23rd Aug 2006 Write Up : http://www.proactiveinvestors.co.uk/articles/article.asp?EKA



Main Web Site : http://www.eurekamining.co.uk

EKA is now a Molybdenum producer in Kazahkstan, and is in the process of bringing the Chelyabinsk Copper/Gold project into production in 2008.

Latest Presentation June 2006 : Presentation Link (10MB PPT file)



Research Report : http://www.fox-davies.com/FDC_Eureka_Report_220605.pdf

26th Jan 2006 Press Commentary : Press Link

About Eureka Mining

Key contact : Mr Kevin Foo Non-Exec Chairman
E-Mail : kevin.foo@eurekamining.co.uk


Eureka Mining Plc is a UK based mining exploration and project development company, focusing on projects in the Former Soviet Union. It is the Companys view that Kazakhstan and other central Asian FSU countries represent an area of significant opportunity. This belief is supported by the quality of the portfolio of assets which Eureka has acquired including;
the Shorskoye molybdenum deposit;
the acquisition of the Chelyabinsk Copper Project; and
the advanced exploration projects of Kentau, Mykubinsk and Central Kazakhstan projects. The Mykubinsk and Central Kazakhstan polymetallic project has assets situated in northern Kazakhstan and the Kentau exploration project has identified several gold and base metal deposits.

Shorskoye Molybdenum Project:

50/50 JV with KazAtomProm, largest Kazakhstan State Mining Company
Production projected for 1st Qtr 2006
Project Finance in place

Chelyabinsk Copper Project

Production planned for 2008
Very large resource base with with 3.57Mt Cu / 4.2Moz Au
First western group into Russian Copper Heartland and consequential opportunities in base metals


Kazakhstan Exploration Projects

At the Dostyk Copper-Gold Projects in Central Kazakhstan, we have reviewed all historical data and identified at least six drill targets, with particular focus on base metal projects. During 2004, we drilled five projects and completed significant field activity on two projects, including the high priority targets Berezky Central, Maiozek, Akkuduk (porphyry style), Ushtagan (epithermal gold), Maikain, Baygustam and Burovoy (VMS). We intend to focus on the most promising of these deposits in 2005/2006.

The Kentau Project in southern Kazakhstan has undergone an extensive data review, with a comprehensive Geographic Information Systems database being created. This has enabled us to plan a focused exploration programme on previously identified targets. Drilling is expected to commence in May 2005 at two of the best targets, using a large Reverse Circulation (RC) rig.

We entered into an option agreement to acquire the Nova Dnieprovka (Nova) Gold Mine in northern Kazakhstan. However, after a thorough assessment and reinterpretation of the project, including the completion of a drilling programme, we decided not to exercise the option and purchase agreement over the Nova project.

Our exploration and assessment teams are continuously reviewing potential projects for Eureka across the FSU and only the very best are selected for further work.
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Some figures to think about (thanks to unionhall)

Current Market cap (@ 1.37) - 36m

Chelyabinsk NPV 508m (@ $1.60 copper and $550 Gold)

Shorskoye - 10m profit p/a @ $20 Moly



Major shareholders
Latest major holder figures are, from 26.6 million shares in issue :

Celtic Resources hold 15.02%
RAB Capital hold 6.19%
Kevin Foo holds 3.43% (Director)
David Bartley holds 3.02% (Director)
Malcom James holds 1.070% (Director)
Andrzej Sliwa holds 0.76% (Director)
JSB holds 0.177% (Director)

Latest News / Links / Research Reports

Reserach Report : http://www.fox-davies.com/FDC_Eureka_Report_220605.pdf

25th April 2006 Moly Update :
http://www.resourceinvestor.com/pebble.asp?relid=19141

2006 Moly Report : http://www.golden-phoenix.com/documents/TheEconomicsofMolybdenum.pdf

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The Company has used an average molybdenum price of US$19/lb throughout the first year and US$12/lb thereafter to calculate cash flows arising from the project.

(*Note : Molybdenum does not trade on the London Metals Exchange or any other publicly traded commodity exchange. Its price is determined solely by supply/demand in the marketplace and supply contracts. In a report dated Oct. 28, 2005, RBC Capital Markets forecast that 2006 and 2007 molybdenum prices would be approximately US$25/lb and US$15/lb, respectively [source: RBC Capital Markets, Global Base Metal Equity and Commodity Report Card, company reports].*)

How will the Moly be processed ? Eureka pulled off a deal with KazAtProm.Eureka has 15-year access to state-owned KazAtomProm's processing facilities, which will allow the company to start producing molybdenum concentrate in February.The processing plant also handles other minerals.The proximity of the plant to the Chinese border, allows for quick, cheap and simple transport links to a major demand area for Moly

Implementation and schedule of Moly production

Utilising the Stepnogorsk processing facility allows Eureka to develop the Shorskoye asset and take advantage of the buoyant molybdenum market, commencing mining in Q3 05 and saleable concentrate by Q1 06. The key project milestones are:

