European Minerals Corporation
London, England, May 9, 2008
Trading Symbols EPM (TSX), EUM (London AIM)
Additional Resources
Varvarinskoye Update
5-Star CAT Rating
European Minerals Corporation ("EMC" or the "Company")
is pleased to report an increase in the gold and copper resources at its
Varvarinskoye gold/copper project in Kazakhstan and provide an update on
progress at the mine.
Additional Resources
- Assay results from diamond drilling completed in the 2007 field season
combined with historical data have enabled the Company to outline significant
additional resources beneath the current pit design which is approximately 300
metres below ground surface.
- The Company's internally generated resource estimates were calculated under
the definitions and guidelines specified in National Instrument 43-101 of the
Canadian Securities Administrators ("NI 43-101") and utilized the key
assumptions, parameters and methods used in the preparation of the resource
estimates contained in the technical report dated November 2004 and amended
March 2005 entitled "Varvarinskoye Gold-Copper Project � Northern
Kazakhstan � Technical Report" prepared by MDM Ferroman (Pty) Limited and
Mintec Inc. in accordance with NI 43-101 (which is available for review on the
SEDAR database at www.sedar.com)
and on the same basis outlined in the 2007 estimated mineral resource
previously reported (see the Company's press release dated January 15, 2007).
- The revised resource estimates increase the previously announced estimated
measured and indicated mineral resources by approximately 26 million tonnes of
ore (at 1.24 g/t gold, 0.32% copper*) containing approximately one million
ounces of gold and 157 million lbs of copper, representing an increase of
approximately 20% of the total estimated measured and indicated mineral
resources tonnages and an increase of approximately 25% in contained gold and
35% in contained copper for the estimated measured and indicated mineral
resources. Appendix 1
provides a more detailed analysis of the additional mineral resource estimates
and a table containing the previous estimate of measured and indicated mineral
resources, as announced in January 2007 (Table 2).
* % copper based on HGCF only
Varvarinskoye Update
- Further positive progress has been made in bringing the plant to commercial
production. During April, mechanical availability of the process equipment was
about 93% with no unplanned shutdown of major equipment. Completion of
commissioning and commencement of operating ramp up during a severe winter has
been successfully achieved with no major impact on operations. Gold continues
to be poured on a regular basis; six shipments have now been delivered to the
Metalor refinery in Switzerland. The Company's subsidiary, JSC Varvarinskoye
("JSCV"), has approximately 4,000 tonnes of copper gold concentrate
(18% copper and 22 g/t gold) bagged at its Tobol railhead, awaiting Russian
Railway wagons to dispatch the concentrate to a smelter in May.
- Other highlights as of end of April:-
� JSCV has made adjustments to the crusher which has improved product size,
alleviating downstream transfer restrictions to the grinding mills.
� The copper flotation circuit is operating at about 60% design throughput.
Polysius, the mill manufacturer, will visit Varvarinskoye in mid May to advise
on how to increase the throughput so that the milling circuit will meet its
design specification.
� The direct gold milling and leach circuit reached 45% of design throughput in
April. Plans are in place to continue ramp up in the next few months as the
grinding ball charge is increased and design modifications to the mill
discharge pump motors are completed.
� Water return to plant from tailings dam has been achieved following the
spring thaw.
� The site evaluation visit by Ausenco Limited of Perth as part of a Scoping
Study for a possible expansion of the Varvarinskoye plant was completed in
April.
5-Star CAT Rating
- Borusan Makina Kazakhstan LLP ("BMK") operates the Maintenance and
Repair Contract (MARC) on JSCV's mining fleet. BMK have informed EMC that the
BMK Varvarinskoye maintenance workshop has been awarded a Caterpillar 5-Star
rating for contamination control. Varvarinskoye is the first operational mine
site in the CIS to achieve this 5-Star rating and rewards the combined efforts
of the BMK and JSCV teams over the three years that the MARC has been
operating.
- Ozg�r Gunuaydin, BMK's General Director in Kazakhstan, commented "the
control of microscopic particulate contamination is very important in the
successful operation of modern mining machinery such as Caterpillar. This can
assist in avoiding unexpected shutdowns of equipment and reduces maintenance
and operating costs."
