SOURCE: European Goldfields Ltd

March 16, 2010 03:00 ET


WHITEHORSE, YUKON--(Marketwire - March 16, 2010) -

For Immediate Release                           16 March 2010

                    European Goldfields Limited


16 March 2010 - European Goldfields Limited (TSX / AIM: EGU) ("European
Goldfields" or the "Company") is pleased to announce a significant step
forward in the permitting of the Certej gold-silver project ("Certej")
in Romania.

The last remaining approval required for the grant of the Zonal
Urbanisation Plan ("PUZ") relating to Certej has been issued by the
Regional Department for Environmental Protection, Timisoara. Formal
public notice of this approval has been issued today in Romania and, at
the next meeting of the Certej council which is expected within the
next week, the full PUZ permit will be granted.

The grant of the PUZ will be a milestone which takes European
Goldfields one step closer to production. Certej contains 2.4 million
reserve ounces of gold, plus 17.3 million reserve ounces of silver, and
lies in an area which was a major gold producer historically and
retains considerable future potential. The Company is already well
advanced in the next and final substantive part of the permitting
process for Certej, being the approval of the full Environmental Impact

The Company is grateful for the excellent and continued cooperation it
has enjoyed with national, regional and local authorities and will
continue to demonstrate its commitment to both the letter and
principles of Romanian and European Union requirements.

Commenting on this latest advance of Certej Martyn Konig, Executive
Chairman and President of European Goldfields said: "Our patience has
been rewarded with a unique achievement in the development of a gold
project in Romania. This is a landmark event. We appreciate that the
Romanian authorities have recognised both our competence and our
productive collaboration throughout this process. This high standard of
performance and delivery continues as we complete the final stage of
the permitting process."

Certej Project Summary

The Certej project is an epithermal gold/silver deposit located in the
"Golden Quadrilateral" area of the Apuseni Mountains of Transylvania in
Western Romania, a highly prospective region which has historically
produced upwards of 30 million ounces of gold. The Certej deposit lies
within a brownfield site with excellent existing infrastructure and a
history of production which dates back 300 years; the open pit and
plant were worked as recently as 2006. The Certej orebody comprises
four distinct ore zones, amenable to extraction by 2 adjacent open pits
that are well defined by extensive drilling.

The Certej deposit has a calculated NI 43-101 compliant mineablereserve
 of 32.8 million tonnes of ore grading 2.0 g/t gold and 11.4 g/t
silver, representing 2.1 million ounces gold and 12.0 million ounces
silver. A further 4.1 million tonnes of ore from lower grade material
and existing dumps will contribute an additional 290,000 ounces of gold
and 8.8 million ounces of silver in the latter years of the mine.
Reserves will be extracted using a conventional open pit method with a
strip ratio of 3.1:1. The project will involve the processing of 3
million tonnes of ore per annum over an open pit life of 11.5 years
with an overall mine life of 16 years. The ore will be processed using
flotation to produce a pyrite gold concentrate and then ultrafine
grinding and ambient pressure oxidation using the Albion Process
developed by Xstrata to produce gold and silver dore on site.Average
annual production is expected to be 155,000 ounces of gold and 820,000
ounces of silver during the life of the open pit after which the plant
will be fed by lower-grade material, stockpile and dumps. The project
will involve an anticipated project capex of approximately $190 million
which includes pre-stripping in year 1.

The Technical Study, required to obtain the relevant construction
permits, is currently underway with completion anticipated in Q2 2010,
ready for submission on approval of the Environmental Impact Study.
The project upside includes numerous drill ready targets both near
mine and within the wider licence area. Further long term exploration
potential exists within the Certej-Brad Belt.

About European Goldfields

European Goldfields is a developer-producer with globally significant
gold reserves located within the European Union. The Company generates
cash flow from its 95% owned Stratoni operation, a high grade lead/zinc
/silver mine in North-Eastern Greece and the sale of gold concentrates
from Olympias. European Goldfields will evolve into a mid tier producer
through responsible development of its project pipeline of gold and
base metal deposits at Skouries and Olympias in Greece and Certej in
Romania. The Company plans future growth through development of its
highly prospective exploration portfolio in Greece, Romania and Turkey.

For further information please see the Company's new website at

For further information please contact:

European Goldfields:                Buchanan Communications:

Martyn Konig, Executive Chairman    Bobby Morse / Katharine Sutton
e-mail:        e-mail:
Tel: +44 (0)20 7408 9534            Tel: +44 (0) 20 7466 5000

RBC Capital Markets:
Josh Critchley
Matthew Coakes

Tel: +44 (0)20 7653 4000

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
operationsprojects/statePatrick 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
2008, filed on SEDAR at 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


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