European Minerals Corporation: Varvarinskoye Update
via COMTEX
September 24, 2007
President Nazarbayev Visits Varvarinskoye on September 14, 2007.
Initiates Mechanical Commissioning of Copper/Gold Circuit.
LONDON, ENGLAND, Sep 24, 2007 (CCNMatthews via COMTEX News Network) --
Presidential Visit
European Minerals Corporation ("EMC" or the "Company") (TSX:EPM)(AIM:EUM) is pleased to report that the President of Kazakhstan - Nursultan Nazarbayev, visited its Varvarinskoye gold/copper project on September 14, 2007. President Nazarbayev was welcomed to site by Bert Kennedy - President and Chief Executive Officer of EMC, Takhirzhan Baratov - Chairman of EMC's Kazakh operating company, JSC Varvarinskoye ("JSCV") and Saken Ashirbekova - General Director of JSCV.
President Nazarbayev's first action on site was to initiate a blast of about 50,000 tonnes of ore in the Varvarinskoye main pit. President Nazarbayev then visited the Varvarinskoye process plant where he was enthusiastically received by about 500 JSCV employees.
Mr. Kennedy thanked the President for visiting Varvarinskoye and commented on the support and assistance which JSCV had received from the responsible Kazakh State Agencies in bringing the project to fruition. This included Mr. Sergey Kulagin - Governor of Kustanai Oblast, who was also in attendance and has been a frequent visitor to Varvarinskoye.
President Nazarbayev addressed the workforce and spoke eloquently about the positive impact that the Varvarinskoye project would have on this region of Kustanai Oblast and how the successful development of Varvarinskoye reflected the strategic economic policies that the Kazakh Government are pursuing. Mr. Kennedy then requested President Nazarbayev to start the mills on the Varvarinskoye copper/gold circuit, which he was pleased to do. The President then made an impromptu walkabout tour of the process plant where he was mobbed by excited JSCV employees. Photographs of the Presidential visit can be found at www.europeanminerals.com.
Project Update
As referred to above, mechanical testing of the mills on the Varvarinskoye copper/gold circuit has commenced. Further staged commissioning of the various components of the process plant will continue in Q4 2007.
The ore crushing and conveying circuit is 90% complete and its mechanical commissioning is planned for October 2007. Approximately 700,000 tonnes of ore is already on stockpile. All four grinding mills are fully mechanically installed and signed off by the mill manufacturer. The copper/gold circuit flotation cells and thickeners are also fully installed. The gold elution circuit and plant compressed air services are in place and it is planned that the gold circuit mills will be mechanically commissioned before the end of September 2007. All tank work is complete and hydraulic testing is scheduled to commence by the end of the month. Tailings dam earthwork is complete together with all delivery and return water pipelines to and from the tailings dam.
The process plant building is complete and mine infrastructure is virtually finished. All the infrastructure necessary to commission and operate the Varvarinskoye mine is now in place.
There have been shipping delays on final delivery of some equipment but this is expected on site in time to allow commissioning during Q4 2007.
Bert Kennedy, President and Chief Executive Officer of EMC, commented today: "We are very proud that President Nazarbayev took time out from his busy schedule to visit our project. His warm remarks underline the significance of Varvarinskoye to the local economy and we are determined to continue the excellent work by our team as construction draws to a close and commissioning commences. We do not underestimate the challenges to come but we believe we have a team in place to overcome these. We expect to complete our evolution to a commercial mining company by the end of Q1 2008.
Despite the various delays arising in relation to certain equipment deliveries and our well documented replacement of the project contractor last year, progress on the project has been excellent. Once again my thanks must go to all our employees and contractors who are responsible for the achievements to date."
The Company regularly updates its website at www.europeanminerals.com with photographs illustrating the progress at site. We invite you to visit the website to gain an impression of the project progress since the start of construction.
About Varvarinskoye
Varvarinskoye is a gold/copper deposit located in Northern Kazakhstan. The 3 sq km mining licence contains significant gold and copper resources with major expansion potential. In a news release dated January 15, 2007 the Company announced independently estimated measured and indicated mineral resources of 3.9 million ounces of gold and 450 million pounds of copper. Table 1 in the appendix provides a more detailed analysis of the mineral resource estimates. Based on these resources and using a gold price of US$ 525 per ounce and a copper price of US$ 1.30 per pound, the pit design contains estimated proven and probable mineral reserves of 60.6 million tonnes containing 2.2 million ounces of gold and 254 million pounds of copper at a grade of 1.15 g/t gold including 17.1 million tonnes at a grade of 0.67% copper. Table 2 in the appendix provides a more detailed analysis of the mineral reserve estimates.
Based on this current reserve base and plant capacity life of mine production averages 120,000 ounces of gold and 13 million pounds of copper. However over the first three full years of mine life average annual production is planned to be 149,000 ounces of gold and 26 million pounds of copper.
Additional information with respect to the Company's Varvarinskoye mine plan is set out in the Company's news release dated January 15, 2007. Additional information with respect to Varvarinskoye is also contained in the MDM Ferroman "Varvarinskoye Gold/Copper Project Bankable Feasibility Study" dated November 2004. Copies of the said news release and study can be obtained from SEDAR at www.sedar.com.
EMC management considers Varvarinskoye to be economically robust at the base case metal prices of US$ 525 per ounce of gold and US$ 1.30 per pound of copper.
The Company is continuing to optimise its mine plan as development of the initial open pit advances and confirms the integrity of the Varvarinskoye orebody. As mining proceeds the Company intends to continue to operate a rigorous stockpiling plan to generate improved economic returns should metal prices continue to be higher that those used in the current mine plan.
Qualified Persons
The "qualified person" (as such term is defined in National Instrument 43-101) who compiled and is responsible for the mineral resource estimates for the Varvarinskoye project referred to in this press release is Stephen Hyland, who is a Principal Consultant of Ravensgate. Mr. Andre Wulfse, who is a Principal Consultant of Ravensgate, and a "qualified person" (as such term is defined in National Instrument 43-101), has reviewed and approved the contents of this press release relating to such mineral resource estimates.
The "qualified person" (as such term is defined in National Instrument 43-101) who supervised the preparation of and is responsible for the mineral reserve estimates for the Varvarinskoye project referred to in this press release is Stephen Craig, who is an employee of Orelogy. Mr. Craig has reviewed and approved the contents of this press release relating to such mineral reserve estimates.
Bert Kennedy, the Company's President and Chief Executive Officer, is the "qualified person" (as such term is defined in National Instrument 43-101) responsible for the technical and scientific information in this press release, other than the mineral resource and mineral reserve estimates for the Varvarinskoye project.
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