August 2005 - award contracts
August 2005 - first blast and ore to crusher
September 2005 - first ore to Stepnogorsk
October 2005 - first equipment to Stepnogorsk
February 2006 - concentrator commissioning (Stepnogorsk)
February 2006 - Chelyabinsk 100% purchased by Eureka

May 2006 - first production from Stepnogorsk (Skorshoye)

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Molybdenum Information Links

http://www.freemarketnews.com/Analysis/60/3742/2006-02-10.asp?wid=60&nid=3742

http://www.gold-eagle.com/editorials_05/reser092205.html

http://321energy.com/editorials/fross/fross120605.html

http://www.cozine.com/archive/cc2005/01370511.html

At 25$ / lb Moly prices : (Shorskoye Project)

2006 Moly production = 600,000 lbs = 14.7 million dollars sales price
2007 Moly production = 1,200,000 lbs = 29.4 million dollars sales price
2008 Moly production = 1,200,000 lbs = 29.4 million dollars sales price
2009 Moly production = 1,200,000 lbs = 29.4 million dollars sales price
2010 etc etc etc
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Recent Director Buying :

Kevin Foo BUY 5,000 on 21 June 2006 @ 81p
Kevin Foo BUY 18,000 on 21 June 2006 @ 90.3p
Kevin Foo BUY 9,000 on 22 June 2006 @ 92pb>

Why would it be better ? What are the risks ? I would say given a simple and very undervalued play that EKA is, with minimal risks, its better to be more in EKA and less in CER !!!!

I happen not to agree ...... Unfortunately I sold my CER a few weeks ago, since which time it has gone from about 250 to 320 (from memory) ...... I suppose you could argue that EKA has fallen from about 140 to 120 in the same period and is therefore undervalued ...... However, (a) the prelim results on 3/5 clearly failed to excite, (b) average trading volumes are very small (+/-80k) and (c) NMS is only 2000 shares, all of which indicates poor liquidity.

Poor liquidity does not detract from an undervalued play, it is an opportune moment to add to a long term holding. With Moly production underway, and with the pre-DFS to be complete soon andwith potential for upgrades to the Copper/Gold resource at Chelyabinsk, I would say its all to play for :)

Can be in a major prob with low liquidity if commodity prices and thus other shares are badly affected .... knowck on effect may be inability to liquidate your own postion here should you want or need to.

Comment on last week's news:

http://uk.biz.yahoo.com/03052006/214/eureka-dips-despite-meeting-targets.html

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Eureka dips despite meeting targets

LONDON (ShareCast) - Eureka Mining (LSE: EKA.L - news) , focused on assets based in Kazakhstan and the surrounding regions of the former Soviet Advertisement Union, slipped back today despite meeting all its targets for 2005.
First concentrates at its Stepnogorsk plant in Kazakhstan produced during current commissioning, with Eureka's share of production in 2006 estimated at 600,000lbs of molybdenum.
Scoping studies on the Russian Miheevskoye deposit, the largest of the Chelyabinsk deposits, indicate a robust project, with first production expected in late 2008, it said.
Chairman Kevin Foo said, "I believe 2006 will be another exciting year. The Shorskoye molybdenum project should generate cash, although initially this will retire local bank project finance, following our decision to 'fast track' this project to take advantage of the high molybdenum prices."
"We also expect to complete the pre-feasibility study of the Chelyabinsk copper/gold project in Russia and to start work on the definitive feasibility study of this project which should be available in early 2007."
"We are developing our existing assets to provide cash and targeting further acquisitions in base metal and gold projects to participate actively in the current resources boom," he added.
Broker Ambrian said the re-calculation of the Miheevskoye resource to JORC measured and indicated resource categories is one of the key objectives for 2006.
The scoping study envisages processing 20m tonnes per annum of ore for 100,000 tonnes of copper in concentrate.
At a capital cost of $342m, the company's consultants estimate a project NPV (10%) of $257m at $1/lb copper and $400/oz gold.
"With an expected flow of news during the year, we re-iterate our previous target valuation of 175p/share," it said.

A few buyers coming back today, up on the bid and offer a penny.

Few more buyers must be back, L2 up this morning, now 2 v 1 @ 120/123

12th May 06 from the IC on Copper : (Free content)

http://www.investorschronicle.co.uk/content/free/2006/News/news_20060512_4.html


Soaring copper prices set to boost base-metals market


Metals consultancy Bloomsbury Minerals Economics has taken a contrarian view on the copper market, with real upside implications for base-metals stocks. The red metal continues to confound expectations, with the three-month future on the London Metals Exchange up 80 per cent this year, and just breaching a fresh record at 8,000 a tonne. But the consensus view, according to the much-respected International Copper Study Group (ICSG), is that the market will move into surplus in the second half of 2006, with a subsequent cooling of prices. This view has been echoed in the media recently, with widespread stories in national newspapers about a speculator-blown bubble distorting the underlying fundamentals of the market.

