SOURCE: EURO Ressources

April 21, 2008 17:09 ET

EURO Ressources : Record Rosebel Royalty Revenue for 1st Quarter 2008

PARIS--(Marketwire - April 21, 2008) - RECORD ROSEBEL ROYALTY REVENUE FOR 1ST QUARTER 2008

EURO Ressources S.A. (TSX: EUR) (PARIS: EUR) reports that IAMGOLD Corporation has advised that production of 76,002 ounces of gold was achieved at the Rosebel gold mine during the first quarter of 2008. This compares to 83,438 ounces in the fourth quarter and 47,610 ounces in the first quarter of 2007.

James H. Dunnett, Directeur-Général of EURO said: "Gold reached a record price of $1,032/ounce in March of this year which contributed to a further increase in the quarterly average price of gold used to compute the royalty from Rosebel. The average price rose to $924.83/ounce for the first quarter, an 18% increase compared to $786.25/ounce in the fourth quarter of 2007 and a 42% increase compared to $649.82/ounce in the first quarter of 2007."

"This higher gold price provided EURO with record revenue from the Rosebel royalty of $4,520,906 in the quarter, an 18% increase over the previous quarter and 180% higher than the comparative period of 2007, when production was adversely affected by a strike at Rosebel. While gold production was 9% lower as compared to the 83,438 ounces in the fourth quarter 2007, this is higher than the 267,000 to 290,000 ounces annual rate of production for 2008 indicated by IAMGOLD in recent filings."

"EURO continues to use available cashflow to reduce the existing gold hedge and will shortly liquidate the remaining 1,400 ounces of the third quarter 2008 hedge. Management's objective is to substantially eliminate the gold hedge during 2008."

IAMGOLD also reported in recent filings that it anticipates completion of the mill optimisation at Rosebel by November 2008. Combined with the mill expansion and other capital expenditure during 2008, IAMGOLD forecasts that Rosebel's production in 2009 will be 300,000 to 305,000 ounces with additional mill capacity "adding sufficient operational flexibility to increase throughput by a further 15% to 25% should mine site and economic conditions support the use of the excess capacity."

In addition, IAMGOLD provides an update on mineral reserves and resources at Rosebel, as reproduced below:

+--------------------+--------+---------+---------------+
|    Rosebel (9)     |Tonnes  | Grade   |    Ounces     |
+--------------------+--------+---------+---------------+
|                    |  (000) |(g Au/t) |Contained (oz) |
+--------------------+--------+---------+---------------+
|Proven Reserves     | 34.878 |     1.2 |     1,384,000 |
+--------------------+--------+---------+---------------+
|Probable Reserves   | 49.683 |     1.3 |     2,019,000 |
+--------------------+--------+---------+---------------+
|Subtotal            | 84.562 |     1.3 |     3,403,000 |
+--------------------+--------+---------+---------------+
|Measured Resources  |113.465 |     1.1 |     4,166,000 |
+--------------------+--------+---------+---------------+
|Indicated Resources |144.005 |     1.0 |     4,553,000 |
+--------------------+--------+---------+---------------+
|Inferred Resources  |  1.789 |     1.5 |        83,000 |
+--------------------+--------+---------+---------------+
+--------------------+--------+---------+---------------+

(9) Mineral Reserves have been estimated as at December 31, 2007 using a US $600/oz Au and Mineral Resources have been estimated as at December 31, 2007 using a US $700/oz Au and have been estimated in accordance with NI 43-101.

These estimates have been reviewed by Geoffrey S. Carter, a Qualified Person under Canadian National Instrument 43-101, who confirms they provide reasonable certainty that sufficient gold production will be achieved at Rosebel to reach the upper limit of royalty participation of 7,000,000 ounces of attributable production, as provided under the Rosebel Participation Agreement. Mr. Carter is an independent consultant employed by EURO Ressources SA. Accordingly EURO intends to fully reflect this production limit in its accounting estimates: to date production at Rosebel has accounted for 1,240,528 ounces of attributable production leaving 5,759,472 ounces of future attributable production potentially payable under the Royalty.

James H. Dunnett added: "It is pleasing to see the further increase in reported mineral reserves and resources at Rosebel. The decision to reflect the full amount of the remaining royalty participation limit in EURO's accounting estimate for the Rosebel Royalty asset, affirms the status of the Rosebel Royalty as a world class gold royalty. EURO and its shareholders have been fortunate to benefit from both the increase in gold prices and the increase in mine resources since the acquisition of the Rosebel Royalty. EURO looks forward to the future with confidence."

IAMGOLD reports that fourth quarter gold production attributed to hard rock was 37.5%. Separately, in calculating the Rosebel Royalty due for first quarter 2008, IAMGOLD deducted from attributed gold production, certain monetary payments made by Rosebel to the Suriname Government. This resulted in IAMGOLD withholding $162,059, conforming with the disputed approach made by IAMGOLD since the third quarter of 2007. EURO has objected to IAMGOLD's actions and arbitration on this matter is proceeding.

About EURO

EURO is a French company, focused on owning royalties and similar interests on operating gold mines. EURO also holds certain gold mineral rights in French Guiana including Paul Isnard which comprises 8 concessions and a PER over 140 sq. km. EURO has approximately 60.6 million shares outstanding.

Statements Regarding Forward-Looking Information: Some statements in this news release are forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties. Such statements include comments regarding the Company's intentions with respect to its dealings with IAMGOLD Corporation and anticipated developments at the Rosebel gold mine, which is operated by IAMGOLD Corporation as well as comments regarding the Company's intentions with respect to the reduction of its hedge position. There can be no assurance that future developments affecting the Company will be those anticipated by management.

Not for distribution to United States newswire services or for dissemination in the United States. The securities referred to herein have not been registered under the US Securities Act of 1933 and may not be offered or sold in the United States or to a US person absent registration or an applicable exemption from registration.

Additional information relating to EURO Ressources S.A. is available under EURO's profile on SEDAR at www.sedar.com. Requests for further information should be addressed to:

James H. Dunnett
Directeur-Général
Tél.: +1 604 710 2242
Email : jhdunnett@aol.com

Susanne A. Hermans
Vice-President Finance
Tél.: +1 303 204 7771
Email : shermans@euroressources.net

This information is provided by HUGIN

Contact Information

  • Contact:
    James H. Dunnett
    Directeur-Général
    Tél.: +1 604 710 2242
    Email : Email Contact

    Susanne A. Hermans
    Vice-President Finance
    Tél.: +1 303 204 7771
    Email : Email Contact