- Long track record in the mining and exploration business
- Significant experience of operation in Russia
- Now in production
- Major upside still on the table
What Eurasia Mining does
Eurasia Mining plc (LON:EAU) is one of the AIM market’s longest-standing mining constituents. In recent years the company has made a speciality of moving precious metals assets in Russia up the value chain, from the exploration stage, through a process of economic assessment and into production.
What Eurasia Mining owns
Eurasia is currently in production at its West Kytlim platinum and gold mine in the Ural mountains. This operation is being run on Eurasia’s behalf by a contractor, with a 65/35% revenue split in favour of the contractor.
Eurasia also owns the Monchetundra platinum and palladium deposit on the Kola peninsula in north European Russia, which boasts a resource of two million ounces, and which is currently the subject of economic studies. The in-situ value of the metal is estimated at over US$2bn.
The third significant asset owned by the company is the Semenovsky gold tailings project, which contains three million tonnes of sand grading 1.2 grams per tonne gold.
The West Kytlim project is currently gearing up for the 2019 production programme, once the winter thaw gets underway. In 2018 the Russian operators produced 165 kilogrammes of raw platinum from the project, exceeding expectations by 65%, so there is now a good track record of competence being established at the project.
At Mochetundra, the mining license is now in place, as is an engineering, procurement and construction contract with a major Chinese contractor. The next logical step is to commence production.
Chief executive Christian Schaffalitzsky strikes a positive note
"We are pleased to be working again with the team that proved so effective during 2018,” Schaffalitzsky said after the programme of works for West Kytlim was announced in January 2019.
“They were a very efficient operator last year, with a zero accident record, and financially motivated to develop the asset in a sensible manner. Furthermore, we are looking at ways to improve metal recoveries, based on the measured efficiency of the existing process flowsheet.”
And at Montechundra he’s equally upbeat: “Again we wish to thank the officials involved in moving the license documentation along so soon after the final decree from Prime Minister Medvedev. We look forward to advancing the project through construction now that the final permits are entirely in place.”