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

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?

Tallsii, getting a bit concerned by the large number of sells since the AGM should I be or not?

PCF Last week issues an RNS stating that they had been approached in the early stages of a bid. The current valuation is way to low and is about to rocket with the full bid any day. The company is moving back into profit and several broker/tipster recommended it as a buy prior to the bid news

On top of this there is a rumour of a second bidder in the wings going about

This will reach new highs this week, now is the time to get in before it heads toward 100p, current sp is 32p

IMHO

I think the sells are due to the annoucement of the payment to the Russian government and the drifting moly price. It is just off its all time high at the moment. But even at $6 per lb the moly mine will still make money.

The final pieces are being put in place with local processing facilities. Production is still expected by the end of this year. I came away from the AGM very confident in the abilities of the directors of this company. I expect them to make us a lot of money this year.

got the horn today (the stock not me). up 4% on 60,000 shares traded

Don't know why though! MAybe the MMs know something we don't?

maybe a few guys quoting at the same time. often happends. if you are asked a price and size in a stock at then they buy a few to work some more in the mkt then everyone gets wind of it and moves out the way until it settles doen a few spreads higher (or lower!). no complaints!

spiked at the close (MM trades)...no complaints!

Not the best week opinions on cause welcome

lack of info...stale bulls getting out.

i will look to add in the mid 1.20's

Moly price dropping is probably the cause of the current weakness. It may well continue for a while, but a clear statement of intentions along with profit forecasts from EKA would wipe out any concern over the moly market.

We sit in wait.

Eureka Mining PLC
21 July 2005



Eureka Mining Plc

JV Signed For Kazakhstan Molybdenum Production/Feasibility Study Completed
Production expected Q1 2006

Eureka Mining Plc ('Eureka' or 'the Company') (Tic: EKA) today announces the
signing of a joint venture agreement (the 'JV Agreement') with KazAtomProm
('Kazatomprom'), the state uranium company of Kazakhstan. Under the terms of the
agreement, Eureka will utilise Kazatomprom's Stepnogorsk industrial and plant
facilities to process molybdenum from the Company's Shorskoye Project
('Shorskoye') in exchange for a 50 per cent. interest in Ar-Man LLP, Eureka's
wholly owned subsidiary, which holds the 100 per cent. interest in Shorskoye.

In conjunction with the execution of the JV Agreement, Eureka has now also
completed the Feasibility Study on Shorskoye.

Commenting today on the JV Agreement, David Bartley, CEO of Eureka, said, 'With
the signing of this joint venture Eureka is firmly on track to generate cashflow
from molybdenum production at Shorskoye in early 2006. The joint venture gives
us access to processing infrastructure for base metals over the next 15 years
and with the full support of Kazatomprom, we will be seeking new deposits, which
we can feed through the plant along with the molybdenum from Shorskoye.'

Highlights:

Eureka to fast track mining at Shorskoye to begin by Q3 05 and
metal production and cashflow by Q1 06;

The JV Agreement will be conducted through a limited liability partnership,
Molyken LLP ('Molyken' or 'the Partnership');

Eureka and Kazatomprom each own 50 per cent. of Molyken, which
now holds 100 per cent. of Shorskoye;

Kazatomprom provides full infrastructure for molybdenum processing and modern
rail and transport facilities;

Eureka has 15 year access to processing infrastructure -
Molyken will actively look to acquire further projects to treat at the
Stepnogorsk plant; and

Feasibility study complete and low risk strategy with fast track payback.

Pirmatov Eshmurat, General Director of the Stepnagorsk Mining Chemical
Corporation, Kazakatomprom, 'This is a great opportunity, we have the plant and
Eureka has the project. We have also started looking for new projects as part of
the joint venture and look forward to a successful and long relationship with
Eureka.'

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



The Joint Venture Agreement

The following points summarise the key terms of the JV:

Eureka has contributed to the Charter capital of Molyken its
100 per cent. interest in the subsidiary Ar-Man LLP, which has the subsoil use
rights and contract for the exploration of Shorskoye;

Kazatomprom has contributed property to the Charter capital of Molyken, including
the Stepnogorsk industrial and plant facilities for grinding, crushing and other
related infrastructure;

Molyken shall distribute 100 per cent. of its profit available for allocation,
provided such payment does not conflict with the execution of any obligations of
the Partnership;

Molyken shall bear 100 per cent. of the total sum of expenditures connected with
the establishment of Molyken; and

Molyken will actively aim to acquire further deposits that can be mined and
treated at the Stepnogorsk facility and further generate cashflow.


Kazaktomprom

Kazatomprom is one of the top three companies in the world by uranium reserves
and the fourth largest producer of uranium.

