European Goldfields Limited
NEW JV IN TURKEY
GOOD RESULTS FROM ARDALA
European Goldfields Limited (AIM : EGU ) (TSX : EGU )
("European Goldfields" or the "Company") is pleased to announce that it
has signed a Heads of Agreement with Aldridge Minerals Inc ("Aldridge")
for the joint development of Aldridge's Derinkoy properties in
North-Eastern Turkey, comprising licences covering a total area of 40
square kilometres. The licenses are located in the Pontides region
of Turkey, a highly prospective geological terrain containing several
major deposits. The properties themselves show encouraging styles of
gold mineralisation and are adjacent to the Company's Ardala porphyry
target, held in joint venture with Ariana Resources plc.
The Derinkoy properties lie within the area of interest of
the Company's joint venture with Ariana (the "Pontid JV") and as such
will be developed within the Pontid JV vehicle. The consolidation of
this contiguous belt with known porphyry Au-Cu and epithermal Au
mineralisation forms part of the Company's strategy to carry out
modern, systematic exploration along this known mineralised belt.
Under the agreement, European Goldfields will fund all exploration and
development costs of the properties to earn ultimately up to a
90% interest in the project by completion of a Feasibility Study.
On the adjacent Ardala property, exploration work has confirmed that
porphyry mineralisation continues to the south of the previously
recognised outcrops. Modeling of the newly discovered zone is now
complete and drill testing will commence in mid 2009.
Some three kilometres to the south of the main porphyry, a higher-grade
gold zone named Salinbas has been identified by rock chip and soil
sampling. Detailed mapping and lithological sampling has confirmed
three areas of mineralised breccia:
- The main occurrence is a 230 metre zone of breccia with widths of 5
to 15 metres. Rock-chip samples returned grades of between 1.42 and
20.5 g/t Au with an average of 10.8 g/t Au.
- To the east of the main zone more sporadic breccias returned
rock-chip assays of between 3.95 and 8.07 g/t Au, with an average
of 5.5 g/t Au.
- In the North-East of the target area, a contact zone between
intrusives, limestones and volcanics returned well mineralised rock
chip sample results from brecciated granite (0.27 and 1.92 g/t Au)
and brecciated limestone (18.7 g/t Au).
A programme of trenching with follow-up drilling at Salinbas is
due to commence in the near future.
Regional work continues in North-Eastern Turkey and a zone of
alteration indicative of porphyry and epithermal style mineralisation
has been identified some 100 kilometres to the west of the Ardala
property. Five new licences have been acquired over the newly
identified zone totaling 92 square kilometres. The Pontid JV now has a
total of 9 licences covering 137 square kilometres.
Directors Dealings
On 20 May 2009 the Company granted a total of 488,062 Restricted Share
Units ("RSUs") to group employees vesting in December 2009 as part of
its long term incentive plan, including 86,436 RSUs to Mr. David
Reading, 68,428 RSUs to Mr. Mark Rachovides and 61,946 RSUs to Mr. Tim
Morgan-Wynne, all being Directors of the Company.
On 8 December 2008 the Company announced the adoption of a new
compensation program for its independent Non-Executive directors
utilizing deferred phantom units ("DPUs"). Under the
program, independent Non-Executive Directors receive a flat fee
of ?50,000 annually starting in 2009 payable 50% in cash and 50% in
DPUs. The Company confirms that further grants DPUs for 2009 have been
made to Mr. Cameron Mingay, Mr. Martyn Konig and Mr. Jeffrey
O'Leary who have each been granted 6,948 DPU's and, together with the
DPU's granted in December 2008, are now each interested in a total
of 142,448 DPU's.
Mr. Dimitrios Koutras has also confirmed that he has transferred
6,684,641 ordinary shares in the Company from his personal
ownership shares to that of a corporate entity 100% owed by Mr.
Dimitrios Koutras without consideration. Mr. Koutras remains
beneficially interested in 17,408,715 common shares representing 9.68%
of the Company's issued share capital.
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.
For further information please contact:
European Goldfields: e-mail: info@egoldfields.com
David Reading, Chief Executive Officer Tel: +44 (0)20 7408 9534
Buchanan Communications: e-mail: bobbym@buchanan.uk.com
Bobby Morse / Katharine Sutton Tel: +44 (0)20 7466 5000
RBC Capital Markets: e-mail: sarah.wharry@rbccm.com
Sarah Wharry Tel: +44 (0)20 7653 4804
Resources & reserves parameters
For additional information on the resource and reserve estimates quoted
in this news release, please refer to the Company's Resources &
Reserves Declaration at www.egoldfields.com/goldfields/resources.jsp.
Patrick Forward, General Manager, Exploration of the Company, was the
Qualified Person under Canadian National Instrument 43-101 responsible
for reviewing the disclosure of resource and reserve estimates quoted
in this news release.
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 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
2007, 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.
This information is provided by RNS
The company news service from the London Stock Exchange
Contact Information: For further information please contact: European Goldfields: David Reading Chief Executive Officer Tel: +44 (0)20 7408 9534 e-mail: Buchanan Communications: Bobby Morse / Katharine Sutton Tel: +44 (0)20 7466 5000 e-mail: RBC Capital Markets: Sarah Wharry Tel: +44 (0)20 7653 4804 e-mail: