JOHANNESBURG (miningweekly.com) – The West Kytlim alluvial gold and platinum mine, in the Ural mountains of Russia, has started the 2018 mining season on a high note, with 4.6 kg of raw platinum having been produced in the first six days of production.
Aim-listed Eurasia appointed Techstroy to mine at West Kytlim and executive chairperson Christian Schaffalitzky on Thursday praised the contractor’s performance.
“We are very pleased at the level of professionalism and experience shown by the newly appointed contractor in the opening weeks of this year’s mining season. The directors believe that the 4.6 kg produced over the first six days is remarkable considering the total production of just 6 kg by our previous contractor in the 2017 mining season,” Schaffalitzky said in a news release.
Production started last Thursday, with an initial ‘first fill’ test successfully completed. 500 m3 of gravels were processed to test the new scrubber/tromell arrangement. The concentrate produced was collected and upgraded at the on-site laboratory. This first sample returned 428 g raw platinum, for an average grade approaching 1 g/m3.
Several successive days of continuous production have followed, with 1.3 kg of raw platinum produced on Wednesday.
Eurasia reported that shipments to the refinery in Ekaterinburg would start on Friday.
West Kytlim is close to operating at 2 000 m3/d, a rate at which it will operate until the end of the mining season in November, or when the platinum and gold bearing reserves at Malaya Sosnovka are expired. At that point, mining will shift to the larger Kluchiki site, which contains 893 000 m3 of gravel.
Besides the West Kytlim project, in which Eurasia holds 68%, it also owns the Monchetundra project, which has reserves and resources of two-million ounces of platinum equivalent and a total in-situ metal value of more than $2-billion.
The Monchetundra permit is in the final stages of the approvals process, Schaffalitzky reported.
CAPITAL RAISING
Meanwhile, Eurasia also said that it had raised £500 000 through the placing of 166 666 667 new ordinary shares at 0.3p each, with an one-for-one attached warrant.
About £300 000 of the gross proceeds raised would be used to reduce the loan arranged by Riverfort Global Capital to £440 000. The balance of funds raised would be used for working capital.