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 have had a chat with a few people, April commissioning completion is on schedule for Moly at Stepnogorsk and the pre-BFS should be complete in May for Chelyabinsk- both as previously announced, no issues so far :)

Sounds good for a leg up over the next couple of month then.

Which people did you talk to papal?

The ones in the know tallsiii :) say no more, I have no reason to question there comments.

129K T trade. Price stable after moving up earlier this week, I would guess we have some insti buying ahead of the news for April and May !! :)

Should be moving up next week too then :)

Another 105K at 128p........ :)

The expectation has to be plant commissioned and first production of Moly this month (April), then ramping up to full output in May, and along with this comes the pre-BFS for Chelyabinsk in May.

Therefore we should be hoping for news once the Moly plant is commissioned :) sometime this month :)

Nice shake down, from previous action I would say in my opinion its a collection round to shake out weak holders, and therefore later this week or next week we should start powering upwards, too much news coming in April and May, and therefore, a good buying op.

Given news coming, I would expect this to move back upwards (and more with news) after the Easter hols.

Ignoring the big pre-BFS completion news for Chelyabinsk Copper/Gold project in May, looking at the Molyken project that will start producing Moly this month, there are some upsides to the project that are not presently accounted for, in terms of copper and rhenium which might be providing some news later in 2006 after the plant is ramped up to full output in May of this year :

"Key Financials - Molybednum Poject 21st July 2005:

Payback six months

Only eight per cent. of Shorskoye reserves mined Further cash flow can be generated by increasing tonnage through plant

Molybdenum price assumed is conservative against todays price, at US$20/lb for one year and US$10/lb thereafter (current price is US$35/lb)

Further review of Copper (Cu) and Rhenium (Re) will be undertaken during production to evaluate the economic viability of their recovery "

Bullish commentary on Moly and silver....go to the link below to watch the video.


ROBTV Mon 17th April 11:13AM:
Title: Look To Industrial Metals For Superior Returns with Otto Spork, president and CEO, Sextant Capital Management

http://www.robtv.com/shows/past_archive.tv

I would not dispute the underlying promise of this company, but may i be so bold as to point fellow investors to CER (Celtic Resources) who hold a hefty chunk of EKA, as well as about 7% of VOG and also have mining rights of their own ..... IMO, CER is a good way of getting a spread across some interesting companies, notwithstanding that its sp has gained a lot of ground in the last couple of weeks.

Moving nicely today !!

L2 now 5 v 1 so we should be moving up some more I think :)

Nice strong day.

We should be getting prelims anytime soon, and that should give us the latest updates :)

From the Intermoly (IMY) results today which bodes well as Eureka has allowed for 19$ for year one starting now, and 12$ for year two, prices being above those targets means cash generation far in excess of present plans :) :


"Whilst molybdenum prices have fallen from their recent highs, they seem to have stabilised at around US$24/lb currently, reflecting strong demand from stainless steel producers and chemical users in Asia and the western world. The outlook for demand and prices in the medium term appears to be good."

http://www.321gold.com/editorials/moriarty/moriarty042006.html

Whatever happened to MolyMania?
Bob Moriarty
April 20, 2006


.....................I like moly, it's an interesting metal. Some 80% of moly mined, goes into stainless steel. The rest is used in industrial chemicals and in aerospace applications. China is the swing producer and their production determines the world price. Most moly is produced as a byproduct of copper production so the price doesn't have a major effect on supply. China has shut down hundreds of small moly mines in the last two years and since all their production goes straight to steel mills, the price of moly rocketed from $2 a pound to as high as $38 before stabilizing in the $24 range.

It's important for anyone considering the purchase of any primary moly stock to understand there is no shortage of moly properties. In fact, we know of enough moly in the ground to supply 200 years worth of moly. But there is a short term (at least short term) supply shortage. The first companies to actually get into production are the ones who are going to reap the benefit......................................

As we await the pre-BFS results on the Chelyabinsk Copper/Gold project due in May and final complete BFS due in December of this year, a recent article on Copper for info, extracts below, full article on the link :



http://www.dailyreckoning.co.uk/article/130420062.html

Keith Cotterill - Other articles
Thu 13 Apr, 2006

Investing in copper

Five-year...ten-year...20...then 25-year...now
ALL TIME highs - copper prices are literally going
nuts.

The copper bull story is quickly told and quickly grasped when you see the performance of Phelps Dodge, (one of the world's largest producers of the metal) in the past 16 months:

- Supply is down - Chiles production has slipped and new mines arent being discovered. Prospectors havent found any easy (cheap) new fields in 100
years. In short, were running low on supplies... dangerously low.

- Demand is through the roof - Copper is needed for wiring and plumbing and there is seemingly no viable substitute.

Chinas roaring economic growth is being powered by a massive build-out of the electrical grid, and this demand alone has shaken the delicate balance that
held copper below $1 a pound for decades. And I mean shaken it to the ground: at $2.30 a pound, which it has now hit, we are in uncharted territory.

