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Eurasia Mining one step closer to production at Semenovsky

Drill samples from Eurasia Mining's Semenovsky tailings project will go towards plant design and mvoe the company one step forward towards production

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Semenovsky could deliver US$57 mln in revenues from gold and silver production

Fire assay results are now back from Eurasia Mining plc’s (LON:EUA) Semenovsky tailings project in Russia and they make for pretty interesting reading.

The company drilled five holes into the old mine waste workings at Semenovsky, looking principally for gold and silver, and collected a total of 54 samples.

These have now been analysed in a laboratory in Chita in the Far East of Russia, and have shown average grades of 1.16 grams per tonne gold across the tailings dam, as well as 17.3 grams silver.

The results are in line with previous work undertaken by Eurasia at Semenovsky and support previous resource calculation made by the Company.

Back in November of 2015, when Eurasia first announced the acquisition of Semenovsky it stated that internal work had indicated that likely revenues from gold and silver content in the project would amount to US$57 mln, and that the internal rate of return would run at US$65 mln.

That number was set against an estimated start-up cost of just US$5 mln, given that the ore at Semenovsky is from waste and requires little in the way of crushing or grinding.

And Eurasia’s thinking about Semenovsky has been well endorsed by the shrewd team at Metal Tiger (LON:MTR), which has joint ventured the project on equal terms.

These results will add primarily to Eurasia’s store of metallurgical knowledge, and will, the company said, “go towards planning the design of the processing plant.”

Eurasia’s managing director Christian Schaffalitsky summed up the situation succinctly: “We now look forward to results of gold recovery tests which will allow us to refine the design of the process plant and optimize the mining operation," he said.

Separately the company has also submitted a reserves report to the Russian authorities for approval, and this continues to make its way through the appropriate channels.

 

Quick facts: Eurasia Mining PLC

Price: 29 GBX

AIM:EUA
Market: AIM
Market Cap: £800.02 m
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