22nd Apr 2014 08:01
LONDON (Alliance News) - Eurasia Mining PLC Tuesday said previously announced new reserves at its West Kytlim site have been approved and formally registered by the Russian Ministry of Natural Resources.
The platinum group metals and gold exploration and development company, with operations in eastern Russia, said in March that the State Reserves Commission had approved increased reserves at the site, which are sufficient to expand production to multiple sites rather than the single site operation that was originally planned.
The company said on Tuesday that drilling during 2013 increased its C1 and C2 reserves of contained raw platinum by 35% to 2,283 kilograms due to the conversion of previously established resources at its TK Area 9 West.
Eurasia Mining also said that an economic assessment for the site has shown that production costs for the multiple site operation should fall well within the lowest cost quartile of operating costs for platinum producers worldwide.
The company said it plans to continue to convert resources into reserves in parallel with production and to thereby expand the operation's mine life.
"The project is now set to achieve the economies of scale we had aimed for, and we look forward to further reserves increases that would extend the life of mine of the project further," Managing Director Christian Schaffalitzky said in a statement.
Eurasia Mining shares were up 8.3% to 0.488 pence, putting it in the top ten AIM risers in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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