Further to the statement released on the 10th March 2014, announcing GKZ (State Reserves Commission) approval of new reserves at West Kytlim, Eurasia is pleased to announce that RosNedra (Ministry of Natural Resources) has now approved and registered the reserves on the State Balance. This release also quantifies Eurasia's expanded ore reserve base.
As has been previously outlined, the approval of increased mineable Reserves at a number of locations within the Tylai-Kosvinsky Placer permits development of multi-worksite operation; this represents a significant departure from previously envisaged single site production. Prefeasibility economic assessment, completed as a requirement for reserves approval, demonstrates that production costs for the multiple site operation should fall well within the lowest cost quartile of operating costs for platinum producers worldwide.
The ongoing increase of Reserves at West Kytlim is achieved through a process of proving ore continuity within discovered areas of P category resources by completing detailed infill drilling and trenching. Significant P category resources remain within the 171 Km2 exploration licence area. The Company intends to continue to convert resources to Reserves in parallel with production and to thereby expand the operation’s mine life.
Drilling during 2013 has increased C1 and C2 Reserves of contained raw platinum by 35% from 1,689Kg (RNS 12th April 2013) to 2,283Kg (80,495oz). This increase arises from conversion of previously established P Resources at TK Area 9 West. During 2013 Eurasia completed 1,043 meters of core drilling, 17 meters of pitting and 95.4m of large diameter verification drilling using a pit digger drill.
Minor gold accumulations within the platinum placer also contribute an additional 40 kgs of Gold to the current balance Reserves.
Managing Director Christian Schaffalitzky comments;
‘The 35% increase in our approved reserve base follows on from a 123% increase in 2012/13 and is a testament to the knowledge and experience of the geologists and other staff at our Ekaterinburg office. The project is now set to achieve the economies of scale we had aimed for and we look forward to further reserves increases that would extend the life of mine of the project further. In addition Eurasia is using outcomes of our exploration success at West Kytlim in an assessment of a number of identified alluvial platinum opportunities within the Urals Platinum Belt.’
Eurasia is focused on developing PGM mining projects in Russia and the FSU. West Kytlim is one of two licences the company operates in Russia.