Exploration JV in Romania
December 05 2005 - 2:02AM
UK Regulatory
RNS Number:1137V
European Goldfields Ltd
05 December 2005
Suite 200, Financial Plaza
204 Lambert Street
Whitehorse, Yukon
Canada Y1A 3T2
For Immediate Release 5 December 2005
NEW EXPLORATION JV AGREEMENT IN ROMANIA - DRILLING RESULTS
European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce that
its has entered into a Heads of Agreement with General Samara to create a joint
venture for the exploration and potential development of a mining concession in
Western Romania referred to as the Magura Tebii prospect.
The Magura Tebii prospect is located in the north-western part of the Neogene
Brad Sacaramb Basin in Transylvania, Romania, about 35 km northwest of European
Goldfields' existing Certej project. The Magura Tebii prospect is currently held
by General Samara, a local Romanian company involved in gold exploration.
The Heads of Agreement provides for an exploration program in three phases to be
funded by European Goldfields, with an initial program of eight confirmatory
drillholes to test significant mineralisation intersected in channel sampling
recently completed by General Samara.
European Goldfields can advance the project to a full feasibility study which,
if successfully completed, would result in European Goldfields owning 80% of the
Magura Tebii project. European Goldfields can withdraw from the joint venture at
any stage if the drilling results do not warrant further exploration.
Disseminated mineralisation in the Magura Tebii perimeter is hosted in a
phreato-magmatic, hydrothermally altered polymictic breccia, which also hosts
mineralised NW-SE striking quartz veins. The breccias are surrounded by Neogene
quartz-amphibole andesites and are cross cut by quartz andesite dykes. Historic
workings indicate that the mineralised systems occur over a strike length of
some 800 metres in a 300m wide zone. General Samara previously completed four
surface trenches spaced approximately 80m apart which were sampled on one metre
intervals returning results ranging between 9m @ 2.9ppm Au and 55m @ 2.8ppm Au.
Grab sampling by Deva Gold S.A. confirmed the tenure of the mineralisation with
values from 2 to 5g/t gold.
Commenting on the agreement, David Reading, Chief Executive Officer of European
Goldfields, said: "This JV for Magura Tebii complements our strategy to pursue
cost-effective, accretive opportunities in Romania, while continuing to develop
our main project at Certej. We look forward to exploring Magura Tebii and
working with new partners in Romania".
Update on Exploration in Romania
On 5 July 2005, European Goldfields announced the completion of an in-house
pre-feasibility study on its 80%-owned Certej project in the Southern Apuseni
Mountains of Romania. All the technical and financial components of a full
pre-feasibility study have now been successfully completed. The initial
indications from the financial evaluation work show that the project would
support the necessary capital investment for the sale of concentrates at
realistic, long-term metal prices for gold and silver.
The Certej deposit hosts measured and indicated resources of 31.4 Mt grading 2.1
g/t gold and 11 g/t silver. Further exploration work in Romania is now focused
on defining additional resources to add to the open pitable resources at Certej
(approximately 22 Mt) and extend the life of mine of the project. European
Goldfields has identified a number of satellite targets which comprise open
pitable mineralisation within the Certej licence area and in European
Goldfields' adjacent Baita-Craciunesti licence area (80%-owned by European
Goldfields). In addition, surface dumps are being evaluated for their tonnage
grade and metallurgical characteristics.
Following an in-house review of satellites, HQ diamond drilling was undertaken
at two of the satellite prospects. A program of 14 drillholes, aimed at defining
an open pittable resource, was completed at the Pitigus prospect, located 7 km
from the Certej deposit in the Baita-Craciunesti concession. The Pitigus
prospect is a moderately east dipping, north striking quartz-calcite-barite vein
system with several associated splay veins near surface. Mineralisation is
hosted in the veins and in the potassic/argillic altered andesites between the
veins over a strike of 300m and an average true width of 12m. Drilling was
completed on approximately 80m spaced sections with 30m between holes due to
topographical constraints. Intersections from the recent drilling are tabulated
below. Four samples of the Pitigus mineralisation have been submitted to
Cepromin for preliminary flotation testwork.
