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>

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

This one is as undervalued as it's ever been. Looking forward to the Chelyabinsk resource upgrade due this month. It will probably be next month now as most things seem to come late with this company.

The closer we get to 2008 and production, the more valuable the resource becomes.

Moly price is rising on the chart as well !

But no one has any idea what moly price will be at end 2006 let alone some time in 2008! ..... While it is true that the long term trend for hard commodities is still rising, all sorts of things can upset this

cynic, EKA are producing Moly NOW............this is why EKA is so undervalued.

In 2008 comes the additional copper/gold from Chelyabinsk in Russia, but as of now EKA is a producer of Moly with shipping of the first consignment due July :)

I think you have not researched EKA fully :)

You're right! I haven't researched thios company at all ..... just saw mention that production was starting in 2008 and, having failed to read properly, assumed it was for moly; hence my comment ..... in fact, there are a lot of top quality mining shares that are now probably (relatively) badly undervalued, but the market is very dangerous and unpredictable at the moment.

PP, where did you read about the shipping of the first consignment in July?

Another posters comments, it also ties in with the plans...........so no reason to doubt at the moment.

It is good to see the main man buying some :) and buying EKA and not VOG ;)

RNS Number:2257F
Eureka Mining PLC
27 June 2006
Eureka Mining Plc
Directors' dealings and significant shareholding

Eureka Mining Plc ("Eureka") was informed on 23 June 2006 that Kevin Foo, a
director of Eureka, had purchased ordinary shares of 1 penny each ("Shares") in
the share capital of Eureka in the market as follows:

Kevin Foo

5,000 on 21 June 2006 at 81p
18,000 on 21 June 2006 90.3p
9,000 on 22 June 2006 92p

At the date of this announcement Kevin Foo is beneficially interested in 911,192 Shares (3.43 per cent. of the currently issued Shares).

www.eurekamining.co.uk

Two large T buys today (shown in the sell column as delayed). With Kevin Foo buying recently and now these large buys, it might signal some kind of agreement made on progressing Chelyabinsk.

Cannot see any news in the next few weeks, as Director purchases have happened, but late summer we are overdue news on the Chelyabinsk drill results and possible resource upgrade. However if they are presently negotiating something on Chelyabinsk they may withhold the drill results until such time as a potential agreement is made.

L2 moving up, now 3 v 1 @90/93 so its keeping going :)

I think people can see why Kevin Foo purchased EKA and not VOG now ;)

New updated website now on line, with plenty of information :

http://www.eurekamining.co.uk/

http://www.alacrastore.com/storecontent/markintel/50018533

Click on "Purchase by Section" and then "Starting Page 9" puts some meat on to the bone for the rumour of no placing, but a Russian partner coming in to develop Chelyabinsk. Might explain why Foo was buying stock, and why there has been no placing :)

The new June 2006 presentation goes into plenty of detail (link below, its a 10 MB Powerpoint file).

http://tinyurl.com/klpf8


Also clears up the Major Shareholders, who presently are :

Shares in issue 26.5m Total

Major shareholders

Celtic Resources ----- 14.2%
JP Morgan funds ----- 8.4%
EKA Management ----- 8.3%
Hendersons ----- 3.9%
Rathbones ----- 3.8%
Gartmore ----- 3.5%