Reserve drilling at Kola PGM Project
Sor�ng Pla�num nuggets at West Kytlim Pla�num and Gold Mine
Drilling in 2016 at Semenovsky Gold Tailings Project
Pt78
Platinum195.08
Au79
Gold196.97
Pd46
Palladium106.42
May 2017
This document, either presented in person or offered as independent reading material, (the “Presentation”), and the information contained herein ,does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in Eurasia Mining PLC (“The company”), nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever .The Presentation does not purport to contain all information that a prospective investor may require and it may be subject to updating, revision and further amendments..
This Presentation does not constitute a recommendation regarding the shares of the Company. No part of the contents of this presentation is to be taken as any form of commitment on the part of the company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the company be responsible for any costs losses or expenses incurred in connection with any appraisal or investigation of the company. In furnishing this presentation, the company does not undertake or agree to any obligation to provide the recipient with access to any additional or to update this Presentation or to correct any inaccuracies in , or omissions from this presentation that may become apparent.
This Presentation has been prepared by and is the sole responsibility of the Company although reasonable care has been taken to ensure that the facts stated in the presentation and in this document are accurate to the best of the directors knowledge, information and belief and that the opinions expressed are fair and reasonable. No reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by the Company (or by any of their respective directors, officers, employees, agents or advisers (as the case may be)) as to the accuracy of the information or opinions contained in, or as to the completeness of this document. Prospective investors are encouraged to obtain separate and independent verification of information and opinions contained herein as part of their own due diligence.
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Disclaimer and confidentiality
Corporate Strategy
• 20 years on the AIM market (EUA.L) focussed on Platinum Group Metals (PGMs) and Gold
• 4 PGM discoveries in Russia – 2 in the Urals (one of which is West Kytlim) and 2 in Kola (one of which is Monchetundra)
• Alluvial mining and tailings reprocessing are proven routes to success for junior explorers/miners
Focus on Russia - Russian teams
with knowledge of Russian system
ў West Kytlim Platinum Mine developed through 2016, reopened April 2017
ў Monchetundra Maiden Reserve - GKZ Approval March 2017, E.P.C contract in place
ў Metallurgy Study complete at Semenovsky Gold Tailings Project- Under negotiation
Portfolio or pipeline of projects at various
stages of development
Make discoveries / Develop exploration
targets to production, sale or JV
Eurasia Mining Plc May 2017 3 | |
Projects Overview
Yekaterinburg
Moscow
Barents Sea
R u s s i aPRODUCTION : 21Km : 75%
• Trial mining 2016 - first full season 2017
• Contract Mining with 70/30 split of gross revenue
DEVELOPMENT : 1.5Km : 33/67%
DEVELOPMENT 36Km : 80%
џ EPC contract with Sinosteel now in place
• Approval of C1/C2 Reserve > > Discovery Cert Application mid 2017
2
2
2
Eurasia Mining Plc May 2017 4 | |
• Near term production potential, modest capital and opex consideration
• EUA Study proves concept - Under negotiation
Monchetundra Platinum Group Minerals
West Kytlim Alluvial Platinum & Gold
Semenovsky tailings Gold & Silver
Demand
• Robust or steady forecasts in all demand sectors for 2017 BullionVault launched Platinum platform Q1 2017
• EV’s predicted to be only 1-2% of global sales by 2020
• Euro 6 (EU Emissions legislation) being rolled out in Europe and in India. Diesel still 49% of Euro car market
