28th Feb 2005 07:01
European Goldfields Ltd28 February 2005 For Immediate Release 28 February 2005 New Resource Estimate at Certej Defines Higher Grade Core European Goldfields Limited (AIM: EGU / TSX-V: EGU) is pleased to announce anupdate of resources on its 80%-owned Certej project in the Southern ApuseniMountains of Romania. The update of resources was carried out by RSG Global Pty Ltd ("RSG Global") asa result of a programme of in-fill drilling (39 holes totalling 8,229 metres) inthe Certej deposit that was undertaken in late 2003 and throughout 2004. Theaim of the programme was to prove up the selective mining unit ('SMU') modelpreviously estimated by RSG Global in January 2002 and determine the level ofcontinuity in high grade zones. In addition, the programme has delimited theperipheries of the deposit. Drillhole spacing in the core of the deposit wasreduced to a nominal 20 x 20 metre spacing which has resulted in a portion ofthe deposit being classified as a measured resource. The reported resources forthe Certej deposit, subdivided by resource category and reported above a 1g/tgold lower cut-off grade, are summarised below. Resource Category Average Gold Million Ounces Average Siver Million Ounces Grade (g/t) Gold Grade (g/t) Silver Million TonnesMeasured 3.14 2.6 0.26 5 0.5Indicated 28.29 2.1 1.91 12 10.5Measured + Indicated 31.43 2.1 2.17 11 11.0Inferred (East/West Domains) 5.17 1.9 0.32 7 1.1Inferred (Central Domains) 3.47 1.5 0.17 10 1.1Total Inferred 8.64 1.8 0.49 7.9 2.2 Note: Uniform conditioning and a 6.5 X 12.5 X 2.5 metre SMU reported forthe eastern and western domains and inverse distance squared (using no goldcut-off) for the central domains. Whilst the global resource is similar to the 2002 estimate, the increasedunderstanding of gold distribution and higher confidence in the level ofcontinuity of high-grade zones within the deposit has enabled the resource to bedefined at higher cut-off grades. The high grade core of the deposit isdemonstrated by the estimated resources at a cut-off of 2 g/t gold for thewestern and eastern domains which can be summarised as follows: Resource Category Average Gold Million Ounces Average Siver Million Ounces Grade (g/t) Gold Grade (g/t) Silver Million TonnesMeasured 1.56 3.7 0.19 5 0.3Indicated 9.86 3.4 1.07 12 3.8Measured + Indicated 11.42 3.4 1.26 11 4.1Inferred 1.32 3.5 0.15 7 0.3 Note: Uniform conditioning and a 6.5 X 12.5 X 2.5 metre SMU reported. The high grade material forms two coherent zones within the eastern domain. Thedefinition of this higher grade material and the delimitation of the depositperipheries enables pit scoping work that extracts the high grade core and thelower grade material around it with optimum strip ratios. In addition theincreased understanding of the grade distribution will enable the selection ofappropriate samples for metallurgical testwork. David Reading, Chief Executive Officer of European Goldfields, said: "The new resource estimate for Certej has enabled us to better define thedeposit, understand the geological model and confirm the presence of a highgrade core. This work will allow us greater flexibility in defining a moreselective mining model. Further work at Certej now focuses on optimising themetallurgical recovery and completing an in-house pre-feasibility study." The next phase of the in-house pre-feasibility study will focus on optimisingmining and understanding the variable metallurgical recoveries. Scoping work onpit optimisations 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. Cainel Licence European Goldfields has also recently started an exploration programme on thenewly acquired Cainel licence in Romania, as previously announced on 10 January2005. The property hosts vein-hosted epithermal, stockwork and disseminatedmineralisation that historic workings indicate occur over an area of some 1,000metres by 250 metres, and which lie 10 kilometres along strike from the Certejdeposit. Historic mining was restricted to below 200 metres depth from surfaceand grab sampling by European Goldfields has indicated that the mineralisationextends to surface. In addition, the extensive wall rock brecciation andalteration were never tested by the historic work and grab sampling by EuropeanGoldfields indicates that this also carries gold mineralisation. Gold wasrecovered using gravity methods in historic production and sampling, indicatingthat a significant portion of the gold is free milling. A team of geologistsand miners are currently opening up old workings in order to allow mapping andsampling, and all historic maps and data have been digitised. The ongoingexploration programme for 2005 is aimed at progressing to systematic sampling ofthe mineralisation using underground development and diamond drillholes with theobjective of a preliminary estimate of resources by the end of the year. Certej Resource Parameters The resource estimation study included a review of the exploration data quality,review and construction of appropriate geological constraints, statistical andgeostatistical investigation, grade estimation, and classification of theestimate in accordance to the criteria laid out in the Canadian NationalInstrument 43-101. A technical report from RSG Global on the Certej resourcewill be filed of SEDAR (www.sedar.com) within the next 30 days, and will updateRSG Global's previous resource estimate of the Certej deposit filed on SEDAR on29 January 2004 under the category "Engineering Report". Samples were assayed at Analabs Pty Ltd's laboratory in Gura Roseii, Romaniausing a standard fire assay technique and an AAS finish. Duplicates, repeatsand known gold standards are inserted according to standard industry practice,with check assays (for the 2001 sampling and drilling program) carried out byBondar-Clegg & Co. Ltd's laboratory in Vancouver, British Columbia and Analabslaboratory in Perth, Western Australia. Both Analabs and Bondar-Clegg are ISO9002 certified. Analysis of the duplicate and standard sample data indicatesthat the repeatability of samples and the variance of analytical results arewell within acceptable limits. Geological constraints have been constructed for oxidation, lithology andmineralisation based on a lithostructural interpretation provided by EuropeanGoldfields. The deposit was modelled as three major regions, the western,central and eastern blocks. The eastern and western domains are well defined by drilling, surface andunderground channel sampling and the resource has been estimated using ordinarykriging and uniform conditioning. Both methods were applied based on detailedvariography. The grade estimate for these central domains has been derived byinverse distance squared weighting, as there are currently insufficient dataavailable to undertake detailed variography. The central domains have beenclassified as Inferred Resource. M. Brett Gossage of RSG Global was the Qualified Person responsible for theresource estimates quoted above. About European Goldfields European Goldfields is a resource company involved in the acquisition,exploration and development of mineral properties in Greece, Romania and theBalkans. In addition to its assets in Romania, European Goldfields holds a 65%interest Hellas Gold S.A. Hellas Gold owns assets in Northern Greece whichinclude 70 year mining concessions over a total area of 317 km2 and threepolymetallic near-production deposits, known as Olympias, Stratoni and Skouries,with significant proven and probable reserves. 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. 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: [email protected] Mobile: +44 (0)7703 190 652 website: www.egoldfields.com Buchanan Communications:Bobby Morse / Ben Willey +44 (0)20 7466 5000 e-mail: [email protected] The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this release and the information contained herein. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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