Higher Recoveries at Certej
July 11 2006 - 6:13AM
UK Regulatory
RNS Number:9958F
European Goldfields Ltd
11 July 2006
For Immediate Release 11 July 2006
European Goldfields Limited
Higher Albion Process Gold Recoveries at Certej
European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce that
additional results of batch metallurgical testwork indicate a substantial
increase in gold recoveries for its Certej project in Romania.
The new results using the Albion Process at optimised oxidation conditions
suggest recoveries from concentrates of approximately 96% for gold, compared to
previously reported recoveries of 84%. Silver recoveries remain stable, averaging 92%.
This follows the adoption of an all alkaline leaching process, eliminating the
acid step which was initially used. The new results also show that there is
scope to reduce reagent consumption and that cyanide destruction is achievable.
This test was conducted on samples from the East zone of the deposit.
European Goldfields expects to publish Canadian NI 43-101 compliant reserves
based on the Albion Process later this year, after completion of a Stage III
pilot plant scale continuous testwork programme.
The Albion Process is a combination of ultra-fine grinding and oxidatative
leaching at atmospheric pressure. Hydrometallurgy Research Laboratories (a
subsidiary of Xstrata PLC) of Australia has completed Stages I and II of a
metallurgical testwork programme using the Albion Process from samples of
flotation concentrates produced from Certej ore.
European Goldfields recently identified the use of Albion Process technology to
process Certej gold concentrates prior to cyanidation as an attractive solution
for the production of gold dore on site. The Albion Process is an alternative
development route to the option of selling gold rich pyrite concentrates
produced at Certej, for which the Canadian NI 43-101 compliant reserves have
already been published in April 2006. Production and sale of gold dore is
expected to significantly increase project profitability and returns.
Commenting on these test results, David Reading, Chief Executive Officer of
European Goldfields, said: "We are encouraged by these positive results using
the Albion Process. We now have the flexibility of two viable development
options for the Certej project. The project is robust at $425/oz gold and $7/oz
silver. Having identified a clear path to permitting, we now look forward to
accelerating the development of the project in the coming months."
Clear path identified for Certej permits - European Goldfields has completed all
necessary Environmental Impact Assessments (EIA Levels I and II) for its Certej
project. European Goldfields is now completing an Environmental Impact Study
(EIS) and a feasibility study, in support of an application for mining permits
expected to be submitted by end-2006. ECOIND and Cepromin, Romanian companies
with well-proven track records 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.
Greece - 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 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.
Romania - The Company holds four mineral properties located within the "Golden
Quadrilateral" area of Romania. The Company recently announced the conversion of
resources into Canadian NI 43-101 compliant reserves for its 80%-owned Certej
project, underpinning the value of the project. The Certej deposit hosts
probable reserves of 27.7 Mt grading 2.0 g/t gold and 11.6 g/t silver for 1.76
Moz gold and 10.35 Moz silver (80% attributable). The Company is now completing
a final feasibility study for submission to the Romanian government by the end
of 2006, in support of an application for environmental and mining permits to
develop the Certej project.
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.
For further information please contact:
European Goldfields: website: www.egoldfields.com
David Reading, Chief Executive Officer e-mail: info@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
Renmark Financial Communication: website: www.renmarkfinancial.com
Neil Murray-Lyon e-mail: nmurraylyon@renmarkfinancial.com
Henri Perron e-mail: hperron@renmarkfinancial.com
Office: +1 514 939 3989
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
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