Cerillion Regulatory News (CER)

1 Oct 2007 07:02

European Goldfields Ltd01 October 2007 For Immediate Release 1 October 2007 European Goldfield Limited Sale of Extra 71,000 Tonnes of Olympias Gold Concentrates 1 October 2007 - European Goldfields Limited (TSX / AIM: EGU) is pleased toannounce that its 95%-owned subsidiary Hellas Gold S.A. has entered into anoff-take agreement with a subsidiary of Celtic Resources Holdings Plc (AIM: CER)for the sale of 50,000 wet metric tonnes (wmt) of gold-bearing pyriteconcentrates previously produced from the Olympias mine in Greece.Celtic Resources have agreed to pre-pay for the concentrates within the next 10days, and take delivery of the concentrates within a period of 24 monthsfollowing the date of the agreement.This is in addition to the sale of 9,000 wmt of concentrates to Celtic Resourcesannounced in November 2006. Hellas Gold has also recently agreed terms for the sale of at least 21,000 wmtof concentrates by the end of 2007 to Trafigura Beheer B.V. In total, these71,000 wmt of concentrate contain approximately 53,000 oz of gold. The Olympias project benefits from an existing stockpile of gold-bearing pyriteconcentrates which represented, at December 31, 2006, a reserve of approximately252,000 tonnes grading 23.3 g/t gold (containing 188,000 oz of gold), inaddition to substantial underground reserves of gold, lead, zinc and silver. Hellas Gold has now secured the sale of the entire stockpile to six differentpurchasers - Golden China Resources Corporation, Celtic Resources Holdings Plc,MRI Trading AG, Euromin S.A. and Trafigura Beheer B.V. Hellas Gold plans to resume underground mining operations at Olympias afterpermits are awarded, producing more gold bearing pyrite concentrates for sale toexisting and new off-take purchasers. Commenting on the new agreements with Celtic Resources and Trafigura, DavidReading, CEO of European Goldfields, said: "We are delighted to have signedthese new off-take agreements for the sale of our stockpile of gold concentratesat Olympias. By doing so, we have achieved two key milestones in the developmentof our company, securing the sale of the entire stockpile and the sale of atleast 100,000 tonnes of concentrates in 2007. The strong demand for Olympiasgold concentrates bodes well for the resumption of mining operations atOlympias." About European Goldfields European Goldfields Limited is a resource company involved in the acquisition,exploration and development of mineral properties in Greece, Romania andSouth-East Europe. Greece - European Goldfields holds a 95% interest in Hellas Gold S.A. HellasGold owns three major gold and base metal deposits in Northern Greece. Thedeposits are the polymetallic operation at Stratoni, the Olympias project whichcontains gold, zinc, lead and silver, and the Skouries copper/gold porphyryproject. Hellas Gold commenced production at Stratoni in September 2005 andcommenced selling an existing stockpile of Olympias gold concentrates in July2006. Hellas Gold is applying for permits to develop the Skouries and Olympiasprojects. Romania - European Goldfields owns 80% of the Certej gold/silver project inRomania. European Goldfields submitted in March 2007 a technical feasibilitystudy to the Romanian government, in support of a permit application to developthe project. For further information please contact: European Goldfields: e-mail: info@egoldfields.comDavid Reading, Chief Executive Officer Tel: +44 (0)20 7408 9534 Buchanan Communications: e-mail: bobbym@buchanan.uk.comBobby Morse / Ben Willey Tel: +44 (0)20 7466 5000 Renmark Financial Communication: e-mail: nmurraylyon@renmarkfinancial.comNeil G. Murray-Lyon Tel: +1 514 939 3989 Evolution Securities e-mail: simon.edwards@evosecurities.comSimon Edwards / Neil Elliot Tel: +44 (0)20 7071 4300 Forward-looking statements Certain statements and information contained in this document, including anyinformation as to the Company's future financial or operating performance andother statements that express management's expectations or estimates of futureperformance, constitute forward-looking information under provisions of Canadianprovincial securities laws. When used in this document, the words "anticipate","expect", "will", "intend", "estimate", "forecast", "planned" and similarexpressions are intended to identify forward-looking statements or information.Forward-looking statements are necessarily based upon a number of estimates andassumptions that, while considered reasonable by management, are inherentlysubject to significant business, economic and competitive uncertainties andcontingencies. The Company cautions the reader that such forward-lookingstatements involve known and unknown risks, uncertainties and other factors thatmay cause the actual financial results, performance or achievements of theCompany to be materially different from its estimated future results,performance or achievements expressed or implied by those forward-lookingstatements and the forward-looking statements are not guarantees of futureperformance. These risks, uncertainties and other factors include, but are notlimited to: changes in the price of gold, base metals or certain othercommodities (such as fuel and electricity) and currencies; uncertainty ofmineral reserves, resources, grades and recovery estimates; uncertainty offuture production, capital expenditures and other costs; currency fluctuations;financing and additional capital requirements; the successful and timelypermitting of the Company's Skouries, Olympias and Certej projects; legislative,political, social or economic developments in the jurisdictions in which theCompany carries on business; operating or technical difficulties in connectionwith mining or development activities; the speculative nature of gold and basemetals exploration and development, including the risks of diminishingquantities or grades of reserves; the risks normally involved in theexploration, development and mining business; and risks associated with internalcontrol over financial reporting. For a more detailed discussion of such risksand material factors or assumptions underlying these forward-looking statements,see the Company's Annual Information Form for the year ended 31 December 2005,filed on SEDAR at www.sedar.com. The Company does not intend, and does notassume any obligation, to update or revise any forward-looking statementswhether as a result of new information, future events or otherwise, except asrequired by law. This information is provided by RNS The company news service from the London Stock Exchange