Hole/Channel ID Type From (m) To (m) Width (m) Au (g/t) Ag (g/t)
CRSD055 DDH 20 28 8 1.8 2
CRSD055 DDH 35 37 2 1.9 2
CRSD055 DDH 52 57 5 1.6 1
CRSD056 DDH 16 24 8 3.5 2
CRSD057 DDH 57 75 18 1.0 1
CRSD058 DDH 59 71 12 1.7 3
CRSD059 DDH 14 26 12 2.1 1
CRSD060 DDH 0 3 3 1.9 5
CRSD060 DDH 9 32 23 2.8 3
CRSD061 DDH 69 73 4 1.8 2
CRSD061 DDH 80 86 6 1.1 5
CRSD062 DDH 50 60 10 1.1 1
CRSD063 DDH 27 34 7 1.1 2
CRSD064 DDH 66 71 5 2.2 5
CRSD064 DDH 75 79 4 2.5 4
CRSD065 DDH 22 23 1 1.1 4
CRSD066 DDH 66 73 7 1.2 1
CRSD067 DDH 28 32 4 1.1 10
CRSD068 DDH 55 58 3 1.1 7
TR39001 UGC 115 132 17 2.6 4
Note: Intercepts calculated using a 0.8g/t Au lower cut-off grade, no upper
grade cut-off and a maximum of 3m consecutive internal waste. The deposit is
irregular in nature, however drilling has been conducted perpendicular to
mineralisation wherever possible and as such drilled widths correspond to true
widths.
Diamond drilling is currently in progress at the Hondol Carol prospect (in the
Certej concession) located 0.5 km from the Certej deposit in an effort to define
an open pittable resource. Drilling is being completed on five 20m spaced
sections with approximately 30m between holes. Mineralisation is hosted in three
cross-cutting quartz-barite vein systems and in the strongly potassically
altered andesites hosting the veins. Recently completed surface and underground
channel sampling was utilised to focus the drilling program. Results to date
from the channel sampling and drilling are presented in the table below.
Hole/Channel ID Type From (m) To (m) Width (m) Au (g/t) Ag (g/t)
CJ40501 UGC 0 9 9 3.2 6
HCSC004 SC 29 42 13 2.4 0
HCSC005 SC 2 9 7 2.3 0
CJSD252 DDH 11 23 12 2.0 9
CJSD252 DDH 47 57 10 1.2 1
CJSD252 DDH 61 73 12 1.1 4
CJSD252 DDH 90 91 1 6.8 7
CJSD205* DDH 18 44 26 0.9 2
Note: Intercepts calculated using a 0.8g/t Au lower cut-off grade, no upper
grade cut-off and a maximum of 3m consecutive internal waste. Only intercepts >
2 g/t Au are quoted, except in holes where no intercept is >2g/t. 'Including'
results have a minimum composite grade of 4 g/t. The deposit is irregular in
nature, however drilling has been conducted perpendicular to mineralisation
wherever possible and as such drilled widths correspond to true widths. *2m
composite assays.
Mineralised dumps in the Certej and Baita Craciunesti concessions were drilled
to define further material that would be economic to process at a future Certej
operation. An additional 1.2Mt of material has been defined from this work to
date. Recent 2m surface channel sampling of dumps in the Baita-Craciunesti
concession returned positive results presented below.
Channel ID Area From To Width (m) Au (g/t)
MAWC002 Barbura 24 30 6 1.2
" " 52 72 20 2.1
TSWC001 Teascu 4 34 30 1.0
TSWC002 " 0 14 14 2.5
TSWC004 " 0 18 18 2.1
TSWC005 " 2 18 16 1.5
TSWC007 " 0 14 14 2.7
TWSC008 " 0 12 12 5.5
Note: Intercepts calculated using a 0.6g/t Au lower cut-off grade, no upper
grade cut-off and a maximum of 3m consecutive internal waste. The surface
trenches have been completed across the dumps and are an indication of the grade
of the dump only.
Future work will focus on defining additional satellites in the Certej and Baita
Craciunesti concessions. Additional drilling at Hondol Carol, Pitigus and Teascu
will focus on further defining these satellites, with a resource estimate for
the Hondol Carol prospect to be completed after the first phase of drilling.
Additional flotation testwork for the Teascu prospect is planned after the
preliminary testwork gave positive results. Additional dumps in existing
concessions will be evaluated for their tonnage and grade.
All drill core was sampled (except where noted) at one metre intervals and
assayed at the Gura Rosiei laboratory in Romania, which is managed by SGS
Analabs, using a standard fire assay technique and an atomic absorption finish.
European Goldfields has implemented a quality assurance and quality control ("
QAQC") program to ensure that the analysis of all exploration work is conducted
in accordance with the best possible practices. Under the QAQC measures,
European Goldfields introduces sample duplicates and repeats, and known gold
standards. As a further measure, European Goldfields has five (5) percent of all
sample pulps shipped to Ultratrace in Perth Australia for re-analysis and size
verification.
