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

wise words tallsiii! am i right in saying there is news out in the next couple of weeks?

There have been a number of timescales given for the final announcement on the Shorkye fesability study, but I hope there will be something out within a month.

Shorskye is a very hot prospect, but the future beyond that looks very bright also. Chelyabinsk in Russia is due to commence production in 2006 if all goes well with the fesability study. The resource estimates for this mine are 3.37 million tonnes of copper and 3.61 million lbs of gold.

If you assume a conservate $1 per lb for copper and $300 per lb of gold, then valuation looks very good.

3.37 million tonnes of copper = 6740 million lbs copper = $6.74bn

3.61 million lbs of gold = $1.083bn

After extraction cost and discounted cash flow this may boil down to a valuation of just $1bn.

Again this looks too good to be true, but if it is, then it will certainly give them something to be playing with when the molybdenum price has come back down to earth.

Good day so far half of me wants it to stagnate for a bit so that I can try and get some more funds together.

Maybe we should close down the thread for a few weeks until the news comes out. There are only really three of us at the moment anyway.

Tallsiii

No, I'm reading you!

Cheers, Madison

Only kidding! This board is a wonderful sense and sanity test for my analysis.

we love you man!

Healthy buying so far

yes 50k bought so far today. There seems to be a very steady upward path forming in this share.

Good day occasional chunky sells, people doing some trimming as price rises ?

or something else ?

Up again but chunky selling going on with lots small buys

opinions welcome !

50/- at 155. nice. i am in (not the 50/- though!)

Still waiting for the news.

the moly price is now up to $39.25. If there is going to be a major drop off in the price of moly, then it looks unlikely to be happening this year.

i agree. tallsiii - check out the CSB thread. the IB Daiwa stake has quadrupaled since i saw them...speak later.

Tallsii U still planning to go to AGM?

Will u give us a summary?

Yes will do.

not a bad little announcment...



Eureka Mining PLC
15 June 2005


Eureka Mining Plc

Cooperation agreement with
Chelyabinsk Government, southern Russia

Eureka Mining Plc ('Eureka' or 'the Company') (Tic: EKA) today announces the
signing of a cooperation agreement with the Government of Chelyabinsk Oblast
('Government'), southern Russia.

Under the agreement, the Government will provide Eureka with full support in the
form of regulatory assistance, access to infrastructure and public utilities and
permitting to ensure the Company's successful development of the Chelyabinsk
copper/gold project and future projects in the region.

The agreement confirms the commitment of Eureka and the Government to
work together in the socio-economic development of the Projects

The Government will provide to Eureka regulatory assistance, access to
infrastructure and public utilities and assistance in obtaining future
consents.

Eureka will implement a series of social programmes to assist
the Government in developing the State welfare structures in the region over
the lifetime of the Projects

Eureka will reimburse the funds historically invested by the Government of
approximately US$2.5m in geological research relating to the Projects

Commenting on the agreement today David Bartley, CEO, of Eureka said: 'The
massive resource potential in the FSU is well known and today Eureka has laid
the foundations of a long term relationship with the Chelyabinsk Government in
southern Russia. With such firm support from the Chelyabinsk Government
administration as we progress the development of our gold-copper project, we
look forward to the completion of the Economic Scoping Study in Q3 2005.'
First Vice Governor Dyatelov confirmed the interest of the Chelyabinsk Region in
the development of modern mining enterprises in the region and said of the
recently signed agreement between Eureka and the Regional Administration, 'We
support any investment project which helps develop the social and economic
sphere of our region, assuming that it operates in a legal manner, is
economically effective, and ecologically safe.'

For further information:

David Bartley Kevin Foo
Chief Executive Officer Chairman
Eureka Mining Plc Eureka Mining Plc
Tel: +44 (0)20 7921 8810 Tel: +44 (0)20 7921 8810

Laurence Read/Amanda Harris
Conduit PR
Tel: +44 (0)20 7618 8760 / +44 (0)7979 955923

Chelyabinsk Copper-Gold Projects in Russia

On 13th January 2005, Eureka announced the acquisition of 51% of the Chelyabinsk
Copper/Gold Project in the southern Urals region of Central Russia and, subject
to the satisfactory conclusion of a feasibility study, the Company has the
exclusive option to acquire 100% of the project.

The Chelyabinsk copper/gold project comprises three separate deposits,
Miheevskoye, Tominskoye and Taruntinskoye. Drilling to date has delineated total
C1 and C2 resources of 609 million tonnes at 0.74% Cu equivalent. Contained
metal is currently estimated to be 3.37 million tonnes of copper, 3.61 million
ounces of gold and 99 million pounds of molybdenum. Preliminary mining studies
on two of the deposits have identified high grade ore in excess of 1% copper
equivalent in the initial years, with low mining strip ratios.

The two largest deposits, Miheevskoye and Tominskoye are copper/porphyry
deposits and are located 200km and 40km respectively from Chelyabinsk.
Taruntinskoye is a skarn deposit located on the Russian-Kazakhstan border,
approximately 100km south of the city.

All three deposits are connected by the same rail network, providing synergies
in transport and production costs.

Many of the key elements required for commercial success of a mine are present
in the Chelyabinsk projects. These include:

Good infrastructure - available and accessible
Low cost grid power near all project sites
Rail access near all project sites
Gas pipeline access
Flat terrain
Secure land tenure/ownership
Low cost mining - low strip ratios
Competitive metal grades and high grade starter pits
Good concentrate grades and recoveries with no penalty elements; and
Close proximity to local smelters

Eureka is now completing an economic scoping study using technical, social and
environmental data for mine development. This work is currently underway with
various international consultants with local Russian experience being utilized
in the initial phases.

The economic scoping study is scheduled for completion in Q3 2005.

The Chelyabinsk Region

The Chelyabinsk region is located in central Russia, in the southern most part
of the Urals and contains over 50 per cent of all Russia's known copper
resources. Chelyabinsk is one of Russia's largest cities with 1.2 million people
and the region has a population of approximately three million people. The
region has excellent infrastructure, with the Project's three deposits located
within a short distance of road, gas, water, high voltage power, smelters and
direct rail access to Asian, Russian and European markets.

The Agreement

The Chelyabinsk Government will fully assist Eureka with:

Continued assistance with regard to the satisfaction by Eureka of the
regulatory requirements of the exploration licences necessary for the
Projects
Access to Government utilities required by Eureka in the region
Allocation of land and infrastructure to Eureka
Assistance in obtaining any future regulatory consents that may be
required

Eureka has confirmed its intention to cooperate with the Government in the
socio-economic development of the region, including the implementation of a
series of social programmes to assist the Government in developing the State
welfare structures in the region including assistance in:

The reconstruction of transport and communication infrastructure
Modernisation of medical and educational facilities
Construction of housing

In recognition of the Government's commitment, as evidenced by the agreement
announced today, Eureka has agreed to recognise the historic costs incurred
during the period from 1997 to 2002 by the Government in relation to the
geological, prospecting and evaluation work at the Projects.

Eureka has agreed to reimburse up to US$2.5m of these expenses to the
Chelyabinsk Government, with such reimbursement being in instalments over the
life of the Projects.


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

Tallsii, not a great day today was there a cause at the meeting?