Eurasia Mining (LSE:EUA) was sitting at 0.45p in midday trading on Tuesday after providing an update on developments at its Monchetundra project in Russia over the first half of the year. The company is advancing the asset towards production after being issued a mining permit for its 2Moz palladium, platinum, and gold deposit in November last year.
In Tuesday’s update, Eurasia said it is making progress on the production preparation activities stipulated by its engineering, procurement, and construction contract with Chinese firm Sinosteel. As previously outlined, this covers 85pc of a total contract value of $176m.
Eurasia also said it has now submitted a flanks licence for submission to Rosnedra in September on areas surrounding the mine sites. As a minimum, the business expects this application to cover on-strike extensions of identified ore bodies where mining can continue. Furthermore, it believes that numerous deposits exist adjacent to Monchetundra that may contribute directly to the long-term development of a PGM-base metal operation. These prospects and potential applications are now being reviewed in detail, with further claims to be made going forward as appropriate.
Elsewhere, Eurasia revealed that the detailed project design report for Monchetundra – including open pit design and a comprehensive land survey of the project’s two open-pit sites – is now ready. As part of this, provisional locations for surface facilities and related infrastructure have been determined and approved by government agencies. Likewise, Eurasia’s partner Central Kola Expedition has prepared a work programme for trial mining locations that can begin under Russian legislation on already-approved C2 category ore body.
Finally, Eurasia said it had signed an agreement with Intec International Projects to look at process improvements to enhance Monchetundra’s profitability further.
The company’s chairman Christian Schaffalitzky said: ‘Our team and our contractors at CKE continue to progress our plans for the development of this palladium dominated open pit mine. It is our intention to significantly increase activity on site over the next 6 to 12 months to accomplish activities stipulated by the EPC with Sinosteel as TGK's responsibilities to initiate the payments from Sinosteel to TGK. We look forward to launching this mine walking in the steps and learning from our experience from the successful mine launch at West Kytlim'.
Author: Daniel Flynn
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