Higher Albion Process Gold Recoveries at Certej
July 11 2006 - 8:33AM
PR Newswire (US)
MONTREAL, July 11 /PRNewswire-FirstCall/ -- European Goldfields
Limited (AIM: EGU / TSX: EGU) is pleased to announce that
additional results of batch metallurgical testwork indicate a
substantial increase in gold recoveries for its Certej project in
Romania. The new results using the Albion Process at optimised
oxidation conditions suggest recoveries from concentrates of
approximately 96% for gold, compared to previously reported
recoveries of 84%. Silver recoveries remain stable, averaging 92%.
This follows the adoption of an all alkaline leaching process,
eliminating the acid step which was initially used. The new results
also show that there is scope to reduce reagent consumption and
that cyanide destruction is achievable. This test was conducted on
samples from the East zone of the deposit. European Goldfields
expects to publish Canadian NI 43-101 compliant reserves based on
the Albion Process later this year, after completion of a Stage III
pilot plant scale continuous testwork programme. The Albion Process
is a combination of ultra-fine grinding and oxidatative leaching at
atmospheric pressure. Hydrometallurgy Research Laboratories (a
subsidiary of Xstrata PLC) of Australia has completed Stages I and
II of a metallurgical testwork programme using the Albion Process
from samples of flotation concentrates produced from Certej ore.
European Goldfields recently identified the use of Albion Process
technology to process Certej gold concentrates prior to cyanidation
as an attractive solution for the production of gold dore on site.
The Albion Process is an alternative development route to the
option of selling gold rich pyrite concentrates produced at Certej,
for which the Canadian NI 43-101 compliant reserves have already
been published in April 2006. Production and sale of gold dore is
expected to significantly increase project profitability and
returns. Commenting on these test results, David Reading, Chief
Executive Officer of European Goldfields, said: "We are encouraged
by these positive results using the Albion Process. We now have the
flexibility of two viable development options for the Certej
project. The project is robust at $425/oz gold and $7/oz silver.
Having identified a clear path to permitting, we now look forward
to accelerating the development of the project in the coming
months." Clear path identified for Certej permits - European
Goldfields has completed all necessary Environmental Impact
Assessments (EIA Levels I and II) for its Certej project. European
Goldfields is now completing an Environmental Impact Study (EIS)
and a feasibility study, in support of an application for mining
permits expected to be submitted by end-2006. ECOIND and Cepromin,
Romanian companies with well-proven track records in environmental
research and permitting procedures, have been employed to assist in
this process. About European Goldfields European Goldfields Limited
(the "Company") is a resource company involved in the acquisition,
exploration and development of mineral properties in Greece,
Romania and the Balkans. Greece - The Company holds a 65% interest
in Hellas Gold S.A. ("Hellas Gold"). Hellas Gold owns assets in
northern Greece which consist of three deposits within 70-year
mining concessions covering a total area of 317 km2. The deposits
include the polymetallic projects of Stratoni and Olympias which
contain gold, lead, zinc and silver, and the copper/gold porphyry
body referred to as Skouries. All three deposits have been well
defined with over 200,000 metres of drilling and the completion of
feasibility studies and later engineering studies. The total proven
and probable reserves of these assets are 7.6 Moz gold, 65.8 Moz
silver, 0.7 Mt copper, 0.7 Mt lead and 0.9 Mt zinc, from a measured
and indicated resource base of 9.4 Moz gold, 74.5 Moz silver, 1.0
Mt copper, 0.8 Mt lead and 1.1 Mt zinc (65% attributable). These
assets represent some of the largest defined deposits in Europe.
The three deposits are located within a 10 km radius of each other,
making this effectively a gold and base metals centre. Furthermore,
both Stratoni and Olympias were previously in production and have
extensive existing mining and plant infrastructure and a
ship-loading facility on the Aegean Sea. Hellas Gold's assets also
include revenue-generating stockpiles of gold concentrates. In
September 2005, Hellas Gold resumed production at Stratoni
following the award by the Greek State of all necessary
environmental and mining permits. Hellas Gold is in the process of
applying for similar permits for Olympias and Skouries, having met
its first milestone by submitting business plans to the Greek
government in January 2006. Romania - The Company holds four
mineral properties located within the "Golden Quadrilateral" area
of Romania. The Company recently announced the conversion of
resources into Canadian NI 43-101 compliant reserves for its
80%-owned Certej project, underpinning the value of the project.
The Certej deposit hosts probable reserves of 27.7 Mt grading 2.0
g/t gold and 11.6 g/t silver for 1.76 Moz gold and 10.35 Moz silver
(80% attributable). The Company is now completing a final
feasibility study for submission to the Romanian government by the
end of 2006, in support of an application for environmental and
mining permits to develop the Certej project. Resources &
reserves parameters For additional information on the resource and
reserve estimates quoted in this news release, please refer to the
Company's Resources & Reserves Declaration at
http://www.egoldfields.com/goldfields/resources.jsp. Patrick
Forward, General Manager, Exploration of the Company, was the
Qualified Person under Canadian National Instrument 43-101
responsible for reviewing the disclosure of resource and reserve
estimates quoted in this news release. Forward-looking statements
Certain information included in this news release, including any
information as to the Company's future financial or operating
performance and other statements that express management's
expectations or estimates of future performance, constitute
"forward-looking statements". The words "expect", "will", "intend",
"estimate" and similar expressions identify forward-looking
statements. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to significant
business, economic and competitive uncertainties and contingencies.
The Company cautions the reader that such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual financial results, performance or
achievements of the Company to be materially different from its
estimated future results, performance or achievements expressed or
implied by those forward-looking statements and the forward-looking
statements are not guarantees of future performance. These risks,
uncertainties and other factors include, but are not limited to:
changes in the worldwide price of gold, base metals or certain
other commodities (such as fuel and electricity) and currencies;
the successful and timely permitting of the Company's Skouries,
Olympias and Certej projects; legislative, political, social or
economic developments in the jurisdictions in which the Company
carries on business; operating or technical difficulties in
connection with mining or development activities; the speculative
nature of gold and base metals exploration and development,
including the risks of diminishing quantities or grades of
reserves; and the risks normally involved in the exploration,
development and mining business. These factors are discussed in
greater detail in the Company's Annual Information Form for the
year ended 31 December 2005, filed on SEDAR at
http://www.sedar.com/. The Company disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise.
DATASOURCE: EUROPEAN GOLDFIELDS LTD. CONTACT: European Goldfields:
David Reading, Chief Executive Officer, Office: +44 (0)20 7408
9534, , http://www.egoldfields.com/; Buchanan Communications: Bobby
Morse / Ben Willey, Office: +44 (0)20 7466 5000, Mobile: +44
(0)7802 875 227, ; Renmark Financial Communication: Neil
Murray-Lyon, ; Tina Cameron, ; Media: Caroline Hebert, , Office: +1
514 939 3989, Fax: +1 514 939 3717,
http://www.renmarkfinancial.com/
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