European Goldfields Limited

European Goldfields Limited

February 28, 2005 08:30 ET

European Goldfields Ltd.: New Resource Estimate at Certej Defines Higher Grade Core


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: EUROPEAN GOLDFIELDS LIMITED

TSX VENTURE, AIM SYMBOL: EGU

FEBRUARY 28, 2005 - 08:30 ET

European Goldfields Ltd.: New Resource Estimate at
Certej Defines Higher Grade Core

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2005) - European
Goldfields Limited (TSX VENTURE:EGU)(AIM:EGU) is pleased to announce an
update of resources on its 80%-owned Certej project in the Southern
Apuseni Mountains of Romania.

The update of resources was carried out by RSG Global Pty Ltd ("RSG
Global") as a result of a programme of in-fill drilling (39 holes
totalling 8,229 metres) in the Certej deposit that was undertaken in
late 2003 and throughout 2004. The aim of the programme was to prove up
the selective mining unit ('SMU') model previously estimated by RSG
Global in January 2002 and determine the level of continuity in high
grade zones. In addition, the programme has delimited the peripheries of
the deposit. Drillhole spacing in the core of the deposit was reduced to
a nominal 20 x 20 metre spacing which has resulted in a portion of the
deposit being classified as a measured resource. The reported resources
for the Certej deposit, subdivided by resource category and reported
above a 1 g/t gold lower cut-off grade, are summarised below.



---------------------------------------------------------------------
Average
Average Million Silver Million
Resource Million Gold Grade Ounces Grade Ounces
Category Tonnes (g/t) Gold (g/t) Silver
---------------------------------------------------------------------
Measured 3.14 2.6 0.26 5 0.5
---------------------------------------------------------------------
Indicated 28.29 2.1 1.91 12 10.5
---------------------------------------------------------------------
Measured +
Indicated 31.43 2.1 2.17 11 11.0
---------------------------------------------------------------------
Inferred
(East/West Domains) 5.17 1.9 0.32 7 1.1
---------------------------------------------------------------------
Inferred
(Central Domains) 3.47 1.5 0.17 10 1.1
---------------------------------------------------------------------
Total Inferred 8.64 1.8 0.49 7.9 2.2
---------------------------------------------------------------------


Note: Uniform conditioning and a 6.5 X 12.5 X 2.5 metre SMU reported for
the eastern and western domains and inverse distance squared (using no
gold cut-off) for the central domains.

Whilst the global resource is similar to the 2002 estimate, the
increased understanding of gold distribution and higher confidence in
the level of continuity of high-grade zones within the deposit has
enabled the resource to be defined at higher cut-off grades. The high
grade core of the deposit is demonstrated by the estimated resources at
a cut-off of 2 g/t gold for the western and eastern domains which can be
summarised as follows:



---------------------------------------------------------------------
Average
Average Million Silver Million
Resource Million Gold Grade Ounces Grade Ounces
Category Tonnes (g/t) Gold (g/t) Silver
---------------------------------------------------------------------
Measured 1.56 3.7 0.19 5 0.3
---------------------------------------------------------------------
Indicated 9.86 3.4 1.07 12 3.8
---------------------------------------------------------------------
Measured +
Indicated 11.42 3.4 1.26 11 4.1
---------------------------------------------------------------------
Inferred 1.32 3.5 0.15 7 0.3
---------------------------------------------------------------------


Note: Uniform conditioning and a 6.5 X 12.5 X 2.5 metre SMU reported.

The high grade material forms two coherent zones within the eastern
domain. The definition of this higher grade material and the
delimitation of the deposit peripheries enables pit scoping work that
extracts the high grade core and the lower grade material around it with
optimum strip ratios. In addition the increased understanding of the
grade distribution will enable the selection of appropriate samples for
metallurgical testwork.

David Reading, Chief Executive Officer of European Goldfields, said:

"The new resource estimate for Certej has enabled us to better define
the deposit, understand the geological model and confirm the presence of
a high grade core. This work will allow us greater flexibility in
defining a more selective mining model. Further work at Certej now
focuses on optimising the metallurgical recovery and completing an
in-house pre-feasibility study."

The next phase of the in-house pre-feasibility study will focus on
optimising mining and understanding the variable metallurgical
recoveries. Scoping work on pit optimisations will establish the mining
cut-off grades and associated strip ratios for appropriate and optimum
exploitation of the deposit. The metallurgical testwork includes
mineralogical studies into the gold disposition within the
mineralisation, and floatation testwork aimed at maximising gold
recoveries.

