I posted this on July 15th on my website.  Enjoy.

I do own a position in European Gold Fields-EGU.to. I picked up shares early this morningYesterday, was a great buying opportunity. I am sure the major gold producers are watching this company very close. Rumour has it that Eldorado Gold-ELD.to would be the predator. I don't think EGU.to will be around 6-12ths from now. I can see a take out price between $20-$25 assuming we don't see a bidding war.

New Corporate Presentation is available on their website. http://www.egoldfields.com/egoldfields/en/home 

See news releases below from July 12th-Permit Aware and todays "BIG NEWS"-Ups Resource Estimates-July 15th.

UPDATE 2-European Goldfields ups resource estimates
by Thomson Reuters July 15th 2011

* Ups measured and indicated resources at Skouries, Olympias

* Total resources and reserves now 23.8 mln gold equivalent ozs

* Appoints David Cather as chief operating officer

* Looking at move to LSE's main market

* Shares up 2.7 pct in Flat london market (Adds comments from chairman, analysts, share price)

LONDON, July 15 (Reuters) - European Goldfields has raised its total resource and reserve estimates due to revised figures from its Skouries and Olympias projects in Greece, prompting a rise in its shares.

It also appointed Goldman Sachs to evaluate moving its shares to London's main market, where European Goldfields <EGUq.L> hopes to join the FTSE 250 index and benefit from the accompanying re-rating, from the junior AIM market.

Last week, the company was awarded a much-delayed mining permit for the Skouries and Olympias projects that will turn it into Europe's largest primary gold producer and has made it a prime takeover target.

"We haven't received any approach" since the permit was awarded, said Chairman Martyn Konig on a conference call. "We have been so tied up post permitting."

The company's <EGUq.L> total measured and indicated resources, inclusive of reserves, rose to 23.8 million gold equivalent ounces. The upgrade is mainly due to higher gold price assumptions.

It also announced a new inferred resource of 828,000 ounces of gold and 288,000 tonnes of copper at Skouries.

"The net result is that European Goldfields is now undervalued on pretty much every conventional valuation tool," said Liberum analyst Dominic O'Kane. "We expect the investment case to generate an unrivalled investment case in the mid-cap miners and we see credible +100 percent upside in the next 12 months."

Liberum said the Greek reserve increase implies that a 2,024 pence share valuation is credible.

Shares in European Goldfields were up 2.7 percent at 840.1 pence in a flat London market at 0906 GMT, valuing the company at 1.5 billion pounds.

The company also appointed David Cather as chief operating officer to help drive the company's development projects. Cather, a mining engineer, previously worked for De Beers and Anglo American .

European Goldfields is looking to define a maiden resource estimate at its Piavitsa project in Greece and is targeting an additional 5 million ounces in reserves over the next three years.

Konig expects the gold price to end the year at about $1,750 an ounce on concerns about the euro zone debt crisis and the debt ceiling in the United States and noted that the problems in the Middle East had not gone away. (Reporting by Julie Crust; Editing by Will Waterman)

DEALTALK-European Goldfields an M&A target after permit award

Tuesday Jul 12, 2011 by Thomson Reuters

* Permit takes away biggest barrier for company

* Gold miners seek growth to keep output profiles

* Canada's Eldorado Gold seen as natural predator

* Potential offer could come in above 1,300 pence

By Julie Crust

LONDON, July 12 (Reuters) - The award of a much-delayed mining permit that will turn European Goldfields <EGUq.L> into Europe's largest primary gold producer could also make it a prime takeover target, in a sector where players are scrambling for growth.

The permit to develop the Olympias and Skouries projects in north-eastern Greece was first submitted five years ago and the company hopes output from these, along with its Certej project in Romania, will transform it into a mid-tier miner with production of about 400,000 ounces of gold a year by 2014.

The projects and an attractive growth pipeline, delayed for so long by red tape and environmental concerns, should bring suitors, some of whom have already been circling, despite concerns about investing in Greece and mining in Europe.

Canadian group Eldorado Gold Corp is one of the natural predators as it already has two operating mines in Turkey, where European Goldfields also has exploration targets, and a development project in Greece.

"It got to board room level previously," an industry insider said.

"It just got rejected by their board at the last minute because they hadn't had the permits... Eldorado is the right size and European Goldfields would be a meaningful acquisition for them."

Eldorado was not available for comment.

Other Canadian gold miners, such as Barrick Gold and Newmont Mining , or Russia's Polyus Gold <PLZLq.L> and Polymetal may also take a look, although none of them has operations in Greece, Romania or Turkey. While Canada's Centerra Gold , which has exploration properties in Turkey, may also be interested.

"No-one was going to touch them until they had it, given the history of the permit," said a mining banker, adding the list of suitors will be limited, however, given European Goldfields' focus on Europe, specifically Greece, away from more traditional growth areas within Africa.

But many mid-size and larger gold producers are struggling to maintain production profiles, or to offset declines after years of growth, at a time when gold prices are near record highs.

Barrick's surprise acquisition of copper miner Equinox Minerals in April for C$7.3 billion ($7.6 billion) was seen by many as an attempt to add value by diversification due to a scarcity of attractive gold targets.

For the world's largest gold producer Barrick, which produces around 8 million ounces of gold a year, any takeover target would need annual output of at least 400,000 to 500,000 ounces -- with room to grow.

The Skouries project, which European Goldfields hopes will produce about 350,000 gold equivalent ounces a year, is a gold-copper porphyry deposit.

"The copper angle may deter some people, but it also may be of interest to others," said an industry banker. "Someone like KGHM could look at it...but I think valuations could be an issue for them."

Poland's state-controlled KGHM is Europe's second-largest copper producer.


Financing the acquisition is unlikely to be an issue as most M&A deals in the gold sector are typically paper transactions, although there could be a cash element.

Getting the permit was seen as the biggest risk for European Goldfields. Construction is also not seen as a major issue especially as the company's biggest shareholder Aktor SA is a wholly owned subsidiary of Ellaktor <HELr.AT>, Greece's largest construction group, with a 19.3 percent stake.

"I don't think they (Aktor) want to be in the mining business...they would sell at the right price," said Andy Davidson, an analyst at Numis Corp.

Shares in European Goldfields jumped 33 percent last week, but are little changed from the start of the year as gold stocks continue to underperform.

Davidson said any offer was likely to come in above 13 pounds a share, valuing the company at more than 2.4 billion pounds ($3.9 billion).

The shares traded at 821.5 pence at 1241 GMT on Tuesday.

Importantly, analysts and industry insiders said, the board of European Goldfields -- including chairman Martyn Konig who joined the company when the shares were trading below 4 pounds -- are thought to be keen to sell.

The company has 10 million ounces of gold reserves and is expected to give a number of corporate updates soon.

Paul Burchell, analyst at Dundee Securities, said resource and reserve estimates on Olympias and Skouries are due to be revised using a long-term gold price assumption of $1,000 an ounce from $650 and $450 respectively.