EGU European Gold

RNS Number:1607H
European Goldfields Ltd
10 January 2005


For Immediate Release                                            10 January 2005


          European Goldfields Awarded New Exploration Licence in Romania


European Goldfields Limited (AIM: EGU / TSX-V: EGU) (the "Company") is pleased
to announce that its wholly-owned subsidiary European Goldfields Romania SRL has
been awarded by The National Agency for Mineral Resources in Romania (NAMR) an
exploration license for the Cainel perimeter located in the historic gold
producing area of the "Golden Quadrilateral" area of Romania. The licence was
awarded following a public tender in which two other exploration companies
participated.

The licence is for an initial term of three years, renewable for an additional
term of three years under certain conditions. The licence covers an area of 31.3
km2 and lies only 10 km to the northwest of the Company's 80%-owned Certej
deposit and surrounding satellite bodies, where the Company has undertaken an
in-house resource development and pre-feasibility programme, expected to be
completed by the second quarter of 2005.

To date, encouraging drilling results highlight grade continuity at Certej and
the potential to optimise and redesign an appropriate open pit for exploiting
the deposit.  A previous resource estimate of the Certej deposit undertaken by
RSG Global of Perth, filed on SEDAR on 29 January 2004 under the category "
Engineering Report", outlined an indicated resource of 34.7Mt grading 2.1g/t
gold and 10 g/t silver for 2.5Moz Au Eq. This estimate was based on a selective
mining unit model utilising 10 x 10 x 10 metre blocks and a 1g/t Au cut off.

Mineralisation in the Cainel perimeter occurs as brecciation, alteration and
veining associated with intermediate intrusive and extrusive Neogene volcanics
within Neogene sediments and occurs along the same northwest trending structural
belt as the Certej deposit.  Historic workings indicate that the mineralised
systems occur over a strike length of some 1000 metres and over a discontinuous
width of some 250 metres.

The Cainel perimeter has never been available to a commercial exploration
company.  However, the area has been the subject of sporadic small scale
underground mining since 1844, though records show that this only exploited at
depth with the top 200 metres being preserved.  Simple gravity recovery methods
utilised in the historic operations indicate that the gold occurred freely and
the ore is non-refractory.

Furthermore, exploration of known veining was conducted by the Romanian State
minerals company Minexfor between 1958 and 1977.  Exploration indicated that the
average grade of the veins was between 3.4 and 3.9 g/t Au based on gravimetric
assays only, further supporting the evidence for free gold.

Neither the historic production nor the exploration tested the extensive wall
rock alteration and brecciation around the veining. However, recent grab
sampling at surface conducted by European Goldfields has indicated the following
grade ranges in mineralised areas:

-           Altered andesite 0.1 to 39.7 g/t Au
-           Veining 0.3 to 18.6 g/t Au
-           Breccia 0.1 to 8 g/t Au

Areas of waste rock and tailings have also been identified on the licence and
the historic exploration programme by Minexfor indicated that one waste dump had
an average grade of between 0.8 and 0.9 g/t Au.  Grab sampling by European
Goldfields indicates that waste material grades between 0 and 152 g/t Au.

European Goldfields plans a programme of orientation work in early 2005 followed
by a systematic evaluation of the Cainel perimeter using diamond core drilling,
channel sampling of accessible outcrop and underground workings and by
trenching.

Finally, the Company has decided to relinquish its 80%-owned exploitation
licence for the Zlatna perimeter in Romania where exploration undertaken since
1999 had not yet demonstrated the economic viability of the deposit.  This will
allow the Company to concentrate its exploration and pre-feasibility activities
to the more contiguous Certej and Cainel perimeters.

David Reading, Chief Executive Officer of the Company, said:

"The new licence award consolidates the position of European Goldfields as a
prominent exploration company in Romania, one of the most prominent gold
provinces in Europe.  We will benefit from the close proximity of the Cainel
licence to our existing Certej operations in further developing an area of
considerable opportunity.

"This award provides European Goldfields with a strong growth platform in
Romania, enhancing our ability to further extract value through our
comprehensive knowledge of the area as well as through our strong partnerships."


Disclaimer


The quantity and grade of the possible Cainel mineral deposit is conceptual in
nature, there has been insufficient exploration to define a mineral resource on
the property and it is uncertain if further exploration will result in discovery
of a mineral resource on the property.


Forward-Looking Statements


This news release contains certain forward-looking statements concerning the
Company's future operations, economic performances, financial condition and
financing plans. These statements are based on certain assumptions and analyses
made by the Company in light of its experience and its perception of historical
trends, current conditions and expected future developments as well as other
factors the Company believes are appropriate in the circumstances. However,
whether actual results and developments will conform with the Company's
expectations and predictions is subject to a number of risks, uncertainties and
assumptions. Consequently, all of the forward-looking statements made in this
news release are qualified by these cautionary statements, and there can be no
assurance that the results or developments anticipated by the Company will be
realised or, even if substantially realised, that they will have the expected
consequences to or effects on the Company and its subsidiaries or their
businesses or operations. The Company undertakes no obligation and does not
intend to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise, except as may be required under
applicable law.



For further information please contact:

European Goldfields:
David Reading, Chief Executive Officer
David Grannell, Chief Financial Officer

London Office: +44 (0)20 7408 9536              e-mail: info@egoldfields.com
London Mobile: +44 (0)7703 190 652              website: www.egoldfields.com

Buchanan Communications:
Bobby Morse / Ben Willey +44 (0)20 7466 5000    e-mail: bobbym@buchanan.uk.com


The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release and the information contained herein.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

MSCSSWFWWSISEEF

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