Eldorado Gold Corporation (“Eldorado” or the “Company”) announces
updates on Kisladag metallurgical testwork, its expansion plans at
Lamaque and its Greek projects.
Kisladag Update
Kisladag metallurgical testwork is advancing
well with the majority of test results now expected to be completed
prior to year-end 2019. A suite of extended Intermittent
Bottle Roll Tests (IBRT) have been completed to help predict heap
leach recovery on the existing reserve. IBRT tests are
indicating that with the longer heap leach cycle of 250 days, gold
recoveries are trending over 50%. More than 100 two-metre
columns are also underway, which is the standard test for heap
leaching, to confirm the findings of the IBRTs.
The preliminary results, utilizing the IBRT
metallurgical testwork, are indicating a possible mine life
extension beyond the current three year guidance. In the
event that testwork supports a mine life extension, waste stripping
would be necessary. The Company expects to be in a position to
determine the most economic path for the development of Kisladag by
the end of Q1 2020.
Lamaque Update
The Company is evaluating an expansion at its
Lamaque project, which would be designed to increase throughput
from an average of approximately 1,800 tonnes per day (“tpd”) to
2,500 tpd and increase average annual production from approximately
130,000 ounces of gold to approximately 170,000 ounces of gold.
Eldorado is working on a Preliminary Economic
Assessment (“PEA”) for this expansion, which will include inferred
resources up to and including the C7 shear zone at the Triangle
deposit (as shown in Figure 1), and is scheduled to be completed in
Q4 2019. Subject to the results of the PEA, the Company will
begin a Prefeasibility Study (“PFS”) on the Lamaque expansion,
which is expected in 2H 2020.
Highlights of the expansion PEA are expected to
include:
- 10 year mine life with target
production of 1.5 million ounces of gold
- Expected average annual gold
production of 170,000 ounces per year once ramp up is complete; or
150,000 ounces per year over the full 10 years
- Three distinct projects that should allow for expansion up to
2,500 tpd:• A two kilometre decline and conveyor system from the
Sigma mill to the 400 metre level of the Triangle Deposit (Figure
2)• Upgrades to the Sigma Mill to allow for increased
throughput• Construction of a paste plant to provide a
long-term tailings solution
The decline project would include an underground
crusher and a conveyor system for transportation of ore, which
would eliminate ore re-handle, eliminate underground haulage from
the 400 meter level to surface and 26 kilometers of round trip
surface haulage. Underground drilling platforms would be
established along the decline which would provide access for
exploration along the geologically prospective ground between the
Triangle underground mine and the historic Sigma and Lamaque
underground mines. The decline would also provide social
benefits including eliminating emissions from surface haulage,
removing haulage trucks from public roads and reducing noise for
the community.
The Sigma Mill upgrades would include additional
leach tanks and a coarse ore stockpile and could include the
addition of a SAG mill that would allow processing of more than
2,500 tpd. This additional capacity would set the asset up for
future expansion from lower portions of Triangle or other areas of
the property. The Company intends to apply for a 2,650 tpd permit,
a 50% increase over the current permit, which is the maximum
allowed under the Provincial permitting process.
Addition of a paste plant would provide an
environmental improvement and long-term tailings solution with
paste tailings deposited in the historic Sigma open pit. The plant
would also allow for paste backfill to be pumped underground
through the proposed conveyor decline.
Construction of the decline could start in 2020,
as it provides reduced haulage costs under any production scenario,
as well as other strategic benefits that include the efficient
recovery of potential resources at depth. Timing of other major
construction will depend on results of the PEA and PFS as well as
the timing of other projects the Company may have underway. This
will allow time for additional Inferred Mineral Resource conversion
drilling.
Greek Project Update
The Company recently received certain
installation permits for its Skouries and Olympias assets in
Greece. Eldorado is working with the Greek government to achieve
the necessary conditions required to re-start construction at
Skouries and to allow for the completion of the development,
construction and financing of our Kassandra assets. In the interim,
potential investments the Company is currently evaluating
include:
- Engineering and permitting expenses
and minor enabling construction to support the restart of work at
the Skouries Project, contingent on receipt of the building permit
for the Skouries flotation plant building
- Engineering and EIA permitting
expenses at the Perama Hill Project
- Engineering and permitting expenses
to expand the Olympias Mine’s capacity from 1,200 tpd to
1,900tpd
Lamaque Figures
Figure 1: Outline of Triangle Ore
body https://www.globenewswire.com/NewsRoom/AttachmentNg/375f13f6-e446-4da0-8200-141de98c586eFigure
2: Proposed Ramp from Triangle to Sigma
Mill https://www.globenewswire.com/NewsRoom/AttachmentNg/9be4d11c-4820-4ac7-b2a8-8326a403f145
About Eldorado Gold
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkey, Canada,
Greece, Romania, Serbia, and Brazil. The Company has a highly
skilled and dedicated workforce, safe and responsible operations, a
portfolio of high-quality assets, and long-term partnerships with
local communities. Eldorado's common shares trade on the Toronto
Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE:
EGO).
