FULL TEXT-Eldorado Gold Q4 results
Reuters Story - January 28, 2000 08:59
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(Full text of press release from BCE Emergis E-News)
Eldorado Gold Corporation - Fourth Quarter And 1999 Operating
Results/ Record Annual Production At Mines
Vancouver, B.C., Jan 28 - Eldorado Gold Corporation
("Eldorado" or the "Company") (TSE: "ELD") today announced its
gold production and cost statistics for the fourth quarter of
1999 and the full year of 1999.
Gold production during the fourth quarter was 43,931 ounces
compared with 39,932 ounces in the fourth quarter of 1998. Gold
production for the full year was 192,133 ounces, a 5% increase
when compared with 1998 production of 183,301 ounces.
The total cash cost in the fourth quarter was $208 per ounce,
20% or $51 per ounce lower than the total cash cost in the same
quarter of 1998. Total cash costs for the full year of 1999
were $200 per ounce, 23% or $59 per ounce lower than the total
cash cost during the full year of 1998.
In Brazil, at the Sao Bento Mine, cash operating costs declined
to $186 during the fourth quarter down from $236 in the fourth
quarter of 1998 and $191 per ounce in the third quarter of 1999.
For the full year of 1999, cash operating costs fell to $184 per
ounce, a reduction of 26% when compared with 1998. Continued
reductions through the year occurred principally as a result of
the devaluation of the Brazilian Real in the first quarter and
continued operating improvements. Through 1999, a major
underground exploration and development drilling programme
budgeted at $1.5 M was undertaken. Results from this programme
will be incorporated in the Annual Reserve Report in the first
quarter of 2000. Results to date support the expectation of an
expanded reserve/resource compared with year end 1998 when Sao
Bento had gold resources of 4.5 million tonnes at 10.85 g/t or
1,556,000 ounces including reserves of 2.5 million tonnes at 9.2
g/t or 744,000 ounces. In 2000, Sao Bento is expected to produce
126,000 ounces at a cash cost of $185 per ounce.
At the La Colorada Mine in Mexico, cash operating costs were
$249 per ounce during the fourth quarter down from $273 per
ounce in the fourth quarter of 1998. For the full year of 1999,
cash operating costs fell to $217 per ounce compared to $246
per ounce in 1998. The operation performed according to plan
with record gold production through a period in which the new
Gran Central pit was established as a major contributor to
production. The operation is expected to produce 58,000 ounces
at a cash cost of $240 per ounce in the year 2000.
Development Projects
In Turkey, the Company continued to make substantial progress in
advancing its two principal assets, Efemcukuru and Kisladag,
which combined total of 4.5 million ounces defined as classified
resources.
At the Efemcukuru project a prefeasibility study completed in
the
year defined a robust project based on a 1.1 million ounces
resource. The project, as envisaged, will produce at an average
rate of 87,000 ounces annually with cash costs of $176 per
ounce.
Capital costs are currently estimated at $45 million including
preparation of a bankable feasibility study. The application for
the Site Selection Permit remains ongoing, receipt of which will
result in initiation of the bankable feasibility study.
Substantial work programmes were completed on the Kisladag
project in the year culminating in the completion of the first
resource estimate, which defined a 3.4 million-ounce resource.
The company views Kisladag as a major gold porphyry occurrence
with substantial scope for resource expansion. The Company has
experienced substantial and effective provincial and federal
support for the development of the project, and in December
received the Site Selection Permit and established an agreement
with the Usak Province to develop a co-operative arrangement
directed at facilitating and participating in the development of
the Kisladag Project.
Kisladag will be the focus of the Company's development efforts
in Turkey in 2000, with $1.8 million budgeted for expenditures
in 2000 intended to further advance the Project to
prefeasibility by year-end. On site work activities will
include base line environmental work, trenching, infill and
extension drilling.
Drilling is scheduled to resume in February with approximately
7,500 meters planned for the year. In addition, further
metallurgical and site geotechnical programmes will be
conducted in support of the planned prefeasibility study.
Paul Wright, President and Chief Executive Officer commented,
"With a recently strengthened balance sheet, a solid operating
base and an appropriate hedge position, the Company is
positioned
to continue advancing its high quality development projects in
Turkey for the benefit of all shareholders."
ON BEHALF OF ELDORADO GOLD CORPORATION
(signed)
Paul N. Wright
President and Chief Executive Officer
This and other news releases complete with graphic attachments
are available at the Company's website or may be acquired by
fax or mail upon request
Eldorado Gold Corporation's shares (Symbol: ELD) trade on the
Toronto Stock Exchange ("TSE").
The TSE has neither approved or disapproved the form or content
of this release.
Investor Relations Contacts:
Tel: (604) 687-4018 and 1-888-ELD-8166
and e-mail infoeldoradogold.com
Fax: (604) 687-4026 Website Address: www.eldoradogold.com
Suite 920 - 1055 West Hastings Street,
Vancouver, British Columbia, Canada V6E 2E9
PRODUCTION HIGHLIGHTS
First Second Third Fourth Fourth
Quarter Quarter Quarter Quarter Quarter 1999 1998
1999 1999 1999 1999 1998
---------------------------------------------------------------
Gold
Production
-----------
Ounces 46,111 52,442 49,649 43,931 39,932 192,133 183,301
Cash
Operating
Cost
($/oz) 180 200 197 204 251 195 251
Total
Cash
Cost
($/oz)(1) 185 206 200 208 259 200 259
Total
Production
Cost
($/oz)(2) 264 272 268 276 334 270 326
Realized
Price
($/oz) 321 312 283 301 350 304 352
---------------------------------------------------------------
Sao Bento
Mine, Brazil
-------------
Ounces 29,748 32,801 32,939 31,093 23,881 126,581 108,572
Tonnes
to
Mill 120,109 144,524 139,459 135,922 96,172 540,014 467,215
Grade
(grams /
tonne) 8.20 8.34 7.79 8.40 7.83 8.18 7.60
Cash Operating
Cost
($/oz) 180 180 191 186 236 184 250
Total Cash
Cost
($/oz)(1) 185 186 196 191 244 190 258
Total
Production
Cost
($/oz)(2) 258 244 259 252 319 253 324
---------------------------------------------------------------
La Colorada
Mine, Mexico
-------------
Ounces 16,363 19,641 16,710 12,838 16,051 65,552 59,774
Tonnes to
Leach
Pad 488,775 722,531 714,094 563,167
607,9142,488,5672,688,261
Grade
(grams /
tonne) 1.54 0.88 0.93 1.00 1.03 1.05 0.96
Cash Operating
Cost
($/oz) 180 233 209 249 273 217 246
Total Cash
Cost
($/oz)(1) 187 241 207 247 282 220 255
Total Production
Cost
($/oz)(2) 273 320 287 334 356 303 326
---------------------------------------------------------------
La Trinidad
Mine, Mexico(3)
----------------
Ounces - - - - - - 14,955
Tonnes to
Leach Pad - - - - - - 454,155
Grade (grams
/ tonne) - - - - - - 1.46
Cash Operating
Cost ($/oz) - - - - - - 275
Total Cash
Cost
($/oz)(1) - - - - - - 281
Total
Production
Cost
($/oz)(2) - - - - - - 341
---------------------------------------------------------------
1 Cash Operating Costs plus royalties and the cost of off-site
administration.
2 Total Cash Cost plus depreciation, amortization and
reclamation.
3 La Trinidad mine was placed in a care and maintenance mode in
the third quarter of 1998 the result of low gold prices and
severe weather conditions.
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