Eurasia Mining updated the market On Monday 22nd April with confirmation that the Company’s reserves at their West Kytlim alluvial platinum project have been approved by Rosnedra (Ministry for Natural Resources) and registered on to the State Balance sheet. Furthermore the company also confirmed that the approved Reserves base has now materially increased by 35%, following on from a 123% increase in 2012/13.

So what do we make of this latest news? Firstly, subsequent to the Company's previous  announcement of 10th March, today's news gives us confidence that the Company is continuing to make material progress with the Russian licensing process, which up till recently has been excruciatingly slow and frustrating.

 

Secondly it demonstrates to us that, whilst the Company had been hampered by the pace of progress on the licensing front, Management has used this time productively in the interim by materially increasing the size and scale of its Reserves of raw platinum, which now stand at 2,283Kg.

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

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.
 

With the reserves now registered on the State Balance sheet, the next step for the Company is to file for a Discovery Certificate – this being the precursor for the final mining license and maiden production.

Although timescales are very much dependent on the relevant authorities, it is possible for a Discovery Certificate to be issued within 2 months and the production license within 2 to 3 months.  For further info refer to the recent MiningMaven Q&A session with Mr Schaffalitzky here.