Reserves in Certej
April 10 2006 - 3:03AM
UK Regulatory
RNS Number:2553B
European Goldfields Ltd
10 April 2006
For Immediate Release
10 April 2006
European Goldfields Limited
Reserves Announced for Certej Project
European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce the
conversion of resources into Canadian NI 43-101 compliant reserves for its
80%-owned Certej project in the Southern Apuseni Mountains of Romania.
The reserve estimation was carried out by independent consultants RSG Global Pty
Ltd ("RSG Global") and can be summarised as follows:
Reserve Average Gold Million Average Million
Category Grade (g/t) Ounces Siver Ounces
Million Tonnes Gold Grade (g/t) Silver
Probable 27.7 2.0 1.76 11.6 10.35
Note: Lower cut-off grade of 0.8 g/t gold. Uniform conditioning and based
on a selected mining unit model using 6.25 X 12.5 X 2.5 metre blocks.
The reserve was estimated at a gold price of $425/oz and a silver price of $7/
oz, and is based on the sale of gold rich concentrates. The estimation follows
the completion of extensive metallurgical test-work, an in-house pre-feasibility
study and subsequent pit optimisation and pit design work by RSG Global, which
included a geotechnical drilling programme designed by Golders Associates of the
UK. These studies resulted in:
- Confirmation that a flotation concentrate can be produced with high
gold grades and recoveries
- An open pit with a low strip ratio of 2.6:1
- The definition of sites for infrastructure and tailings disposal
- A clear understanding of all work required to complete environmental
studies and achieve all necessary permitting
It is envisaged that the project could mine and process 3.0 Mt per annum over at
least nine years. At the proposed production rates, this would yield
approximately 249,000 tonnes of concentrate per annum with grades averaging 21 g
/t gold and 125 g/t silver, with a flotation gold recovery of approximately 88%.
This translates into an annual production of approximately 170,000 oz of
contained gold in the concentrate.
The conversion of resources into reserves means that the project can support the
necessary capital investment and produce a robust return at a gold price of $425
/oz and above.
David Reading, Chief Executive Officer of European Goldfields, said: "With the
publication of reserves, the Certej project has now turned the corner. We are
now completing a final feasibility study for submission to the Romanian
government by year end in support of our permit application. Levels I and II of
the Environmental Impact Assessment have already been completed. We have now
defined a clear roadmap to permitting and project development."
Key Parameters for Reserve Estimation
Metallurgical data - During 2005, four representative, composite samples of ore
were extensively tested by SGS-Lakefield of Canada to optimise the gold grade
and recovery of a pyrite flotation concentrate. SAG mill modelling was also
carried out to estimate the capital cost of a future processing plant. A summary
of the flotation results for different zones of the deposit, based on averages
from several locked-cycle flotation tests, is given below.
Sample ID Area Conc. Grade (gpt) Metal Recovery
Gold Silver Gold Silver
662 Central 26.8 495 96.8% 97.9%
679 Intermediate 19.8 76 89.5% 92.8%
663 East 19.4 42 84.2% 79.4%
670 West 18.7 79 84.2% 84.4%
The weighted average gives a gold recovery of 88% to a concentrate of 21 g/t
gold and 125 g/t silver.
Concentrate sales - European Goldfields has received letters of interest from
two East European metal traders indicating their willingness to negotiate the
purchase of all the high-grade gold/silver flotation concentrates to be produced
at Certej. The terms received confirm that the sale of concentrates would
support the necessary capital investment and produce a viable return for the
Certej project at a gold price of $425/oz and above and an assumed net smelter
return (NSR) of 60%. Generally, the NSR improves as the gold price appreciates.
Capital and operating costs - The in-house pre-feasibility study calculated the
total capital expenditure to be $69 million for the purchase of mining equipment
and construction of a flotation plant, tailings and other infrastructure. The
mining costs are estimated at $1.28/tonne of material mined, and the processing
costs are estimated at $5.11/tonne of ore processed.
Certej Resources - The reported resources for the Certej deposit, as estimated
by RSG Global in March 2005 and reported above a 1g/t gold lower cut-off grade,
are summarised below.
Resource Category Average Gold Million Ounces Average Siver Million Ounces
Grade (g/t) Gold Grade (g/t) Silver
Million Tonnes
Measured 3.14 2.6 0.26 5 0.5
Indicated 28.29 2.1 1.91 12 10.5
Measured + Indicated 31.43 2.1 2.17 11 11.0
Inferred (East/West Domains) 5.17 1.9 0.32 7 1.1
Inferred (Central Domains) 3.47 1.5 0.17 10 1.1
Total Inferred 8.64 1.8 0.49 7.9 2.2
Note: Uniform conditioning and based on a selected mining unit model using
6.25 X 12.5 X 2.5 metre blocks for the eastern and western domains and inverse
distance squared (using no gold cut-off) for the central domains.
