NEW JV IN TURKEY GOOD RESULTS FROM ARDALA
June 08 2009 - 10:26AM
UK Regulatory
TIDMEGU
RNS Number : 5524T
European Goldfields Ltd
08 June 2009
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| Immediate Release | 8 June 2009 |
+--------------------------------------------------------+--------------------------------------------------------+
European Goldfields Limited
NEW JV IN TURKEY
GOOD RESULTS FROM ARDALA
8 June 2009 - European Goldfields Limited (AIM: EGU / TSX: EGU) ("European
Goldfields" or the "Company") is pleased to announce that it has signed a Heads
of Agreement with Aldridge Minerals Inc ("Aldridge") for the joint development
of Aldridge's Derinkoy properties in North-Eastern Turkey, comprising licences
covering a total area of 40 square kilometres. The licenses are located in the
Pontides region of Turkey, a highly prospective geological terrain containing
several major deposits. The properties themselves show encouraging styles of
gold mineralisation and are adjacent to the Company's Ardala porphyry target,
held in joint venture with Ariana Resources plc.
The Derinkoy properties lie within the area of interest of the Company's joint
venture with Ariana (the "Pontid JV") and as such will be developed within the
Pontid JV vehicle. The consolidation of this contiguous belt with known porphyry
Au-Cu and epithermal Au mineralisation forms part of the Company's strategy to
carry out modern, systematic exploration along this known mineralised belt.
Under the agreement, European Goldfields will fund all exploration and
development costs of the properties to earn ultimately up to a 90% interest in
the project by completion of a Feasibility Study.
On the adjacent Ardala property, exploration work has confirmed that porphyry
mineralisation continues to the south of the previously recognised
outcrops. Modeling of the newly discovered zone is now complete and drill
testing will commence in mid 2009.
Some three kilometres to the south of the main porphyry, a higher-grade gold
zone named Salinbas has been identified by rock chip and soil sampling. Detailed
mapping and lithological sampling has confirmed three areas of mineralised
breccia:
* The main occurrence is a 230 metre zone of breccia with widths of 5 to 15
metres. Rock-chip samples returned grades of between 1.42 and 20.5 g/t Au with
an average of 10.8 g/t Au.
* To the east of the main zone more sporadic breccias returned rock-chip assays of
between 3.95 and 8.07 g/t Au, with an average of 5.5 g/t Au.
* In the North-East of the target area, a contact zone between intrusives,
limestones and volcanics returned well mineralised rock chip sample results from
brecciated granite (0.27 and 1.92 g/t Au) and brecciated limestone (18.7 g/t
Au).
A programme of trenching with follow-up drilling at Salinbas is due to commence
in the near future.
Regional work continues in North-Eastern Turkey and a zone of alteration
indicative of porphyry and epithermal style mineralisation has been identified
some 100 kilometres to the west of the Ardala property. Five new licences have
been acquired over the newly identified zone totaling 92 square kilometres. The
Pontid JV now has a total of 9 licences covering 137 square kilometres.
Directors Dealings
On 20 May 2009 the Company granted a total of 488,062 Restricted Share Units
("RSUs") to group employees vesting in December 2009 as part of its long term
incentive plan, including 86,436 RSUs to Mr. David Reading, 68,428 RSUs to Mr.
Mark Rachovides and 61,946 RSUs to Mr. Tim Morgan-Wynne, all being Directors of
the Company.
On 8 December 2008 the Company announced the adoption of a new compensation
program for its independent Non-Executive directors utilizing deferred phantom
units ("DPUs"). Under the program, independent Non-Executive Directors receive a
flat fee of GBP50,000 annually starting in 2009 payable 50% in cash and 50% in
DPUs. The Company confirms that further grants DPUs for 2009 have been made to
Mr. Cameron Mingay, Mr. Martyn Konig and Mr. Jeffrey O'Leary who have each been
granted 6,948 DPU's and, together with the DPU's granted in December 2008, are
now each interested in a total of 142,448 DPU's.
Mr. Dimitrios Koutras has also confirmed that he has transferred 6,684,641
ordinary shares in the Company from his personal ownership shares to that of
a corporate entity 100% owed by Mr. Dimitrios Koutras without consideration.
Mr. Koutras remains beneficially interested in 17,408,715 common shares
representing 9.68% of the Company's issued share capital.
About European Goldfields
European Goldfields Limited is a resource company involved in the
exploration, acquisition, mining and development of mineral properties in
Greece, Romania and South-East Europe.
Greece - European Goldfields holds a 95% interest in Hellas Gold S.A. Hellas
Gold owns three major gold and base metal deposits in Northern Greece. The
deposits are the polymetallic operation at Stratoni, the Olympias project which
contains gold, zinc, lead and silver, and the Skouries copper/gold porphyry
project. Hellas Gold commenced production at Stratoni in September 2005 and
started selling an existing stockpile of gold concentrates from Olympias in July
2006. Hellas Gold is applying for permits to develop and build the Skouries and
Olympias projects.
Romania - European Goldfields owns 80% of the Certej gold/silver project in
Romania. In July 2008, the National Agency of Mineral Resources approved the
technical feasibility study in support of its permit application and issued a
new mining permit for the Certej project.
For further information please contact:
+------------------------------------+--------------------------------------+
| European Goldfields: | e-mail: info@egoldfields.com |
| David Reading, Chief Executive | Tel: +44 (0)20 7408 9534 |
| Officer | |
+------------------------------------+--------------------------------------+
| Buchanan Communications: | e-mail: bobbym@buchanan.uk.com |
| Bobby Morse / Katharine Sutton | Tel: +44 (0)20 7466 5000 |
| | |
+------------------------------------+--------------------------------------+
| RBC Capital Markets: | e-mail: sarah.wharry@rbccm.com |
| Sarah Wharry | Tel: +44 (0)20 7653 4804 |
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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
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 statements and information contained in this document, 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 information under provisions of Canadian
provincial securities laws. When used in this document, the words "anticipate",
"expect", "will", "intend", "estimate", "forecast", "planned" and similar
expressions are intended to identify forward-looking statements or information.
Forward-looking statements include, but are not limited to, the estimation of
mineral reserves and resources, the timing and amount of estimated future
production, costs and timing of development of new deposits, permitting time
lines and expectations regarding metal recovery rates. 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 price of gold, base metals or certain other commodities (such as fuel and
electricity) and currencies; uncertainty of mineral reserves, resources, grades
and recovery estimates; uncertainty of future production, capital expenditures
and other costs; currency fluctuations; financing and additional capital
requirements; 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; the risks normally involved in the exploration, development and mining
business; and risks associated with internal control over financial reporting.
For a more detailed discussion of such risks and material factors or assumptions
underlying these forward-looking statements, see the Company's Annual
Information Form for the year ended 31 December 2007, filed on SEDAR at
www.sedar.com. The Company does not intend, and does not assume any obligation,
to update or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by law.
This information is provided by RNS
The company news service from the London Stock Exchange
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