Drilling Starts at Stratoni
October 24 2006 - 3:02AM
UK Regulatory
RNS Number:9100K
European Goldfields Ltd
24 October 2006
For Immediate Release 24 October 2006
EXTENSION DRILLING STARTS AT STRATONI
European Goldfields Limited (AIM: EGU / TSX: EGU) is pleased to announce the
start of an exploration drilling programme at Hellas Gold's Stratoni
zinc-lead-silver mine in Northern Greece. A contract securing the drilling rig
has been signed with Drillcon LDA and drilling started yesterday.
Stratoni already has well-defined reserves over a six-year life of mine. Six
areas targeted by the drilling are obvious extensions to known mineralisation,
in addition to more conceptual targets between the two main Stratoni deposits.
The drilling programme is expected to significantly increase reserves and life
of mine. Initial drilling results are expected by year end.
An important objective of the drilling programme is to upgrade inferred
resources extending from the Stratoni (Mavres Petres) deposit to the measured
and indicated categories. These inferred resources, which are located in four
target areas and are extrapolations from the known reserves, comprise some
375,000 tonnes grading 7.5% lead, 9.5% zinc and 160 g/t silver.
Two further targets are known extensions to previously mined areas of the
Stratoni (Madem Lakkos) deposit, where production grades of 9 to 10.7% lead, 9
to 9.6% zinc and 160 to 185.3 g/t silver are recorded. The programme is aimed at
drilling out resources in these areas of known economic mineralisation.
The Stratoni mine resumed operations in September 2005 and is on track to
produce over 170,000 tonnes of ore by the end of 2006, steadily increasing to
400,000 tonnes per annum by year five. The existing environmental and mining
permits for Stratoni will allow Hellas Gold to fully exploit any new discoveries
resulting from this drilling programme.
Commenting on the announcement, David Reading, Chief Executive Officer of
European Goldfields, said: "We are excited about the start of our drilling
programme at Stratoni. Drilling will be value-driven as it will target obvious
extensions to known deposits, which usually yields the best results."
Background information
The Stratoni mine comprises two marble hosted massive sulphide deposits that are
about
1.5 kilometres apart, with the Mavres Petres deposit to the west and the Madem
Lakkos to the east. The drilling programme will focus on six known targets. The
objective is to:
* upgrade inferred resources extending from the Mavres Petres reserves in
four target areas
* find western extensions to the mined-out Madem Lakkos deposits in two
target areas
* investigate marble units between the two deposits that are largely
unexplored.
Drilling will start with the investigation of the western extension of the
mined-out Madem Lakkos deposit, which is easily accessible from the first
available drilling bay in the new decline being developed for the Stratoni
operation. Drill stations near to the top of the decline will allow a series of
fanned drillholes to investigate the extension of this deposit.
The drilling is being conducted from a new decline currently being excavated to
access the base of the existing Stratoni reserve. The decline crosses the 1.5
kilometre zone between the existing reserve and mined-out areas, providing
excellent access for exploration of this highly prospective corridor. The
decline will also enable immediate access for mining of any new discoveries.
The new decline has already intersected lead and zinc sulphide mineralisation
over a true thickness of approximately 1.75 metres, confirming European
Goldfields' current geological model for extensions of the existing Stratoni
reserve.
Significantly, this mineralisation occurs within the same marble unit as the
existing reserve and, like the Mavres Petres reserve, is immediately adjacent to
the Stratoni fault which is a conduit for mineralisation. This indicates the
potential for further zones of mineralisation to occur along the 1.5 kilometre
corridor formed by the marbles and the fault.
The drilling programme is divided into two phases. Phase 1 is the extension of
known mineralisation, infill drilling on inferred resources and investigation
between the two known deposits; Phase 2 will provide infill drilling of any
mineralisation found between the two deposits in order to quantify resources in
these areas. Phase 2 drilling is dependant on the results of Phase 1. The total
planned drilling metres in Phase 1 is 7,000 and the maximum metres in
Phase 2 is 5,800.
Patrick Forward, General Manager, Exploration of European Goldfields, was the
Qualified Person under Canadian National Instrument 43-101 responsible for
reviewing this news release.
About European Goldfields
European Goldfields is a resource company involved in the acquisition,
exploration and development of mineral properties in Greece, Romania and
South-East Europe.
Greece - European Goldfields holds a 65% interest in Hellas Gold S.A. Hellas
Gold owns the three major gold and polymetallic deposits of Stratoni, Skouries
and Olympias in Northern Greece. Hellas Gold commenced production at Stratoni in
September 2005 and selling an existing stockpile of Olympias gold concentrates
in July 2006. Hellas Gold is applying for permits to develop the Skouries and
Olympias projects.
Romania - European Goldfields owns 80% of the Certej project in Romania.
Resources were recently converted into Canadian NI 43-101 compliant reserves,
underpinning the value of the project. European Goldfields is now completing a
feasibility study for submission to the Romanian government in Q1 2007, in
support of a permit application to develop the project.
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
Renmark Financial Communication: website: www.renmarkfinancial.com
Tina Cameron e-mail: tcameron@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
DRLBRBDGDDDGGLX
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