About European Goldfields
European Goldfields Limited 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 consist of three deposits within
70-year mining concessions covering a total area of 317 km(2). The deposits
include the polymetallic projects of Stratoni and Olympias which contain gold,
lead, zinc and silver, and the copper-gold porphyry body referred to as
Skouries. All three deposits have been well defined with over 200,000 metres of
drilling and the completion of feasibility studies and later engineering
studies.
The total proven and probable reserves of these assets are 17.2 Moz on a gold
equivalent basis (65% attributable = 11.2 Moz) from a measured and indicated
resource base of 21.8 Moz gold equivalent (65% attributable = 14.2 Moz).
These assets represent some of the largest defined deposits in Europe. The three
deposits are located within a 10 km radius of each other, making this
effectively a gold and base metals centre. Furthermore, both Stratoni and
Olympias were previously in production and have extensive existing mining and
plant infrastructure and a ship loading facility on the Aegean Sea.
In September 2005, Hellas Gold resumed production at Stratoni following the
award by the Greek state of all necessary environmental and mining permits.
Production of ore is expected to reach 170,000 tonnes by the end of the first
year of production, steadily increasing to 400,000 tonnes per annum by year
five.
Hellas Gold is in the process of applying for similar permits for Olympias and
Skouries. Hellas Gold's assets also include potential revenue generating
stockpiles and tailings located on the surface.
Romania - European Goldfields holds five mineral properties located within the "
Golden Quadrilateral" area of Romania, where it has recently completed an
in-house pre-feasibility study underpinning the value of its 80%-owned Certej
deposit. The Certej deposit hosts measured and indicated resources of 31.4 Mt
grading 2.1 g/t gold and 11 g/t silver for 2.34 Moz of gold equivalent (80%
attributable = 1.88 Moz).
For further information please contact:
European Goldfields:
David Reading, Chief Executive Officer
David Grannell, Chief Financial Officer
Office: +44 (0)20 7408 9534 e-mail: info@egoldfields.com
Mobile: +44 (0)7703 190 652 website: www.egoldfields.com
Buchanan Communications:
Bobby Morse / Ben Willey e-mail: bobbym@buchanan.uk.com
Office: +44 (0)20 7466 5000
Mobile: +44 (0)7802 875 227
The Sherbourne Group
Forbes West e-mail: forbes@sherbournegroup.ca
Office: +1 416 203 2200
Resources & Reserves Parameters
Patrick Forward, General Manager, Exploration of European Goldfields, was the
Qualified Person under Canadian National Instrument 43-101 who reviewed this
news release and verified the data disclosed in this news release, including
sampling, analytical and test data underlying the information or opinions
contained in this news release.
A summary description of the geology, mineral occurrences, nature of
mineralisation, rock types, geological controls and dimension of mineralised
zones found at the Certej and Baita-Craciunesti properties is included in a
report entitled "Technical Review of a Portfolio of Properties in Romania" dated
10 March 2004 prepared by A C A Howe International Limited and filed on SEDAR at
www.sedar.com on 11 March 2004 under the category "Technical Report".
The potential quantity and grade of the targets mentioned above is conceptual in
nature, there has been insufficient exploration to define a mineral resource on
such targets and it is uncertain if further exploration will result in such
targets being delineated as a mineral resource.
For additional information on the resource and reserve estimates quoted above,
please refer to the Company's Resources & Reserves Declaration at
www.egoldfields.com/goldfields/resources.jsp.
Forward-looking Statements
Certain information included in this document, including any information as to
the Company's future financial or operating performance and other statements
that 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 and
assumptions that, while considered reasonable by management, are inherently
subject to significant business, economic and competitive uncertainties and
contingencies. The Company cautions the reader that such forward-looking
statements involve known and unknown risks, uncertainties and other factors that
may cause the actual financial results, performance or achievements of the
Company to be materially different from its estimated future results,
performance or achievements expressed or implied by those forward-looking
statements and the forward-looking statements are not guarantees of future
performance. These risks, uncertainties and other factors include, but are not
limited to: changes in the worldwide price of gold, base metals or certain other
commodities (such as fuel and electricity) and currencies; ability to
successfully integrate acquired assets; legislative, political or economic
developments in the jurisdictions in which the Company carries on business;
operating or technical difficulties in connection with mining or development
activities; the speculative nature of gold and base metals exploration and
development, including the risks of diminishing quantities or grades of
reserves; and the risks involved in the exploration, development and mining
business. These factors are discussed in greater detail in the Company's
Management's Discussion & Analysis for the year ended 31 December 2004 filed on
SEDAR at www.sedar.com. The Company disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of new
information, future events or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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