7th May 2015 08:55
LONDON (Alliance News) - Eurasia Mining PLC Thursday said it has moved forward on its West Kytlim project in Russia, awarding a contract for the initial phase of detailed mine engineering work, advancing plans for the 2015 exploration programme, and advancing talks with international consultancies about a review of the operational and financial model for the project.
The platinum group metals explorer last month moved a step closer to getting its mining license for the project, a step that would turn it from an explorer into a platinum producer. The Russian Ministry of Economic Development approved the license, meaning it just needs final approval from Russian Prime Minister Dmitry Medvedev.
On Thursday, Eurasia said it has now signed contracts with a Yekaterinburg-based consultancy for an economic and technical evaluation of the West Kytlim Project with a specific focus on equipment selection and development methodology. It expects this reporting phase to last about a month and then will award contracts for more detailed reporting and a development plan.
Eurasia has also completed detailed planning for the 2015 exploration work programme at the project, including drilling, a key step in optimising the future performance of the operational project.
"This work is focused predominantly in areas of known resources which are to be upgraded to reserves and the concomitant confidence levels required for ore scheduling," it said.
The company is also finalising assessing tenders from international consultancies, some of which are based in the UK, to prepare a Competent Person's Report for the project. It wants this report to assess the operational features of the project and provide a financial assessment covering the available mine development alternatives.
"We have undertaken much internal work with regard to project feasibility and implementation, and we are now looking forward to seeing our mining plans substantiated independently by industry experts external to our own team. This is an important step which will assist with project-level financing and maximising returns from project development," Chief Executive Christian Schaffalitzky said.
"We anticipate that Rosnedra (The Russian Federal Agency for Subsoil Use) will submit the company's mining licence for Prime Ministerial approval in the near term. Whilst that approval process is ongoing, we believe the preparatory work we are undertaking will enable the company to mobilise into the production phase expeditiously, upon licence confirmation," he added.
Eurasia Mining shares were up 7.2% at 0.670 pence Thursday morning, one of the best-performing stocks in the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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