Russian regulatory authorities have approved Eurasia Mining plc’s (LON:EUA) feasibility study of permanent conditions for the Kluchiki Area of the West Kytlim project, where mining is currently ongoing.
The feasibility of permanent conditions is equivalent to a definitive feasibility study (DFS) in Western mining reporting terms.
A revised reserve calculation, prepared in accordance with the DFS is also scheduled for approval by the Russian Government, in accordance with the Russian mining standard. The reserves at Kluchiki were recalculated following infill drilling conducted in 2018.
Furthermore, a new strategy for reserves approvals has been adopted by the company going forward. All Russian category C2 Reserves at all areas on the West Kytlim license are expected to be upgraded to C1 category in a single drilling program, which is fully funded.
"The new drilling program is designed to save time and cost by reducing the reporting required for approvals at individual sites,” said chairman Christian Schaffalitzky.
“It also creates the potential to open the project up to much greater production volumes and, by potentially lifting the majority of ore to higher reserve categories, could increase the market value of the asset. We look forward to updating on the program as it progresses throughout this year."