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.
__________________________________________________________________


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

____________________________________________________________________



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)

____________________________________________________________________

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
___________________________________________________________

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>

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 !!

Potential purchaser ?

Well done Papal Power looks like your persistence may pay off

Hang on in there

Sheba

Will do Sheba :)


Rule 2.10 Announcement

RNS Number:2856I
Eureka Mining PLC
31 August 2006


Eureka Mining plc ("Eureka" or the "Company")

Rule 2.10 announcement


Disclosure in accordance with Rule 2.10 of the City Code:

In accordance with Rule 2.10 of the City Code, Eureka Mining plc confirms that
it has in issue and admitted to trading on AIM, a market operated by the London
Stock Exchange, 26,562,666 ordinary shares of 1 penny each under the ISIN code
GB0033844118.


This information is provided by RNS
The company news service from the London Stock Exchange
END

RTTEANPFDALKEEE

If no further buying pressure this morning I would expect the MM's to wait and see what sells come out at lunch time, and we should start moving again from around 13:30 onwards........at a guess.

Just logged on and seen the news. Very pleasantly surprised at RNS. Of course the devil will be in a formal bid and if so what valuation is agreed. Even so, share price has now recovered, so a very positive start to post summer trading. :-)

A good post from AFN :



novicedave - 31 Aug'06 - 12:53 - 1082 of 1086

Hey, just done some reading:

Total shares in issue 26,562,666
Institutional Holdings:
Celtic Resources 3,742,743 (14.1%)
Hendersen Global now hold 1,040,900 (3.92%)
Man Financial hold 598,917 (2.25%)
Fidelity hold 588,635 (2.22%)

Director Holdings
Kevin Foo 911,192 (3.43%)
David Bartley 798,516 (3.01%)
Malcolm James 282,676 (1.06%)
Jonathan Scott-Barrett 44,219 (0.17%)
Andrzej Sliwa 200,653 (0.76%)

Total known holdings: 30.9%

With such a decentralised shareholder register (most AIM mining companies I am familiar with have well over 60% of the shares placed with the larger institutions) a successful offer is likely to be forced higher than if there were one or two institutions/investors who had a controlling interest between them (when negotiations are simpler, and 'backhand' incentives may be offered which would not be positive for us PIs).
If you consider that over 20 institutions were involved in the first placing alone (at 120p) it is likely that any negotiations over a takeover price will be protracted. Of course a cheeky offer could be tabled, but even with the support of Celtic and the directors it would not be likely to go through (imo).

Feeling much safer,
ND

Another good post from AFN, and it must be remembered the pre-BFS NPV was done at very conservative values for Copper and Gold (being 1.3 US$ for copper and 550 US$ for Gold, present prices would put that NPV on a value much much higher than the one stated in the pre-BFS)

"

konil - 31 Aug'06 - 13:45 - 1087 of 1095


i believe the pre-bfs gave a npv figure of $179m for chely. if eka is bought out for that plus the cash generation from shorskoye $150m (let's say $30m p.a. eka's share for 5 years at full production), then that totals $329m, and deducting say 35% for risks, operating costs (not development costs because the npv takes account of that), etc. gives a sale price of $329m - $115m = $214m.

Current mkt cap. at 111p is 30m i.e. $57m.

214 is a multiple of 3.75 away from 57, so does that mean we should be looking for the exit price to be 3 to 4 times its current level?

"

Should add to the above post that there is the Kentau Gold project as well, this license is undergoing first drilling, so there is more on top of the valuation above.

Rumours of a 200 pence per share initial bid, but thats all they are, rumours.



DYOR !

Entries for the Sept stock challenge have to be in by Monday, EKA was my best performer for August and managed 5th overall :)

EKA is one of my picks for September, hoping for that 200p bid :)

Entries at the link below (click on Entry Form on the page)


http://www.stockchallenge.co.uk/sc/index.htm

2 points for look at a price for takeover.

1/ Previous director buys :

Top Director Buys

Eureka Mining (EKA)
Director name: Mr David Bartley
Amount purchased: 123,840 @ 127.00p
Value: 157,277

Eureka Mining (EKA)
Director name: Mr Malcolm James
Amount purchased: 61,000 @ 122.00p
Value: 74,420

Eureka Mining (EKA)
Director name: Mr Malcolm James
Amount purchased: 47,000 @ 127.00p
Value: 59,690


2/ Last placing was at 125p


The management want a return for themselves, and also for those institutions, in order to build the relationship for the future.


Therefore, for me, over 200p does, as I keep saying, seem very very likely IMO :)

DYOR !!

Interims are scheduled for Friday 15th September.

Bit of a retrace today, but interesting 65k buy at 95p. If we see a late reported T trade today, a large sell, I'll guess therefore its a shorter trying to chase out the hot money, which would explain why someone else snapped up 65K at 95p once they had thrown them out.

Will watch for a T sell later in the day, or late reported in the coming days.