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

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

It looks like the market has not taken well to this news. It may be that some are not comfortable with the idea of giving half the profits to the Kazakstan government. But at the least the feasability study is complete and the company has made a clear statement about how they are going to move forward.

Political links are the key thing that make or break a company in the FSU, so while it is costing them a lot of money, I think it is very positive that they have the government on board.

Minews Story
Date: July 22, 2005

Eureka Mining Pulls Off A Great Molybdenum Deal With the State Uranium Company Of Kazakhstan

It may have taken the best part of six month to negotiate, but AIM listed Eureka Mining has pulled off quite a coup with its joint venture announced today with KazAtomProm, the state uranium company of Kazakhstan. No, it is not a uranium deal, which would probably be regarded as top of the pops with some investors, it involves molybdenum, the price of which has matched uranium over the past year. Under the terms of the agreement, Eureka will utilise KazAtomProm's Stepnogorsk industrial and plant facilities to process molybdenum from its Shorskoye project which is also in Kazakhstan. As payment KazAtomProm, will be given a 50 per cent interest in Shorskye, but the important point is that this means that it can be brought into production early in 2006 rather than two years later as originally thought.

Eureka listed at the beginning of 2004 and over the past year David Bartley, its CEO, has been almost permanently in Kazakstan and Russia, bar about five weeks, but that is the only way to do good deals in Asia and China a point which some of the companies claiming to operate in these countries should note. . This week he is in London with a smile on his face, though a little shakey from a bout of malaria caught some years ago in the Philippines, and he has some other good news. This is the start of a long term relationship with the Kazakh company and the two of them will be seeking new deposits, which we can feed through the plant along with the molybdenum from Shorskoye.

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.. The sole shareholder is the Government of Kazakhstan and KazAtomProm has joint venture agreements with Areva of France and the leading Canadian uranium producer Cameco. In addition to uranium and products for power stations it also produces semi-products of beryllium, tantalum, niobium and its alloys.

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, crushers, ball mills and other related infrastructure as well as trained and experienced personnel. The Shorskoye mine site is situated approximately 7kms from the Karazhyra open pit coal mine and therefore the majority of required ancillary infrastructure has already been developed and is accessible.

The feasibility study at Shorskoye is now complete and it represents low risk strategy with fast track payback which is just what junior companies need. This fast track production will allow both companies to take advantage of the buoyant molybdenum market with mining commencing shortly and the first sales of concentrate scheduled for February 2006. The capital required is only US$9 million including US$1.09 million of working capital and payback is expected in six months so funding will be no problem. Only 8 per cent of Shorskoyes high grade reserves are being mined initially, but further cash flow can be generated by increasing tonnage through plant. This high grade zone of 5.4 million tonnes grades in excess of 0.16 % molybdenum and 0.07 % copper and from this, an initial mineable resource of 1.8 million tonnes at 0.26 % and 0.07% copper, which is equivalent to 5.3% copper at todays molybdenum price, has been defined.

It should not be assumed that Eureka is a one-mine wonder as it also acquired the copper/gold deposits around Chelyabinsk in Southern Russia at the beginning of this year under the nose of significant competition. The Chelyabinsk region of the Urals contains over 50 per cent of all Russias known copper resources, is heavily industrialised and provides gas, water, high voltage power, smelters and excellent road and rail access all a short distance from the deposits There are three deposits, two copper/gold porphyries at Meheevskoye and Tominskoye and a scarn at Taruntinskoye. The two largest deposits, Miheevskoye and Tominskoye have been extensively explored by the Russians and the combined projects have resources of 3.37 million tonnes of contained copper and 3.61 million ozs gold in the Russian C1 and C2 categories.

Eureka has begun a two-pronged feasibility study to test an open pit and concentrator at Miheevskoye processing up to 20 million tonnes of ore/year to produce copper and gold in concentrate and another open pit at Tominskoye with a heap leach and an SX/EW plant producing copper metal. The chances of the study being positive are good and Barclays Capital has already been engaged to help with funding. The ore is reasonably high grade at 0.8% copper, the stripping ratios very low, and there is excellent infrastructure. The study should be completed by the second quarter of 2006 so the company is now on a roll and worthy of attention.

I have looked up the canadian miner they mention in this article Cameco, they did a joint venture with KazAtomProm five years ago that was on very similar terms to the one struck by Eureka. Since then the Cameco SP has tenbagged.

Obviously there is no gaurantee that EKA will follow suit but this does offer some comfort with respect to the integrity and the processing ability of Kazatomprom.

Moly float this week went well on AIM we might just be being neglected at the moment

Moly price recovering and share price falls, just a good buying opportunity?

Any reason known for the fall in SP?

where is Moly trading right now?

Its $34.25 started moving up about 20th sept from just below $30

Although SP falling it looks like sells are small and buys are big

Fell again this morning

It looks like everything is taking longer and costing more than expected. Chebinsk now looks like the biggest opportunity for this company. Looks like a definate long termer though.

Kazakhmys said it planned to use about half of the 661.4 million pounds ($1.2 billion) raised for organic growth as well as acquisitions. Also stated belief that Kazakhstan is the place to be being next to China and that they beieve that Chinas rapid growth will continue over the next 5 years. Suggesting likely to be shopping in Kazakhstan.

With the Chelyabinsk Copper Project as well as Shorskoye molybdenum deposit does anyone else think that a bid could be possible, Chelyabinsk is meant to be a 'world class deposit'

Any opinions welcome

Jimbob

tallsiii u out there?

5.8% DROP TODAY, any ideas

Buying opportunity, or something more sinister?

Opinions welcome

The company so far is not living up to what was promised. Time schedules have been set back and expected volumes have been reduced while unit cost forecasts have been edging up. So it is no suprise that the SP has dived a bit.

Though if the current set of forecasts is to be believed, then we should be looking at a PE of 2 for 2006 with added bonus of Chebinsk being a potential company maker. So I am hanging on in there with a ruduced stake.