Eurasia Mining plc, the palladium, platinum, rhodium, iridium and gold producing company, operating the established West Kytlim Mine in the Urals.
The operator of the Monchetundra Project comprising two predominantly palladium open pit deposits near base metal and PGM processing facilities close to the town of Monchegorsk on the Kola Peninsula, is pleased to announce West Kytlim definitive feasibility study (“DFS”) update.
Definitive Feasibility Study
As previously announced, the Company had engaged GeoInvestProject (“GIP”) to prepare the DFS for its West Kytlim project. The DFS has now been approved by the working meeting of the Russian State Committee on Reserves. The final approval is expected to happen this month. The DFS approval is an important milestone for the West Kytlim project for several reasons:
1. It eliminates single asset risk by allowing production at several open pits concurrently and shifting the equipment between them when and if required to provide for consistent production volumes to be achieved.
2. Concurrent mining allows for the increase in production volumes compared to the sequential approach to mining adopted by the contractors prior to Eurasia taking over the project as owner-operator this year.
3. The DFS allows all year-round mining operation for stripping, earth moving and mining activities to happen also in winter months (while the water is frozen) in preparation for the next season and also to stockpile the ore for treatment.
Early preparations for 2021 production
DFS preparation and approvals were the main focus of the Eurasia team at West Kytlim this year, while concurrently the Company also started preparation for 2021 early this year based on the lessons learnt from the delayed 2020 mining permit (the issue of which was previously announced in the interim financial report on 30 September 2020). West Kytlim produced 1,525 oz of raw platinum this season. The lessons learnt and preparation activities for 2021 include:
1. Technical project documentation preparation for 2021 production has been assigned to GIP, which has successfully performed on the preparation and approval of the DFS.
2. Early application for permission from forestry authorities, that was identified by the Company as a major bottleneck in previous years, as well as early applications for other permits.
3. Acquisition of additional equipment to increase the production volumes in anticipation of the concurrent mining at several open pits, for example a Komatsu D155 bulldozer has already arrived and commissioned on site to add to overburden stripping, earth moving and stockpiling machinery at West Kytlim that is in operation all year-round.
4. Early stripping, earth moving and stockpiling activities for 2021 production have already started.
Strict measures in relation to prevention allowed for zero COVID-19 cases at West Kytlim production sites to date and Eurasia is maintaining its COVID prevention discipline going forward.
Christian Schaffalitzky, Executive Chairman commented: “The Directors are delighted with the finalisation of the DFS and the approval process aimed at production increase in these exciting times for PGMs especially for palladium and rhodium. The Company is committed to its strategy, while also adding value to its projects. Further announcements will be made in due course”.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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