TIDMEGU
RNS Number : 3591X
European Goldfields Ltd
13 August 2009
For Immediate Release
13 August 2009
EUROPEAN GOLDFIELDS LIMITED
RESULTS FOR Q2 2009
PERMITTING PROCESS ADVANCES IN BOTH GREECE AND ROMANIA
STRONG GROWTH IN GOLD SALES
RETURN TO PROFITABILITY
13 August 2009 - European Goldfields Limited (AIM: EGU / TSX: EGU) ("European
Goldfields" or the "Company") today reports its results for the quarter ended
30 June 2009.
Financial highlights:
· Strong gold sales - up by 83% on H1 2008
· Total sales of $16.2 million reflecting improved base metal prices
· Working capital of $171.2 million
· Profits for the period double versus Q2 2008
· US$119 million invested in future projects to date
Operational highlights:
· Greece: PEIS process reaches final stage after Central Archaeological Council
approval
· Stratoni: Mine infrastructure essentially complete
· Skouries: Outotec Final Basic Engineering Package received and equipment items
delivered
· Olympias: Very strong gold sales. EIS approval process advances to final stage
· Certej: Permitting process advances with successful completion of public
consultation
Commenting on the results, David Reading, Chief Executive Officer of European
Goldfields, said: "We have delivered a strong performance in what remain
challenging conditions. The permitting process in Greece has now passed a key
milestone. We are confident that our patient and detailed long-term approach to
project development remains the right way to deliver enhanced value to our
shareholders".
An analyst meeting will be held at the offices of Buchanan Communications, 45
Moorfields, EC2Y 9AE, London at 09:00 a.m. on Thursday 13 August 2009.European
Goldfields will then host a conference call at 10:00 a.m. ET / 3:00 pm (London,
UK time) to update investors and analysts who cannot attend the meeting on its
results.Participants may join the call by dialling one of the three following
numbers, approximately 10 minutes before the start of the call.
From North America: (toll free) 1 888 935 4575
From the UK, Austria, Belgium, Denmark, France, Germany, Ireland, Italy,
Netherlands, Norway, Sweden & Switzerland: +44 (0)20 7806 1950 or (toll free
from the UK) 0800 028 1243
Participant pass code: 1686634
A live audio webcast of the call will be available on the following link, and a
replay will be available on the same link from 12:00pm ET / 5:00pm (London, UK
time):
http://mediaserve.buchanan.uk.com/2009/eg130809/registration.asp
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 |
+------------------------------------+--------------------------------------+
SELECTED FINANCIAL DATA
+-----------------------------------+----------------+------------------+
| | Quarter ended 30 June |
| | |
+-----------------------------------+-----------------------------------+
| (in thousands of US dollars, | 2009 | 2008 |
| except per share amounts) | $ | $ |
+-----------------------------------+----------------+------------------+
| Statement of profit and loss | | |
+-----------------------------------+----------------+------------------+
| Sales | 16,204 | 18,461 |
+-----------------------------------+----------------+------------------+
| Gross profit | 3,186 | 3,470 |
+-----------------------------------+----------------+------------------+
| Profit before income tax | 2,653 | 242 |
+-----------------------------------+----------------+------------------+
| Income taxes | (1,078) | 644 |
+-----------------------------------+----------------+------------------+
| Profit after income tax | 1,575 | 886 |
+-----------------------------------+----------------+------------------+
| Non-controlling interest | (136) | (74) |
+-----------------------------------+----------------+------------------+
| Profit for the period | 1,439 | 812 |
+-----------------------------------+----------------+------------------+
| Earnings per share | 0.01 | 0.00 |
+-----------------------------------+----------------+------------------+
+--------------------------+----------------+------------------+
| | 30 June 2009 | 31 December 2008 |
| (in thousands of US | $ | $ |
| dollars) | | |
+--------------------------+----------------+------------------+
| Balance sheet | | |
+--------------------------+----------------+------------------+
| Working capital | 171,185 | 192,675 |
+--------------------------+----------------+------------------+
| Total assets | 753,196 | 766,095 |
+--------------------------+----------------+------------------+
European Goldfields' unaudited consolidated financial statements and
management's discussion and analysis for the three month periods ended 30 June
2009 and 2008 are filed on SEDAR at www.sedar.com.
