Eurasia Mining PLC has told investors that it has lodged a mine permit application for the Monchetundra platinum/palladium project on Russia’s Kola peninsula. A feasibility study, combining both open pit targets West Nittis and Lopishnune was completed during 2015 and 2016 and was approved with associated reserves in April of this year. It is Eurasia’s intention to develop the exciting asset to production by 2020. The company added that it has continued to mine at West Kytlim, though it will imminently close for the 2017 season. Additionally, new exploration licences have been made for an area adjacent to West Kytlim.
All necessary contracts covering mine design, blasting, mine surveying, ecological monitoring and land rehabilitation have now been assigned to third parties. Assigning these contracts is a necessary step towards a successful mining license application. Off-take agreement negotiations are progressing with Glencore, Sinosteel (China’s state owned EPC contractor and a major mining investor and commodities importer into China) and other major players that cannot be disclosed yet, for the entirety of the life of mine output. It is hoped an agreement will be reached with one of these parties in the near future and this agreement will integrate with Eurasia’s already agreed, and signed, Engineering, Procurement, Construction and Financing (EPCF) contract with Sinosteel which includes financing of $150 million.
Global, state approved Reserves and Resources within the Monchetundra Project comprise Russian standard C1 and C2 categories of 55.9 t (1.9 Moz) palladium equivalent (palladium and platinum) with major additional gold and base metal credits, at two open pittable locations. Reserves are now fully compliant, as defined under GKZ standards, Reserves and Resources have been entered to the state balance and a Discovery Certificate issued to Eurasia.
“We are very pleased to have submitted the Monchetundra mining license application, our second application in just over three years,” said Christian Schaffalitzky, Executive Chairman. “We are hopeful for a reasonable processing time and have the in-house knowledge and experience to make the process as smooth as is possible. We look forward to updating on the application’s progress in due course.”
Schaffalitzky added: “we continue to make progress at our West Kytlim Mine which is expected to temporarily close for the winter season, as usual, before the end of the month. “Production volumes are considerably less than anticipated due to continued optimisations and modifications required to the machinery on-site. We are actively working on new commercial arrangements to upscale the operation for the 2018 mining season.”