Eurasia Mining plc (LON:EUA) has had the reserves report and feasibility study for its Monchetundra palladium and platinum project approved by the Russian State Agency for Subsoil Use (Rosnedra).
Using Russian standard C1 and C2 categories, the reserves amount to 55.9 tonnes (1.9mln ounces) palladium equivalent (palladium and platinum) with major additional gold and base metal credits, at two open pits.
They are the first to be approved on the Monchetundra Licence said Christian Schaffalitzky, managing director, who added it was “an incredibly important development” and had come through much quicker than we had anticipated.
"The application for the award of a Discovery Certificate has already commenced, and following that, Eurasia will be entitled for a Production License.
"Our proposed route to development is similar to the model applied to our already producing mine at West Kytlim.
“As the Monchetundra open pit mine is significantly larger, a management company with experience in beneficiating platinum group metals ("PGM") ores will be employed. These discussions have been underway for almost one year and are now advanced.
Much of the 30km of drilling on the licence so far was financed through a joint venture with Anglo American Platinum, which sold its equity to Eurasia in 2014.
“Since that time, Eurasia have managed to continue to advance the project through to the Feasibility Study and Reserves approval, Engineering Procurement and Construction ("EPC") contract and financing - a considerable undertaking for an exploration company with a very limited budget.”
Shares rose 8% to 0.49p.
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