Development of a 2mln ounce platinum and gold project is already in train with engineering contracts in place for open-pit mines at Loipishnune and West Nittis, but Eurasia believes there is a high chance the mineralisation will continue on-strike into this flanks area.
“On receipt of the flanks area exploration license these areas will become high priority brownfield exploration targets, which the directors believe may increase the resources for the project severalfold,” said Christian Schaffalitzky, chairman.
Significant resource potential has been identified over the 8 sq km area in Russian state archives, notably in the Nittis Kamuzhaya Travanya (NKT) Massif area to the north of West Nittis, which contains palladium, platinum, gold, nickel, cobalt and copper.
The area between the Loipishnune and West Nittis deposits is also seen as having significant potential.
“It has always been quite clear that the mineralisation at West Nittis was, in fact, clipping the edge of a much larger potential target in NKT, as a contact hosted PGM target - in fact, the area was partially mined for high grade copper and nickel veins in the past but never systematically explored for palladium and other PGMs,” said Schaffalitzky.
“Whilst outlining the resource at West Nittis the area was not available as an exploration license.
“Similarly, at the Loipishnune deposit there is strong support for further on-strike extensions to our identified ore body which were not sufficiently outlined prior to the submission of our mine plan.”
Eurasia is now running its West Kytlim mine on an owner basis and receives 100% of metal revenues as opposed to 30-35% up to September this year.
At Monchetundra work is now ongoing to tie up the remaining work required to commence the ramp-up towards production.
A foreign exchange gain helped Eurasia swing into the black in the half-year to June, with a net profit of £25,000 compared to a loss of £3.24mln.