џ Diesel bashing unfounded - 11% of Nox in London generated from diesel engines, gasoline cars generate 7%
Market outlook for Platinum
Eurasia Mining Plc May 2017 5 | |
Supply
џ Recent price softness despite strong fundamentals and under-supply - 4 years of deficits (average 5%)
џ Above ground stocks now < 2 moz, from 4 moz in 2012
џ 120k oz deficit forecast for 2017, and to 2020
џ Supply from SA continues to show more downside risk than upside potential
џ 80% reduction in SA miner capital expenditure - slow turn aroundAutomotive Jewellery Industrial
Chemical Investment
35%
41%
13%
7%4%
2016 Demand
8,235 koz
1% YoY(2015-16)
2017 forecast flat
2017 forecast 1%
Source : SFA Oxford/ World Platinum Investment Council, Mar ‘17
2009 2010 2011 2012 2013 2014 2015 2016 2017f 2018f
800
600
400
200
0
-200
-400
-600
-800
koz
2011: $1,720/oz 2016: $1,000/oz
Platinum Market Balance (000 oz)
Above ground stocks
Light duty emissions control legislative roadmap
Europe
North American EPA
North American CARB
Japan
South Korea (Gasonline)
South Korea (Diesel)
China (Beijing)
China (Nationwide)
India
Indonesia
Thailand
џ Autocatalysts represent 41% and 76% of platinum and Palladium demand
џ Ongoing global rollout of ever tighter emissions control legislation for Co2 / NOX / Particulate emissions
џ 3-7 grams Platinum per car - Autocat demand is inelastic
Emissions control legislative roadmap - significant growth driver
Eurasia Mining Plc May 2017 6 | |
2015 average Pt price $1052,91/oz
Market outlook for PGM
Eurasia Mining Plc May 2017 7 | |
џ ll-in cost curve shows that 80% of platinum producers are unprofitableA
џ Average 2015 All -in costs amount to $1,534 Pt eq.oz
џ Polymetal investing in Open Pittable PGM Projects - Viksha in Karelia - 9m Pd eq.oz
џ Russian producers have lower cash costs, Miner/Commodities trader Glencore closed Eland Mine (SA) in 2015 citing falling prices and more difficult operating conditions
2015 Global Platinum Equivalent All-in Cost Curve
Projects Overview - West Kytlim
Yekaterinburg
Moscow
Barents Sea
R u s s i aPRODUCTION : 21Km : 75%
• Trial Mining 2016 - First full season in 2017 now underway
• Contract Mining with 70/30 split of gross revenue
DEVELOPMENT : 1.5Km : 33/67%
DEVELOPMENT 36Km : 80%
џ EPC contract with Sinosteel now in place
• Approval of C1/C2 Reserve > > Discovery Cert Application end 2017
2
2
2
Eurasia Mining Plc May 2017 8 | |
• Near term production potential, modest capital and opex consideration
• EUA Study proves concept - Under negotiation
Monchetundra Platinum Group Minerals
West Kytlim Alluvial Platinum & Gold
Semenovsky tailings Gold & Silver
Eurasia Mining Plc May 2017 9 | |
10/70 draglines remain an option -1.7m tonne pa
Pt
Stockpile
Pt
Excavator FeedsWashplant
Washplant of2 vibroscreensdriven by electric motorsDisintegration ofgravels, water jets inside
Pump
Sluice Concentration
Pt
Water Pipeline
Process Water Pond
Sluice ConcentrateCollected Twice a Day
Oversize Tailings
Process WaterRuns off SluiceBack to Pond
2 WASHPLANT & SLUICING
Process WaterFeeds Washplant
Pt
Excavation of Productive Sediments
Trucking to WashplantStockpiling
MINING
Supplementary Bulldozer Works
1
Pt
Sluice Concentrate
PtPt
20gal drums forbetter handling
Pt Pt Pt
Vibroscreen- 6mm
Shaking Table-6mm concentrate
Table TailingsDumped
Table Middlingsstockpiled for
reconcentration
PtPt
+6mm OversizeManual Check for
Nuggets
Pt
Pt
Manual Sievingto -2mm
Pt
-6 +2mmtable concentrate toreconcentration
Pt
Cleaner TableTo Saleable Quality
Pt
DryingCleaner tailings toreconcentration
Weighing
Pt
Packing To Refinery
Pt
CLEANING TO SALEABLE3
Diesel fleet and washplant at Malaya Sosnovka
Contract Mining at West Kytlim - Negotiated Jan 2017
Owner: EUA / KK 30%
џ Capital expansion including up to 4 washplants by year 5
џ All operating costs, fuel, electricity, wages etc.