Q2 revenues recovered well compared to Q1 2009 as a result of strong gold sales
and improved base metal prices, and profit for the period doubled compared to Q2
2008. Stratoni production remained behind budget but all significant capital
expenditures have now been completed at the mine, securing its future
operational capacity. Olympias gold concentrates sales continued to perform
robustly. The Company's lead hedging programme will remain in place until the
end of 2009 and generated income of US$1.8 million for the quarter. Working
capital declined as the Company continued its capital expenditure programmes at
its operating mine and development projects, but the Company's balance sheet
remains strong.
STRATONI OPERATIONS (GREECE)
Highlights:
· Major mine infrastructure essentially complete
· Lower current production due to geotechnical factors in upper levels
· Completion of Upper Adit will enable greater production capacity
· Euro operating costs fall 11%
The Stratoni mine consists of a lead-zinc-silver deposit and lies approximately
four km from the coastal town of Stratoni in northern Greece. The Companys
95%-owned subsidiary Hellas Gold mined a total of 60,023 wet tonnes in Q2 2009
(Q2 2008 - 73,137).
Infrastructure and development
Internal development is virtually complete for the year. The last development of
major infrastructure at the mine, the Upper Adit, is awaiting the completion of
the fan and sump installations. This is due during August, prior to holing
through the remaining three metres. The adit will thus become fully operational
in the very near future. The completion of this project means that the Company
has now effectively built a new mine at Stratoni.
Production
Hellas Gold completed six shipments in Q2 2009 (Q2 2008 - 8), four shipments of
zinc and two of lead/silver. Sales from Stratoni were as follows:
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| | Q2 2009 | Q2 | H1 | H1 |
| | | 2008 | 2009 | 2008 |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| Production | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| Ore | 60,023 | 73,137 | 116,915 | 131,345 |
| mined | | | | |
| (wet | | | | |
| tonnes) | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| Sales | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| Zinc | 10,646 | 11,224 | 20,952 | 19,595 |
| concentrate | | | | |
| (tonnes) | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| - | 4,427 | 4,633 | 8,579 | 8,087 |
| Containing | | | | |
| payable: | | | | |
| Zinc | | | | |
| (tonnes)* | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| Lead | 3,771 | 7,418 | 7,533 | 9,290 |
| concentrate | | | | |
| (tonnes) | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| - | 2,448 | 4,628 | 4,795 | 5,816 |
| Containing | | | | |
| payable: | | | | |
| Lead | | | | |
| (tonnes)* | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| Silver | 183,452 | 355,298 | 366,956 | 450,881 |
| (oz)* | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| Inventory | | | | |
| (end of | | | | |
| period) | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| Ore | 2,293 | 1,003 | 2,293 | 1,003 |
| mined | | | | |
| (wet | | | | |
| tonnes) | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| Zinc | - | 5,660 | - | 5,660 |
| concentrate | | | | |
| (tonnes) | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
| Lead/silver | 2,106 | 1,238 | 2,106 | 1,238 |
| concentrate | | | | |
| (tonnes) | | | | |
+---------------------------------------------------------------------------------------------------------------------+---------+---------+---------+---------+
* Net of smelter payable deductions
Mining production year to date is under budget, due to poor geotechnical
conditions as the convergence of the main Stratoni and footwall faults bounding
the orebody have affected mining in the upper levels of the mine. As a result,
this has disrupted the cycle of mining levels, with two levels that are due to
come into production suffering delays due to access issues. The mine has
therefore suffered from both a reduced number of faces being available than
anticipated and a greater dependence on lower grade areas than originally
scheduled.
