Announcement • Dec 01
Eurasia Mining plc Announces Completion of the Detailed Design (Technical Project) for Its Open-Pit Copper-Nickel-PGM-Gold Monchentudra Asset in the Arctic
Eurasia Mining plc announced completion of the detailed design ("Technical Project") for its open-pit Copper-Nickel-PGM-Gold Monchentudra asset in the Arctic ("MT"). The MT project was awarded its mining licence on 20 November 2018 following the approval of its Feasibility Study, Reserves and Resources on 3 April 2017. In summary, the combined Reserves and Resources totalled 1.9 million ounces of palladium equivalent (palladium and platinum) with important additional gold, nickel and copper, at two open-pittable locations. The state approved totals were granted using the local standard classification. The licence was issued to Terskaya Mining Company (TMC), Eurasia's 80% owned subsidiary, and is valid to 7 December 2038, for the extraction of palladium, platinum, gold, nickel and copper. The Technical Project for MT was completed by 'Geolinvestproekt', the specialist contractor that previously carried out the detailed design for the West Kytlim mine, obtaining all necessary approvals and overseeing its successful launch. Geolinvestproekt brings over 15 years of experience in detailed design, primarily for major mining companies and in completing the MT technical project, drew on the following key inputs: Results from comprehensive test programmes by Gipronickel (an engineering arm of Norilsk Nickel) include, but not limited to, physical and mechanical tests to determine the average rock hardness, geotechnical studies, hydrology, and the general physical properties of the rocks and ores. Detailed metallurgical testwork carried out by Mekhanobr Engineering. Mekhanobr Engineering has over 100 years of experience (originating from the Mekhanobr Institute founded in the early 20th century) in the design and engineering of base and precious metals processing plants, mining-and-processing complexes, tailings storage facilities and related infrastructure. More than 250 mining-and-processing operations worldwide have been constructed using Mekhanobr- origin designs and technologies. Completion of drillhole digital database, wireframe and block modelling, and open pit optimisations, incorporating the detailed mining plan developed by the Central Kola Expedition ("CKE"). CKE has extensive Arctic experience, having working for mining majors, including Norilsk Nickel and Rusal as well as for international mining majors including Anglo American, Barrick, B2Gold and Kinross. CKE has worked closely with Eurasia for over 20 years since commencing work in the Arctic. Wardell Armstrong International's audit of MT drill core storage at the warehouse owned and managed by CKE, together with review of quality assurance and quality control procedures and the work carried out by Gipronickel, CKE and other professional contractors engaged by Eurasia. Current Status Geolinvestproekt is now overseeing the state approval process of the Technical Project, which is now imminent. A separate announcement will be made upon the approval. Next Steps Once the Technical Project is approved, the MT mine construction can commence further to the EPCF turnkey contract signed with Sinosteel, a part of China Baowu Steel Group (Baowu Group). This state-backed merger made Baowu Group the world's largest steelmaker with Sinosteel's expertise in mining, trading and turnkey mine construction bolstering the Baowu Group's portfolio. The financing package is a part of the signed EPCF contract (EPCF stands for Engineering, Procurement, Construction, and Financing).
