Eurasia Mining plc (LON:EUA) has been given until end-August to make up its mind on the Semenovsky tailings project in Russia.
The AIM-listed company has a option to take a 67% stake and is mulling the best way process the ore at the dump to extract gold and silver.
Reserves amount to 2.99mln tonnes, which would mean .5 tonnes of gold and 49.3 tonnes of silver based on the average grades.
A 'low-tech' circuit liberating 40% of gold in cyanide leach tanks and recovering gold with a manufactured resin was the basis of a previous study for an 8.5-year mine life.
This would see an average of 4,938 ounces of gold and 682,000 ounces of silver produced per annum and generating total revenues of US$57mln at a gold price of $1,135 per ounce.
Free cashflow after allowing for processing costs, land rehabilitation and relevant taxation would total US$33mln or US$3.8mln per annum, with a net present value of US$15mln.
Bulk transport another option
Eurasia said today, however, that it is looking at another option of bulk transport and gold recovery at an industrial scale.
This operation, which is now being costed, comprises crushing, grinding and leaching circuits, with subsequent recovery of gold from leach solutions via a Merill Crowe Machine.
At Semenovsky, this would involve bypassing the initial crushing and grinding circuits and delivering ore direct to the leaching circuit.
Christian Schaffalitzky, Eurasia’s chief executive, said: "I am delighted that Eurasia's exclusive right to acquire up to 67% of the Semenovsky Tailings Project has now been extended to end of August 2017 as this ensures sufficient space for the Company to continue its development program.”
Shares rose 10% to 0,55p.
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