Bert Kennedy President and CEO of EMC commented today:
�We continue to make good progress increasing our tonnage throughput in the
Varvarinskoye process plant. A late spring has eventually arrived and the
working conditions for our site team should improve. During a severe winter we
have had no freezing of our water reticulation system and the delivery of our
electrical power supply by our 70km line was continuous with no significant
shutdowns despite temperatures dropping to minus 40o Centigrade with frequent
blizzards. I cannot praise the dedication of our employees too highly in
commissioning the plant through such a severe winter which other major regional
mining companies have also noted adversely impacted on their operations.
Metallurgical performance continues to be good and both process streams have
been running steadily for the past six weeks. We are now regularly delivering
gold dor� to Metalor in Switzerland and our first concentrates are ready to
ship. Over the coming months we intend to complete our design modifications in
the plant and ramp up to commercial production. We have always believed in the
Varvarinskoye project and the announcement of the increase to the measured and
indicated mineral resource estimates, although these are situated beneath the
lowest elevation of the current pit design, further enhances the value of our
ore body. We have also just commenced an independent study to investigate the
possibility of increasing the total through put at Varvarinskoye beyond our
feasibility design of 4.2 million tonnes of ore per year. Our management and
employees have created a producing mine at Varvarinskoye from a green field
site in less than 30 months. I believe this achievement ranks as highly as any
in the world of mineral developments over the last few years�
Investor Information:
United Kingdom
Tony Williams
Chairman
or
Bert Kennedy
President & CEO
Tel: +44 (0) 20 7529 7508
North America
Keith Schaefer ir@vanguardsolutions.ca
Vanguard Shareholder Solutions Inc.
Tel: 1.866.448.0780
Qualified Person
Bert Kennedy, the Company's President and Chief Executive Officer, is the
"qualified person" (as such term is defined in NI 43-101) responsible
for all technical and scientific information in this press release.
Forward-Looking Statements
This press release contains or refers to forward-looking statements. All
statements, other than statements of historical fact that address activities,
events or developments that the Company believes, expects or anticipates will
or may occur in the future are forward-looking statements. Such forward-looking
statements include statements contained in this press release regarding
estimates and/or assumptions in respect of mineral resources, future
exploration, development and operational plans and objectives (including the
possible expansion of the plant). These forward-looking statements reflect the
current expectations or beliefs of the Company based on information currently
available to the Company. Forward-looking statements are subject to a number of
risks and uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking statements, and
even if such actual results are realized or substantially realized, there can
be no assurance that they will have the expected consequences to, or effects on
the Company. Factors that could cause actual results or events to differ
materially from current expectations 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 commencement of
full scale operations, the Company's Varvarinskoye Project caused by
unavailability of equipment, labour or supplies, climatic conditions, delays in
the delivery and installation of plant and equipment or otherwise; termination
or suspension of the Company's debt facility; uncertainty of the outcome of any
litigation; inability to delineate additional mineral resources; and other
factors. Any forward-looking statement speaks only as of the date on which it
is made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or
otherwise. Although the Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.
The mineral resource figures disclosed to in this press release are estimates
and no assurances can be given that the indicated levels of minerals will be
produced. Such estimates are expressions of judgment based on knowledge, mining
experience, analysis of drilling results and industry practices. Valid
estimates made at a given time may significantly change when new information
becomes available. While the Company believes that the resource estimates
disclosed in this press release are well established, by their nature resource
estimates are imprecise and depend, to a certain extent, upon statistical
inferences which may ultimately prove unreliable. If such estimates are
inaccurate or are reduced in the future, this could have a material adverse
impact on the Company.
Appendix 1
The key assumptions, parameters and methods used in the preparation of the
following mineral resource estimates are detailed in the technical report dated
November 2004 and amended March 2005 entitled "Varvarinskoye Gold-Copper
Project � Northern Kazakhstan � Technical Report" prepared by MDM Ferroman
(Pty) Limited and Mintec Inc. in accordance with NI 43-101 (which is available
for review on the SEDAR database at www.sedar.com)
and on the same basis outlined in the 2007 estimated mineral resource
previously reported (see the Company's press release dated January 15, 2007).
The effective date for the following mineral resource estimates is April 30,
2008.
Table 1: Additional Mineral Resources as at April 30, 2008
Table 2: Previously Published Mineral Resources as at December 15, 2006
Note:
HGCF is High Grade Copper Feed � flotation ore
HGCP is material stockpiled for treatment in the future
LGCF is Low Grade Copper Feed � Gold leach ore
LGCP is Low Grade Copper Feed � Gold leach ore from the weathering zone
European Minerals
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