Eldorado Gold Corporation - Update on Turkish Projects
Kisladag Resource Approaches 7 Million Ounces
Vancouver, British Columbia - Friday, September 29, 2000, 8:00 AM EDT
Eldorado Gold Corporation (the "Company" or "Eldorado") (TSE:
ELD) has recently completed a 7,600 meter Reverse Circulation
Drill Program at the 100% owned Kisladag gold project located in
western Turkey. The Company is pleased to announce the results of
a new resource estimate incorporating data from this drill
program, which has seen the gold resource increase to 6.67
million ounces at a cutoff grade of 0.4 g/t. The deposit has not
been closed off at depth. The Company has now upwardly revised
its target resource for Kisladag to 10 - 12 million ounces.
Reverse Circulation Drill Results
Drilling at the Kisladag site in Usak province was completed in
mid August. Results from the 20 previously released drill holes
from this year's programme, have confirmed the continuity of the
higher-grade core within the deposit. The balance of the holes
(Figure 1) have continued to intersect strong mineralization and
extended the known margins of the deposit.
Holes drilled on section 7475 E (Figure 2) have extended the
higher-grade core intersected on sections 7575E and 7525E further
to the west. Drill hole GR 106 intersected 252 meters at 2.11 g/t
gold, open to depth including 100 meters at 3.00 g/t. Hole GR 101
intersected 288 meters at 1.11 g/t gold including 158 meters at
1.57 g/t gold and hole GR 108 intersected 140 meters at 1.5 g/t
gold including 80 meters at 1.80 g/t gold. This higher-grade core
also extends to the northeast as a shallow dipping zone having a
possible strike length of 200 to 400 meters, with a thickness of
approximately 80 meters as shown in section 7575E (Figure 3).
The western margins of the deposit have been extended with hole
GR107 intersecting a zone grading at 1.36 g/t over 132 meters.
Similarly to the east, hole GR 103 has intersected 167 meters at
1.05 g/t. Expansion of the higher-grade core has also been seen
to the south, with higher grades encountered in drill holes GR
104 and GR 105.
Significant intercepts for the final 10 drill holes of the 2000
program are shown in Table 1 below:
Table 1 Kisladag Drill Hole Intercepts
Drill Hole Section Total From To Length Gold
Depth
(Easting) (meters) (m) (m) (m) (g/t)
---------------------------------------------------------------
GR-99 7275 200.0 0.0 150.0 150.0 1.08
Including 30.0 105.0 75.0 1.49
GR-100 7375 235.0 0.0 42.5 42.5 1.19
77.5 107.5 30.0 0.42
150.0 222.5 72.5 0.68
GR-101
(open to depth) 7475 297.5 0.0 297.5 297.5 1.11
Including 72.5 230.0 157.5 1.57
GR-102
(open to depth) 7725 312.5 32.5 312.5 280.0 0.64
GR-103
(open to depth) 7775 200.0 32.5 200.0 167.5 1.05
Including 132.5 200.0 67.5 1.26
GR-104 7379 200.0 2.5 127.5 125.0 0.64
Including 32.5 65.0 32.5 1.25
GR-105 7329 240.0 22.5 112.5 90.0 0.92
GR-106
(open to depth) 7475 252.5 0.0 252.5 252.5 2.11
Including 42.5 162.5 120.0 3.00
GR-107 7055 250.0 20.0 152.5 132.5 1.36
Including 77.5 137.5 60.0 1.93
GR-108
(open to depth) 7475 250.0 2.5 110.0 107.5 0.69
110.0 250.0 140.0 1.51
Including 152.5 232.5 80.0 1.80
The 29 drill hole Reverse Circulation Drill Program carried out
in 2000 has significantly expanded the Kisladag resource,
principally to the northeast and south. The deposit has not yet
been closed off at depth.
Resource Estimate
A new resource estimate has been prepared as of September 26,
2000 by Micon International in conjunction with Eldorado using
geological information and drill hole data from 16,000 meters of
percussion, diamond core and the recent RC drilling.
The resource estimate has been prepared in Gemcom using
classification and estimation procedures in accordance with CIMM
Standards on Mineral Resources and Reserves Guidelines Proposed
Policy 43-101. The distribution of gold within the deposit is
illustrated in the cumulative table below.