Mine management is confident that the introduction of new infrastructure and the
deployment of uprated shotcrete equipment will soon ameliorate the poor
conditions in the upper levels. Plans have been redrawn and a revision is in
progress that emphasises production from higher grade, lower levels in Q3 and
from both upper and lower areas, including the large dimension stopes on the new
124 Level in Q4, to recoup metal production.
Process plant performance
The circuit to improve the quality of the lead concentrate is in the final
design stage and installation is planned for Q4.
Zinc and lead metal recoveries are being maintained on budget at a consistent
92% and silver at 87%. The plant continues to run efficiently and planned
maintenance was carried out on schedule, providing high equipment
availabilities.
Stratoni rehabilitation
The development of the Stratoni process plant was completed in 2006; the two
filter presses in September 2008; the underground mine this year with the upper
adit linked to the decline by the main ramp and all main infrastructure in place
(pumping and ventilation). The water treatment plant is currently being
commissioned. The capital costs to bring Stratoni Mine to this state were:
US$M
Mine 30.2
Process Plant 4.4
Filter Presses 2.6
Water Treatment Plant 3.1
Total 40.3
Social and community
The Company is sponsoring the "Mademohoria Summer Festival", which takes part in
the four villages closest to its operations: Stratoni, Stratoniki, Stagira, and
Olympias. Hellas Gold has sponsored a public concert and other cultural events
in each one of these villages.
SKOURIES PROJECT (GREECE)
Highlights:
· Basic Engineering Packages complete
· Outotec commences detailed design package
ENOIA delivers Basic Design package to schedule
ENOIA has produced and submitted the Basic Design package including an initial
draft of an updated budget cost estimate for the process plant for Skouries to
Hellas Gold for consideration. The overall Basic Design package managed and
co-ordinated by ENOIA is now complete, comprising the ENOIA and Outotec
elements; the mine and roads design by Omicron Kappa; the architectural element
from KION and the civil structures and works by MHXME.
ENOIA has also completed a few early factory acceptance tests on control
equipment.
Outotec commences Detailed Design package
Outotec has commenced the Detailed Engineering of instrumentation and control
systems for the flotation plant. Further detailed engineering and additional
equipment orders will be placed as soon as the required authorisations are
forthcoming.
Fabrication of the long lead items is well advanced and deliveries continue to
Greece.
Detailed plant and dam site geotechnical investigation
Detailed engineering and the ordering of the remaining important long lead-time
items will be initiated during Q3, along with the required geotechnical drilling
for the plant and dams detailing design. The latter will in turn enable ENOIA to
commence the detailed process plant design.
Hellas Gold is now working on all the above studies with a view to producing a
post feasibility engineering study for the Skouries project later in 2009.
OLYMPIAS PROJECT (GREECE)
Highlights:
· Sale of gold concentrates up by 83% over H1 2008
· Approval of EIS for re-treatment of tailings anticipated
· Underground rehabilitation
Sale of gold concentrates up by 83% over H1 2008
The Olympias project benefits from an existing stockpile of gold-bearing pyrite
concentrates which represented, at 1 January 2009, a reserve of approximately
101,000 tonnes grading 23.5 g/t gold (containing approximately 75,000 oz of
gold), in addition to tailings containing 238,000 oz of gold and substantial
underground reserves of gold, lead, zinc and silver. Excavation of the
concentrate for shipment has indicated that the depth of stockpile base was
underestimated in several areas by historical surveys and therefore additional
concentrate tonnage exists compared to the declared reserve.
Hellas Gold completed 28 shipments of Olympias concentrates in Q2 2009 (Q2 2008
- 11). This translates into 32,134 tonnes of pyrite concentrates sold.
Sales of pyrite concentrates were as follows:
+-------------+--------+--------+--------+--------+
| | Q2 | Q2 | H1 | H1 |
| | 2009 | 2008 | 2009 | 2008 |
+-------------+--------+--------+--------+--------+
| Sales | | | | |
+-------------+--------+--------+--------+--------+
| Gold | 32,134 | 22,479 | 58,966 | 32,257 |
| concentrate | | | | |
| (dry | | | | |
| tonnes) | | | | |
+-------------+--------+--------+--------+--------+
The economic slowdown in the Balkans has led to a reduction in the number of
containers arriving at the port of Thessaloniki, but the Company has
successfully sourced sufficient containers by close co-operation with a number
of shipping companies and other counterparties.
