7th Mar 2005 07:02
European Goldfields Ltd07 March 2005 For Immediate Release 7 March 2005 European Goldfields to Commence Trading on Toronto Stock Exchange European Goldfields Limited (AIM: EGU / TSX: EGU) ("European Goldfields" or the"Company") is pleased to announce that its common shares have been approved forlisting on the Toronto Stock Exchange (TSX) effective today. In conjunction withits move to the TSX, the Company's shares will be de-listed from the TSX VentureExchange, where the Company's shares have traded since June 2000. The currentstock symbol "EGU" will remain in effect. European Goldfields' shares remain listed on the AIM Market of the London StockExchange, where the Company has raised over US$100 million in 2004. Commenting on the promotion, David Reading, Chief Executive Officer of EuropeanGoldfields, said: "European Goldfields has developed rapidly over the past year, with itsacquisition of over 17m ounces of gold equivalent proven and probable reservesin Greece, as well as having completed significant fund raising in London in2004 to finance the company through to production. Consequently, due to oursignificant increase in market capitalisation and the increased liquidity of thecompany's shares, we are delighted to move up the company from the TSX VentureExchange to the TSX, a more appropriate exchange for our current size andaspirations." About European Goldfields European Goldfields 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 include 70 year mining concessionsover a total area of 317 km2 and three polymetallic near-production deposits,known as Olympias, Stratoni and Skouries, with total proven and probablereserves of 17.04Moz of gold equivalent (65% attributable: 11.08Moz). The Stratoni and Olympias deposits were previously in production and benefitfrom significant infrastructure which includes underground mining development,two plants and a ship loading facility on the Aegean Sea. Hellas Gold's assetsalso include potential revenue generating stockpiles located on the surface. Hellas Gold's resources and reserves are allocated amongst the three deposits asfollows: Measured and Indicated Resources Deposit '000t Au Au Ag Ag Ag Pb Pb Pb Zn Zn Zn Cu Cu Cu Total g/t Moz g/t Moz as % '000t as % '000t as % '000t As Au Au Au Au Au Eq Eq Eq Eq Eq Moz Moz Moz Moz MozOlympias 14,528 9.31 4.35 128.6 60.06 0.94 4.18 607 1.12 5.58 810 2.27 - - - 8.69Skouries 191,200 0.82 5.03 - - - - - - - - - 0.55 1,043 6.79 11.82Stratoni 2,221 - - 202.4 14.45 0.23 8.60 191 0.35 11.44 254 0.71 - - - 1.29Total - - - - - - - - - - - - - - - 21.80Total - - - - - - - - - - - - - - - 14.1765%attributable Proven and Probable Reserves Deposit '000t Au Au Ag Ag Ag Pb Pb Pb Zn Zn Zn Cu Cu Cu Total g/t Moz g/t Moz as % '000t as % '000t as % '000t As Au Au Au Au Au Eq Eq Eq Eq Eq Moz Moz Moz Moz MozOlympias 14,045 8.55 3.86 119.6 54.02 0.83 3.89 547 1.01 5.16 725 2.04 - - - 7.76Skouries 129,500 0.89 3.71 - - - - - - - - - 0.56 725 4.72 8.43Stratoni 1,642 - - 178.5 9.42 0.15 7.61 125 0.23 10.25 168 0.47 - - - 0.85Total - - - - - - - - - - - - - - - 17.04Total - - - - - - - - - - - - - - - 11.0865%attributable Romania - European Goldfields holds five mineral properties located within the"Golden Quadrilateral" area of Romania, where it has embarked on a resourcedevelopment and pre-feasibility programme to underpin the value of its 80%-ownedCertej deposit and surrounding satellite bodies. A current resource estimateoutlines measured and indicated resources of 31.4Mt grading 2.1g/t gold and 11.0g/t silver for 2.34Moz of gold equivalent (80% attributable: 1.87Moz). Thisestimate was based on a selective mining unit model using 6.5 X 12.5 X 2.5 metreblocks and a 1g/t gold cut-off grade. Further work at Certej now focuses on completing an in-house pre-feasibilitystudy, the next phase of which will concentrate on optimising mining andunderstanding the variable metallurgical recoveries. Scoping work on pitoptimisations 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. Reserve and Resource Parameters Disclosure of mineral reserves for Hellas Gold's Olympias, Stratoni and Skouriesdeposits is derived from a Pre-feasibility Study prepared by Behre Dolbear &Company, Inc. and filed on SEDAR at www.sedar.com on 29 October 2004 under thecategory "Technical Report", and European Goldfields' news release and materialchange report filed on SEDAR on 30 November 2004. Disclosure of mineral resources for European Goldfield's 80%-owned Certejdeposit is derived from a resource estimate prepared by RSG Global Pty Ltd andfiled on SEDAR on 29 January 2004 under the category "Engineering Report", andEuropean Goldfields' news release and material change report filed on SEDAR on28 February 2005. Gold equivalent ounces were calculated using the following metal prices,representing the average of (i) the average metal prices from 1993 to 2003(source: LME), and (ii) the average metal prices from 1 January to 30 June 2004(source: LME): Au: US$369/oz; Ag: US$5.79/oz; Pb: US$0.31/lb; Zn: US$0.47/lb;Cu: US$1.09/lb. Mining recoveries for reserves have been taken into account.However, metallurgical and refinery costs have not been considered whencalculating the gold equivalents. 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] 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
EGU.L