џ Provision of interest free loan to KK covering all exploration costs circa $1,000,000
џ Mining operations including stripping and tailings management
џ Site management, ecology, security and staff amenities
Eurasia Mining Plc May 2017 10 | |
SKRS REMIT:
Contractor SK ‘Region Metal’ 70%Gross Revenue split
EUA REMIT:
џ Reserves and exploration management/ reporting
џ Recovery of metal at Washplants
џ Refining cost and distribution of income
Revenue sharing Pros:џ De-risk construction and start-upџ Remove need for project finance and loan servicingџ Income at all scales of operationџ Control of sale of product and a healthy balance sheetџ Retain ownership of licence џ Contractor strongly motivated to mine efficiently
џ May not benefit from cost saving measuresџ Loss of some control on operations
Revenue sharing Cons:
Other Highlightsџ Eurasia retains 55-90% of profits in the first 3 years of productionџ 30% of profits when project is in full productionџ Eurasia reports 100% of revenue to its balance sheetџ Eurasia also claims VAT payments for 100% of the operations and split 60/40
• First concentrates shipped August 2016
џ Camp now operational, gravel washing in early May - weather permitting
џ Resource upgrade exploration work in parallel with mining operation
3џ 2017 production of 338,000m gravel for 3,500 oz Pt
Approved Reserves
Р Resources
0 1km
N
Malaya SosnovkaArea
(100kg Pt Reserve)Bolshaya
Sosnovka
Omutoshnaya
Tylai
Levy
420
420
430
410
415
425
430
410
425
415
435
440
430
435
425
420
r. Tylai
Basecamp
Z =443,5гребняZ =443,5гребняZ =443,5гребня
442,5442,5442,5
442,5442,5442,5
1
2
4
5
3
Tailings Dam
Process water pond
Washplant site
Reserves Blocks
N
0 100m
Mine layout - Malaya Sosnovka Area - 2017
Proposed Mine Schedule - Ramp up to 4 washplants in 2020
2022 2023 . . . . . . . . 2028 20182017 2019 20212020
Malaya Sosnovka
Kluchiki
Ust Tylai
Bolshaya Sosnovka
Omutoshnaya
Tylai Levy
Ust Tylai Right Bank
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4
Total Raw Platinum
Mining operations
Resource drilling - Upgrade of Resources to Reserves
Infill Reserves Drilling - Upgrade to C2 to C1 Category
Developed 2026 -2028
Eurasia Mining Plc May 2017 14 | |
avg LOM 340kg pa (12,000oz)
Developed 2026 -2028
2017 circa 105kg
(3,700oz)
Projects Overview - Monchetundra
Yekaterinburg
Moscow
Barents Sea
R u s s i aPRODUCTION : 21Km : 75%
• Mining underway at Malaya Sosnovka Area - June 2016
• Contract Mining with 70/30 split of gross revenue
DEVELOPMENT : 1.5Km : 33/67%
DEVELOPMENT 36Km : 80%
џ EPC contract with Sinosteel now in placeџ Approval of Reserves > Discovery Cert Application mid 2017џ GKZ Approval April - Rosnedra approval expected
2
2
2
Eurasia Mining Plc May 2017 15 | |
• Near term production potential, modest capital and opex consideration
• EUA Study proves concept - Under negotiation
Monchetundra Platinum Group Minerals
West Kytlim Alluvial Platinum & Gold
Semenovsky tailings Gold & Silver
џ 1937-1971 - 160,000t Ni Produced, 81,000t Cu, 7.7t of Pt+Pd
• Possible new major resource for PGM’s in Russia
• Excellent infrastrucure, skilled personnel and refinery options
