addition to VAT receivable resulting from 2022 VAT payments.
Queeld and Mispare
The Company notes recent speculation regarding a claim brought against Eurasia by Queeld Investments Limited, a Cyprus registered company (“Queeld”) and Mispare Limited, a BVI registered company (“Mispare”) (together the “Claimants”). The case involves a dispute regarding the Claimants’ alleged loss of share certificates issued in respect of Eurasia securities. Having taken legal advice, the Company believes the Directors will be in breach of the Company’s Articles if new share certificates are issued without an appropriate indemnity in place, which protects the interests of the Company, its Registrar, and its shareholders generally. As no such indemnity has been provided by the Claimants, new share certificates have not been issued.
The Company notes a further case filed by Logik Developments LTD (“Logik”). The Company is currently liaising with its legal advisers regarding Logik’s claim in a sum of circa £0.3 million and which concerns a Heads of Terms entered into by the Company last year with Logik, which subsequently lapsed.
Further notifiable updates regarding these claims will be made as appropriate.
Annual Results for the Year Ended 31 December 2022
The audit for the year ended 31 December 2022 is progressing and the Company expects to publish the 2022 audited Annual Report and Accounts by early June 2023, with the 2023 Annual General Meeting to follow thereafter.
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:
For further information, please contact:
Eurasia Mining Plc
+44 (0) 20 7932 0418
Christian Schaffalitzky / Keith Byrne
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