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>

PP,

Just to let you know that your posts are read and appreciated, these do look good long term roll on 300p :)

silvermede, thats what BB's are for, information, even if I am talking to myself, the info is there for anyone to read, including the silent majority if they wish.

Things do look good, should be over 300p by year end on a complete and done BFS in December.

Bit of consolidation after some nice rises, should be a good buying op at around 126/127 before the next move up I think :)

Excellent news from unionhall given the earlier statement by Eureka and that year 1 starts April for Eureka production. Add into this Korean stockpiling in 2007 and it could yet remain well above 12$ for year 2, that would be fantastic !


"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."




unionhall - 15 Mar'06 - 20:52 - 105 of 105
Chilean copper producer Antofagasta PLC said Tuesday it expected molybdenum prices to average about $23/lb in 2006 due to current tight supplies and the unlikelihood of significant supply increases. However, prices are expected to be lower than the Platts 2005 average moly oxide price of about $32/lb as the second-half of 2006 might see some slowing.

I am going to enhance my position in this before the end of March, expecting plenty of action here in April/May and also perhaps one thing we are forgetting, apart from Moly production April and May pre BFS, there is also the matter of the Kentau Gold Project, which is due an update, perhaps before the summer.

50K buy and then a 25K rollover right at the end.

Looks good for next week.

Only around 4 weeks now until Molybdenum production is on line, which means EKA moves from explorer to being producer/explorer, and that is a big change for the company in terms of vauation and also attraction, as it then has a cash generation bow to its string.

PapalPower

Why do you think these dipped to below 100p around Christmas time? Steady climb since then.

dale4j, there was a Mineweb "DERAMPING" article by Helmer, which was then repeated through different media circles in Dec 05. The article by Helmer claimed that Chelyabinsk (then 49% owned by EKA) was going to be taken away from them and in fact EKA did not own it. He was a complete idiot I think, as is now proven as EKA purchased the remaining percentage and own Chelyabinsk 100%. However, his article (Claiming that Chelyabinsk for EKA was lost along with the Gold for CER) did the damage to Eureka and caused a lot of panic selling, and until Moly is produced next month I cannot see real confidence returning, Helmer really damaged EKA I think, with his nonsense and proven totally incorrect claims in Nov 05. This is just my opinon of him and events and therefore is only an opinion.

If you want to see that article the details are below :

Celtic Twilight - Not only the gold is lost
By: John Helmer
Posted: '29-NOV-05 08:00' GMT Mineweb

tallsiii, would you agree the Mineweb Helmer article knocked the stuffing out of EKA in December...

All quiet and waiting for news, which should be within 4 weeks now.

A good post by unionhall which tells a clear story :


"unionhall - 21 Mar'06 - 16:38 - 134 of 134

I understand that the company has approx 90k tonnes of ore stock-piled in preparation for plant commissioning.
Commissioning is on track for mid-April with production increasing to full-tilt by May.
Pre-feasibility still planned to complete in May on Chelyabinsk.

Confirmed that the logic used in extrapolating the Chelyabinsk NPV to reflect more realistic copper/gold prices is correct.

(Market cap (@ 1.37) - 36m

Chelyabinsk NPV 508m (@ $1.60 copper and $550 Gold)

Shorskoye - 10m profit p/a @ $20 Moly).

They are constrained by Barclays and the current norms used worldwide for these calculations but are hoping to be allowed increase them in the next release.
Presumably as the strength in Copper and gold prices becomes more established the norms for feasibility studies will increase..."

L2 moved up, now 3 v 3.

April and May news draws ever closer :)

PP

There has been very little activity on this share this week. Is this something to worry about? Apart from EKA, LEAD and TAG, is there anything else you would strongly recommend at the moment?

dale4j, nothing to be worried about, patience is the key to all shares, whether its a week, a month or 6 months, the biggest gains go to those who wait :)

Good reading in the below link :

http://www.golden-phoenix.com/documents/TheEconomicsofMolybdenum.pdf

Continued strong growth in Chinese demand for molybdenum is
expected as stainless steel production capacity is scheduled to double
by the end of 2006.

There may be a decline in Chinese supplies to the West (maybe to zero)
as Chinese demand increases and its production either plateaus or even
declines because of restructuring of the domestic mining industry.

Molybdenum production in the USA, Chile and Peru was able to increase
rapidly in 2004 and 2005, mainly by employing unused capacity to meet
increased demand. This is unlikely to continue, and new projects may
take some time to come into production. There could be a period in
2006/07 of very tight supply, if demand continues to rise.

Highly corrosion resistant molybdenum-bearing stainless steel appears
to be gaining ground on other types of stainless steel. Consequently,
growth rates for molybdenum demand could be higher than those for the
stainless steel market as a whole.

Although the price of molybdenum eased slightly through late 2005 and
early 2006, it could be expected to rise again through 2006.

pp fully agree with your patience is the key post. How do you fell about the stop loss strategy. I do not have this policy and 8/10 it has proved to be right. The only real disappointment for me has been superscape. BPRG and CYH, are pushing my patience to the limit.

Kivver, do not operate a stop loss, as (whatever people say) MM's do and will take them out on a shake if they need to lossen up stock to fill buys.

L2 strengthened a little today, so this might mark the new bottom level before we move up now in April news on Moly production.

Good news for EKA (copper) and TMC (Nickel) :

More background info - from this week :

Citigroup turns bullish
Earlier, Citigroup said it's abandoning a long-held bearish outlook on copper and nickel on expectations of economic growth, tight supplies, sluggish capacity additions and persistent operating outages or shortfalls.

"We continue to adhere to the Commodity Supercycle theory, believing that the combination of 15 years of underinvestment, thorough-going corporate consolidation, mounting regulatory/NGO pressure, and input cost escalation are conspiring to prevent the industry from mounting a meaningful supply response to "peak-peak" prices," said analyst John Hill.

Citigroup raised its 2006 forecast for gold to $553 an ounce from $540, and upped its copper outlook to $1.85 per pound from $1.59.

On the supply side, copper inventories were down 44 short tons at 28,104 short tons as of late Friday, according to data from Nymex.

Gold supplies were down 487 troy ounces at 7.53 million troy ounces, while silver supplies were down 119,875 troy ounces at 124.9 million troy ounces.