TORONTO, Oct. 6 /CNW/ - European Goldfields Limited (AIM: EGU / TSX: EGU) ("European Goldfields" or the "Company") is pleased to announce the successful conclusion of the principal phase of the permitting process for the Skouries and Olympias Projects in Greece.
The Ministry of Environment, Physical Planning and Public Works, based on the Preliminary Environmental Impact Study ("PEIS") submitted by the Company's 95%-owned subsidiary Hellas Gold SA, has completed the Preliminary Environmental Assessment and Evaluation and issued a positive official endorsement of the construction and operation of the Project in the province of Halkidiki, in North-Eastern Greece.
The "Project", consists of:
A. Continuation of operations at the Mavres Petres deposit of the
B. The next stages of the Olympias project, namely the mining and
processing of ore and metallurgical treatment of the concentrate, in
accordance with the business plan as originally submitted.
C. The development of mining and processing at the Skouries project.
D. The port facilities at Stratoni in service of the above projects'
This official assessment and positive evaluation of the Project, successfully concludes the major stage of approvals and will lead to the preparation and submission of the Environmental Impact Study ("EIS") and the supporting studies required by Greek and European Legislation.
The EIS will be based on terms of reference as now defined by the PEIS. The EIS will be submitted to the relevant authorities for review and the normal European Union public consultation requirements in the near future. The Company is confident that the extensive detail of the successful PEIS process can in turn now optimise approval of the EIS.
Commenting on this development, David Reading, Chief Executive Officer of European Goldfields, said: "Approval of the PEIS is a great achievement that represents the fulfilment of several years work by Hellas Gold. It signifies a substantial part of the approval process and sets out a clear path for the future development of our gold projects in Greece".
About European Goldfields
European Goldfields Limited is a resource company involved in the exploration, acquisition, mining and development of mineral properties in Greece, Romania and South-East Europe.
Greece - European Goldfields holds a 95% interest in Hellas Gold S.A. Hellas Gold owns three major gold and base metal deposits in Northern Greece. The deposits are the polymetallic operation at Stratoni, the Olympias project which contains gold, zinc, lead and silver, and the Skouries copper/gold porphyry project. Hellas Gold commenced production at Stratoni in September 2005 and started selling an existing stockpile of gold concentrates from Olympias in July 2006. Hellas Gold is applying for permits to develop and build the Skouries and Olympias projects.
Romania - European Goldfields owns 80% of the Certej gold/silver project in Romania. In July 2008, the National Agency of Mineral Resources approved the technical feasibility study in support of its permit application and issued a new mining permit for the Certej 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 2008, 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.
SOURCE EUROPEAN GOLDFIELDS LTD.
For further information: For further information: European Goldfields: David Reading, Chief Executive Officer, e-mail: email@example.com, Tel: +44 (0)20 7408 9534; Buchanan Communications: Bobby Morse, Katharine Sutton, e-mail: firstname.lastname@example.org, Tel: +44 (0)20 7466 5000; RBC Capital Markets: Sarah Wharry, e-mail: email@example.com, Tel: +44 (0)20 7653 4804