In addition to the stockpile of gold concentrates, Hellas Gold plans to process
2.4Mt of stockpiled tailings arising from the previous operations at Olympias.
This will produce approximately 350,000 tonnes of concentrates (containing
238,000 oz of gold) and the refurbishment of the underground mining operations
is scheduled to be phased to the exhaustion of the tailings at Olympias, the
underground producing more gold bearing pyrite concentrates for sale to existing
and new off-take purchasers.
Submission of EIS for re-treatment of tailings
Mine schedules, plant refurbishment plans and cost studies for the second phase
of the Olympias project are approaching completion. In Q2 2008 the Company
submitted an Environmental Impact Study ("EIS") to allow the early processing of
existing tailings, which will produce additional gold concentrate and allow the
rehabilitation of a significant area of the Olympias valley. The Company has
worked closely with the Ministry of Environment and anticipates approval of the
EIS in the near future. It is planned that this re-processing will commence in
parallel with refurbishment of the plant lines for run of mine production and
the necessary underground development to recommence production in Phase Two. The
Company has now evaluated offers for the detailed design phase from Greek
engineering companies and is expecting to award contracts in the near future.
Underground rehabilitation
A detailed study to outline the rehabilitation work and associated costs is to
be started in the third Quarter and completed during the fourth Quarter. The
study will adhere to standard, proven mining practice and technology.
PERMITTING PROCESS - SKOURIES AND OLYMPIAS
Further to site visits and other analysis by specialists from the Ministry of
Culture, the Central Archaeological Council of Greece has approved the
preliminary environmental impact study ("PEIS") and this has been documented by
a Ministerial letter. This is the final inter-ministerial document required for
the granting of the PEIS and this has allowed the Ministry of Environment and
Public Works ("MEPW") to start to finalise the PEIS approval process. The
Company is working closely with MEPW and anticipates that final approval will be
delivered shortly.
The separate Environmental Impact Study ("EIS") application in respect of the
early processing of existing tailings, which will produce additional gold
concentrate and allow the rehabilitation of a significant area of the Olympias
valley, is also due to move to its final stage of approval once public
consultation has been completed.
The Company continues to receive the active support of the Greek Ministry of
Development for its Business Plan and the PEIS. The Business Plan focuses on a
phased approach to the development of the Skouries gold-copper porphyry deposit
and the Olympias gold-lead-zinc-silver deposit. The principal revenue stream in
the early phases will be through the sale of concentrates. The Company's current
plan is to develop Olympias in two phases. The Company will refurbish the
underground mine in the early stage and in the final phase will construct a new
gold processing facility in the brownfield Stratoni area. Skouries will
initially be mined as a low strip open pit operation, followed by highly
productive underground mining.
Approval of the PEIS by the MEPW will be expressed as a Project Pre-Approval
from the Greek State with an invitation to the Company to submit its final EIS
to allow public consultation. On approval of the EIS, the environmental permits
for Skouries and Olympias will be issued.
The Company will then submit to the Greek government a final technical report on
the Skouries and Olympias projects, which will restate the principles of the
business plan and take into account any conditions detailed in the environmental
permit. The mining permits are expected to be issued on approval of the
technical report by the Greek government.
EXPLORATION IN GREECE
Airborne geophysical surveys have revealed four new zones of conductive rocks
with electromagnetic ("EM") signatures typical for massive sulphides such as the
known mineralisation at Stratoni, Olympias and Piavitsa. The new zones are
distinct from any known mineralisation and represent some 20 kilometres of
potential strike. Each anomalous area will now be investigated in the field
with mapping, geochemistry and possibly follow-up ground geophysics in order to
define future drill targets.
