EGU.L Regulatory News (EGU)

30 Mar 2005 07:00

European Goldfields Ltd30 March 2005 Suite 200, Financial Plaza 204 Lambert Street Whitehorse, Yukon Canada Y1A 3T2 For Immediate Release 30 March 2005 European Goldfields Limited Environmental Permits Awarded for Stratoni Mine European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce thatits 65%-owned subsidiary Hellas Gold S.A. has been awarded by the Greek stateall environmental permits for mining operations at the Stratoni deposit.Following normal procedure, a technical committee formed by the Greek governmentis completing a final overview of Hellas Gold's mining plan for the Stratonideposit. Final approval to commence mining operations is expected shortly. The Stratoni orebody is a polymetallic massive replacement-type deposit withproven and probable reserves totalling 1.64Mt of ore grading 7.6% lead, 10.2%zinc and 179g/t silver. The environmental permits provide for an "overhand cut and fill" mining method,the use of mechanical excavation machines wherever possible, truck haulage fromunderground workings, the construction of a new water treatment plant andvarious other environmental protection, monitoring and rehabilitation measures. Hellas Gold expects to start mining operations during the second quarter of 2005by means of the existing adit while excavating a new access tunnel to theStratoni reserves. Subject to final approval of Hellas Gold's mining plan, construction on a newadit is expected to begin within the next few weeks to provide improved accessto the Stratoni reserve and allow full-scale mining operations to commence byyear end. David Reading, Chief Executive Officer of European Goldfields, said: "The gaining of the Stratoni environmental permit is a major milestone in thedevelopment of European Goldfields' strategy. We can now focus on finalising ourmining plan for Stratoni, with a view to recommence mining operations andproduce near term cash flow from the Hellas Gold projects. We have worked closely with the Greek Government to gain this permit, and thissuccessful outcome paves the ways for further development of the assets." About European Goldfields European Goldfields is a resource company involved in the acquisition,exploration and development of mineral properties in Greece, Romania and theBalkans. Greece - European Goldfields holds a 65% interest in Hellas Gold S.A. HellasGold owns assets in Northern Greece which include 70 year mining concessionsover a total area of 317 km2 and three polymetallic near-production deposits,known as Olympias, Stratoni and Skouries, with total proven and probablereserves of 17.04Moz of gold equivalent (65% attributable: 11.08Moz). The Stratoni and Olympias deposits were previously in production and benefitfrom significant infrastructure which includes underground mining development,two plants and a ship loading facility on the Aegean Sea. Hellas Gold's assetsalso include potential revenue generating stockpiles located on the surface. Romania - European Goldfields holds five mineral properties located within the "Golden Quadrilateral" area of Romania, where it has embarked on a resourcedevelopment and pre-feasibility programme to underpin the value of its 80%-ownedCertej deposit and surrounding satellite bodies. A current resource estimateoutlines measured and indicated resources of 31.4Mt grading 2.1g/t gold and 11.0g/t silver for 2.34Moz of gold equivalent (80% attributable: 1.87Moz). Thisestimate was based on a selective mining unit model using 6.5 X 12.5 X 2.5 metreblocks and a 1g/t gold cut-off grade. Further work at Certej now focuses on completing an in-house pre-feasibilitystudy, the next phase of which will concentrate on optimising mining andunderstanding the variable metallurgical recoveries. Scoping work on pitoptimisations will establish the mining cut-off grades and associated stripratios for appropriate and optimum exploitation of the deposit. Themetallurgical testwork includes mineralogical studies into the gold dispositionwithin the mineralisation, and floatation testwork aimed at maximising goldrecoveries. Reserve and Resource Parameters Disclosure of mineral reserves for Hellas Gold's Olympias, Stratoni and Skouriesdeposits is derived from a Pre-feasibility Study prepared by Behre Dolbear &Company, Inc. and filed on SEDAR at www.sedar.com on 29 October 2004 under thecategory "Technical Report", and European Goldfields' news release and materialchange report filed on SEDAR on 7 March 2005. Disclosure of mineral resources for European Goldfield's 80%-owned Certejdeposit is derived from a resource estimate prepared by RSG Global Pty Ltd andfiled on SEDAR on 23 March 2005 under the category "Technical Report". For further information please contact: European Goldfields:David Reading, Chief Executive OfficerDavid Grannell, Chief Financial Officer London Office: +44 (0)20 7408 9536 e-mail: info@egoldfields.comLondon Mobile: +44 (0)7703 190 652 website: www.egoldfields.com Buchanan Communications:Bobby Morse / Ben Willey +44 (0)20 7466 5000 e-mail: bobbym@buchanan.uk.com Forward-Looking Statements This news release contains certain forward-looking statements concerning theCompany's future operations, economic performances, financial condition andfinancing plans. These statements are based on certain assumptions and analysesmade by the Company in light of its experience and its perception of historicaltrends, current conditions and expected future developments as well as otherfactors the Company believes are appropriate in the circumstances. However,whether actual results and developments will conform with the Company'sexpectations and predictions is subject to a number of risks, uncertainties andassumptions. Consequently, all of the forward-looking statements made in thisnews release are qualified by these cautionary statements, and there can be noassurance that the results or developments anticipated by the Company will berealised or, even if substantially realised, that they will have the expectedconsequences to or effects on the Company and its subsidiaries or theirbusinesses or operations. The Company undertakes no obligation and does notintend to update or revise any forward-looking statements, whether as a resultof new information, future events or otherwise, except as may be required underapplicable law. This information is provided by RNS The company news service from the London Stock Exchange