Eldorado Gold Corporation - Kisladag Update
Vancouver, British Columbia - Tuesday, January 9, 2001, 8:15 AM EST
Eldorado Gold Corporation (the "Company" or "Eldorado") (TSE:ELD)
in conjunction with its consultants have completed scoping study
evaluations based on an expanded Kisladag resource. The Kisladag
project, located in Turkey, is 100% owned by Eldorado, with a
resource delineated by 16,000 meters of drilling to date. The
Company is presently working to complete a prefeasibility study
in the first quarter 2001.
The resource, which was updated in a press release dated
September 29, 2000, is presented below in Table 1.
Table 1 Resource: Measured Indicated and Inferred
@ 0.4 g/t cut-off
Classification Tonnes Grade (g/t Au) Ounces Au
Measured 9,570,000 1.30 401,000
Indicated 116,400,000 1.19 4,446,000
Total M&I 125,970,000 1.20 4,847,000
Inferred 55,470,000 1.03 1,826,000
Using this resource, analyses were completed based on two assumed
production rates: 3.3 million tons ("MT") per annum (9,500 tons
per day) and 10.0 million tons per annum (28,500 tons per day).
The object of this work was to establish broad parameters for
either assumed production rate. A summary of results from the
studies is as follows:
Table 2
Mine Through put (annual) 3.3 MT 10.0 MT
Mine Life 10 years 10 years
Mine Grade (g/t) 1.5 1.4
Average Annual Production (oz) 103,000 266,000
Capital Investment (millions) $ 37.3 $ 104.5
Sustaining Capital (millions) $ 10.5 $ 38.8
Cash Operating Costs $ 151/oz $ 138/oz
Previous disclosure on Kisladag has focused on financial returns
before taxes and royalty. The work on this project has now
progressed to the point where after tax and royalty figures are
meaningful. Table 3 shows the projected returns based on
preliminary analyses, after tax and royalty, at a US$275 gold
price.
Table 3
Projected Financial Performance After Tax & Royalty @ US$275 Au
Mine throughput (annual) 3.3 MT 10.0 MT
Internal Rate of Return 17% 21%
NPV@ 0% (millions) $ 46.5 $ 142.6
NPV@ 5% (millions) $ 24.9 $ 82.8
NPV@ 10% (millions) $ 11.2 $ 44.5
NPV = Net Present Value
In both cases examined, a conventional open pit three stage
crush, heap leach operation was considered utilizing an
owner-operated mining fleet. The favourable geometry of the
Kisladag resource provides for low strip ratios of 0.34 and 0.90
in the 3.3 and 10.0 MT PA cases respectively.
Following completion of the Kisladag prefeasibility study,
Eldorado will be advancing the project through 2001 with the
objective to complete a bankable feasibility study early in 2002.
In addition, the Company is working toward completion of an
Environmental Impact Assessment as the next step in the
permitting process.
Apart from executing the planned definition and exploratory
drilling program at Kisladag, the Company will, for the first
time, drill test its Sayacik prospect located approximately 5 km
south west of the Kisladag prospect. The Sayacik prospect is
situated in the centre of the Beydag volcano and exhibits
geological similarities to the nearby Kisladag prospect. Based on
the geological setting, strong trace elements, anomalies in soils
and the chargeability anomalies, the Sayacik prospect is
considered to be a target for porphyry gold mineralization
similar to Kisladag.
The 2000 field work program for Kisladag and Sayacik is planned
to commence in March.
ON BEHALF OF
ELDORADO GOLD CORPORATION
Paul N. Wright
(signed)
Paul N. Wright
President and Chief Executive Officer
This and other news releases complete with graphic attachments,
if any, are available at the Company's website
(www.eldoradogold.com) or may be acquired by fax or mail upon
request Disclosure documents may also be viewed at www.sedar.com
Eldorado Gold Corporation's shares (Symbol: ELD) trade on the
Toronto Stock Exchange ("TSE") The TSE has neither approved or
disapproved the form or content of this release.
Investor Relations Contacts:
Tel: (604) 687-4018 and 1-888-ELD-8166
Fax: (604) 687-4026
e-mail: infor@eldoradogold.com
www.eldoradogold.com |