In 1997, the Government of Kazakhstan decided to unite uranium and rare metal
industries into one commercial structure representing the interests of
Kazakhstan on the world markets of nuclear fuel cycle and rare metals. A closed
joint stock company, Kazatomprom was formed as a national export and import
organisation for uranium and other materials of dual use. The sole shareholder
is the Government of Kazakhstan.

Kazatomprom also has joint venture agreements with Areva of France and Cameco
Corporation of Canada.

Kazatomprom produces natural uranium, products for power stations and
semi-products of beryllium, tantalum, niobium and its alloys. The quality of the
production is high and the company enjoys a strong relationship with strategic
global markets.

Kazatomprom is regulated in accordance with International Atomic Energy Agency
(IAEA) standards and is an active member of the World Nuclear Association and
the International Tantalum and Niobium Study Center.


Infrastructure

The Stepnogorsk facility is a chemical metallurgical plant capable of processing
numerous raw materials including, but not limited to, molybdenum, uranium and
copper. The plant has substantial infrastructure associated with it, including:

rail and related unloading facilities;
six crushers (one primary gyratory and five cone crushers);
six ball mills;
water;
trained and experienced personnel; and
all other related infrastructure required.

The Shorskoye mine site is situated approximately 7km from the Karazhyra open
pit coal mine and therefore the majority of required ancillary infrastructure
has already been developed and is accessible. Minimal additional infrastructure
is required to develop Shorskoye and only minor service provisions to the open
pit are required. These include:

10kV power and emergency diesel generator supply;
mine camp (50-100 man, dependent on mining rate);
site offices; and
telephone trunk line.


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


Feasibility Study

The Feasibility Study has been prepared under the Base Case scenario that the
Shorskoye Molybdenum Project would be developed through the Stepnogorsk plant.

Kazatomprom are to contribute rail car unloading facilities together with their
crushing, grinding circuits and related infrastructure. Kazatomprom are to also
provide under utilised sections of the Stepnogorsk concentrator to install the
molybdenum concentrator and product dewatering facilities.

Key Financials:

Payback six months
Capital US$9M (includes US$1.90M working capital)
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 today's 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

The Company has commenced discussions with several financial institutions for
the financing of Molyken and it is expected to engage an institution within the
next month.

Mining

A contract mining fleet will be engaged to commence top soil removal at the
deposit in order to facilitate the removal of oxide and transition overburden.
This will expose fresh ore for mining and shipment to Stepnogorsk to meet the
commissioning and production schedule. Eureka has already received bids from
local drilling and blasting companies and mining contractors.

Mining is due to commence in Q3 05 and a mining contract is due to be awarded in
the next month.

Resource Evaluations Pty Ltd, an Australian-based independent geological
resource evaluation group, has completed the JORC resource estimate for the
Shorskoye East deposit, shown below:

Shorskoye East JORC Compliant Resource Estimate

Tonnes Grade Contained Metal JORC
Ore Molybdenum Copper Cut off Molybdenum Copper Category
Million tonnes % % Mo % Mlb Mlb

25.48 0.087 0.054 Uncut 49.1 30.5 Inferred
13.97 0.113 0.062 0.07 34.8 19.1 Inferred
5.36 0.163 0.070 0.10 19.3 8.3 Inferred
3.11 0.202 0.067 0.12 13.8 4.6 Inferred

Of important economic significance is the high grade zone of 5.4Mt at a grade in
excess of 0.16 per cent. Molybdenum ('Mo') and 0.07 per cent. Cu and from this,
an initial mineable resource of 1.8Mt at 0.26 per cent. Mo and 0.07 per cent. Cu
(5.3 per cent. copper equivalent at today's molybdenum price) has been defined.

Processing

Metallurgical testwork on ore from the Shorskoye deposit was performed at the
Kazmekhanobr Institute in Almaty, Kazakhstan. Testwork has defined a suitable
flowsheet for the concentration of the molybdenum in the ore. This flow sheet
involves a coarse grind, bulk flotation of the molybdenum differential flotation
for copper and molybdenum mineral separation and cleaner flotation to recover
around 85 per cent. of the feed metal, into a 49-53 per cent. Mo metal
concentrate.

Shorskoye is expected to be able to initially produce a minimum concentrate
specification with MoS2 grade of 85-90 per cent. (i.e. 49-53 per cent. Mo). This
specification is a starting value that would be targeted for an initial off-take
agreement and would be expected to improve over the project life.

The Stepnogorsk processing facility has a rated capacity of 1.4 Mt/a, more than
double the requirement for the planned production rate from Shorskoye.
Construction of the concentrator within the existing stripped out section of
concentrator building has commenced.

Molyken is expected to award a contract to fabricate the flotation circuit
within the next month and several tenders have been received.


off-take

Significant interest has been received from companies established in the global
molybdenum industry, for the off-take of the molybdenum sulphide concentrate.
Discussions are ongoing with several companies.




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