European Minerals Corporation-Varvarinskoye Project Update Continued Progress: First Ore Scheduled to be Mined in August 2006
Friday June 23, 6:54 am ET
ca.us.biz.yahoo.com
LONDON, ENGLAND--(CCNMatthews - June 23, 2006) - European Minerals Corporation ("EMC" or "the Company")(TSX:EPM - News; AIM:EUM) is pleased to report that construction of its gold/copper mine at Varvarinskoye in Kazakhstan continues on schedule and within budget.
Operational Overview
- Pre-stripping of overburden continues and first ore is expected to be encountered in August 2006, when the Central pit will move through the soft overburden and transitional material into hard rock
- Mobile equipment delivery is ahead of schedule and 95% of the mining fleet has been delivered. The mining equipment is performing well
- 65% of the concrete work has been completed and work has begun on the crusher and stockpile foundations
- Steel for workshops and leach tanks has been delivered and construction is underway
- Phased delivery of steel for process plant building will begin in late July 2006 and the accommodation main camp is scheduled for delivery and completion in September 2006
- The tailings dam is expected to be completed by mid November 2006
- Construction of the 60km power line from Lisakova to the mine is on schedule. Over 35km of pylons have been installed and both 16MVa transformers are on site
- A temporary assay laboratory is staffed and functional
The Company is working on site with its in-house owner's team, in conjunction with SENET CC as EPCM contractor and JSC Consolidated Development Corporation as the main Kazakh subcontractor. Approximately 450 personnel are currently employed on the Project of which approximately 220 are Company employees.
Mineral Resources and Reserves
In order to reflect the rise in gold and copper prices during 2005/6 the Company has decided to update the Mineral Resources and Reserves as set out in the Varvarinskoye technical report(i) dated November 2004 and amended March 2005. New data have been added to the Company's database and an independent review will consider this information which includes further data on pit design, dilution and revised capital and operating costs. Consideration will be given to deepening the open pit to incorporate additional potential ore and the consequent effects on mine scheduling and stockpiling strategy.
The Company expects completion of this independent review by the end of September 2006.
(i)The technical report entitled "Varvarinskoye Gold-Copper Project Northern Kazakhstan" dated November 2004 and amended March 2005 prepared in accordance with Canadian National Instrument 43-101 and filed on SEDAR on March 31, 2005.
Financing
The Company continues with ongoing discussions with its lenders regarding the drawdown of its US$75 million debt facility.
Tony Williams, EMC Chairman, commented today "We are very pleased with the excellent progress being made at Varvarinskoye. We have successfully overcome numerous financial and operational challenges and we are still on schedule to become a significant gold producer by mid 2007. Our debt facility lenders continue to be extremely supportive and we hope to finalise the conditions to allow debt drawdown soon. Meanwhile the construction continues apace using our equity funds. I would like to take this opportunity to thank everyone involved at Varvarinskoye for their contributions to date."
Forward-Looking Statements
This press release contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of mineral resources and reserves, future production and timing of commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the Company's Varvarinskoye Project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of the Company's debt facility; failure to raise additional funds required to finance the completion of the Varvarinskoye Project; uncertainty of outcome of any litigation; and other factors. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.
Contact:
Investor Information: Tony Williams
European Minerals Corporation - United Kingdom
Chairman
+44 (0) 20 7529 7508
Bert Kennedy
European Minerals Corporation - United Kingdom
President & CEO
+44 (0) 20 7529 7508
Vanguard Shareholder Solutions Inc.
North America
Keith Schaefer
1 (866) 448-0780
ir@vanguardsolutions.ca
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Source: European Minerals Corporation |
