Eldorado Gold Corporation (“Eldorado” or “the Company”) announces
that it is commencing construction of a three kilometre decline, or
tunnel (shown in Figures 1 and 2 below), from the Sigma mill to the
405 metre level of the Triangle mine. The Company is also providing
an update on several positive developments in Greece.
“We are pleased to begin construction of the
decline at Lamaque this summer. This is a project that we have been
advancing for nearly a year and is another step towards further
production growth and continued value creation at Lamaque. We would
like to thank the government of Quebec and all our local
stakeholders for their continued support for this project and our
Lamaque operations,” said George Burns President and CEO.
Lamaque Decline Project
The fully permitted decline project represents a
relatively modest investment that is expected to provide multiple
near-term and long-term benefits as the Company continues to grow
production at Lamaque. Detailed engineering and site preparations
for the decline will commence this month and surface construction
on the portal will begin in Q3 2020. The decline is expected to be
completed by H1 2022 at an estimated cost of US$24 million.
Additionally, the Company is evaluating the possible addition of an
underground crushing and conveying system as well as a potential
mill expansion. An update outlining the path forward at Lamaque is
expected in Q4 2020.
Benefits to the decline include:
- Eliminating surface re-handling and haulage (approximately 26
km round trip) of the ore from the Triangle mine to the Sigma mill,
reducing carbon emissions, costs, and removing haulage traffic from
the public road network,
- Reducing the energy requirements for mine ventilation,
- Supplying a means of secondary egress and ventilation to the
Triangle mine, increasing safety underground,
- Providing underground access for lower cost exploration in the
prospective area between the Triangle mine and the historic Sigma
and Lamaque mines – including further drilling of the Plug 4 and
Parallel deposit and the Ormaque zone, and
- Facilitating increased future production from the Triangle mine
(contingent on continued reserve expansion) and allowing for mining
of the Parallel deposit.
Greek Update
The Company provides an update on several recent
developments in Greece including:
- Eldorado completed a purchase of
the 5% of Hellas Gold shares that were owned by Ellaktor, the
Company is now the sole shareholder in Hellas Gold,
- New Environmental Law 4685/2020 was
passed by the Greek Parliament in May which modernizes Greek
legislation to EU standards, and
- Relocation of certain archeological
items from Skouries to commence per the local archeological
chamber’s instructions.
About Eldorado Gold
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkey, Canada,
Greece, Romania, 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).
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: the construction of the
decline at Lamaque, and the associated benefits, including
potential further production growth and continued value creation at
Lamaque, statements with respect to moving the Company’s Greek
projects forward, as well as our planned capital and exploration
expenditures; our expectation as to our future financial and
operating performance, gold price outlook and the global
concentrate market; 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, 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 how the world-wide economic and social impact of COVID-19 is
managed and the duration and extent of the COVID 19 pandemic, the
tonnage of ore to be mined and processed; ore grades and
recoveries; mineral reserves and resources and metallurgical
recoveries, the geopolitical, economic, permitting and legal
climate that we operate in; the future price of gold and other
commodities; exchange rates; anticipated costs and expenses; and
actual production. 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: the duration and effects of
COVID-19, and any other pandemics on our operations and workforce,
and the effects on global economies and society; geopolitical and
economic climate (global and local), mineral tenure and permits;
gold and other commodity price volatility; recoveries of gold and
other metals; results of test work; revised guidance; mining
operational and development risk; discrepancies between actual and
estimated production, mineral reserves and resources and
metallurgical testing and recoveries; additional funding
requirements; currency fluctuations; speculative nature of gold
exploration; 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 and you are referred to the full
discussion of the Company's business contained in the Company's
reports filed with the securities regulatory authorities in Canada
and the U.S.
Contact
Investor RelationsPeter Lekich,
Manager Investor Relations604.687.4018 or
1.888.353.8166peter.lekich@eldoradogold.com
MediaLouise Burgess, Director
Communications and Government Relations604.601.6679 or
1.888.363.8166louise.burgess@eldoradogold.com
Photos accompanying this announcement are available at:
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