Environmental Permits Awarded
March 30 2005 - 2:00AM
UK Regulatory
RNS Number:3020K
European Goldfields Ltd
30 March 2005
Suite 200, Financial Plaza
204 Lambert Street
Whitehorse, Yukon
Canada Y1A 3T2
For Immediate Release 30 March 2005
European Goldfields Limited
Environmental Permits Awarded for Stratoni Mine
European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce that
its 65%-owned subsidiary Hellas Gold S.A. has been awarded by the Greek state
all environmental permits for mining operations at the Stratoni deposit.
Following normal procedure, a technical committee formed by the Greek government
is completing a final overview of Hellas Gold's mining plan for the Stratoni
deposit. Final approval to commence mining operations is expected shortly.
The Stratoni orebody is a polymetallic massive replacement-type deposit with
proven and probable reserves totalling 1.64Mt of ore grading 7.6% lead, 10.2%
zinc and 179g/t silver.
The environmental permits provide for an "overhand cut and fill" mining method,
the use of mechanical excavation machines wherever possible, truck haulage from
underground workings, the construction of a new water treatment plant and
various other environmental protection, monitoring and rehabilitation measures.
Hellas Gold expects to start mining operations during the second quarter of 2005
by means of the existing adit while excavating a new access tunnel to the
Stratoni reserves.
Subject to final approval of Hellas Gold's mining plan, construction on a new
adit is expected to begin within the next few weeks to provide improved access
to the Stratoni reserve and allow full-scale mining operations to commence by
year end.
David Reading, Chief Executive Officer of European Goldfields, said:
"The gaining of the Stratoni environmental permit is a major milestone in the
development of European Goldfields' strategy. We can now focus on finalising our
mining plan for Stratoni, with a view to recommence mining operations and
produce near term cash flow from the Hellas Gold projects.
We have worked closely with the Greek Government to gain this permit, and this
successful outcome paves the ways for further development of the assets."
About European Goldfields
European Goldfields is a resource company involved in the acquisition,
exploration and development of mineral properties in Greece, Romania and the
Balkans.
Greece - European Goldfields holds a 65% interest in Hellas Gold S.A. Hellas
Gold owns assets in Northern Greece which include 70 year mining concessions
over a total area of 317 km2 and three polymetallic near-production deposits,
known as Olympias, Stratoni and Skouries, with total proven and probable
reserves of 17.04Moz of gold equivalent (65% attributable: 11.08Moz).
The Stratoni and Olympias deposits were previously in production and benefit
from significant infrastructure which includes underground mining development,
two plants and a ship loading facility on the Aegean Sea. Hellas Gold's assets
also include potential revenue generating stockpiles located on the surface.
Romania - European Goldfields holds five mineral properties located within the "
Golden Quadrilateral" area of Romania, where it has embarked on a resource
development and pre-feasibility programme to underpin the value of its 80%-owned
Certej deposit and surrounding satellite bodies. A current resource estimate
outlines measured and indicated resources of 31.4Mt grading 2.1g/t gold and 11.0
g/t silver for 2.34Moz of gold equivalent (80% attributable: 1.87Moz). This
estimate was based on a selective mining unit model using 6.5 X 12.5 X 2.5 metre
blocks and a 1g/t gold cut-off grade.
Further work at Certej now focuses on completing an in-house pre-feasibility
study, the next phase of which will concentrate on optimising mining and
understanding the variable metallurgical recoveries. Scoping work on pit
optimisations will establish the mining cut-off grades and associated strip
ratios for appropriate and optimum exploitation of the deposit. The
metallurgical testwork includes mineralogical studies into the gold disposition
within the mineralisation, and floatation testwork aimed at maximising gold
recoveries.
Reserve and Resource Parameters
Disclosure of mineral reserves for Hellas Gold's Olympias, Stratoni and Skouries
deposits 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 the
category "Technical Report", and European Goldfields' news release and material
change report filed on SEDAR on 7 March 2005.
Disclosure of mineral resources for European Goldfield's 80%-owned Certej
deposit is derived from a resource estimate prepared by RSG Global Pty Ltd and
filed on SEDAR on 23 March 2005 under the category "Technical Report".
For further information please contact:
European Goldfields:
David Reading, Chief Executive Officer
David Grannell, Chief Financial Officer
London Office: +44 (0)20 7408 9536 e-mail: info@egoldfields.com
London Mobile: +44 (0)7703 190 652 website: www.egoldfields.com
Buchanan Communications:
Bobby Morse / Ben Willey +44 (0)20 7466 5000 e-mail: bobbym@buchanan.uk.com
Forward-Looking Statements
This news release contains certain forward-looking statements concerning the
Company's future operations, economic performances, financial condition and
financing plans. These statements are based on certain assumptions and analyses
made by the Company in light of its experience and its perception of historical
trends, current conditions and expected future developments as well as other
factors the Company believes are appropriate in the circumstances. However,
whether actual results and developments will conform with the Company's
expectations and predictions is subject to a number of risks, uncertainties and
assumptions. Consequently, all of the forward-looking statements made in this
news release are qualified by these cautionary statements, and there can be no
assurance that the results or developments anticipated by the Company will be
realised or, even if substantially realised, that they will have the expected
consequences to or effects on the Company and its subsidiaries or their
businesses or operations. The Company undertakes no obligation and does not
intend to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise, except as may be required under
applicable law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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