Investing in copper: Indispensable uses

Though copper is neither a precious metal nor a source of energy, it boasts indispensable industrial, technological and economic uses...it's one of the
most important nonferrous commodities today.
Prices have soared in the last four years with all-time highs being achieved this week. Those companies that produce and sell copper have watched their
revenues and profits skyrocket in this time, and have consequentially provided their shareholders with very handsome gains.
In the 1980s and 1990s commodities were beaten and battered. Inventories were full, mines and drills were shut down left, right and centre, and for all
consumption purposes, commodities were cheap and easy to get. Aside from the occasional bear-market rally, from an investors standpoint commodities were the dogs of the markets.
Well, how times have changed...The global economy is growing at a fast and furious pace led by the super-economies of China and India.

Investing in copper: Supply and demand
Commodities that were once undervalued are now starting to rise in price due to the simple economic imbalance of supply and demand. Industrial
development and growth in manufacturing and high technology have kicked up demand for the various natural resources used in their production causing
global inventories to sharply decline as they struggle to keep up with this new-found demand.

Copper falls comfortably into this cycle and Chinas voracious appetite for this metal has almost single-handedly emptied warehouses, drastically decreasing worldwide stock levels.
Look what happened in July of last year...copper stocks at the London Metals Exchange (LME) hit 31-year lows of 25,550 tonnes...the equivalent of less
than two days of global consumption. The hundreds of warehouses around the world, most commissioned and approved by the major metal exchanges (LME, COMEX, SHFE) have seen their inventories hit dangerously low levels.
According to Zeal.com, Chinas demand for copper has hit such extremes that in 2002 it created a large state-owned enterprise to exploit the international
development of nonferrous metals, mainly copper. The firm is called China Nonferrous Metal Mining & Construction Co., Ltd. (CNMC). Nearly four years
later CNMC has operations in over 30 different countries and is aggressively feeding its smelters back home.

Investing in copper: "...exploit overseas mineral resources"

Upon CNMCs creation, Zhang Jian, general manager of China Nonferrous Metal Industrys Foreign Engineering and Construction Group Company (CNFC) said, "It is of strategic significance to Chinas economic development to set up a long-term and stable overseas mineral resources supply base. However many domestic
small-scale nonferrous companies are incapable of solely tapping mines abroad. The only way is to jointly exploit overseas mineral resources."
With China as well as many other growing economies drawing down global inventories, it becomes clear why copper prices are on the rise and why we are
currently facing a global copper deficit.

Investing in copper: How to play the bull run
So how do you play this bull-run in copper?
First and most important, just like any other metal pulled from the ground, copper is dependent on miners to ultimately provide the supply.
To keep up with today and tomorrow's copper demand, mined output will need to increase.
Sounds simple...but as with all metals, ramping up production and opening up new mines requires significant time and capital. And I reckon it's
during that time, or cycle, that investors have the opportunity to take advantage of rising prices.
The USA's Copper Development Association (CDA)estimates that global copper resources are nearly 6 trillion pounds. The CDA also estimates that
throughout history only 700 billion pounds of copper have been mined.
These massive reserves coupled with coppers high recycle rate show we have no imminent risk of ever running out of the stuff. So for copper it is not an
issue of rarity or store of value, rather a matter of ramping up supply to meet demand. And just like all commodities, until this happens, market forces will adjust the prices accordingly in the upwards direction and give investors the opportunity to go long and profit...
And that's exactly what traders are doing today explains Keith Cotterill.......................More on the original link to the article......

....................................Investing in copper: "...the opportunity for legendary gains"

The bottom line is that the reddish metal we call copper continues to show future promise in this exciting secular bull market. Global inventories are
down and demand is up as the world economy grows.

Whereas in the 1980s and 1990s commodities producers, including copper, were the black plague of stock investing...todays commodities bull presents the
opportunity for legendary gains to investors and speculators.

Buying pressure is building up now 5 v 1 @ 124/128 ready for news next week then.....

Checked now Prelim Results between 2nd and 4th of May, most likely the 2nd.

So a few extra days to wait before news :)

following this morning's very long article in Sunday Times, there is likely to be a rush for uranium mining shares on the morrow ...... Summit, an Oz share, got a big mention, but I don't know if that is traded on LSE (I think not), but EKA and similar will no doubt be hanging on to the coattails ...... However, as a better spread of risk and mining areas and commdodities, strongly suggest looking at CER (Celtic Resources) who own 22% of EKA.

My only real misgivings about CER is that they have already moved quite substantially over the last 2/3 weeks.

Starting to move now.

Results due next Tuesday after the bank holiday, where we should get the news that the Moly plant is on line and producing, along with updates on all the other stuff.

Then not long to wait (early June) for the pre BFS news, as pre BFS due to be complete by end of May.