MONTREAL, April 3 /CNW Telbec/ - 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
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
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
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
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.
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 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
For further information:
For further information: European Goldfields: David Reading, Chief
Executive Officer, +44 (0)20 7408 9534, email@example.com; Buchanan
Communications: Bobby Morse or Ben Willey, +44 (0)20 7466 5000,
firstname.lastname@example.org; Renmark Financial Communication: Neil G. Murray-Lyon,
email@example.com; Barbara Komorowski,
firstname.lastname@example.org; Media - Eva Jura,
email@example.com; +1 514 939-3989, Fax: +1 514 939-3717,