7th Jun 2016 09:44
LONDON (Alliance News) - Eurasia Mining PLC on Tuesday said alluvial platinium mining will commence at its West Kytlim licence area this summer, as it posted a widened loss for 2015 caused by the "substantial weakening of the Russian rouble".
Eurasia Mining reported a pretax loss of GBP1.7 million for the year ended December 31, widened from GBP502,500 a year earlier, as administrative costs rose and the company continued to be hit by foreign exchange losses stemming from the weakening of the Russian rouble. Eurasia Mining's results a year earlier had also benefitted from a GBP921,184 reversal of loss made on a loan to the company's joint venture, which did not repeat.
However, the company said it was now making good progress and is about to start mining at its West Kytlim site, after having received final approvals for the mining licence from the Russian Prime Minister Dmitry Medvedev in July 2015.
"This is early days, and the current season's production will be modest. However, it allows us to adjust the company to mining and deal with the inevitable teething problems before we gear up to full production, scheduled for Year 3, in 2018. Full production would involve separate washing facilities at two to three sites, with the prospect of at least an estimated 10 year life with resources identified that may extend its life further.," said Chairman Michael Martineau.
Eurasia Mining said it was working to complete its filing for a discovery certificate at its second licence, Monchetundra, which it said was the first step in the process of applying for a mining licence. This comes after it made several platinum group metals mineralisation at the site.
"This remains a substantial project and consequently we are exploring a number of options including actively seeking a joint venture partner or a sale, a process that has been going on for several months," Martineau added.
Shares in Eurasia Mining were down 0.9% at 0.570 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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