2nd Dec 2005 07:01
European Goldfields Ltd02 December 2005 Suite 200, Financial Plaza 204 Lambert Street Whitehorse, Yukon Canada Y1A 3T2 For Immediate Release 2 December 2005 EUROPEAN GOLDFIELDS LIMITED JEFF O'LEARY APPOINTED AS DIRECTOR European Goldfields Limited (AIM: EGU / TSX: EGU) (the "Company") is pleased toannounce the appointment of Dr. Jeffrey O'Leary as a non-executive director ofthe Company. He is to be a replacement for Glenn Featherby who is stepping downat the end of the year, having taken up residence in Australia. Jeff O'Leary was employed by HSBC plc (formerly the Midland Bank) from 1985 to2005 where he was Director Metals & Mining and Chief Mine Geologist at RTZCorporation from 1978 to 1985. While at HSBC, he was involved in a wide variety of project financing, equityand M&A transactions. His clients included Antofagasta, CSN, Monterrico, RioNarcea, Ivanhoe, Xstrata, the Mittal group and Corus as well as many others. Heretired from the HSBC group in 2005 but is retained as a consultant. As Chief Mine Geologist for RTZ Corporation, Jeff O'Leary was responsible forall matters relating to the geology and estimation of ore reserves for RioTinto's operations and development projects world-wide. Jeff O'Leary has a B. Sc. in Mining Geology from the Royal School of Mines(1966) and a Ph.D. in Geostatistics (1973) from the same institution. He is aFellow of the Institution of Mining & Metallurgy and a Chartered Engineer. Commenting on the appointment, David Reading, Chief Executive Officer ofEuropean Goldfields, said: "We are delighted to welcome Jeff to our team. Hiscredentials as a mining geologist and investment banker make him a strongaddition to our board. Jeff's reputation and experience will be invaluable indeveloping our major gold projects in Greece and Romania to production stage. Glenn Featherby has been with us for over two years now and his support has beeninstrumental in delivering the company's achievements over that period. We thankGlenn for his contribution and wish him success in his new ventures." Mr. O'Leary, aged 60, is currently a non-executive director of Palladex plc,Goldstar Resources NL and Moto Goldmines Limited. There are no other mattersunder paragraph (g) of Schedule 2 of the AIM rules to be disclosed. Concurrently with his appointment, the Company granted to Jeff O'Leary an optionto purchase 150,000 common shares of the Company pursuant to its share optionplan. The option expires in December 2010 and is exercisable, in whole or inpart, at a price of C$2.40 per share (approx. £1.20 per share). The optionvests in three equal tranches in June 2006, December 2006 and June 2007. Mr.O'Leary does not hold any common shares of the Company. About European Goldfields European Goldfields Limited 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 consist of three deposits within70-year mining concessions covering a total area of 317 km(2). The depositsinclude the polymetallic projects of Stratoni and Olympias which contain gold,lead, zinc and silver, and the copper-gold porphyry body referred to asSkouries. All three deposits have been well defined with over 200,000 metres ofdrilling and the completion of feasibility studies and later engineeringstudies. The total proven and probable reserves of these assets are 17.2 Moz on a goldequivalent basis (65% attributable = 11.2 Moz) from a measured and indicatedresource base of 21.8 Moz gold equivalent (65% attributable = 14.2 Moz). These assets represent some of the largest defined deposits in Europe. The threedeposits are located within a 10 km radius of each other, making thiseffectively a gold and base metals centre. Furthermore, both Stratoni andOlympias were previously in production and have extensive existing mining andplant infrastructure and a ship loading facility on the Aegean Sea. In September 2005, Hellas Gold resumed production at Stratoni following theaward by the Greek state of all necessary environmental and mining permits.Production of ore is expected to reach 170,000 tonnes by the end of the firstyear of production, steadily increasing to 400,000 tonnes per annum by yearfive. Hellas Gold is in the process of applying for similar permits for Olympias andSkouries. Hellas Gold's assets also include potential revenue generatingstockpiles and tailings located on the surface. Romania - European Goldfields holds five mineral properties located within the "Golden Quadrilateral" area of Romania, where it has recently completed anin-house pre-feasibility study underpinning the value of its 80%-owned Certejdeposit. The Certej deposit hosts measured and indicated resources of 31.4 Mtgrading 2.1 g/t gold and 11 g/t silver for 2.34 Moz of gold equivalent (80%attributable = 1.88 Moz). For additional information on the resource and reserve estimates quoted above,please refer to the Company's Resources & Reserves Declaration atwww.egoldfields.com/goldfields/resources.jsp. For further information please contact: European Goldfields:David Reading, Chief Executive OfficerDavid Grannell, Chief Financial OfficerOffice: +44 (0)20 7408 9534 e-mail: [email protected]: +44 (0)7703 190 652 website: www.egoldfields.com Buchanan Communications:Bobby Morse / Ben Willey e-mail: [email protected]: +44 (0)20 7466 5000Mobile: +44 (0)7802 875 227 The Sherbourne GroupForbes West e-mail: [email protected]: +1 416 203 2200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
EGU.L