The EM survey had already successfully confirmed an anomaly extending eight km
of strike at the Piavitsa massive sulphide target. Two km of this strike length
have massive sulphide drill intercepts which correspond exactly with the EM
anomaly. A number of drill sites have good access through existing roads, which
will allow some drilling to take place in the coming months. An EIS has been
submitted to allow access to drill the remaining sites later in 2009.
In addition, the magnetic component of the survey has already identified a 17
km by six km belt of porphyry intrusives over which a three dimensional model
has been completed defining two other major targets. Follow-up reconnaissance
mapping on the ground has confirmed the presence of porphyry style
mineralisation and drill sites have been selected for test drilling on approval
of the submitted EIS.
CERTEJ PROJECT (ROMANIA)
Highlights:
· Basic Engineering work nearing completion
· Permitting process continues to advance, public consultation completed
The Company's Certej gold-silver project is located 12 km from the town of Deva
in the "Golden Quadrilateral" area of the Apuseni Mountains of Transylvania in
Western Romania. Certej has recent mining activity and boasts excellent
infrastructure. The project is currently at the development stage. Certej is a
typical epithermal gold-silver deposit. The project has reserves of 2.41 million
ounces gold and 11.7 million ounces silver. The project will involve the mining
and processing of 3.0 million tonnes of ore per annum over an open pit life of
11 and a half years. The pit is expected to yield approximately 160,000 oz of
gold and 820,000 oz of silver per year in doré, reflecting an average total
process recovery of 81% for gold and approximately 75% for silver. Thereafter,
the plant will be fed for a further five years at the same throughput rate by
material previously stockpiled from the open pit or historic dumps which has
been defined and is Canadian NI 43-101 compliant.
The metallurgical process involves the production of a flotation concentrate,
followed by the extraction of gold and silver into doré on site, incorporating
an oxidation stage using the Albion Process. The Albion Process is a combination
of ultra-fine grinding of concentrates and oxidative leaching at atmospheric
pressure. The liberated gold and silver is then recovered as doré by the
conventional Carbon in Leach ("CIL") process. The revenue stream will be through
the production and marketing of gold-silver doré.
Basic Engineering work nearing completion
The Basic Engineering ("BE") contract for the Certej project process plant and
associated infrastructure was awarded to Aker Solutions Engineering &
Construction and work started in February 2009. The work is now nearing
completion. The BE covers the entire process plant engineering, encompassing the
three main areas of mineral processing, the concentrator area, the Albion
section and gold-silver doré production by CIL. Xstrata Technology, who are the
owners of the Albion Process, are part of the BE team for the Albion section of
the plant.
The Romanian contractor Cepromin is also an important contributor to the work
and they have recently visited Stockton, UK to review the Aker Solutions BE. As
the project progresses through to detailed engineering, Cepromin will ensure the
submissions comply with Romanian procedures. They have started the work to
generate the Technical Project Report, which together with the environmental
permits will be required for issuing the Construction Permit.
Permitting process continues to advance
The Certej project has already received all the technical mining approvals and
permits required for the operation of mining activities: in September 2008, the
Romanian National Agency for Mineral Resources ("NAMR") approved the Technical
Feasibility Study ("TFS") for the project, as required under Romanian
legislation, and also confirmed the official approval and registration of the
project's resources and reserves. This completed all the mining approvals
required for the project from NAMR and was a very significant step forward in
the development of the project, as it effectively updates the mining permit and
allows the TFS reserve to be mined.
The Company recently updated the Certej Environmental Impact Study ("EIS"),
incorporating the improved location of the TMFs in the same water catchment area
as the rest of the mine infrastructure. This was submitted to the Romanian
environmental authorities in Timisoara and has been incorporated into both the
EIS and Zonal Urbanisation Plan ("PUZ") processes. The PUZ process is almost
complete with 16 of the 17 constituent permits required being obtained,
including that relating to water, which involved cross-border consultation.
A public consultation process in respect of the environmental permit for the PUZ
has also been successfully concluded: the public consultation involved four
public hearings in the communities most directly affected by the Certej project.
