Cerillion Regulatory News (CER)

22 Nov 2006 07:02

European Goldfields Ltd22 November 2006 For Immediate Release 22 November 2006 European Goldfields Limited Olympias Gold Concentrates Sold to Celtic Resources 22 November 2006 - European Goldfields Limited (TSX / AIM: EGU) is pleased toannounce that its subsidiary Hellas Gold S.A. has entered into an off-takeagreement with a subsidiary of Celtic Resources Holdings Plc (AIM: CER) for thesale of an initial 9,000 wet metric tonnes (wmt) of gold bearing pyriteconcentrates previously produced from the Olympias mine in Greece. This concentrate contains approximately 6,000 oz of gold and is convenientlylocated at Hellas Gold's port facility in Stratoni. Shipments are expected to becompleted by the end of Q1 2007, and may continue thereafter for quantities ofup to 120,000 wmt if the initial shipments are successful. In addition to this 9,000 wmt of concentrates, Olympias benefits from anexisting stockpile of gold concentrates representing a reserve of approximately258,000 tonnes grading 23.3 g/t gold (containing 193,000 oz of gold). Hellas Gold has also recently signed an off-take agreement with Euromin S.A. foran initial 1,000 wmt of concentrates. Following today's announcement, Hellas Gold has now secured the sale of a totalof 49,000 wmt of Olympias concentrates (containing approximately 35,800 oz ofgold) to four different off-takers - Shandong MIC Biogold Ltd, MRI Trading AG,Celtic Resources and Euromin - with expressions of interest to sell up to anadditional 232,000 wmt of concentrates if the initial shipments are successful. Commenting on the new agreements with Celtic Resources and Euromin, DavidReading, CEO of European Goldfields, said: "We are delighted to have signedthese third and fourth off-take agreements for the sale of our gold stockpile atOlympias. We expect the success of these initial shipments will translate intoadditional orders, as already anticipated in our agreements with the off-takers.This means we should have sold the entire stockpile within the next two years.With no debt and the generation of cash from production at Stratoni, thisadditional revenue will assist with the financing of the development of ourmajor gold and base metals projects of Skouries and Olympias." About European Goldfields European Goldfields 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 65% interest in Hellas Gold S.A. HellasGold owns three major gold and base metal deposits in Northern Greece. Thedeposits are the polymetallic projects of Stratoni and Olympias which containgold, zinc, lead and silver, and the Skouries copper/gold porphyry body. HellasGold commenced production at Stratoni in September 2005 and selling an existingstockpile of Olympias gold concentrates in July 2006. Hellas Gold is applyingfor permits to develop the Skouries and Olympias projects. Romania - European Goldfields owns 80% of the Certej gold/silver project inRomania. European Goldfields is completing a feasibility study for submission tothe Romanian government in Q1 2007, in support of a permit application todevelop the project. For further information please contact: European Goldfields: website: www.egoldfields.comDavid Reading, Chief Executive Officer e-mail: info@egoldfields.comOffice: +44 (0)20 7408 9534 Buchanan Communications: e-mail: bobbym@buchanan.uk.comBobby Morse / Ben WilleyOffice: +44 (0)20 7466 5000 Renmark Financial Communication: website: www.renmarkfinancial.comTina Cameron e-mail: tcameron@renmarkfinancial.comOffice: +1 514 939 3989 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