Source - RNS
RNS Number : 4748I
Eurasia Mining PLC
31 August 2016
 

Eurasia Mining plc (AIM: EUA) 

("Eurasia" or the "Company") 

Semenovsky Tailings Project - Reserves Approval and Extension of Exclusivity

Eurasia Mining plc,("Eurasia") the Russia focused PGM and gold production and development company, here working in partnership with Metal Tiger plc ("MTR"), is pleased to update progress on work on the Semenovsky Tailings Project (STP), in Bashkiria, Russia.

Highlights:

·        Reserves approved totaling 2.99 million tonnes of ore grading 1.18 grams/tonne ("g/t") of gold and 16.44 g/t of silver, with contained metal calculated as 3.5 tonnes of gold and 49.3 tonnes of silver.

·        An agreement to extend the exclusivity option on STP until 15 November 2016.

As reported on the 26 April 2016, a Russian Pre-Feasibility Study equivalent - the TEO of Conditions - had previously been reviewed and approved by the expert panel at the Bashkirian mines department. A Reserves Report incorporating a fresh Reserve calculation was immediately lodged for approval and has now been approved. Previous reserve calculations had not been approved at the deposit due to insufficient metallurgical work - Eurasia have integrated metallurgical work carried out on-site in 2014 which has now been considered sufficient for approval of C2 category reserves.

The entire tailings dam reserves were approved as Russian C2 standard - 2.99m tones of ore grading 1.18 g/t gold and 16.44 g/t silver - contained metal calculated as 3.53 tonnes gold and 49.28 tonnes of silver. The drill grid density and metallurgical work was sufficient for the approval of a C2 Reserve under the Russian system of Reserves assessment.

 Reserves Category

Gross*

Net Attributable*

Operator*


Tonnes (M)

Grade (g/t)

Contained Metal

Tonnes (m)

Grade (g/t)

Contained Metal


Gold (C2 only)

2.99

1.18

3.53

1.06

1.18

1.18

N/a

Total

2.99

1.18

3.53

 

1.06

1.18

1.18

N/a

Silver (C2 only)

2.99

16.44

49.3

1.06

16.44

5.51

N/a

Total

2.99

16.44

49.3

 

1.06

16.44

5.51

N/a

Source: Eurasia plc approved by the Russian Federal Agency for Subsoil Use.

*As set out on the announcement dated 16 November 2015, and below, Eurasia has entered into an option with OOO Metallurg Complect to acquire up to 67% of the Semenovsky project and also on 16 November 2015, entered into an agreement with Metal Tiger plc pursuant to which Metal Tiger can acquire half of Eurasia's interest in this project. Assuming both agreements are executed Eurasia will ultimately hold 33.5% interest in this project, although at this stage there is no guarantee that it will do so.

C1 and C2 Reserves are defined by the national Russian standards on mining and minerals as published by the National Certification Body of the Russian Federation. Data included under this standard must be approved by the Russian Federal Agency for Subsoil Use ("Rosnedra") 

The work at STP is being carried out under the Heads of Terms agreement ("Heads") outlined in mid November 2015 (see RNS dated 16th November 2015). The Heads allows Eurasia and Metal Tiger to acquire 67% of the Semenovsky Tailings Project ("STP") owned by OOO Metallurg Complect. These Heads, signed between Eurasia, Metal Tiger, and the Russian registered company OOO Metallurg Complect, covered an exclusive option period of 6 months to allow for due diligence by Eurasia and Metal Tiger personnel. This was extended in May 2016 to 15 August 2016. A further extension of the exclusive option has been entered into today, to extend that exclusivity period to 15 November 2016 as work continues on detailed metallurgical testwork.

Eurasia as manager aims to complete the due diligence work and if satisfactory conclude the acquisition under the terms of the Heads, although at this stage there can be no guarantee that it will do so. Subsequently a feasibility study will be completed, which is expected to include bulk sampling, flow sheet studies and mine design.

Christian Schaffalitzky, Managing Director at Eurasia Mining comments

 "We are pleased to confirm what amounts to a maiden reserve calculation under Russian standards for the Semenovsky project. It is a significant milestone and shareholders can see positive results less than 12 months from announcement of the initial Heads of Terms. Our focus now turns to the ongoing SGS metallurgical work, updated on 4 July, from which we hope to see results of our optimization study on cyanide gold recovery in September."

Consent for release

EurGeol Christian Schaffalitzky, FIMMM, PGeo, MIEI, CEng, is a director of the Company. He has reviewed the update and consents to the inclusion of the exploration information in the form and context in which it appears here. He is a Competent Person for the purposes of the reporting of these results.

 

Enquiries:

 

Eurasia Mining Plc

Christian Schaffalitzky/Michael de Villiers

+44 (0)207 932 0418

 

WH Ireland Limited

Katy Mitchell/Liam Gribben

+44 (0)161 832 2174

 

Beaufort Securities

Elliot Hance

+44 (0)207 382 8300

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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