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Eurasia Mining PLC - Drilling Report


RNS Number:4971R
Eurasia Mining PLC
03 April 2008


Eurasia Mining Plc

('Eurasia Mining' or the 'Company')


Drilling Results from Kola Peninsula


Eurasia Mining is pleased to announce drilling results from the Kola Peninsula
which the directors believe are 'the best indicators yet' of the potential for
open pit mineable resources at the Volchetundra licence area. The exploration
costs for Volchetundra, in north-west Russia, are being funded by the world's
largest platinum producer, Anglo Platinum Limited ('Anglo Platinum').


The results follow the completion of two new boreholes in an area where
potentially mineable platinum group metals (PGMs) have been identified by
earlier drilling.


The encouraging indicators come from results from one of the new boreholes,
taken together with results from previous drilling. Grades of up to 2.25 grams
per tonne (g/t) compare favourably with those within the nearby Federova Deposit
which the mining giant Barrick Gold has already advanced to the feasibility
study stage. The second, deeper borehole, provided higher grades but from
greater depth with a one metre section grading 14.3 g/t.


Volchetundra is one of three Eurasia PGM projects located on the Kola Peninsula
in north-west Russia, where the company is working as part of a joint venture
with Anglo Platinum. Anglo Platinum is earning an initial 40% interest in the
joint venture company by funding the first US$10 million of exploration on the
licence area. A 2008 drilling programme is also planned on the neighbouring
Monchetundra licence.


Eurasia's joint venture agreement with Anglo Platinum also covers the separate
West Kytlim exploration licence for alluvial platinum in the central Urals.
There, Anglo Platinum is funding work up to completion of a feasibility study to
earn a 50% interest. Mining is planned to commence as soon as practicable after
receiving the necessary permits.


The combined 2008 budget for all of the joint venture projects is over US$6
million, to be funded entirely by Anglo Platinum.


The drilling results are set out below.


Kola Projects


During a 2007 drill campaign, drilling continued in targeted areas along the
prospective 40 km long 'Marginal Zone' where wide zones of potentially bulk
mineable PGM mineralization have already been identified. Results have been
obtained from two new drill holes, VT 27 and VT 40.


Drill hole VT 27 at the Ol'che target area intersected PGM mineralization in a
zone extending from the surface to 65.9 meters; intersections within this zone
are as follows:


Hole From To Width Pt+Pd Pd:Pt ratio
(m) (m) (m) (g/t)
VT 27 1 17.6 16.6 0.7 3.0:1
25.9 29 3.1 0.83 4.5:1
31.3 59 27.7 1.6 2.9:1
including 38.7 45 6.3 2.25 5.0:1
62.9 65.9 3 0.94 5.2:1


Drill hole VT 27 is located 600m to the south of VT 17, the original Ol'che
discovery hole drilled in 2006; which contained the following, previously
reported intersections:


Hole From To Width Pt+Pd Pd:Pt ratio
(m) (m) (m) (g/t)
VT 17 68.4 113 44.6 1.7 1.5:1 - 3:1:1
144.9 163.4 18.5 1.9 0.5:1
170.2 172.7 2.5 4.7 0.7:1
including 170.2 171.2 1 11 0.8:1


Intersections in the discovery drill hole VT 17 and the follow-up VT 27, 600
meters along strike, are, the directors believe, the best indicators yet
obtained by the Company, of potential for open pit bulk mineable resources on
the Volchetundra Licence area. The widths and grades of these two intersections
appear similar to those which comprise the Federova Deposit, (Barrick Gold),
which occurs in a very similar geological environment and is located
approximately 70 Km east of Volchetundra. Barrick have recently published a
Platinum and Palladium (Pt+Pd) inferred resource grade of appoximately1.4 g/t
for Federova. Barrick plan to complete feasibility studies for the Deposit by
the end of 2008. Pre-feasibility metallurgical testing indicated likely Pt and
Pd recoveries of respectively 80 and 83%.


The ground to the south of VT 27 is open and untested; this area will be a major
focus for drilling during 2008.


Drilling also commenced at Yukspor, a second target area located 3 km south of
Ol'che. Hole VT 40 returned 3.2m @ 5.2 g/t Pt + Pd with Pd/Pt = 1.5, including
1.0m @ 14.27 g/t Pt + Pd with Pd/Pt = 1.25:1 as follows:


Hole From To Width Pt+Pd Pd:Pt ratio
(m) (m) (m) (g/t)
VT 40 217.4 218.5 1.1 1.36 1.57:1
218.5 219.6 1.1 0.86 2.44:1
219.6 220.6 1.0 14.27 1.25:1


This hole is located in the northern part of the prospective target area,
initially defined by surface sampling. In 2007, one trench 500 m to the south
returned 2.2m @ 12.9 g/t Pt + Pd with Pd/Pt = 2.6. Drilling in the more remote
southern half of the prospective target area, will commence as soon as weather
conditions permit.


The combined total strike length covering the Ol'che and Yukspor areas currently
under drill test is 3.8 km. Much of the planned 6,000 m drilling programme for
2008 at Volchetundra will focus on this area. Reconnaissance drilling is also
planned to test already identified additional targets along the 40 km long
prospective 'Marginal Zone' within the intrusive complex.


A separate 6,000 m drilling programme is also planned on the Monchetundra
Exploration licence at Kola for 2008. There, work will focus on further
delineation of a preliminary resource identified in 2006-7. A number of holes
are also planned to test new targets generated from a highly successful
geophysical survey completed on the licence area in late 2007.


The Kola PGM licences, which also include West Imandra, are all held by Eurasia
in a joint venture with Anglo Platinum Limited, which is earning a 40% interest
in the projects by expending the first $10 million for exploration.


Update - West Kytlim projects


As previously mentioned, the joint venture agreement with Anglo Platinum also
covers the West Kytlim exploration licence for alluvial platinum in the central
Urals. On that licence, Anglo Platinum is funding work up to completion of a
feasibility study to earn a 50% interest. In early 2008, a Russian compliant
mining plan with reserve estimates for West Kytlim was submitted for approval by
various authorities, and form the basis for future mining. It is the intention
of the joint venture company to commence production at the earliest possible
time. Start-up however will be conditional on the receipt of all the necessary
permits and approvals.


The combined budget for the Joint Venture Projects in 2008 is ov