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European Goldfields shares rise on news of EIS submission in Greece

European Goldfields (LON:EGU, TSX:EGU) shares rose on London’s AIM market after the company told investors that it has now submitted the final Environmental Impact Study (NYSEARCA:EIS) for its project in Halkidiki in North-Eastern Greece.

Just before the end of the session in London, the stock was still trading at the day's high of 542p, more than 6.5% up over Friday's close.

The final EIS has been submitted to the Greek Ministry of Environment, Energy and Climate Change (MoE), and it will now be subject to the final stages of a decision-making process (conforming with the EU Directive on Environmental Impact Assessment).

Effectively the EIS will be reviewed by the competent authorities and it is subject to public consultation, the requirements for which are set out in this EU Directive and embodied in Greek law.

The Halkidiki project will consist of: the development of mining and processing at the Skouries project; The next stages of the Olympias project (the mining and processing of ore and metallurgical treatment); continuation of operations at the Mavres Petres deposit of the Stratoni mine; and the development of the port facilities at Stratoni to service the abovementioned operations.

Additionally, the company has extended the Environmental Permit and updated the resource for the Stratoni lead-zinc-silver mine in Northern Greece.  Stratoni’s new Environmental Permit has been extended until the end of July 2012, and the company can continue production until the granting of the overall Environmental Permit for all of European Goldfields' projects in Northern Greece.

With the new reserve update, European Goldfields has taken Stratoni’s total reserve to 10Moz (million ounces) of silver - 1,760 at 177 grams per tonne. The property also has 110,000t of lead (at 6.3% Pb) and 150,000t zinc (8.5%).

The company highlighted that the Stratoni deposit is open in several directions and further expansion of reserves is planned through the 2010 exploration drilling programme.

Disclosure: The author holds no positions in the company