Exploration Update

 

TIDMEGU 
 
RNS Number : 3591N 
European Goldfields Ltd 
10 June 2010 
 

For Immediate Release 
                                        10 June 2010 
 
 
                          European Goldfields Limited 
 
                            GROUP EXPLORATION UPDATE 
                    DRILL PERMIT APPROVED FOR GREEK PROJECTS 
            GROUP WIDE US$15 MILLION EXPLORATION PROGRAMME UNDERWAY 
 
10 June 2010 - European Goldfields Limited (TSX / AIM: EGU) ("European 
Goldfields" or the "Company") is pleased to announce the approval of an 
exploration drill permit within its 317 km² Greek Licence Area which hosts the 
Stratoni mine, the Olympias and Skouries development projects and three 
drill-ready exploration targets. 
 
The Company plans to advance a pipeline of highly prospective exploration 
targets, all located within 10km of the Company's producing mine and development 
projects. The Board of Directors has approved a US$9.2 million exploration 
budget for Greece with the primary objective of increasing gold resource ounces 
to add to the 7.6 million proven and probable gold reserve ounces already 
defined at Olympias and Skouries. 
 
An airborne geophysics survey, commissioned by European Goldfields, identified a 
total of 28km of anomalies within the Licence Area, some of which are already 
known to host mineralisation and others are currently untested. The 3 main 
targets, Piavitsa, Fisoka and Tsikara, are described below: 
 
Piavitsa 
Piatvitsa is comparable in mineralisation style and geophysical characteristics 
to Olympias, which hosts proven and probable reserves of 3.7 Moz gold, 1.2 Mt 
lead and 52.1 Moz silver 
  *  Historic drill results confirm Olympias-style gold-lead-zinc-silver mineralisation at Piavitsa, with a strong correlation between mineralisation and the extensive geophysical anomaly 
  *  Piavitsa anomaly is 3 times the strike length of the Olympias massive sulphide 
  orebody 
  *  A 23,000m drill programme aims to demonstrate continuity of mineralisation along the Piavitsa anomaly and delineate resources 
 
 
Fisoka & Tsikara 
The magnetic component of the airborne survey also identified a 17km by 6km belt 
of porphyry intrusives which highlights two other major porphyry targets, Fisoka 
and Tsikara. 
  *  Copper-gold porphyry targets located in the same intrusive belt which hosts 
  Skouries 
  *  Phase one drilling of 4,200m to test grade and width 
  *  Phase two drilling of 13,500m aimed at delineating resources 
 
The Company's 317 km² Licence Area is well served by a network of roads and 
power lines and a number of the proposed drill sites have excellent access via 
existing roads and tracks which will permit the rapid commencement of the 
exploration programme. 
A detailed map showing the location and potential of these previously drilled 
and drill-ready targets can be seen at 
http://www.egoldfields.com/egoldfields/en/operationsprojects/greece/exploration. 
 
 
Romania 
European Goldfields' Romanian exploration programme is focused on epithermal and 
porphyry targets with the potential to host multi-million ounce deposits.  A 
series of drill targets have been identified including: 
  *  Extensions to gold-bearing systems historically exploited within the Brad area. 
  Historic production from Brad is estimated to be several million ounces of gold 
  from veins which include high-grade bonanza zones with extensive free-milling 
  gold 
  *  Previously unrecognised 'blind' porphyry and epithermal targets 
  *  Massive sulphide deposits previously untested for gold and silver 
 
 
Following infill sampling a programme of drill and trench testing will be 
carried out in Q3 and Q4 with a total approved budget of US$4.4 million for 
2010. 
 
Turkey 
As with Romania, European Goldfields' 2010 exploration strategy is based on the 
identification of epithermal and porphyry targets with the potential to host 
multi million ounce deposits.  Detailed surface work has defined a number of new 
targets on licences held in Joint Venture agreements with Ariana Resources and 
Aldridge Minerals.  These targets will be drilled during the second half of 2010 
under the approved US$2.2 million exploration budget. 
 
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. 
 
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/egoldfields/en/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. 
 
For further information please see the Company's website at www.egoldfields.com 
 
For further information please contact: 
 
European Goldfields: 
Liberum Capital Limited 
Sally Schofield, VP Investor Relations                                    Simon 
Atkinson 
e-mail: [e-mail] Rawlinson 
Tel: [phone] 
Tel: [phone] 
 
Buchanan Communications:                                               Evolution 
Securities Limited 
Bobby Morse / Katharine Sutton                                             Rob 
Collins 
e-mail: [e-mail]                                      Tim Redfern 
Tel: [phone] 
Tel: [phone] 
 
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 2009, 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 
   END 
 
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