Eurasia Mining PLC (AIM:EUA) continues to consider the sale of its Russian assets, including the West Kytlim mine, the Montechundra project, the NKT project and the Nyud project.
The company’s quarterly update highlighted how development work at these projects is proceeding, in spite of the ongoing war in Ukraine.
On the ground at West Kytlim, the electric dragline has now been tested.
Stripping by the electric dragline is ongoing at site, while further operations await a general thaw and abundant running water in order to commence washing of gravels.
The power line and electric dragline projects, both completed last year, are expected to have a positive impact on mining operations for 2023, with a significant reduction in operating costs expected. The diesel requirement over the winter period was reduced in comparison to the same period in the prior year, with site buildings now running on hydro-derived grid power.
The mine product - a concentrate containing platinum, palladium, iridium, rhodium and gold - from the 2022 mining season remains safely stored for later refining.
Final decisions regarding the optimal strategy for and the timing of the refining of the concentrate haven’t yet been made.
Meanwhile, the definitive feasibility study for Monchetundra was submitted in December 2022 and notice acknowledging receipt from Rosnedra, the relevant state authority, was received by the company. Eurasia recently received a set of questions from the expert panel of the State Reserves Committee, to which it responded. A final opinion on the DFS, to be provided by Rosnedra, is anticipated in the coming weeks.
Work at NKT, where the company has 305,000 tonnes of nickel, 143,000 tonnes of copper, and 57 tons of platinum group metals and gold, remains ongoing.
At Nyud, the original agreement has now expired, and the future of the project remains under discussion.
"We continue to advance our projects in the Urals and Kola Peninsula, despite the ongoing conflict in Ukraine,” said Christian Schaffalitzky, executive chairman of Eurasia.
“The winter stripping programme, utilising our new electric dragline, continues at West Kytlim and we anticipate a final opinion on the Monchetundra DFS from Rosnedra in the coming weeks. Concurrently, Eurasia is committed to pursuing the possible sale of our Russian assets. This remains our priority and the board shares the frustration of our shareholders at the duration of this process. We appreciate the ongoing support of our shareholders and look forward to providing further updates regarding future developments as appropriate."
The company's had £3mln in cash at the end of March 2023. It also still holds the 2022 West Kytlim mine product with an approximate value of £5.6mln.