EGU.L Regulatory News (EGU)

24 Jan 2008 07:00

European Goldfields Ltd24 January 2008 Immediate Release 24 January 2008 European Goldfields Limited Over 60% Increase in Revenue in 2007 vs. 2006 24 January 2008 - European Goldfields Limited (TSX / AIM: EGU) is pleased toannounce that total revenues for 2007 are expected to show an increase of morethan 60% compared to 2006, as a result of higher levels of concentrate sales andhigher metal prices. European Goldfields' subsidiary Hellas Gold S.A. completed 8 shipments ofconcentrates from its Stratoni zinc-lead-silver plant in Northern Greece in Q42007 (Q4 2006 - 7), and 26 shipments for the whole of 2007 (2006 - 20). Thistranslates into an increase of 27% in tonnes of base metal concentrates sold.Sales from Stratoni were as follows: Stratoni Sales Q4 2007 Q4 2006 12 Months 2007 12 Months 2006Sales Zinc concentrate(tonnes) 10,190 10,425 38,152 32,351 - Containing payable:Zinc (tonnes)* 4,208 4,418 15,890 13,775 Lead concentrate(tonnes) 8,004 5,124 23,123 15,780 - Containing payable:Lead (tonnes)* 5,082 3,329 14,963 10,467 Silver (oz)* 399,271 254,881 1,172,233 818,139 * Net of smelter payable deductions During 2007 a total of 217,000 wet metric tonnes of ore was milled through theStratoni plant. Ore production rates from underground have steadily increasedfrom an average of 727 tonnes per day in 2006 to 885 tonnes per day in 2007, andthe mine now operates effectively at over 900 tonnes per day. The rate of oreproduction is expected to continue to increase and reach 290,000 tonnes in 2008. In addition, Hellas Gold completed 15 shipments of gold-bearing pyriteconcentrates from its existing stockpile at Olympias in Q4 2007 (Q4 2006 - 3),and 47 shipments for the whole of 2007 (2006 - 9). This translates into a sixfold increase in tonnes of pyrite concentrates sold. Sales of pyriteconcentrates were as follows: Olympias Gold Concentrates Sales Q4 2007 Q4 2006 12 Months 2007 12 Months 2006Sales Gold concentrate (drytonnes) 21,385 3,299 79,552 11,339 Hellas Gold has received payment in 2007 of US$ 2.2 million for the sale of anadditional 23,375 dry tonnes of gold concentrates expected to be recognised in2008. European Goldfields expects to publish by 31 March 2008 its financial resultsfor the three-month period and year ended 31 December 2007. New Appointments - European Goldfields is also pleased to announce recentchanges in group personnel. At the Corporate level, Tim Morgan-Wynne, theCompany's Chief Financial Officer, has been promoted to Senior Vice President ofEuropean Goldfields Limited. Within Hellas Gold, Mr Mihalis Theodorakopouloswill focus on the strategic development of the Hellas Gold Business Plan, inaddition to his current responsibilities as Mine Manager. Therefore, Mr GeorgeStournas, an experienced mining engineer, has been appointed as ProductionManager for the Stratoni mine as part of the ongoing development andoptimisation of Hellas Gold's mining operations. About European GoldfieldsEuropean 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 / Johanna Virtanen 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