Eureka Mining Plc
13�Jan�2006
Acquisition of large copper/gold project in Southern Russia
Eureka Mining Plc today announces the acquisition of 51 per cent. of the Chelyabinsk Copper/Gold Project in Southern Russia ("the Project").
Highlights
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Three separate deposits with a total C1 and C2 resource of 562 million tonnes at 0.66 per cent. copper equivalent*;
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Estimated contained metal of 3.32 million tonnes of copper, 3.26 million ounces of gold and 98.9 million pounds of molybdenum;
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51 per cent. of the Project has been acquired by Eureka for US$250,000 with an option to acquire the remaining 49 per cent. at any time up to Project financing for US$6 million;
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Preliminary mining studies on two of the deposits have identified high grade ore in excess of 1 per cent. copper equivalent* in the initial years, with low mining strip ratios;
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The Project is located close to the major industrial centre of Chelyabinsk in the Urals region of Southern Russia, which has excellent infrastructure with power, rail, road, water and gas adjacent to all three deposits;
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A feasibility study will commence immediately and will address two development projects. Firstly, development of up to a 15 million tonne per annum mine and concentrator and secondly, up to a 3 million tonne per annum mine and SX/EW project.
*Based on a copper price of US$0.90c per pound and a gold price of US$425 per ounce.
CEO David Bartley said, �The Company has been reviewing the Project for several months and we have completed extensive geological, mining, metallurgical and infrastructure studies. We are excited by the size, grade, infrastructure and location of the Project and we believe that this is a low risk acquisition that has very considerable upside.�
Source: Eureka Mining Plc announcement
Kerman & Co LLP, led by Michael Bennett, advised Eureka Mining Plc on the acquisition.
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