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Eurasia updates on three projects

By BFN News | 08:54 AM | Thursday 03 November, 2016


Eurasia Mining has issued an update on progress on its three projects in Russia. Eurasia's West Kytlim platinum and gold project is now in production, first shipments of concentrate began in early September. The Monchetundra Project is in late stage development and has been bolstered by an Engineering, Procurement, Construction and Commissioning contract with Sinosteel Equipment and Engineering Co Ltd, while the Semenovsky Gold in Tailings Project remains under review as metallurgical test work for cyanide gold recovery nears completion. Managing director Christian Schaffalitzky said: "We have endeavoured to replicate the structure, which has been proven to work at West Kytlim, at the Monchetundra Project with an additional contract to cover the considerable capital outlay. "We believe this presents a route to project development which minimises exposure for Eurasia, further shareholder dilution, and allows the project to be developed despite a continuing resource sector downturn. "We believe the transaction is very much on trend considering Sino-Russian relations over the past number of years. Chinese firms are increasingly active in the Russian market in rare earths, PGM, base metals and precious metals. "It was our intention to capitalise on this evolving relationship and to offset some of the development risk to a suitably qualified and experienced engineering firm with considerable banking and political reach. Sinosteel is, under the terms of the contract, highly motivated to deliver the plant as stipulated in the contract, because they will be responsible for $150 million until they reach the production level of 130,000 oz of platinum equivalent per annum. "Further outsourcing the running of the mine to an international company with experience in operating mines is now a top priority for Eurasia. Engaging such a group to act as owner's representative during plant construction aims to ensure the plant is built in line with best international practice. We look forward to updating on developments in this regard in the near term." At 8:54am: (LON:EUA) Eurasia Mining PLC share price was -0.05p at 0.68p Story provided by StockMarketWire.com

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