However, while Bloomsbury says that it has a broadly similar demand growth estimate to that assumed by the ICSG, it believes that the latter has underestimated the baseline consumption for last year on which this growth will build. And the resulting divergence in calculations is such that Bloomsbury does not see a surplus emerging until the middle of next year. Until then, there will be ongoing deficits, resulting in further price spikes, although in absolute terms neither may match current levels. The difference is important because much of the analyst community pays attention to the ICSG, and will have formed their outlook accordingly. If Bloomsbury is right, though, the wild ride on copper isn't drawing to a close any time soon.

Nice buy today :)

News today, RNS about drilling update, here is a little bit of the news ;

" These Results are expected to enhance the resource size, with an
update planned for June 2006.

Since the original resource estimate and mining study was completed, Eureka has
conducted a major drilling programme with the objective of upgrading the Russian
category resource to JORC compliant Measured and Indicated Mineral Resources.
These results will form the basis of an updated resource estimate scheduled to
be issued in June, followed by pre-feasibility study results scheduled for early
July. It is anticipated that this will provide a bankable resource statement for
the Definitive Feasibility Study, due in early 2007.

Jonathan Scott-Barrett, CEO of Eureka Mining said, 'We have completed a
comprehensive drilling campaign of more than 23,000m to confirm assays, geology
and resources potential and so far the results have exceeded our expectations.
We have a substantial Copper Porphyry Deposit on our hands and we are looking
forward to the next phase of development at Miheevskoye and increasing our
understanding and size of the deposit.'"

Some good information on copper in this BHP May 2006 presentation :

Link Click Here

http://the-infoshop.com/study/ros36458-molybdenum.html

The Economics of Molybdenum
Pub Time: 2006/03

Abstract

This report provides up-to-date market analysis of resources, production, consumption, end-use market trends, international trade and prices.

This report offers in-depth, independent analysis of the current and future supply, demand from end-use markets, and the implications these developments are likely to have on prices in the future, including:

Continued strong growth in Chinese demand for molybdenum is expected as stainless steel production capacity is scheduled to double by the end of 2006.

There may be a decline in Chinese supplies to the West (maybe to zero) as Chinese demand increases and its production either plateaus or even declines because of restructuring of the domestic mining industry.

Molybdenum production in the USA, Chile and Peru was able to increase rapidly in 2004 and 2005, mainly by employing unused capacity to meet increased demand. This is unlikely to continue, and new projects may take some time to come into production.

There could be a period in 2006/07 of very tight supply, if demand continues to rise....

Highly corrosion resistant molybdenum-bearing stainless steel appears to be gaining ground on other types of stainless steel. Consequently, growth rates for molybdenum demand could be higher than those for stainless steel market as a whole.

Although the price of molybdenum eased slightly through late 2005 and early 2006, it could be expected to rise again through 2006."

Moly price going up again.... :)

Molybdenum Oxide
57%min FOB China
25.3-26.3 USD/lb Mo

Small volume, big fall..........what does that say ;)


Anyway, looks like UBS are turning back to bullish on mining, well at least on copper, from digitallook.com


Broker tips: Antofagasta, C&W, Yell, British Energy, Cadbury

Chilean copper miner Antofagasta has been upped to buy from neutral at UBS as part of a wider note on the mining sector.

The Swiss broker noted that the miner has fallen some 23% in the last three weeks, as it raised commodity price forecasts and EPS estimates. UBS added that the likelihood of further M&A action has increased.

Credit Suisse applauded Cable & Wireless managements new business plan as it upgraded th e shares to outperform from neutral.

The telecoms firm argued that the companys UK operations remain key to its valuation, adding that the balance of risk is on the upside. Credit Suisse upped its price target to 116p from 100p.

Directories group Yell Group offers a better discount to concerns over regulatory and acquisition issues, said SG Securities, following its recent weakness.

It tells you that with Bogeyman Inflation now rearing his head, albeit in an historically modest way, there is a fear that US economy will shrink and thus worldwide demand for hard commodities.

I have been calling copper over-valued for a few weeks, though I did not have the courage of my convictions ...... You will very strong nerves and deep pockets to start buying mining issues for the time-being

Bargain hunters coming back.

And more.......

Strangely quiet on this thread when the price is rising upwards ;) LOL :)

I said at those lovely 80p prices that some buys there would pay back very well, and now is just the start, hold on and watch what unfolds with Chelyabinsk :)

We are a producer now on Eureka, with Moly production at very nice prices as well :)

Well, lets see if we can continue the recovery uptrend on Eureka, today will be difficult as the markets might be down today, however they should pick up from Wednesday onwards :)

We are still waiting for the updates on drilling at Chelyabinsk.........resource upgrade etc...

Good read on the link below :

19 June 2006 Eureka Mining project to double Chelyabinsk gold output

http://metalsplace.com/metalsnews/?a=5644