Table 2 Cumulative Resource Estimate
Cutoff Grade Contained Tonnes Contained Grade Contained Gold
(g/t) Millions (g/t) Million oz.
---------------------------------------------------------------
0.2 226,580,000 0.97 7,081,000
0.4 181,440,000 1.14 6,673,000
0.8 115,610,000 1.45 5,393,000
1.2 65,590,000 1.82 3,836,000
>1.5 40,000,000 2.12 2,721,000
The revised resource estimate for the Kisladag deposit shown in
Table 3 below has been calculated at a cut off grade of 0.4 g/t
to reflect the operating costs of a heap leach, open pit
operation as defined in the recent Scoping Study.
Table 3 Resources: Measured Indicated and Inferred
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
Total MI&I 181,440,000 1.14 6,673,000
Samples from the drill program have been prepared at Eldorado's
sample laboratory in Turkey in accordance with procedures
established by Micon International. Sample pulps are shipped to
ALS Chemex Laboratories in Vancouver for gold fire assay with
A.A. finish. ALS Chemex is certified to ISO 9002. Duplicates,
splits, blanks and known gold standards are inserted according to
industry practice prior to shipment to ALS Chemex with further
check assays carried out by Bondar Clegg.
Mr. Gary Nordin, P.Geo., Chief Consulting Geologist of the
Company, is the qualified person (as defined in the proposed
National Instrument 43-101) responsible for the design and
conduct of the 7,600 meter RC drill programme described in this
news release. Mr. Nordin has corroborated the data collection,
including sampling, analytical and test data, on which the above
information is based and supervised preparation of the resource
model.
Future Development
In July 2000, Eldorado completed a Scoping Study for the Kisladag
project based on the previous resource estimate of 4.6 million
ounces. This exercise defined a conventional 20,000 tpd heap
leach operation producing approximately 186,000 ounces of gold
per year at a cash cost of $155 per ounce. Preliminary pit
optimization runs on the new resource model indicate that the
gold produced will be increased to approximately 3.3 million
ounces, supporting the likelihood of a higher production rate and
improved cost structure than detailed in the Scoping Study which
provided 2.1 million ounces of production.
A Prefeasibility Study for Kisladag, based on the concepts
developed in the Scoping Study, is budgeted and planned for
completion by the end of January 2001. This will be followed by
additional infill and extension drilling of the estimated 10 - 12
million-ounce target at Kisladag prior to commencing a Bankable
Feasibility Study on the project in 2001. Eldorado, following the
receipt of the Site Selection Permit in 1999, continues to
advance the permitting process for Kisladag, with completion of
an Environmental Baseline Study expected by the end of 2000. This
will be followed by an Environmental Impact Study in 2001 as the
next phase in the permitting process.
Efemcukuru
Eldorado has recently evaluated the impact of the Kisladag
project on the Company's 100% owned Efemcukuru project located
200 kilometers to the west. Efemcukuru, at present a 1.1 M ounce
resource with potential for extension at depth, will be an 800
tpd high-grade underground operation utilizing gravity and
flotation processing for gold recovery. A Prefeasibility Study
previously prepared for Efemcukuru incorporated treatment of gold
concentrate offshore. Revisions to the study have been carried
out assuming final concentrate treatment at Kisladag. The savings
generated from this approach would result in a reduction in cash
operating costs at Efem‡ukuru from $177 per ounce to $149 per
ounce, generating a pretax IRR of 40.7% with an NPV @ 5% of $
56.1 million based on an average production rate of 87,000 ounces
annually.
Commentary
Paul Wright commented that "These results from Kisladag are very
impressive and clearly show the potential for further significant
expansion. Given the superior quality of the assets, the Company
is committed to strengthening its balance sheet in order to
aggressively move forward. Kisladag with a target resource of 10
- 12 million ounces is now clearly in the category of one of the
few major undeveloped gold resources."
ON BEHALF OF
ELDORADO GOLD CORPORATION
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
Eldorado Gold Corporation's shares (Symbol: ELD) trade on the
Toronto Stock Exchange ("TSE")
Mr. Micheal Beley, Industry Advisor
Tel:(604)687-4018 and 1-888-ELD |
