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

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 :) )

This is good news if it comes out true to forecast as EKA have averaged year one Moly at 19$ (April 06 to March 07) and year 2 Moly at 12$ (April 07 to March 08) so if we keep an average of 20$ into 2008, big upside for EKA plans :)




http://metalsplace.com/metalsnews/?a=3636


Just where is moly going?

Early forecasts for molybdenum suggested the same $32/lb this year as last, but that may be too high a projection. Already this month, transaction prices have slipped to $23 and Citigroup analyst John Hill suggests "some further price erosion" ahead.

ResourceInvestor.com says that "the molybdenum market is one of the most opaque in the world, making good pricing, and supply/demand information very hard to come by."

Moly doubled in price from $16/lb in 2004 to $32 in 2005, largely because of the explosion in co-product copper. Prior to that, the highest annual average for moly was about $7.50 in 1995.

Still, it appears that buyers may have been caught unawares by the recent series of monthly-average price drops off a peak of $37 in June.

Most analysts agree there's a lot of molybdenum ore in the world these days for the mineral, used to strengthen steel and certain superalloys, that is mined along with copper.

According to the International Molybdenum Association, world reserves are 12 million metric tons.

The U.S. Geological Survey estimates it as higher at some 19 million metric tons, attributing a substantial amount to China.

"Either way, there is probably more than one hundred years of current demand already identified," says ResourceInvestor.com.

Still, there's a big difference between ore in the ground and metal that has been mined, processed, smelted and refined. Hill points to a long history of "production and sales shortfalls" for molybdenum that tend to keep prices from rising or falling too rapidly. That's why miners such as Adanac Moly of Canada are only willing to forecast moly prices averaging $20 in 2008.

This report might help. its from June 05 but you can see the valuations :

1/ Present case 330p to 380p range when remaining Chelyabinsk license is purchased and with Moly at 20$ average in 2006.

2/ Present case 200p to 240p range without the remaining Chelyabinsk license percentage and Moly at 20$ average in 2006 (WHERE WE ARE NOW)

3/ Future with Moly from Shorskoye and Copper from Chelyabinsk then around 550p per share :)


The report link is below, PDF file :

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

Has to be good news for Eureka, the Moly required for the steel to make this pipeline will increase demand. And, Eureka can supply Moly by road transport, a short distance to China, meaning they can supply with much cheaper delivery charges, meaning they should win more orders !

http://www.chinadaily.com.cn/english/doc/2006-01/19/content_513590.htm

"PetroChina to build two oil pipelines
By Wang Ying (China Daily)
Updated: 2006-01-19 06:45"

http://www.minesite.com/storyFull5.php?storySeq=3265

Feature Story Date: January 26, 2006

Eureka Mining Moving Fast At Both Chelyabinsk And Shorskoye.

By Jack Hammer

What with recurring illness and deal-making across central Asia, Eureka Mining chief executive David Bartley didnt have much time to stay in touch with the City last year, except when he was announcing big deals. But although the newsflow was sometimes a bit thin, those long hard hours on the road are beginning to pay off. Eureka is shaping up nicely full scale mining on the fifty per cent owned Shorksoye molybdenum project in Kazakhstan is imminent, and a pre-feasibility on the Chelyabinsk copper project in Russia is underway.

So, late in December Mr Bartley promised to pay more attention to the deskbound folk in London, to be around more, and to provide regular updates. He was off alcohol back then, on account of his recurring bouts of malaria, putting him for the time being - and somewhat unusually - on a level with Joe Nally, the mining money-man at Cenkos who is a close ally, and who has given up the booze for January. But some resolutions are harder to keep than others - David Bartley is not currently in town, and nor is he in touch. One mining analyst is under the impression that hes lying in hospital in Australia with another attack of malaria, but a PR for Eureka eventually establishes that hes in Moscow so, sorry, can I get back to you in two weeks?

Fair enough its not so long since Mr Bartley visited London to update press and investors. But he also spent a fair bit of time on that visit moaning about weakness in Eurekas share price. There are moves afoot to rectify that weakness from the broking angle, but if Mr Bartley wants the shares to firm up someone needs to be here pushing the story full time.

Its not clear either what exactly Mr Bartley is doing in Russia. With any luck though, its something to do with the pre-feasibility study on Chelyabinsk, which is due to be delivered in the first quarter of this year.

Chelyabinsk is a copper-gold project with a total resource 687 million tonnes at 0.7 % copper equivalent in the Russian C1 and C2 categories. Those numbers are derived from three deposits within Chelyabinsk, and a JORC calculation has been made and verified by Snowden - for Miheevskjoye, the largest. It shows 405 million tonnes at average grades of 0.4 % copper and 0.22 g/t gold in the inferred category. Its not world class, says Richard Chase, who continues to provide analysis for broker Ambrian, in spite of a recent move up the foodchain there, but its not bad either. It should be cheaper to develop than Montericcos bigger Rio Blanco project in Peru for example.

Last year Eureka signed up Barclays Capital to act as advisor on financing. Barclays chief Gerard Holden went out to take a look for himself, was favourably impressed, and on current plans could be looking to put the finance in place before the year is out. Post tax, assuming 60 per cent debt finance, and on a 15 per cent discount, Ambrians Mr Chase values Chelyabinsk at US$105 million. This isnt going to be a 200 million company, he says, before adding, with one eye on future developments, at least not on these assets.

Eureka is not a one trick pony, however. In the summer David Bartley pulled off a deal in which the company gave up 50 per cent of Shorskoye in exchange for access to the plant and processing facilities of local operator Kazatomprom. Thats a lot of a project to give away, but the point was to get producing fast. Molybdenum wont stay above US$30/lb forever the long-term average is below US$10/lb. Ambrians Richard Chase says: I wouldnt be surprised if Shorskoye is all done and dusted in three years. But over those three years he forecasts nearly US$45 million in net cash flow, assuming a (currently) conservative US$20/lb molybdenum price. Those are reasonable numbers, and should sustain Mr Bartley nicely on his travels, as he works up other early stage exploration assets and hunts down more deals.

Companies featured in this Story Eureka Mining Plc (AIM-EKA)

And there is that first step , roll on the news in the coming weeks :)

Eureka Mining PLC
27 January 2006

Eureka Mining Plc ('Eureka')
Change of Adviser

The Board of Eureka has appointed Cenkos Securities Limited as its Nominated
Adviser and Broker and Ambrian Partners Limited as a joint Broker with immediate
effect.

Enquiries

David Bartley, Eureka Mining Plc - 020 7921 8810
Nicholas Wells, Cenkos Securities Limited - 020 7397 8920
Emma Priestley, Ambrian Partners Ltd - 020 7776 6465

A return of buyers today, I think they might be well timed.