20th Apr 2006 07:00
European Goldfields Ltd20 April 2006 For Immediate Release 20 April 2006 European Goldfields Limited Greek Government Positive on Business Plans European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce thatits 65%-owned subsidiary Hellas Gold S.A. has received an official response fromthe Greek Ministry of Development (the "Ministry") on the business planssubmitted in January 2006 for the projects of Skouries and Olympias. Thesubmission of the business plans represents a significant milestone in obtainingthe permits for these major gold and base metal projects in Northern Greece. The response states that the Ministry is in agreement with the principles statedin the business plans, and that the Ministry considers the business plans to bein the best interest of the Greek economy. This response was received by HellasGold within the timeframe provided for in its contract with the Greek State. With this response, the Ministry endorses Hellas Gold's holistic and phasedapproach to the development of the projects, with emphasis on achieving fullproduction at the Skouries gold-copper porphyry deposit as soon as possible, andthe phasing of the Olympias gold-lead-zinc-silver deposit. This approachminimises financial risk by the phased injection of capital. The principalrevenue stream in the early phases will be through the sale of concentrates. The response from the Ministry also has the benefit of providing a short-list ofthe technical matters on which the Ministry would like some furtherclarifications. These matters will be addressed in cooperation with the Ministryin the context of Hellas Gold's ongoing work on a full environmental impactstudy, which is expected to be submitted to the Greek government in Q3 2006. Onapproval of the study, the environmental permits for Skouries and Olympias areexpected to be issued. Hellas Gold will then submit to the Greek government a final technical report onthe Skouries and Olympias projects, which will restate the principles of thebusiness plans and take into account any conditions in the environmental permit.The mining permits are expected to be issued on approval of the technical reportby the Greek government. Commenting on the announcement, David Reading, Chief Executive Officer ofEuropean Goldfields, said: "The Hellas Gold team successfully delivered thebusiness plans on time to the Greek government for the major gold and basemetals projects of Skouries and Olympias in January 2006. We have nowconstructively engaged with the Greek government on finalising the technicalreports for the project, in line with our contract with the Greek State. We areencouraged that the Government acknowledged the merits of our business plans andconfirmed that our projects are in the best interest of the Greek economy." About European Goldfields European Goldfields Limited (the "Company") is a resource company involved inthe acquisition, exploration and development of mineral properties in Greece,Romania and the Balkans. Romania - The Company holds four mineral properties located within the "GoldenQuadrilateral" area of Romania. The Company recently announced the conversion ofresources into Canadian NI 43-101 compliant reserves for its 80%-owned Certejproject, underpinning the value of the project. The Certej deposit hostsprobable reserves of 27.7 Mt grading 2.0 g/t gold and 11.6 g/t silver for 1.76Moz gold and 10.35 Moz silver (80% attributable). The Company is now completinga final feasibility study for submission to the Romanian government by the endof 2006, in support of an application for environmental and mining permits todevelop the Certej project. Greece - The Company holds a 65% interest in Hellas Gold S.A. ("Hellas Gold").Hellas Gold owns assets in northern Greece which consist of three depositswithin 70-year mining concessions covering a total area of 317 km(2). Thedeposits include the polymetallic projects of Stratoni and Olympias whichcontain gold, lead, zinc and silver, and the copper/gold porphyry body referredto as Skouries. All three deposits have been well defined with over 200,000metres of drilling and the completion of feasibility studies and laterengineering studies. The total proven and probable reserves of these assets are 7.6 Moz gold, 65.8Moz silver, 0.7 Mt copper, 0.7 Mt lead and 0.9 Mt zinc, from a measured andindicated resource base of 9.4 Moz gold, 74.5 Moz silver, 1.0 Mt copper, 0.8 Mtlead and 1.1 Mt zinc (65% attributable). 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. Hellas Gold's assets also include potential revenue-generating stockpiles ofgold concentrates. In September 2005, Hellas Gold resumed production at Stratoni following theaward by the Greek State of all necessary environmental and mining permits.Hellas Gold is in the process of applying for similar permits for Olympias andSkouries, having met its first milestone by submitting business plans to theGreek government in January 2006. For further information please contact: European Goldfields: e-mail: [email protected] Reading, Chief Executive Officer website: www.egoldfields.comOffice: +44 (0)20 7408 9534 Buchanan Communications: e-mail: [email protected] Morse / Ben WilleyOffice: +44 (0)20 7466 5000Mobile: +44 (0)7802 875 227 The Sherbourne Group: e-mail: [email protected] WestOffice: +1 416 203 2200 Resources & Reserves Parameters For additional information on the resource and reserve estimates quoted in thisnews release, please refer to the Company's Resources & Reserves Declaration atwww.egoldfields.com/goldfields/resources.jsp. Patrick Forward, General Manager,Exploration of the Company, was the Qualified Person under Canadian NationalInstrument 43-101 responsible for reviewing the disclosure of resource andreserve estimates quoted in this news release. Forward-looking statements Certain information included in this news release, including any information asto the Company's future financial or operating performance and other statementsthat express management's expectations or estimates of future performance,constitute "forward-looking statements". The words "expect", "will", "intend","estimate" and similar expressions identify forward-looking statements.Forward-looking statements are necessarily based upon a number of estimates andassumptions that, while considered reasonable by management, are inherentlysubject to significant business, economic and competitive uncertainties andcontingencies. The Company cautions the reader that such forward-lookingstatements involve known and unknown risks, uncertainties and other factors thatmay cause the actual financial results, performance or achievements of theCompany to be materially different from its estimated future results,performance or achievements expressed or implied by those forward-lookingstatements and the forward-looking statements are not guarantees of futureperformance. These risks, uncertainties and other factors include, but are notlimited to: changes in the worldwide price of gold, base metals or certain othercommodities (such as fuel and electricity) and currencies; the successful andtimely permitting of the Company's Skouries, Olympias and Certej projects;legislative, political, social or economic developments in the jurisdictions inwhich the Company carries on business; operating or technical difficulties inconnection with mining or development activities; the speculative nature of goldand base metals exploration and development, including the risks of diminishingquantities or grades of reserves; and the risks normally involved in theexploration, development and mining business. These factors are discussed ingreater detail in the Company's Annual Information Form for the year ended 31December 2005, filed on SEDAR at www.sedar.com. The Company disclaims anyintention or obligation to update or revise any forward-looking statementswhether as a result of new information, future events or otherwise. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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