EGU.L Regulatory News (EGU)

28 Feb 2008 07:02

European Goldfields Ltd28 February 2008 Immediate Release 28 February 2008 European Goldfields Limited Joint Venture in Turkey with Ariana Resources 28 February 2008 - European Goldfields Limited (TSX / AIM: EGU) is pleased toannounce that it has signed a Heads of Agreement with Ariana Resources plc (AIM:AAU) ("Ariana") for the joint development of Ariana's properties inNorth-eastern Turkey, which include the Ardala copper-gold porphyry and elevenother licences covering a total area of 168km2. These projects are located in the Pontides region of Turkey, a highlyprospective geological terrain containing several major deposits. The ArdalaCu-Au porphyry has been the subject of reconnaissance drilling around theperiphery of a porphyry intrusion, which identified encouraging grades of copperand gold. It has a 600m x 700m surface exposure centred on a magnetic high of1,000m x 1,000m extent. Copper-gold mineralisation has also been identified onother properties in the vicinity of Ardala within granitoids and in thesurrounding country rocks. Under the agreement, European Goldfields will initially own 51% of theproperties transferred by Ariana into the joint venture. European Goldfieldswill then fund all development costs of these initial properties and any futureproperties located within a defined area in North-eastern Turkey untilcompletion of a Bankable Feasibility Study, at which time European Goldfields'interest in each relevant project will increase to between 80% and 90%,respectively. In addition, European Goldfields has agreed to subscribe for new shares inAriana at 5 pence per share in a private placement, resulting in EuropeanGoldfields owning 20% of the outstanding shares in Ariana following theplacement, for a total consideration of approximately £890,000. Ariana also holds properties in Western Turkey where exploration of epithermalvein systems has drill tested a number of targets and defined other targets forfurther investigation. Ariana has also developed an extensive remote sensingdatabase covering the most prospective parts of Turkey. Completion of the joint venture and the placing is expected by mid-April 2008,conditional upon satisfactory due diligence and the signing of definitiveagreements. Commenting on the strategic alliance, David Reading, Chief Executive Officer ofEuropean Goldfields, said: "We are excited at this opportunity of rapidlygrowing our business into Turkey in partnership with Ariana Resources, which hasa proven track record of securing prospective exploration licences and operatingeffectively in the country. This joint venture is part of our strategy to expandinto the mineral belts within South-East Europe and represents an obviousextension with similar geology and the same styles of mineralisation as we havealready encountered in Greece. European Goldfields continues in its long-termobjective of becoming a major precious and base metals producer in South-EastEurope." 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: tcameron@renmarkfinancial.comTina Cameron Tel: +1 514 939 3989 RBC Capital Markets: e-mail: andrew.smith@rbccm.comAndrew K Smith / Sarah Wharry Tel: +44 (0)20 7029 7882 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