No adverse comments were raised during the public notice period, during the
meetings themselves or subsequently to the authorities, and the final
environmental permit is now expected to be issued. A positive final outcome of
the process is expected imminently and represents a significant step forward in
the environmental permitting process.
In anticipation of the approval of the PUZ, the Ministry of the Environment has
invited the Company to file its EIS application, which will also then be subject
to the last requirement for public consultation prior to the issuance of the
environmental permit. These are the final approvals required for the
construction and operation of the plant, the tailings design and other related
infrastructure.
Certej Independent Technical Consultant
As part of the project financing process, an internationally recognised
engineering group has been appointed as Independent Technical Consultant for the
Certej Project. A site visit has already been conducted and a review of the
Certej Definitive Feasibility study and all its supporting documents is
underway.
In addition, Digby Wells and Associates were commissioned to review the
Company's environmental and social plans and studies in order to ensure
compliance with the Equator Principles. This work has indicated that the project
is at an appropriate level of compliance for its development stage and that
future compliance will be achieved with the Company's planned programmes of work
as part of the project construction and production phases.
EXPLORATION IN ROMANIA
In early 2009 the Company acquired two new prospecting licences for 454 square
kilometres of prospective terrain, covering the westward extension to the area
hosting the Company's Certej deposit and the area containing the Deva Porphyry
deposit. These areas are prospective for disseminated gold, porphyry
mineralisation as well as the more prolific and higher-grade epithermal
deposits.
Work in the quarter has been focused on the Deva Porphyry area, which hosts a
volcanic complex, including the historically mined Deva Porphyry pipe, which
produced some 20Mt at 0.8% Cu with the gold grade unrecorded. The Company has
completed approximately 70% of a ground magnetic survey and finished an initial
soil survey over the Deva Porphyry area. Magnetics are proving to be an
excellent targeting tool in the mapping of the buried and blind porphyries and
the survey has also highlighted potential alteration systems that were not
previously recognised.
Early results indicate several magnetic centres in addition to the Deva Porphyry
pipe with associated porphyry-style geochemical signatures of Cu-Au, with Ag,
Ba, Hg, Mo, Sb and V. The largest of these exciting newly identified targets
lies just 70 m to the North of the previously mined pipe. The complex has never
been the subject of modern systematic exploration. The first phase of the
current programme will be complete in the next two months.
EXPLORATION IN TURKEY
In April 2008 the Company entered into a joint venture with Ariana Resources plc
("Ariana") with respect to mineral properties in the Eastern Pontide area of
northeast Turkey.
Continued mapping and sampling has indicated further extension to the Ardala
porphyry, to the southwest of the main porphyry body with lithological samples
returning between 0.05 and 2.35 g/t Au and 0.05 and 3.9% Cu. Earlier work had
already confirmed that porphyry mineralisation continues to the south of the
previously recognised outcrops, and this additional extension increases the size
potential of the porphyry system. A high-grade gold zone has also been
identified at Salinbas, some three km to the southwest of the Ardala porphyry.
The zone comprises a mineralised breccia which had a confirmed strike length of
over 230m with a true thickness of 5 to 10 metres. Recent work has shown that it
extends a further 100m to the east, with grades in outcrop and float of between
0.9 and 15.25 g/t Au in the extension. Drilling and trenching are planned at
both Ardala and Salinbas for the near future.
The Company continues to consolidate ground to the south of the Ardala licence
and has signed a Heads of Agreement with Aldridge Minerals Inc ("Aldridge") for
the joint development of Aldridge's Derinkoy properties, which cover an area of
40 square km adjacent to the Company's Ardala Licences. The 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. A programme of mapping and sampling is planned for this
field season.
In addition, the Company received a further three licences adjacent to Derinkoy
and Ardala. The Pontid JV now has 14 licences totalling some 210 square km not
including the Derinkoy licences.
About European Goldfields
European Goldfields Limited is a resource company involved in the acquisition,
exploration 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.
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 2008, 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
END
IR SFMFMESUSELA
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