UK-based Eurasia Mining has received approval for its reserves report and feasibility study from the Russian State Agency for Subsoil Use (Rosnedra) for the Monchetundra palladium and platinum project.
The approved resources within the project contain Russian standard C1 and C2 categories of 55.9t palladium equivalent with additional gold and base metal credits at two open pittable locations.
Eurasia Mining managing director Christian Schaffalitzky said: "Much of the 30km of drilling on the licence was financed through a joint venture with Anglo American Platinum who sold their equity to Eurasia in 2014.
"Since that time, Eurasia has managed to continue to advance the project through to the feasibility study and reserves approval, engineering procurement and construction (EPC) contract and financing, a considerable undertaking for an exploration company with a very limited budget."
According to the company, reserves are now fully compliant as defined under GKZ standards.
Eurasia noted that the application for the award of a discovery certificate has already started. Once this has been finished, the company will be entitled to a production licence.
Negotiations are underway with regard to realising the potential of the platinum, palladium, gold, copper and nickel mine, as well as having an EPC contract with the financing part embedded in it.
Eurasia is in the advanced stage of employing a management company with experience in beneficiating platinum group metals (PGM) ores.
Last year, the company agreed an EPC deal with Chinese company Sinosteel, which will take up mine and processing plant turnkey construction and commissioning on a commercial arms-length basis.
Sinosteel has for arranged 85% of the contract value.