For Immediate Release 10 June 2010
European Goldfields Limited
GROUP EXPLORATION UPDATE
DRILL PERMIT APPROVED FOR GREEK PROJECTS
GROUP WIDE US$15 MILLION EXPLORATION PROGRAMME UNDERWAY
10 June 2010 - European Goldfields Limited (TSX / AIM: EGU) ("European
Goldfields" or the "Company") is pleased to announce the approval of an
exploration drill permit within its 317 km2 Greek Licence Area which
hosts the Stratoni mine, the Olympias and Skouries development projects
and three drill-ready exploration targets.
The Company plans to advance a pipeline of highly prospective
exploration targets, all located within 10km of the Company's producing
mine and development projects. The Board of Directors has approved a
US$9.2 million exploration budget for Greece with the primary objective
of increasing gold resource ounces to add to the 7.6 million proven and
probable gold reserve ounces already defined at Olympias and Skouries.
An airborne geophysics survey, commissioned by European Goldfields,
identified a total of 28km of anomalies within the Licence Area, some
of which are already known to host mineralisation and others are
currently untested. The 3 main targets, Piavitsa, Fisoka and Tsikara,
are described below:
Piavitsa
Piatvitsa is comparable in mineralisation style and geophysical
characteristics to Olympias, which hosts proven and probable reserves
of 3.7 Moz gold, 1.2 Mt lead and 52.1 Moz silver
- Historic drill results confirm Olympias-style gold-lead-zinc-silver
mineralisation at Piavitsa, with a strong correlation between
mineralisation and the extensive geophysical anomaly
- Piavitsa anomaly is 3 times the strike length of the Olympias
massive sulphide orebody
- A 23,000m drill programme aims to demonstrate continuity of
mineralisation along the Piavitsa anomaly and delineate resources
Fisoka & Tsikara
The magnetic component of the airborne survey also identified a 17km by
6km belt of porphyry intrusives which highlights two other major
porphyry targets, Fisoka and Tsikara.
- Copper-gold porphyry targets located in the same intrusive belt
which hosts Skouries
- Phase one drilling of 4,200m to test grade and width
- Phase two drilling of 13,500m aimed at delineating resources
The Company's 317 km2 Licence Area is well served by a network of roads
and power lines and a number of the proposed drill sites have excellent
access via existing roads and tracks which will permit the rapid
commencement of the exploration programme.
A detailed map showing the location and potential of these previously
drilled and drill-ready targets can be seen at
http://www.egoldfields.com/egoldfields/en/operationsprojects/greece/exploration.
Romania
European Goldfields' Romanian exploration programme is focused on
epithermal and porphyry targets with the potential to host
multi-million ounce deposits. A series of drill targets have been
identified including:
- Extensions to gold-bearing systems historically exploited within
the Brad area. Historic production from Brad is estimated to be
several million ounces of gold from veins which include high-grade
bonanza zones with extensive free-milling gold
- Previously unrecognised 'blind' porphyry and epithermal targets
- Massive sulphide deposits previously untested for gold and silver
Following infill sampling a programme of drill and trench testing will
be carried out in Q3 and Q4 with a total approved budget of US$4.4
million for 2010.
Turkey
As with Romania, European Goldfields' 2010 exploration strategy is
based on the identification of epithermal and porphyry targets with the
potential to host multi million ounce deposits. Detailed surface work
has defined a number of new targets on licences held in Joint Venture
agreements with Ariana Resources and Aldridge Minerals. These targets
will be drilled during the second half of 2010 under the approved
US$2.2 million exploration budget.
About European Goldfields
European Goldfields is a developer-producer with globally significant
gold reserves located within the European Union. The Company generates
cash flow from its 95% owned Stratoni operation, a high grade lead/zinc
/silver mine in North-Eastern Greece and the sale of gold concentrates
from Olympias. European Goldfields will evolve into a mid tier producer
through responsible development of its project pipeline of gold and
base metal deposits at Skouries and Olympias in Greece and Certej in
Romania. The Company plans future growth through development of its
highly prospective exploration portfolio in Greece, Romania and Turkey.
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/egoldfields/en/operationsprojects/state 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 see the Company's website at
www.egoldfields.com
For further information please contact:
European Goldfields: Liberum Capital Limited
Sally Schofield, VP Investor Relations Simon Atkinson
e-mail: info@egoldfields.com Michael Rawlinson
Tel: +44 (0)20 7408 9534 Tel: +44 (0)20 3100 2000
Buchanan Communications: Evolution Securities Limited
Bobby Morse / Katharine Sutton Rob Collins
e-mail: bobbym@buchanan.uk.com Tim Redfern
Tel: +44 (0)20 7466 5000 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 include, but are not limited
to, the estimation of mineral reserves and resources, the timing and
amount of estimated future production, costs and timing of development
of new deposits, permitting time lines and expectations regarding metal
recovery rates. 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
2009, 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
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