NEWS RELEASE TRANSMITTED BY CCNMATTHEWS FOR: EUROPEAN MINERALS CORPORATION TSX SYMBOL: EPM
AIM SYMBOL: EUM June 23, 2005 European Minerals Corporation: Vavarinskoye Update LONDON, ENGLAND--(CCNMatthews - June 23 2005) - European Minerals Corporation (TSX:EMP)(AIM:EUM) - - EMC 100% ownership - Site works commence European Minerals Corporation ("EMC" or the "Company") is pleased to announce that it has now completed the
purchase of the 14% minority interest in JSC Vavarinskoye as outlined in its press release of May 19, 2005.
EMC has paid US$5 million in cash to acquire the 14% interest in JSC Vavarinskoye, the holder of the licences
covering the Vavarinskoye gold-copper deposit, and will pay a further US$2.25 million in cash on the earlier of
the fifteenth business day following the first date upon which gold dore is produced from the Vavarinskoye mine
or 31st December 2006. EMC now owns 100% of JSC Varvarinskoye.
The Company has received permits from the Government of the Republic of Kazakhstan for the design and
construction stages for the development of an open-pit mine and processing plant to produce gold dore and
copper-gold concentrate at Vavarinskoye. This includes the environmental and land use permits.
Independently assessed proven and probable mineral reserves at Varvarinskoye are currently 2.34 million ounces
of gold and 269 million pounds of copper at metal prices of US$375/oz gold and US$1/lb copper. All estimates of
mineral reserves are made in accordance with the classification and definitions of the Canadian Institution of
Mining and Metallurgy, as adopted under Canadian National Instrument 43-101.
Milestones EMC is now proceeding to finalise details of a lump sum turn-key contract with MDM Ferroman (Pty) Limited
("MDM") of Johannesburg for construction of the process plant and to complete the project finance arrangements
for a US$80 million debt facility underwritten by Investec Ltd and Nedbank Capital as previously announced on
March 9 2005.
Site works at Varvarinskoye have commenced using Kazakhstani subcontractors. Construction of the process plant,
buildings and mine accommodations is planned to be completed to a sufficient degree to permit them to be roofed
by the end of October 2005 which will facilitate continued construction during the winter months. The Company
has issued import letters of credit for approximately US$15 million to pay for the mining fleet which will be
delivered by Caterpillar between June and December 2005. EMC expects to receive delivery of the balance of the
mining fleet in July 2006, which will cost approximately US$10 million. Construction of the process plant and
infrastructure is planned to be completed shortly thereafter. The project's fixed capital cost is estimated to
be US$90 million, including the amounts payable under the proposed lump sum turn-key contract with MDM, which
will be largely incurred from July 2005 to the end of the 3rd quarter of 2006. The Company plans to be
producing gold dore and copper-gold concentrate from the mine during the 4th quarter of 2006, provided that the
summer construction window during 2005 is fully exploited.
The Vavarinskoye Project is located on an undeveloped site close to the village of Vavarinka, 130 km southwest
of Kustanai, which is the capital city of the Kustanai Oblast (province). Once developed the project will
occupy an area of about 1,300 hectares. A land allotment agreement has been entered into which provides JSC
Varvarinskoye with the necessary surface rights.
Tony Williams Chairman of EMC commented today "We are very pleased to now own 100% of JSC Vavarinskoye as we enter into the exciting construction phase and
build this new low cost long life mine. This project will establish EMC as a significant intermediate producer
with plenty of exploration upside potential in the 220km(2) licence surrounding the core Varvarinskoye
deposit".
-30- FOR FURTHER INFORMATION PLEASE CONTACT: Investor Information:
European Minerals Corporation - United Kingdom
Anthony J. Williams/Bert Kennedy
Chairman/President and CEO
+44 (0) 20 7529 7508 OR European Minerals Corporation - United Kingdom
Graham Potts
Corporate Secretary
+44 (0) 20 7529 7508 OR Vanguard Shareholder Solutions Inc. - North America
Keith Schaefer
(604) 608-0824
ir@vanguardsolutions.ca No stock exchange, securities commission or other regulatory authority has approved or disapproved the
information contained herein.
INDUSTRY: MNG
SUBJECT: MEX -0-
European Minerals Corporation
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