EGU.L Regulatory News (EGU)

16 May 2007 07:01

European Goldfields Ltd16 May 2007 For Immediate Release 16 May2007 High Grades in Certej Infill Drilling 16 May 2007 - European Goldfields Limited (TSX / AIM: EGU) (the "Company" or"European Goldfields") is pleased to announce that significant drillingintercepts have been encountered at its 80%-owned Certej project in Romania. The existing Certej reserve contains 27.7M tonnes of probable reserves grading 2g/t gold and 11.6 g/t silver, representing 1.76Moz of gold and 10.4Moz ofsilver. In March 2007, European Goldfields submitted a technical feasibilitystudy to the Romanian government in support of its permit application to developthe Certej project. Work is now progressing well on an environmental impactstudy, which is due for completion in Q3 2007. In April 2007, European Goldfields initiated a 1500m diamond drilling campaignon the Certej deposit in Romania. The drilling programme is designed to convertinferred resources within the current pit design to the indicated category. Todate results have been received for 11 of the planned 16 holes and significantintercepts are as follows: +-------------+-------+-----+--------+--------+--------+-----------------------+| Hole ID | From | To | Width | Au | Ag | Zone || +-------+-----+--------+--------+--------+ || | (m) | (m) | (m) | (g/t) | (g/t) | |+-------------+-------+-----+--------+--------+--------+-----------------------+| CJSD284 | 11 | 17 | 6 | 9.7 | 2 |West Zone, South Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| " | 37 | 68 | 31 | 6.7 | 6 |West Zone, South Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| " | 74 | 82 | 8 | 2.9 | 4 |West Zone, South Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| " | 92 | 96 | 4 | 1.6 | 192 |West Zone, South Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| CJSD285 | 96 | 108 | 12 | 1.5 | 55 |West Zone, South Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| " | 115 | 122 | 7 | 2.9 | 5 |West Zone, South Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| CJSD292 | 38 | 42 | 4 | 2.6 | 1 |West Zone, South Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| " | 46 | 70 | 24 | 1.9 | 17 |West Zone, South Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| " | 79 | 99 | 20 | 3.3 | 91 |West Zone, South Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| CJSD282 | 14 | 21 | 7 | 1.6 | 4 |West Zone, North Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| CJSD290 | 3 | 7 | 4 | 12.3 | 4 |West Zone, North Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| CJSD291 | 146 | 149 | 3 | 2 | 71 |West Zone, North Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| " | 155 | 158 | 3 | 6.2 | 2 |West Zone, North Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| " | 171 | 180 | 9 | 2.7 | 4 |West Zone, North Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| " | 188 | 196 | 8 | 1.9 | 3 |West Zone, North Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+| " | 256 | 275 | 19 | 1.6 | 5 |West Zone, North Flank |+-------------+-------+-----+--------+--------+--------+-----------------------+|CJSD286 (RC) | 122 | 126 | 4 | 1.9 | 1 | Intermediate |+-------------+-------+-----+--------+--------+--------+-----------------------+ Results are quoted using a 1 g/t Au lower cut-off grade, no upper grade cut wasapplied and include a maximum of 5 metres consecutive internal waste. Onlyintercepts >1.5 g/t Au are reported. The Certej deposit is irregular in nature,however drilling has been conducted perpendicular to mineralization whereverpossible and as such drilled width correspond to true widths. High gold grade drill intercepts from the southern flank of the West Zonerepresent a zone of intense potassic and variably silica altered andesite whichtrends southwest and is open along strike and down dip. Further holes are nowbeing planned in order to test the strike and dip extents of this extension tothe modelled mineralisation. Commenting on the announcement, David Reading, Chief Executive Officer ofEuropean Goldfields, said: "We are excited by the results, particular the highgrade intercepts on the southern flank of the West Zone and as none of thismineralisation is included in the current reserves it represents upside for theCertej project." Sample preparation and analysis was carried out at the independent ISO CertifiedALS-Chemex Laboratory at Gura Rosiei, Romania, using industry standard fireassay techniques for gold on 50-gram sample charges with atomic absorptionspectrometry (AAS) finish and aqua regia digest for silver with an AAS finish.In addition to the laboratory's standard quality assurance / quality control(QAQC), European Goldfields submit field duplicates, crusher duplicates, pulpduplicates and known gold standards on a routine basis and these compriseapproximately 20% of submitted samples. Unless otherwise indicated, theintercepts reported above are from split HQ size diamond core and the holes aresampled at one-metre intervals throughout the entire hole. 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 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 Office: +44 (0)20 7408 9534 Buchanan Communications: e-mail: bobbym@buchanan.uk.comBobby Morse / Ben Willey Office: +44 (0)20 7466 5000 Renmark Financial Communication: e-mail:nmurraylyon@renmarkfinancial.comNeil G. Murray-Lyon Office: +1 514 939 3989 Resources & reserves parameters For additional information on the resource and reserve estimates quoted in thisnews release, please refer to the Company's Resources & Reserves Declaration atwww.egoldfields.com/goldfields/resources.jsp. Patrick Forward, General Manager,Exploration of the Company, was the Qualified Person under Canadian NationalInstrument 43-101 responsible for reviewing the disclosure of resource andreserve estimates quoted in this news release. 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 include, but are not limited to, the estimation ofmineral reserves and resources, the timing and amount of estimated futureproduction, costs and timing of development of new deposits, permitting timelines and expectations regarding metal recovery rates. Forward-lookingstatements are necessarily based upon a number of estimates and assumptionsthat, while considered reasonable by management, are inherently subject tosignificant business, economic and competitive uncertainties and contingencies.The Company cautions the reader that such forward-looking statements involveknown and unknown risks, uncertainties and other factors that may cause theactual financial results, performance or achievements of the Company to bematerially different from its estimated future results, performance orachievements expressed or implied by those forward-looking statements and theforward-looking statements are not guarantees of future performance. Theserisks, uncertainties and other factors include, but are not limited to: changesin the price of gold, base metals or certain other commodities (such as fuel andelectricity) and currencies; uncertainty of mineral reserves, resources, gradesand recovery estimates; uncertainty of future production, capital expendituresand other costs; currency fluctuations; financing and additional capitalrequirements; the successful and timely permitting of the Company's Skouries,Olympias and Certej projects; legislative, political, social or economicdevelopments in the jurisdictions in which the Company carries on business;operating or technical difficulties in connection with mining or developmentactivities; the speculative nature of gold and base metals exploration anddevelopment, including the risks of diminishing quantities or grades ofreserves; the risks normally involved in the exploration, development and miningbusiness; and risks associated with internal control over financial reporting.For a more detailed discussion of such risks and material factors or assumptionsunderlying these forward-looking statements, see the Company's Annual Information Form for the year ended 31 December 2006, filed on SEDAR atwww.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 newinformation, future events or otherwise, except as required by law. This information is provided by RNS The company news service from the London Stock Exchange