Eurasia Mining (LON:EUA) has announced formal receipt of a mining permit for its West Kytlim platinum deposit in Russia.
All necessary licence documentation is now in hand to allow preparations for mining to start at the alluvial deposit, with first mining and revenue generation scheduled to start in 2016.
Christian Schaffalitzky, managing director, said: "Formal award and receipt of the Mining Licence is a monumental step forward.”
“Production of alluvial platinum from West Kytlim will provide incoming cash flow from the sale of platinum concentrate.
“This cash flow is an important step to Eurasia Mining becoming a self-sufficient and self-financed mineral exploration, development and production company.
Interest is still being received from a number of parties in respect of our Monchetundra licence, also in Russia, Schaffalitzky added.
The metal at West Kytlim occurs as nuggets in sand and gravel river deposits and can be released by washing.
Development is expected to begin with an initial diesel powered operation with a drag line operation to be phased in later. Electrically powered drag lines require renovation of a power line to the site and installation of a local substation.
The company estimates West Kytlim will operate for a minimum of 10 years and produce up to 5 tonnes of raw platinum.
A one-off lump-sum payment due to the government, to be paid within 30 days of registration of the licence, is r2.127mln, approximately £24,000.
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