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Eurasia Mining update on West Kytlim platinum, palladium, rhodium, iridium and gold mine

Mining News - Published on Wed, 30 Jan 2019

Image Source: International Mining
Eurasia Mining has updated shareholders on the West Kytlim platinum, palladium, rhodium, iridium and gold mine, and the plans for the coming year. A contract for the 2019 season has now been agreed between Eurasia's subsidiary Kosvinsky Kamen ('KK') and Uralmetmash (formerly Techstroy) to carry out mining of PGM and gold at the West Kytlim mine.

Highlights:

- Work is expected to commence on site immediately, with first concentrate production expected in April, as and when running water becomes available

- Work to continue initially at the Kluchiki area, where work finished on schedule in November 2018

- Platinum revenues to be split on a 65%/35% basis, in favour of the contractor

- Refinery contract between KK and the Urals precious metal refinery also renegotiated to include an extra percent payment on London Metal Exchange ('LME') Platinum prices (now at 98% LME, from 97% in 2018)

The Directors of Techstroy, the contractor employed at the West Kytlim mine for the 2018 season who achieved production well in excess of target (a total of 165kg raw platinum against a targeted 100kg), have now registered a new company, Uralmetmash, as a special purpose vehicle to focus on the West Kytlim Project. The roles and responsibilities of each of the parties shall remain largely as before, with Uralmetmash responsible for pit development, mining, ore trucking, washing and disintegration - while KK remain responsible for concentrate upgrade, shipment of mine product and distribution of metal sales revenues.

Commenting on this agreement, Executive Chairman Christian Schaffalitzky said: "We are pleased to be working again with the team that proved so effective during 2018. They were a very efficient operator last year, with a zero accident record, and financially motivated to develop the asset in a sensible manner. Furthermore, we are looking at ways to improve metal recoveries, based on the measured efficiency of the existing process flowsheet. We look forward to updating shareholders on progress and also our longer term development strategy for the West Kytlim reserves and resources before the season commences."

Source :

Posted By : Rabi Wangkhem on Wed, 30 Jan 2019
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