Disclosure of mineral resources for the Certej project is derived from a
technical report prepared by RSG Global in accordance with the guidelines set
out in Canadian National Instrument 43-101. The technical report was filed on
SEDAR at www.sedar.com on 23 March 2005 under the category "Technical Report".
A technical report from RSG Global on the Certej mineral reserve estimates will
be filed on SEDAR within the next 45 days as an update to their technical report
of 23 March 2005. Harry Warries of RSG Global was the Qualified Person under
Canadian National Instrument 43-101 responsible for preparing and verifying the
Certej reserve estimates quoted in this news releases.
On-site Production of Gold Dore Being Investigated
European Goldfields is also actively reviewing other development options to
progress the project forward, such as confirming a process route for producing
gold dore on site.
Of the available techniques, the Albion Process followed by cyanidation is
considered the most promising. The Albion process is a combination of
ultra-fine grinding and oxidatative leaching at atmospheric pressure. Samples of
flotation concentrates produced from the locked-cycle test-work at SGS-Lakefield
have been tested at Hydrometallurgy Research Laboratories of Australia. The
results indicate that a flotation concentrate produced from Certej ore can be
economically processed by the Albion Process to produce gold dore on site.
European Goldfields has completed Stages I and II of a metallurgical test-work
programme utilising the Albion process and expects to be reporting on these
results during Q2 2006.
Exploration of Satellite Targets
Further exploration work in Romania is now focused on defining additional
resources to add to the open-pitable reserves at Certej and extend the life of
the project. European Goldfields has identified a number of satellite targets
which comprise open-pitable mineralisation within the Certej licence area and
the adjacent Baita-Craciunesti licence area. In addition, surface dumps are
being evaluated for their tonnage grade and metallurgical characteristics.
Environmental Studies Underway
European Goldfields has completed the necessary Environmental Impact Assessments
(EIA Levels I and II). The next stage will be to complete an Environmental
Impact Study (EIS) in order to progress to full feasibility study and permit
application by year end. ECOIND, a Romanian company with a well-proven track
record in environmental research and permitting procedures, have been employed
to assist in this process.
About European Goldfields
European Goldfields Limited (the "Company") is a resource company involved in
the acquisition, exploration and development of mineral properties in Greece,
Romania and the Balkans.
In addition to its Romanian assets, the Company holds a 65% interest in Hellas
Gold S.A. ("Hellas Gold"). 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 7.6 Moz gold, 65.8
Moz silver, 0.7 Mt copper, 0.7 Mt lead and 0.9 Mt zinc, from a measured and
indicated resource base of 9.4 Moz gold, 74.5 Moz silver, 1.0 Mt copper, 0.8 Mt
lead and 1.1 Mt zinc (65% attributable).
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.
Hellas Gold's assets also include potential revenue-generating stockpiles of
gold concentrates.
In September 2005, Hellas Gold resumed production at Stratoni following the
award by the Greek State of all necessary environmental and mining permits.
Hellas Gold is in the process of applying for similar permits for Olympias and
Skouries, having met its first milestone by submitting business plans to the
Greek government in January 2006.
For further information please contact:
European Goldfields: e-mail: info@egoldfields.com
David Reading, Chief Executive Officer website: www.egoldfields.com
Office: +44 (0)20 7408 9534
Buchanan Communications: e-mail: bobbym@buchanan.uk.com
Bobby Morse / Ben Willey
Office: +44 (0)20 7466 5000
Mobile: +44 (0)7802 875 227
The Sherbourne Group: e-mail: forbes@sherbournegroup.ca
Forbes West
Office: +1 416 203 2200
Resources & Reserves Parameters
For additional information on the resource and reserve estimates quoted in this
news release, please refer to the Company's Resources & Reserves Declaration at
www.egoldfields.com/goldfields/resources.jsp. Patrick Forward, General Manager,
Exploration of the Company, was the Qualified Person under Canadian National
Instrument 43-101 responsible for reviewing the disclosure of resource and
reserve estimates quoted in this news release.
Forward-looking statements
Certain information included in this news release, 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; the successful and
timely permitting of the Company's Skouries, Olympias and Certej projects;
legislative, political, social 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 normally involved in the
exploration, development and mining business. These factors are discussed in
greater detail in the Company's Annual Information Form for the year ended 31
December 2005, 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
MSCZGGGDMLRGVZZ
European Gold (LSE:EGU)
Historical Stock Chart
From Jun 2024 to Jul 2024
European Gold (LSE:EGU)
Historical Stock Chart
From Jul 2023 to Jul 2024