Contacts
Investor Relations
Peter Lekich, Manager Investor
Relations604.687.4018 or
1.888.353.8166 peter.lekich@eldoradogold.com
Media
Louise Burgess, Director Communications &
Government Relations604.687.4018 or
1.888.353.8166 louise.burgess@eldoradogold.com
Cautionary Note about Forward-looking Statements and
Information
Certain of the statements made and information
provided in this press release are forward-looking statements or
information within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. Often, these forward-looking statements and
forward-looking information can be identified by the use of words
such as "plans", "expects", "is expected", "budget", “continue”,
“projected”, "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or the negatives thereof or variations
of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved.
Forward-looking statements or information
contained in this release include, but are not limited to,
statements or information with respect to: our expectations
regarding further test work results, expected metallurgical
recoveries and possible mine life extension at Kisladag,
expectations regarding results of the Lamaque PEA, including a
potential increase in annual production, extension of mine life and
additional inferred resources, expectations regarding negotiations
with the Greek Sate to achieve the necessary conditions required to
re-start construction at Skouries and to allow for the completion
of the development, construction and financing of our Kassandra
assets , and our strategy, plans and goals, including our proposed
exploration, development, construction, permitting and operating
plans and priorities and related timelines and schedules.
Forward-looking statements and forward-looking
information by their nature are based on assumptions and involve
known and unknown risks, market uncertainties and other factors,
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements or information.
We have made certain assumptions about the
forward-looking statements and information, including assumptions
about metallurgical recoveries the geopolitical, economic,
permitting and legal climate that we operate in; the future price
of gold and other commodities; the global concentrate market;
exchange rates; anticipated costs and expenses; production, mineral
reserves and resources, suspensions or delays on our business and
the ability to achieve our goals. In particular, except where
otherwise stated, we have assumed a continuation of existing
business operations on substantially the same basis as exists at
the time of this release.
Even though our management believes that the
assumptions made and the expectations represented by such
statements or information are reasonable, there can be no assurance
that the forward-looking statement or information will prove to be
accurate. Many assumptions may be difficult to predict and are
beyond our control.
Furthermore, should one or more of the risks,
uncertainties or other factors materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements or information.
These risks, uncertainties and other factors include, among others,
the following: results of further testwork at Kisladag, recoveries
of gold and other metals; geopolitical and economic climate (global
and local), risks related to mineral tenure and permits; gold and
other commodity price volatility; continued softening of the global
concentrate market; risks regarding potential and pending
litigation and arbitration proceedings relating to the Company’s,
business, properties and operations; expected impact on reserves
and the carrying value; the updating of the reserve and resource
models and life of mine plans; mining operational and development
risk; financing risks, foreign country operational risks; risks of
sovereign investment; regulatory risks and liabilities including,
environmental regulatory restrictions and liability; discrepancies
between actual and estimated production, mineral reserves and
resources; additional funding requirements; currency fluctuations;
community and non-governmental organization actions; speculative
nature of gold exploration; dilution; competition; loss of key
employees; and defective title to mineral claims or properties, as
well as those risk factors discussed in the sections titled
“Forward-Looking Statements” and "Risk factors in our business" in
the Company's most recent Annual Information Form & Form 40-F.
The reader is directed to carefully review the detailed risk
discussion in our most recent Annual Information Form filed on
SEDAR under our Company name, which discussion is incorporated by
reference in this release, for a fuller understanding of the risks
and uncertainties that affect the Company’s business and
operations.
Forward-looking statements and information is
designed to help you understand management’s current views of our
near and longer term prospects, and it may not be appropriate for
other purposes.
There can be no assurance that forward-looking
statements or information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, you should not place
undue reliance on the forward-looking statements or information
contained herein. Except as required by law, we do not expect to
update forward-looking statements and information continually as
conditions change.
Except as otherwise noted, scientific and
technical information contained in this press release was reviewed
and approved by Paul Skayman, FAusIMM, Chief Operating Officer for
Eldorado Gold Corporation, and a "qualified person" under NI
43-101.
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