3rd Apr 2007 07:01
European Goldfields Ltd03 April 2007 Immediate Release 3 April 2007 European Goldfields Limited MRI Trading Confirms Third Order of Olympias Gold Concentrates 3 April 2007 - European Goldfields Limited (TSX / AIM: EGU) is pleased toannounce that its subsidiary Hellas Gold S.A. has entered into a third off-takeagreement with MRI Trading AG of Switzerland for the sale of an additional25,000 wet metric tonnes (wmt) of gold bearing pyrite concentrates previouslyproduced at the Olympias mine in Greece. Hellas Gold will receive payment forthe full 25,000 wmt of concentrates up-front upon shipment of the first lot inQ2 2007. MRI Trading also has the option to increase its order by a further 25,000 wmt,which is exercisable by31 July 2007. This new order from MRI Trading follows the success of an initial trial shipmentof 3,000 wmt of concentrates announced in July 2006 and a second order for25,000 wmt announced in October 2006. Olympias benefited from an existing stockpile of gold concentrates comprising areserve of approximately 258,000 tonnes grading 23.3 g/t gold (containing193,000 oz of gold). An additional 9,000 wmt of concentrates (containing 6,000oz of gold) were also located at Hellas Gold's port facility in Stratoni. Following today's announcement, Hellas Gold has now secured the sale of a totalof 209,000 wmt of Olympias concentrates (containing approximately 148,000 oz ofgold) to four different off-takers - Golden China, MRI Trading, Celtic Resourcesand Euromin - with expressions of interest to sell up to an additional 132,000wmt of concentrates if the initial shipments are successful. Hellas Gold plans to resume underground mining operations at Olympias after thenecessary permits are awarded, producing more gold bearing pyrite concentratesfor sale to existing and new off-takers. The prices payable for the concentrates vary with the prevailing gold price. Theagreements produce an attractive return for Hellas Gold at a gold price ofUS$500/oz. Commenting on the announcement, David Reading, CEO of European Goldfields, said:"We are delighted to have renewed our contract with MRI Trading for the sale ofa possible extra 50,000 tonnes of gold concentrates from Olympias. We have nowsigned off-take agreements covering virtually the entire stockpile, and arepursuing similar opportunities for the sale of new gold concentrates to beproduced at Olympias when production resumes." About European GoldfieldsEuropean Goldfields 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 65% interest in Hellas Gold S.A. HellasGold owns three major gold and base metal deposits in Northern Greece. Thedeposits are the polymetallic projects of Stratoni and Olympias which containgold, zinc, lead and silver, and the Skouries copper/gold porphyry body. HellasGold commenced production at Stratoni in September 2005 and selling an existingstockpile of Olympias gold concentrates in July 2006. Hellas Gold is applyingfor permits to develop the Skouries and Olympias projects.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: [email protected] Reading, Chief Executive Office: +44 (0)20 7408 9534Officer Buchanan Communications: e-mail: [email protected] Morse / Ben Willey Office: +44 (0)20 7466 5000 Renmark Financial Communication: e-mail:Neil G. Murray-Lyon [email protected] Office: +1 514 939 3989 Forward-looking statementsCertain 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 ExchangeRelated Shares:
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