PK
KandalakshaЃ
Monchegorsk
Murmansk
K a r e l i aK A N
DA L A
K S HA B A
Y
Apatity
Barents Sea
Norway
Finland
Upper Proterozoic layered mafic intrusions
Archaean greenstone belts
Yekaterinburg
Moscow
Barents Sea
R u s s i a
Kola Peninsula
Monchetundra Project
Monchetundra PGM Project - Kola Peninsula
• Maiden Reserve filed Dec 16 - Discovery Certificate application Q2 2017
• EPC Contract covering $176m plant build in place with Sinosteel Equipment and Engineering Company
џ $50m sub-contract assigned to local subsidiary TGK to cover pre-strip
џ 2 open pit targets recovering Pt, Pd, Au, Cu, Ni and Co
џ Discussions ongoing with interested parties to manage mine operation - post EPC
Eurasia Mining Plc May 2017 16 | |
0 25 50km
Maiden Reserve and Discovery Certificate application
PK
KandalakshaЃ
Monchegorsk
Murmansk
K a r e l i aK A N
DA L A
K S HA B A
Y
Apatity
Barents Sea
Finland
0 1 2km
West Nittis Open Pit
Loipishnune Open Pit
Monchepluton massif
Monchetundra massif
џ TEO (pre-feasibility document) and Reserves Report approved by GKZ
џ C1-C2 Reserves at two open pits - West Nittis and Loipishnune
џ Discovery Certificate application on approval of TEO and Reserves Report
NKT massif
None
License
OpCoSINOSTEEL
Tt TETRATECH
Equity Sponsor
EPC Contract
OperationsContract
RefiningContract
Possible route to development
Eurasia Mining Plc May 2017 17 | |
Mine operator
Harajavalta
Monchegorsk
Projects Overview - Semenovsky Tailings Project
Yekaterinburg
Moscow
Barents Sea
R u s s i aPRODUCTION : 21Km : 75%
• Mining underway at Malaya Sosnovka Area - June 2016
• Contract Mining with 70/30 split of gross revenue
DEVELOPMENT : 1.5Km : 33/67%
DEVELOPMENT 36Km : 80%
џ EPC contract with Sinosteel now in place
• Approval of C1/C2 Reserve > > Discovery Cert Application end 2017
2
2
2
Eurasia Mining Plc May 2017 18 | |
• Near term production potential, modest capital and opex consideration
• EUA Study proves concept - Under negotiation
Monchetundra Platinum Group Minerals
West Kytlim Alluvial Platinum & Gold
Semenovsky tailings Gold & Silver
Semenovsky Tailings Project - Overview
Background picture taken at site in mid 2016
Why are tailings projects attractive ?
џ No geological risks (Resource risk)
џ Shorter lead time to production (no exploration)
џ No mining costs - and the material is already homogenised
џ More straightforward licensing and reporting requirements
џ Keep it simple - low tech means lower CAPEX
џ successful examples throughout Australia and US eg Kalgoorlie and Mount Morgan
Summary economics (revised Dec 2016 (internal calculation)
Life of Mine 8.5 years
C2 state Reserves 3.5t Gold, 43t Silver
Project CAPEX $3-5m
Processing route Agitated cyanide vat leaching
IRR 54% Cash Costs 400-450 USD/oz NPV $15m (at 10%)
Eurasia Mining Plc May 2017 19 | |
Resource estimation:
• 1964-1965 - 98 drill holes to 2.5m (then total depth), average 1.64 g/t Gold.
• Further exploration in 1988 by UralZoloto; - Average thickness then 5.6m, grading 1.2 g/t Au and ~ 20g/t Ag, Rock mass – 2.5Mt
џ Established a Resource of 3,206kg Au and 43.2t Ag.
