EKA are expecting to mine 3.8 million lbs of Molybdenum this year. For the more sceptical amongst you, read this to confirm:

http://moneyam.uk-wire.com/cgi-bin/articles/200412150700023844G.html

They own the mine and the molydbenum in it has been independently varified as stated in the announcement linked above.

Molydbenum currently trades at around $38.50 per lb, you can check this at:

http://www.monterrico.co.uk/s/MetalPrices.asp

so do the sums 3.8m x $39.25 = $149m = 82m

Eureka Mining's market cap is 26m

In 2006 they expect to pull over 10,000 tonnes (20m lbs) of Moly out of that mine.

On top of all that they have recently aquired a mine in Russia with estimated contained metal of 3.32 million tonnes of copper, 3.26 million
ounces of gold and 98.9 million pounds of molybdenum. They hope to complete the feasibility study for this one in 2006:

http://moneyam.uk-wire.com/cgi-bin/articles/200501130700033169H.html

Here is what the papers said earlier, they said it was close at the 21st Dec, so it could well be all done and signed now ;


"The Times 21st Dec 2005

Rumour of the day

Eureka Mining, the base metals explorer in which Celtic Resources owns 15 per cent, firmed 1p to 107p on AIM amid word that it was close to buying the 49 per cent of Russias Chelyabinsk copper and gold project it does not own. The company, which has an option to buy the stake for $6 million (3.5 million), raised 9 million at 125p in September, in part to fund the purchase. "


"The Times 6th Dec 2005

Further news:
*Wind taken out of sails of renewable energy project.
*Word that Eureka Mining (LSE: EKA.L - news) is close to buying the 49% of Russia's Chelyabinsk copper and gold project it does not own.
*US investor drawn to jewel in London Scottish Bank (LSE: LSB.L - news) 's crown."

tallsiii, keep your ear to the ground, rumours are that the Chelyabinsk deal is done, but its only rumour at the moment. I am hoping its confirmed and we get news this week.

Could be moving up again this afternoon, just swapped on L2 1 v 3 to now 3 v 1

PapalPower:-

Many thanks for all your endevours on providing info on this co, and the marketplace

In here last week - like the fact the shares bottomed out with the overall outlook
if rumours are true with regard to Chelyabinsk this has plenty of gas in the tank - just like VOG!

rwakeley, here should be no problem with returning to the recent placing price of 125p with or without any news. The target from Ambrian based on Moly is 175p, but if we got news of Chelyabinsk being 100% EKA, then I would see no problem being over 200p and in the range of 225p to 250p.

I think we have news coming, maybe in a day or a fortnight, will have to wait and see, but the movement today just after midday suggests news flow imminent.

If anyone hears anything from Foo or Bartley, then let us know.

tallsiii, I am hoping they tell us all first by a nice juicy operational update RNS.

Strong move up this morning, a shake down with some consolidation, makes a good base point for news to come. Tomorrow or Thursday ? I do hope so.

Looks like whoever took the 35K recently at 98p took profits today at 116p, well done. Hope they will be back in for news, before is best :) Bit of a problem if news is tomorrow, but thats the gamble people take when trading, some times you win, some times you miss out.

A solid day in the end, up, consolidation, then finish level. Roll on news.

Nice to see a move up, interesting shake before the move up and lots of B trades reported late from yesterday.

And moving up some more, this to me signals there is some good news around, just depends if it comes out this week, next week or not long after.

A good day again !



Any chance you can put the 6 month and intraday charts in the header tallsiii ?

Moving up again and momentum building in, could get very exciting on good news now.

Looking strong again for another tick up today, its on a roll...........

Consolidation at the end of a good week, lets have some more upwards again for next week then :)

A small summary as to why things are getting exciting now, just in case any newbies are wondering, its due to Q1 06 Moly concentrate production, the story is below ;


On August 20, 2005 President of the Republic of Kazakhstan Nursultan azarbayev visited Stepnogorsk town. In the course of the visit the Head of State had discussions with Moukhtar Dzhakishev, President of Kazatomprom, and Eshmurat Pirmatov, General Director of Stepnogorsk Mining and Chemical Complex (SMCC).

In September 2004 Kazatomprom took over the SMCCs hydrometallurgical plant, sulphuric acid production, and uranium mine No.1 in Shantobe, as well as their auxiliary facilities on trust management terms. The takeover resulted in quick restart of major production lines and ensured full capacity operations, which provided jobs and paid salary to more than 2900 employees.

Moukhtar Dzhakishev reported to the Head of State of the facilitys current status and development strategy through year 2010.

The Head of States approved the plans on SMCC development and particularly noted the importance of molybdenum production being established in Kazakhstan; he wished the SMCC staff success in implementation of its plans, which will improve the living standards of population in Steptogorsk town.

One sixth of the world explored reserves of molybdenum (249,000 tons) is located in Kazakhstan. Yet, there was no molybdenum production before. Molybdenum is widely used to produce special steel grades and as catalyst in oil-refining industry.

Based on the research by Kazatomprom and SMCC under Mr. Pirmatovs guidance, a unique technological scheme of obtaining molybdenum oxide was successfully tested at SMCC, and produced its first output of molybdenum oxide to the visit by the Head of State to Stepnogorsk. Laboratory tests proved the product conformity to international quality standards.

The facility will undertake three-month construction of enrichment facility for one million tons of molybdenum ore per year, and installation of commercial scale equipment to produce 1000 tons molybdenum oxide per year starting from 2006.

The molybdenum raw material will be supplied from Shorskoye deposit (21,000 ton reserves) by Molyken LLP joint venture between SMCC/Kazatomprom and British Eurika Mining. In addition, Kyzyltu and Seletinsk copper-molybdenum deposits are deemed to be future raw material feed sources.

In accordance with Kazatomprom program, more than USD$180mln will be invested between 2005 and 2007 in development of the complex to ensure efficient production in the long run.




Implementation and schedule

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
January 2006 - concentrator commissioning
February 2006 - first concentrate

That's an excellent summary PP, VMT

silvermede it helps to understand whats happening, and also all project milestones have been met so far, lets hope they keep on track with the last 2 (or is it last one now :) )