Exploration Update
June 10 2010 - 2:03AM
UK Regulatory
TIDMEGU
RNS Number : 3591N
European Goldfields Ltd
10 June 2010
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/statePatrick 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.comMichael 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
END
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