Semenovsky Tailings Project - Resource and Metallurgy
Eurasia Mining Plc | | 20May 2017
Base Case Scenario - ‘low tech’ cyanide leach circuit with no grinding
Alternative scenarios - Fine Grinding, Sparging, Pre Treatment, De-sliming
Metallurgical testwork
• EUA/MTR drill program early 2016. Assays confirm grades
• 2014 sampling – 5 core samples to base of dam. Average 50% recoveries without grinding. џ Surface sampling in 2006 - Cyanide leach after grinding will recover 61%
Semenovsky village pop. 200
Available for next generation of tailings
N
Proposed new plant location
3 million tons sands in reserve
10kv power line in the village and a further 35kv passing at 5km
100m 500m0
Semenovsky Tailings Dam - Infrastructure
Eurasia Mining Plc May 2017 21 | |Eurasia drilling 2016
NaCN
Filter press
Agitated columns
Slurry from dam
Wandering column array
Oxygen/ Air pump
Waste to dam
Ship to Kyshtym Copper Gold Plant, Chelyabinsk Oblast, 270km North.12-13kg gold when loaded - grading 20-30kg/t
Gekko resin column modular plant - 50,000oz gold per annum
CyanideReturn
Simplified Process Flow - Tank leach : Filter Press : Resin Columns
Loaded resin
to smelter
• Preference is for less capital intensive projects generating cash flow in the near term
l Mining at West Kytlim underpins the company avoiding constant dilution
• Contract mining at West Kytlim for a 70/30 split of gross revenue is an excellent solution for Eurasia
• Novel route to production being pursued at Kola Project. EPC contract combined with a royalty like structure a’ la West Kytlim
џ Company should be valued based on a composite of West Kytlim (NPV/ IRR) and Monchetundra (Reserves in ground)
• Russian shareholder holds 24.2% interest. Directors and management hold 27.3%
Eurasia Mining Summary
Eurasia Mining Plc May 2017 23 | |
Share Capital and contacts
Eurasia Mining Plc May 2017 24 | |
Share Capital – Shares in issue (Apr 2017) 1,528,157,030
Market Capitalisation (May 2017 0.005 ) 8 million
Share Analysis
Holdings No of accounts No of shares held % of share capital
1 - 50,000 896 6,835,553 0.45%
50,001 - 100,000 30 2,498,178 0.16%
100,001 - 500,000 46 10,228,640 0.67%
500,001 - 1,000,000 10 8,036,556 0.52%
1,000,001 - 5,000,000 23 62,884,925 4.11%
5,000,001 – 10,000,000 8 54,165,716 3.54%
10,000,000 – 100,000,000 18 794,247,539 51.88%
Over 100,000,000 2 592,127,066 38.68%
Totals 1,138 1,531,024,173 100%
£
Nominated advisor & Joint Broker W H Ireland Ltd
Brokers: Beaufort Securities Ltd
Auditors: Grant Thornton
Address: Second floor, 85-87 Borough High stLondon SE1 1NH
Telephone: +44 (0) 20 7932 0418
E-mail: [email protected]
Web: www.eurasiamining.co.uk
@eurasiamining
£
• Michael Martineau - Non-Executive Chairman
MA, D. Phil, FIMMM. 40 years experience in mining and mineral exploration. Founder and director of several mining and mineral exploration companies and was a formerly a director of Anglogold Ashanti and First Quantum.
• Christian Schaffalitzky - Managing Director
EurGeol, FIMMM, Pgeo, CEng. 40 years experience in mineral exploration. Founder of CSA international. Numerous discovery credits including Lisheen zinc deposit in Ireland. Also chairman at Kibo Mining Plc.
• Michael de Villiers - Chief Financial Officer
B.Comm, Professional Accountant(SA) Experienced mining company director, previously finance director of Mercator Gold (now ECR Minerals plc), Oxus Gold plc and Navan Mining plc Involved in gold & industrial mineral operations in Africa, Central Asia & Europe. Currently chairman at Ariana Resources plc.
• Dmitry Suschov – Non-Executive Director
Investment banker with extensive experience in the Russian resources sector.
• Gary Fitzgerald – Non-Executive Director
30 years experience in investment management, prior director of Framlington Investment Management.
• Bill Anderson - Operations Consultant
M Sc, B Sc, FAus, IMM. 20 years experience with WMC Resources where he managed several mine projects incl Emperor Mine Fiji, Kalgoorlie, Kambalda and later served as chief executive of WMC Brazil. Former director and operations manager of Eurasia with 20 years of Russian industry experience.
Russia
• Ekaterinburg Head office – Urals Projects• Monchegorsk office - Kola Projects
Board of Directors
Eurasia Mining Plc Apr 2017 25 | |
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