EGU.L Regulatory News (EGU)

6 Feb 2008 07:00

European Goldfields Ltd06 February 2008 Immediate Release 6 February 2008 European Goldfields Limited Certej Environmental Impact Study Completed - Permitting Process Underway 6 February 2008 - European Goldfields Limited (TSX / AIM: EGU) is pleased toannounce that the final Environmental Impact Study (EIS) to develop its Certejgold/silver project in Romania has now been completed. European Goldfields already holds a mining permit for Certej, which is currentlybeing exploited on a small scale by way of an existing open pit. The EISaddresses a proposed increase in mine production at Certej and the processing ofore on site. The EIS has been carried out over a 12-month period in order to accumulate allthe required base line data during the different seasons. The EIS is a detailedmulti-discipline study comprising over 1,000 pages subdivided into a number ofvolumes assessing the environmental, social and health impacts of the project onthe mine area. In December 2007, European Goldfields also applied for a Zone Urban Plan (PUZ),which indicates that the project is now in the advanced stages of the publicpermitting process. This follows the submission of a Technical Feasibility Studyto the Romanian authorities in March 2007 and the grant by the local countycouncil of a General Urbanisation Certificate in September 2006. Thiscertificate confirms the designation of Certej as an industrial mining area andattests to the local community's support for the project. The PUZ is a detailed urbanisation plan for the project and its approvalinvolves an initial review of the EIS. The PUZ must be approved through a fullpublic consultation process by local authorities, county councils and publicutilities before the EIS can be approved by the regional Romanian environmentalauthorities in Timisoara. The PUZ is expected to be approved by the end of Q1 2008, following which theEIS will be formally submitted to the environmental authorities. The environmental permit and an updated mining permit are expected in Q3 2008following a standard public consultation process with local communities, whichis expected to start 45 days after submission of the EIS. Customary constructionand public utility permits are expected to follow by end-2008 when the detailedengineering design has been completed for the site plant. The EIS has been prepared with the contribution of several Romanian institutesof international reputation, namely the National Institute of Research andDevelopment for Industrial Ecology (ECOIND), the National Institute of Researchand Development for Environment Protection (ICIM), the Technical University ofConstruction Bucharest and the Babes-Bolyai University of Cluj. The EIS wasprepared to the regulatory framework established by Romanian and EU legislation. Full feasibility study to be completed in Q2 2008 - European Goldfields is inthe final stage of completing a full feasibility study for the Certej project,which will be used for internal approval and presentation to banks and othersources of potential financing of the project. The only major pending study isthe engineering study for the process plant and associated infrastructure byAker Kvaerner Engineering Services, scheduled for completion in Q2 2008. Mining and processing - The deposit will be mined by open pit methods with astrip ratio of 3.1:1. The project will involve the mining and processing of 3.0million tonnes of ore per annum over at least eleven years. This is expected toyield approximately 160,000 oz of gold and 820,000 oz of silver per year indore, reflecting an average total process recovery of 81% for gold andapproximately 75% for silver. The metallurgical process involves the production of a gold-bearing concentratefollowed by the production of gold and silver as dore on site by means of theAlbion Process. The Albion Process is a combination of ultra-fine grinding of concentrates andoxidative leaching at atmospheric pressure. The liberated gold and silver isthen recovered as dore by the conventional Carbon in Leach ("CIL") process. The residues from the flotation and gold plants will be disposed of in twoseparate but adjoining tailings management facilities (TMFs), which are ideallylocated and designed for this project. The EIS confirms that the Certej projectand its TMFs will have a negligible impact on the local water streams, flora andfauna. About European Goldfields European Goldfields Limited is a resource company involved in the acquisition,exploration and development of mineral properties in Greece, Romania andSouth-East Europe. Greece - In addition to owning 80% of the Certej project in Romania, EuropeanGoldfields holds a 95% interest in Hellas Gold S.A. Hellas Gold owns three majorgold and base metal deposits in Northern Greece. The deposits are thepolymetallic operation at Stratoni, the Olympias project which contains gold,zinc, lead and silver, and the Skouries copper/gold porphyry project. HellasGold commenced production at Stratoni in September 2005 and commenced selling anexisting stockpile of Olympias gold concentrates in July 2006. Hellas Gold isapplying for permits to develop the Skouries and Olympias projects. For further information please contact: European Goldfields: e-mail: info@egoldfields.comDavid Reading, Chief Executive Officer Tel: +44 (0)20 7408 9534 Buchanan Communications: e-mail: bobbym@buchanan.uk.comBobby Morse / Ben Willey Tel: +44 (0)20 7466 5000 Renmark Financial Communication: e-mail: tcameron@renmarkfinancial.comTina Cameron Tel: +1 514 939 3989 RBC Capital Markets: e-mail: andrew.smith@rbccm.comAndrew K Smith / Sarah Wharry Tel: +44 (0)20 7029 7882 Forward-looking statements Certain statements and information contained in this document, including anyinformation as to the Company's future financial or operating performance andother statements that express management's expectations or estimates of futureperformance, constitute forward-looking information under provisions of Canadianprovincial securities laws. When used in this document, the words "anticipate","expect", "will", "intend", "estimate", "forecast", "planned" and similarexpressions are intended to identify forward-looking statements or information.Forward-looking statements include, but are not limited to, the estimation ofmineral reserves and resources, the timing and amount of estimated futureproduction, costs and timing of development of new deposits, permitting timelines and expectations regarding metal recovery rates. Forward-lookingstatements are necessarily based upon a number of estimates and assumptionsthat, while considered reasonable by management, are inherently subject tosignificant business, economic and competitive uncertainties and contingencies.The Company cautions the reader that such forward-looking statements involveknown and unknown risks, uncertainties and other factors that may cause theactual financial results, performance or achievements of the Company to bematerially different from its estimated future results, performance orachievements expressed or implied by those forward-looking statements and theforward-looking statements are not guarantees of future performance. Theserisks, uncertainties and other factors include, but are not limited to: changesin the price of gold, base metals or certain other commodities (such as fuel andelectricity) and currencies; uncertainty of mineral reserves, resources, gradesand recovery estimates; uncertainty of future production, capital expendituresand other costs; currency fluctuations; financing and additional capitalrequirements; the successful and timely permitting of the Company's Skouries,Olympias and Certej projects; legislative, political, social or economicdevelopments in the jurisdictions in which the Company carries on business;operating or technical difficulties in connection with mining or developmentactivities; the speculative nature of gold and base metals exploration anddevelopment, including the risks of diminishing quantities or grades ofreserves; the risks normally involved in the exploration, development and miningbusiness; and risks associated with internal control over financial reporting.For a more detailed discussion of such risks and material factors or assumptionsunderlying these forward-looking statements, see the Company's Annual Information Form for the year ended 31 December 2006, filed on SEDAR atwww.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 newinformation, future events or otherwise, except as required by law. This information is provided by RNS The company news service from the London Stock Exchange