MRI Trading Confirms Third Order of Olympias Gold Concentrates
3 April 2007 - European Goldfields Limited (TSX / AIM: EGU) is pleased to announce that its subsidiary Hellas Gold S.A. has entered into a third off-take agreement with MRI Trading AG of Switzerland for the sale of an additional 25,000 wet metric tonnes (wmt) of gold bearing pyrite concentrates previously produced at the Olympias mine in Greece. Hellas Gold will receive payment for the full 25,000 wmt of concentrates up-front upon shipment of the first lot in Q2 2007.
MRI Trading also has the option to increase its order by a further 25,000 wmt, which is exercisable by 31 July 2007.
This new order from MRI Trading follows the success of an initial trial shipment of 3,000 wmt of concentrates announced in July 2006 and a second order for 25,000 wmt announced in October 2006.
Olympias benefited from an existing stockpile of gold concentrates comprising a reserve of approximately 258,000 tonnes grading 23.3 g/t gold (containing 193,000 oz of gold). An additional 9,000 wmt of concentrates (containing 6,000 oz of gold) were also located at Hellas Gold's port facility in Stratoni.
Following today's announcement, Hellas Gold has now secured the sale of a total of 209,000 wmt of Olympias concentrates (containing approximately 148,000 oz of gold) to four different off-takers - Golden China, MRI Trading, Celtic Resources and Euromin - with expressions of interest to sell up to an additional 132,000 wmt of concentrates if the initial shipments are successful.
Hellas Gold plans to resume underground mining operations at Olympias after the necessary permits are awarded, producing more gold bearing pyrite concentrates for sale to existing and new off-takers.
The prices payable for the concentrates vary with the prevailing gold price. The agreements produce an attractive return for Hellas Gold at a gold price of US$500/oz.
Commenting on the announcement, David Reading, CEO of European Goldfields, said: "We are delighted to have renewed our contract with MRI Trading for the sale of a possible extra 50,000 tonnes of gold concentrates from Olympias. We have now signed off-take agreements covering virtually the entire stockpile, and are pursuing similar opportunities for the sale of new gold concentrates to be produced at Olympias when production resumes."
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 three major gold and base metal deposits in Northern Greece. The deposits are the polymetallic projects of Stratoni and Olympias which contain gold, zinc, lead and silver, and the Skouries copper/gold porphyry body. 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 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.
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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 pric
e 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 assumpt
IONS UNDERLYING THESE FORWARD-LOOKING STATEMENTS, SEE THE COMPANY'S ANNUAL INFORMATION FORM FOR THE YEAR ENDED 31 DECEMBER 2006, 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.
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European Goldfields
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CODE : EGU.L |
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European Goldfields est une société de production minière d'or basée au Royaume-Uni. European Goldfields est productrice d'or, d'argent, de plomb et de zinc en Grece, en développement de projets d'argent, de cuivre et d'or en Grece et en Roumanie, et détient divers projets d'exploration en Roumanie. Son principal projet en production est STRATONI en Grece et ses principaux projets en développement sont SKOURIES et OLYMPIAS en Grece et CERTEJ en Roumanie. European Goldfields est cotée au Canada, au Royaume-Uni, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 147,8 milliards GBX (232,7 milliards US$, 174,0 milliards €). La valeur de son action a atteint son plus bas niveau récent le 05 décembre 2008 à 100,00 GBX, et son plus haut niveau récent le 28 janvier 2011 à 990,40 GBX. European Goldfields possède 183 932 000 actions en circulation. |