Ministry of Natural Resources Approval Received

RNS Number : 1375F

Eurasia Mining PLC

22 April 2014

 



Eurasia Mining plc

("Eurasia" or the "Company")

Ministry of Natural Resources approval received for multi-site operation Reserves

Further to the statement released on the 10^th March 2014, announcing GKZ (State Reserves Commission) approval of new reserves at West Kytlim, Eurasia is pleased to announce that RosNedra (Ministry of Natural Resources) has now approved and registered the reserves on the State Balance. This release also quantifies Eurasia's expanded ore reserve base.

As has been previously outlined, the approval of increased mineable Reserves at a number of locations within the Tylai-Kosvinsky Placer permits development of multi-worksite operation; this represents a significant departure from previously envisaged single site production. Prefeasibility economic assessment, completed as a requirement for reserves approval, demonstrates that production costs for the multiple site operation should fall well within the lowest cost quartile of operating costs for platinum producers worldwide. 

The ongoing increase of Reserves at West Kytlim is achieved through a process of proving ore continuity within discovered areas of P category resources by completing detailed infill drilling and trenching. Significant P category resources remain within the 171 Km² exploration licence area. The Company intends to continue to convert resources to Reserves in parallel with production and to thereby expand the operation's mine life.

Drilling during 2013 has increased C₁ and C₂ Reserves of contained raw platinum by 35% from 1,689Kg (RNS 12^th April 2013) to 2,283Kg (80,495oz). This increase arises from conversion of previously established P Resources at TK Area 9 West. During 2013 Eurasia completed 1,043 meters of core drilling, 17 meters of pitting and 95.4m of large diameter verification drilling using a pit digger drill.

The following table shows a breakdown of the current state approved reserves by area:

TK(Tylai-Kosvinsky) Placer Area	Avg Pt grade, mgm/m3	Contained Raw Pt, (kg)
TK Area 1 (C2) *	304**	748.97***
TK Area 2  (C1+C2)	358	319.61
TK Area 3 (C2)	351	123.89
TK Area 9 East (C2)	233	534.06
TK Area 9 West (C2)	290	556.22
Total C1 +C2	288	2,282.75

*Alluvial deposits are not considered under the JORC Code. C₁ and C₂ Reserves are defined by Russian national standards for mining. Data included under this standard must be approved by RosNedra. C category Reserves broadly correlate to Proved or Probable Reserves, while P category Resources correlate to Inferred Resources under the JORC code.

** Milligrams per cubic metre, (abbreviated to mgm/m³), is a unit measure of ore grade in platinum and gold placer deposits.

***Raw Platinum, as described by RosNedra, is iso-ferroplatinum, and in Uralian ores typically grades 72-79% chemically pure platinum. The exact content of chemically pure platinum at the TK placer will be established in further laboratory work.

Minor gold accumulations within the platinum placer also contribute an additional 40 kgs of Gold to the current balance Reserves.

Managing Director Christian Schaffalitzky comments;

'The 35% increase in our approved reserve base follows on from a 123% increase in 2012/13 and is a testament to the knowledge and experience of the geologists and other staff at our Ekaterinburg office. 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. In addition Eurasia is using outcomes of our exploration success at West Kytlim in an assessment of a number of identified alluvial platinum opportunities within the Urals Platinum Belt.'

Eurasia is focused on developing PGM mining projects in Russia and the FSU. West Kytlim is one of two licences the company operates in Russia.

Consent for release

Christian Schaffalitzky, FIMMM, PGeo, 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.

For more information please contact:

Eurasia Mining:

Christian Schaffalitzky / Michael de Villiers

Tel: [phone]

Katy Mitchell, WH Ireland Limited

Tel: [phone]

 

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