Skip navigation
Operations & projects

Kola/Russia

Key facts

  1. Good platinum grades identified in all three project areas - Basis of work programmes in 2007
  2. Monchetundra - PGM mineralised zone discovered in 2005 confirmed and detailed in 2006
  3. Monchetundra - Two other zones remain to be explored in detail
  4. Volchetundra - A new PGM discovery in one drill hole in 2006
  5. Fully funded for at least next two years of drilling
  6. Exploration programme of over $3 million for 2007 with 10,000 metres diamond drilling planned

In Northwest Russia, three PGM projects were acquired in April 2006 on the Kola Peninsula and form part of the joint venture agreement with Anglo Platinum. Eurasia believes that the region, where some important new discoveries have been made over the past five years, could become an important PGM producer over the coming decade.

The three licence areas are held by two companies which are owned 80% by Urals Alluvial Platinum Limited ("UAP"), a 50:50 company between Anglo Platinum Limited and Eurasia. The remaining 20% is owned by Eurasia.

Central Kola

Under a joint venture agreement, Anglo Platinum will fund the first $10 million of Kola expenditure before both parties fund in proportion to their equity interest. On completion of a bankable feasibility study or the completion of the $10 million expenditure, which ever is the sooner, Anglo platinum can purchase the 20% held by Eurasia for $6 million or $5 per ounce of platinum group metals in Russian C1 and C2 categories, whichever is the lesser. Should they exercise this option, Eurasia would hold 40% of the projects through UAP. Anglo Platinum can also opt to require UAP to purchase this interest under the same conditions.

The target is for PGM mineralization on a major group of ultramafic and mafic intrusive rocks that occur in several areas within the Kola region. Similar intrusions are the main geological host for PGM mineralization worldwide, including the Bushveld Complex in South Africa and the Norilsk Complex in Russia.

The Kola region has a long history of mining and metal refining, principally of nickel and copper with PGM as by-product, but PGM exploration has only been carried out in recent years.