Cainel Licence

European Goldfields has also recently started an exploration programme
on the newly acquired Cainel licence in Romania, as previously announced
on 10 January 2005. The property hosts vein-hosted epithermal, stockwork
and disseminated mineralisation that historic workings indicate occur
over an area of some 1,000 metres by 250 metres, and which lie 10
kilometres along strike from the Certej deposit. Historic mining was
restricted to below 200 metres depth from surface and grab sampling by
European Goldfields has indicated that the mineralisation extends to
surface. In addition, the extensive wall rock brecciation and alteration
were never tested by the historic work and grab sampling by European
Goldfields indicates that this also carries gold mineralisation. Gold
was recovered using gravity methods in historic production and sampling,
indicating that a significant portion of the gold is free milling. A
team of geologists and miners are currently opening up old workings in
order to allow mapping and sampling, and all historic maps and data have
been digitised. The ongoing exploration programme for 2005 is aimed at
progressing to systematic sampling of the mineralisation using
underground development and diamond drillholes with the objective of a
preliminary estimate of resources by the end of the year.

Certej Resource Parameters

The resource estimation study included a review of the exploration data
quality, review and construction of appropriate geological constraints,
statistical and geostatistical investigation, grade estimation, and
classification of the estimate in accordance to the criteria laid out in
the Canadian National Instrument 43-101. A technical report from RSG
Global on the Certej resource will be filed of SEDAR (www.sedar.com)
within the next 30 days, and will update RSG Global's previous resource
estimate of the Certej deposit filed on SEDAR on 29 January 2004 under
the category "Engineering Report".

Samples were assayed at Analabs Pty Ltd's laboratory in Gura Roseii,
Romania using a standard fire assay technique and an AAS finish.
Duplicates, repeats and known gold standards are inserted according to
standard industry practice, with check assays (for the 2001 sampling and
drilling program) carried out by Bondar-Clegg & Co. Ltd's laboratory in
Vancouver, British Columbia and Analabs laboratory in Perth, Western
Australia. Both Analabs and Bondar-Clegg are ISO 9002 certified.
Analysis of the duplicate and standard sample data indicates that the
repeatability of samples and the variance of analytical results are well
within acceptable limits.

Geological constraints have been constructed for oxidation, lithology
and mineralisation based on a lithostructural interpretation provided by
European Goldfields. The deposit was modelled as three major regions,
the western, central and eastern blocks.

The eastern and western domains are well defined by drilling, surface
and underground channel sampling and the resource has been estimated
using ordinary kriging and uniform conditioning. Both methods were
applied based on detailed variography. The grade estimate for these
central domains has been derived by inverse distance squared weighting,
as there are currently insufficient data available to undertake detailed
variography. The central domains have been classified as Inferred
Resource.

M. Brett Gossage of RSG Global was the Qualified Person responsible for
the resource estimates quoted above.

About European Goldfields

European Goldfields is a resource company involved in the acquisition,
exploration and development of mineral properties in Greece, Romania and
the Balkans. In addition to its assets in Romania, European Goldfields
holds a 65% interest Hellas Gold S.A. Hellas Gold owns assets in
Northern Greece which include 70 year mining concessions over a total
area of 317 km2 and three polymetallic near-production deposits, known
as Olympias, Stratoni and Skouries, with significant proven and probable
reserves.

Forward-Looking Statements

This news release contains certain forward-looking statements concerning
the Company's future operations, economic performances, financial
condition and financing plans. These statements are based on certain
assumptions and analyses made by the Company in light of its experience
and its perception of historical trends, current conditions and expected
future developments as well as other factors the Company believes are
appropriate in the circumstances. However, whether actual results and
developments will conform with the Company's expectations and
predictions is subject to a number of risks, uncertainties and
assumptions. Consequently, all of the forward-looking statements made in
this news release are qualified by these cautionary statements, and
there can be no assurance that the results or developments anticipated
by the Company will be realised or, even if substantially realised, that
they will have the expected consequences to or effects on the Company
and its subsidiaries or their businesses or operations. The Company
undertakes no obligation and does not intend to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under applicable
law.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    European Goldfields
    David Reading
    Chief Executive Officer
    +44 (0)20 7408 9536 or London Mobile: +44 (0)7703 190 652
    or
    European Goldfields
    David Grannell
    Chief Financial Officer
    +44 (0)20 7408 9536 or London Mobile: +44 (0)7703 190 652
    info@egoldfields.com
    www.egoldfields.com
    or
    Buchanan Communications
    Bobby Morse
    +44 (0)20 7466 5000
    bobbym@buchanan.uk.com
    or
    Buchanan Communications
    Ben Willey
    +44 (0)20 7466 5000
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release and the
    information contained herein.