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>

Pre-Feasability completed :)

http://www.investegate.co.uk/article.aspx?id=200607260958567423G

Ticking up nicely today.

Broker target price was 175p.......lets hope that gets upgraded too soon.

I would guess the seller is clear now, from the positive moves. It cannot have been any institutional selling, as you would not have seen a director buying stock at 90p just 4 weeks ago. Must have been a private investor who needed the cash and had to sell at any price, and why the MM's took them for a ride and crashed the bid price down.

Never mind, its all over now, and with the pre FS done, and Moly news imminent, its still below the 90p price paid by a director 4 weeks ago.... bargain I think :)

From uk-analyst.com - email

.......In a note on the mining sector, UBS upped its commodity price forecasts for copper, nickel, iron ore platinum and molybdenum by an average of 7% in 2006 and 19% in 2007 following revisions to its supply-demand balances. However, UBS lowered its alumina price forecast by 6% and its aluminium forecast by 20%. The broker raised sector earnings forecast by 4% in 2006 and 11% in 2007. The Swiss broker's top picks were Xstrata and Lonmin , but it has "buy" ratings on all the major UK mining groups. Shares in Xstrata added 107p to 2,141p and Lonmin stock added 89p to 2,865p........

380K X trade yesterday, and with the present rises, and again today it would point to the seller being now out, which means we can and should recover quickly from the drop caused by the MM's obliging the seller with a nasty low bid price.

Looking fine, L2 now 2 v 1 @77/81.

No delayed trades so a T at the end of the day perhaps ?

A good read about the possible strong outlook for Molybdenum (which EKA already now produce)

http://www.stockinterview.com/molybdenum-energy.html

Post from AFN :


azalea - 9 Aug'06 - 14:33 - 953 of 966

konil

Following the issues we raised in our posts regarding production, licences and orders, I emailed EKA and have today received the following reply.

We have produced over 200 tons of molybdenum concentrate during the commissioning and "optimized running" phase of the plant. The production licence should be granted in the next week or so.

We have buyers for the concentrate, so once we get the necessary permits we shall sell all our production.

Jonathan Scott-Barrett
CEO
Eureka Mining Plc


By my reading that is explictly good news and very reassuring.

Considering the pending news of first Moly sales/shipment for Eureka the following report on Moly is good news.....especially look for the paragraph starting "......Now as for molybdenum. I wrote about its supply, demand, and............."


http://www.resourceinvestor.com/pebble.asp?relid=22727

Nice write up on ProactiveInvestors (free to register and read) :


http://www.proactiveinvestors.co.uk/articles/article.asp?EKA

Moly price keeps rising, now 28.5 US$. This is excellent news for EKA and well above their year 1 target of 19$ (year 2 being 12$).

If the above 20$ trend continues, and short term a spike back up above 30$ happens, it certainly will be boosting the revenues for Eureka.

I get the feeling the 2 off 50K trades yesterday that were made to appear like a rollover were actually a 100K buy split in two. The spread says this as its too large for a rollover, looks like someone clearing the overhang, with two protected trades.

Now, it looks like its cleared the overhang, and perhaps we can start now moving back on up.

Certainly is starting to move now.

And still going strong.

News is overdue, so there could well be good reason behind the rise :) DYOR !

L2 now 4 v 2 @85/90

No sellers around, thats whats good to see.

And you can still buy cheaper than the director buy at 92p paid by Kevin Foo recently on the 22nd June 06..............so there you go.

Post close company announcement of potential buyer for EKA - any ideas who it is?

Not yet g64946.

Present Ambrian valuation (prior to Moly shipping news) was around 180p per share fair value, which should now increase should Moly shipping be happening.

I would not think an inside job, as Foo would not have purchased shares in June and supported the SP.

With Moly shipment happening, the valuation should be well over 200p I think.

I was in on Neutec Pharma (NTP) recently, which was 500p SP and then the final bid for that was over 1000p, a solid doubling between market SP and take out price. This one has better potential to rise more than that IMO. I am still in on OSH which has doubled already from the takeover interest being announced, and should, we hope, have tripled by take out price.

Get ready for some action in the days and weeks ahead :)

One thing for sure, I will not be selling cheaply, and will be holding steady through the treeshakes until we get the offer. No point throwing money away, if you are prepared to sit through the drop, be prepared to enjoy the sit through a rise.

With present Copper/Gold price the Chely project NPV @ 10% discount is into the billions of pounds and rising.


That famous Buffet saying of "Patience".......

"Five years later, Buffett took his step into the world of high finance.
At eleven years old, he purchased three shares of Cities Service Preferred at $38 per share for both himself and his older sister, Doris. Shortly after buying the stock, it fell to just over $27 per share. A frightened but resilient Warren held his shares until they rebounded to $40. He promptly sold them - a mistake he would soon come to regret. Cities Service shot up to $200. The experience taught him one of the basic lessons of investing: patience is a virtue."

14K buy at 3p above the offer. It looks like they are going to wait for sells if they can, in the absence of too much buying pressure. Could be a slow walk up, but who knows.

DYOR !!