Sale of Concentrates
October 01 2007 - 3:02AM
UK Regulatory
RNS Number:8248E
European Goldfields Ltd
01 October 2007
For Immediate Release 1 October 2007
European Goldfield Limited
Sale of Extra 71,000 Tonnes of Olympias Gold Concentrates
1 October 2007 - European Goldfields Limited (TSX / AIM: EGU) is pleased to
announce that its 95%-owned subsidiary Hellas Gold S.A. has entered into an
off-take agreement with a subsidiary of Celtic Resources Holdings Plc (AIM: CER)
for the sale of 50,000 wet metric tonnes (wmt) of gold-bearing pyrite
concentrates previously produced from the Olympias mine in Greece.
Celtic Resources have agreed to pre-pay for the concentrates within the next 10
days, and take delivery of the concentrates within a period of 24 months
following the date of the agreement.
This is in addition to the sale of 9,000 wmt of concentrates to Celtic Resources
announced in November 2006.
Hellas Gold has also recently agreed terms for the sale of at least 21,000 wmt
of concentrates by the end of 2007 to Trafigura Beheer B.V. In total, these
71,000 wmt of concentrate contain approximately 53,000 oz of gold.
The Olympias project benefits from an existing stockpile of gold-bearing pyrite
concentrates which represented, at December 31, 2006, a reserve of approximately
252,000 tonnes grading 23.3 g/t gold (containing 188,000 oz of gold), in
addition to substantial underground reserves of gold, lead, zinc and silver.
Hellas Gold has now secured the sale of the entire stockpile to six different
purchasers - Golden China Resources Corporation, Celtic Resources Holdings Plc,
MRI Trading AG, Euromin S.A. and Trafigura Beheer B.V.
Hellas Gold plans to resume underground mining operations at Olympias after
permits are awarded, producing more gold bearing pyrite concentrates for sale to
existing and new off-take purchasers.
Commenting on the new agreements with Celtic Resources and Trafigura, David
Reading, CEO of European Goldfields, said: "We are delighted to have signed
these new off-take agreements for the sale of our stockpile of gold concentrates
at Olympias. By doing so, we have achieved two key milestones in the development
of our company, securing the sale of the entire stockpile and the sale of at
least 100,000 tonnes of concentrates in 2007. The strong demand for Olympias
gold concentrates bodes well for the resumption of mining operations at
Olympias."
About European Goldfields
European Goldfields Limited 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 95% interest in Hellas Gold S.A. Hellas
Gold owns three major gold and base metal deposits in Northern Greece. The
deposits are the polymetallic operation at Stratoni, the Olympias project which
contains gold, zinc, lead and silver, and the Skouries copper/gold porphyry
project. Hellas Gold commenced production at Stratoni in September 2005 and
commenced 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 gold/silver project in
Romania. European Goldfields submitted in March 2007 a technical feasibility
study to the Romanian government, in support of a permit application to develop
the project.
For further information please contact:
European Goldfields: e-mail: info@egoldfields.com
David Reading, Chief Executive Officer Tel: +44 (0)20 7408 9534
Buchanan Communications: e-mail: bobbym@buchanan.uk.com
Bobby Morse / Ben Willey Tel: +44 (0)20 7466 5000
Renmark Financial Communication: e-mail: nmurraylyon@renmarkfinancial.com
Neil G. Murray-Lyon Tel: +1 514 939 3989
Evolution Securities e-mail: simon.edwards@evosecurities.com
Simon Edwards / Neil Elliot Tel: +44 (0)20 7071 4300
Forward-looking statements
Certain statements and information contained 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 information under provisions of Canadian
provincial securities laws. When used in this document, the words "anticipate",
"expect", "will", "intend", "estimate", "forecast", "planned" and similar
expressions are intended to identify forward-looking statements or information.
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 price of gold, base metals or certain other
commodities (such as fuel and electricity) and currencies; uncertainty of
mineral reserves, resources, grades and recovery estimates; uncertainty of
future production, capital expenditures and other costs; currency fluctuations;
financing and additional capital requirements; 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; the risks normally involved in the
exploration, development and mining business; and risks associated with internal
control over financial reporting. For a more detailed discussion of such risks
and material factors or assumptions underlying these forward-looking statements,
see the Company's Annual Information Form for the year ended 31 December 2005,
filed on SEDAR at www.sedar.com. The Company does not intend, and does not
assume any obligation, to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise, except as
required by law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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