The Corporate Update was published on the 21st of December 2022 and a cross-social media was well received, could 2023 be Eurasia year?
So many clues pointing to a positive outcome, we will highlight a few paragraphs from the RNS update and let you decide if the tide is turning for the company.
The company provided a general update on operational matters for the Urals and Kola operations, the possible sale of the Company’s Russian assets and sanctions legislation.
Review @eurasiamining dragline in a final state of assembly #EUA The dragline operates with a 70m boom and 11m3 bucket and has a designed earth-moving capacity of around 150,000m3 per month. The dragline will operate initially in the Ust-Tylai North area for the 2023 season #EUA https://t.co/rxJHc4Q2Kh pic.twitter.com/5lKEgFFf74
— Share_Talk ™ (@Share_Talk) December 26, 2022
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/m3 and a notable high-grade seam at Kluchiki providing 3.7kg raw platinum from just 3,800m3 of gravels (grading 984mg/m3).
The dragline operates with a 70m boom and 11m3 bucket and has a designed earth-moving capacity of around 150,000m3 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.
The dragline will operate initially in the Ust-Tylai North area for the 2023 season. The 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.
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. Grid electric power is now available at the site with the power line construction completed. The electric dragline (70m/11m3) is now fully assembled. A late-season infill drilling programme to determine the final 2023 mine design has been completed.
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.
Concluded final infill and geotechnical drilling programmes for both open pits. A definitive feasibility study (the “DFS”) for the Loipishnune and West Nittis open pits has been submitted for approval.
The DFS report for the Loipishnune and West Nittis open pits, which incorporates work from numerous contractors, consultants and laboratories has now been completed.
So far so good, all positive steps moving forward into 2023.
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. Further updates regarding the sale process will be made as appropriate.
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.
The company stated further announcements regarding the potential impact of any further UK or EU sanctions will be made as appropriate.
Christian Schaffalitzky, Executive Chairman of Eurasia commented: Our strategy remains – 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: 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.
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
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