TSX: ELD NYSE: EGO
VANCOUVER, Oct. 23, 2017 /PRNewswire/ - Eldorado Gold
("Eldorado" or the "Company") today provides an update on its 100%
owned Kisladag gold mine in Turkey. Kisladag is a low-grade, bulk-tonnage,
open pit operation that uses heap leach for gold recovery.
On June 27, 2017, the Company
reported that, while placement of estimated recoverable gold on the
leach pad proceeded as planned, the gold solution grade and
consequently gold recovery from the leach pad had lagged internal
expectations. Initial laboratory and in situ tests, where solution
chemistry was adjusted, indicated normal recovery rates were still
expected. The Company also believed that more time for
solution to flow through the current stack height of the leach pad
(approximately 80 meters at the highest point) was required.
During the third quarter, a significant amount of laboratory
test work was undertaken, primarily focused on the zone of
mineralization located around the base of the open pit where mining
is currently underway. Monthly composite samples from material
recently placed on the pad, even with adjusted solution chemistry,
have indicated lower gold recoveries. Final recoveries in the low
40% range are now anticipated for this material. This will result
in a reduction in the recoverable leach pad inventory by
approximately 40,000 ounces of gold.
In light of the lower recoveries, the Company is revising its
2017 guidance for Kisladag to 170,000 to 180,000 ounces at cash
costs of $500 to $550 per
ounce. Guidance for 2018 and beyond is currently under
review.
Further metallurgical test work on heap leaching is ongoing to
determine the extent of the materiality of the impact on gold
resources and reserves, and possible implications for the carrying
value of the mine.
In parallel with ongoing laboratory heap leach test work, the
Company is investigating alternative treatment methods for this
material, which includes studies on finer particle breakage, either
through milling or high pressure grinding roll (HPGR)
crushers. The Company has previously contemplated
construction of a mill at Kisladag and historic and ongoing test
work using bottle rolls and other metallurgical tests indicates
that milling should result in consistently higher recoveries
compared to heap leaching throughout the orebody; the potential
benefits from HPGR requires further studies and test work.
More information will be available when the Company updates the
resources and reserves model and the life of mine plan in light of
these studies.
About Eldorado Gold
Eldorado is a leading intermediate gold
producer with mining, development and exploration operations in
Turkey, Greece, Canada, Romania, Serbia and Brazil. The
Company's success to date is based on a highly skilled and
dedicated workforce, safe and responsible operations, a portfolio
of high-quality assets, and long-term partnerships with the
communities where it operates. Eldorado's common shares trade on the Toronto
Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE:
EGO).
Forward Looking Statement
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, but not always,
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", "projected", "intends", "anticipates", or
"believes" or the negatives thereof or variations of such words and
phrases or statements that certain actions, events or results "to
be", "may", "could", "would", "might" or "will" be taken, occur or
be achieved. Such forward-looking statements or information
include, but are not limited to, statements or information with
respect to recoveries of gold at Kisladag on the leach pad or under
alternative treatment methods, results of test work, the Company's
revised guidance for 2017, 2018 and beyond, expected impact on
reserves and the carrying value of Kisladag and the updating of the
resources and reserves model and life of mine plan.
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 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; production, mineral
reserves and resources and metallurgical recoveries, the impact of
acquisitions, dispositions, suspensions or delays on our business
and the ability to achieve our goals.
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: geopolitical and economic climate (global and
local), risks related to mineral tenure and permits; gold and other
metal price volatility; mining operational and development risk;
foreign country operational risks; risks of sovereign investment;
regulatory environment and restrictions, including environmental
regulatory restrictions and liability; discrepancies between actual
and estimated production, mineral reserves and resources and
metallurgical testing and recoveries; risks related to impact of
the sale of our Chinese assets on the Company's operations; risks
related to the acquisition of Integra Gold
Corporation; additional funding requirements; currency
fluctuations; litigation and arbitration risks; community and
non-governmental organization actions; speculative nature of gold
exploration; dilution; share price volatility; competition; loss of
key employees; and defective title to mineral claims or property,
as well as those factors discussed in the sections entitled
"Forward-Looking Statements" and "Risk factors in our business" in
the Company's most recent Annual Information Form and 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, for a fuller understanding of the
risks and uncertainties that affect the Company's business and
operations.
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.
Cautionary Note to US Investors Concerning Estimates of
Measured, Indicated and Inferred Resources
The terms
"mineral resource", "measured mineral resource", "indicated mineral
resource", "inferred mineral resource" used herein are Canadian
mining terms used in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101") under
the guidelines set out in the Canadian Institute of Mining and
Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources
and Mineral Reserves, adopted by the CIM Council, as may be amended
from time to time. These definitions differ from the definitions in
the United States Securities &
Exchange Commission ("SEC") Industry Guide 7. In the United States, a mineral reserve is
defined as a part of a mineral deposit which could be economically
and legally extracted or produced at the time the mineral reserve
determination is made.
While the terms "mineral resource", "measured mineral
resource," "indicated mineral resource", and "inferred mineral
resource" are recognized and required by Canadian regulations, they
are not defined terms under standards in the United States and normally are not
permitted to be used in reports and registration statements filed
with the SEC. As such, information contained herein concerning
descriptions of mineralization and resources under Canadian
standards may not be comparable to similar information made public
by U.S. companies in SEC filings.
Mineral resources which are not mineral reserves do not have
demonstrated economic viability. With respect to "indicated
mineral resource" and "inferred mineral resource", there is a great
amount of uncertainty as to their existence and a great uncertainty
as to their economic and legal feasibility. It cannot be assumed
that all or any part of a "measured mineral resource", "indicated
mineral resource" or "inferred mineral resource" will ever be
upgraded to a higher category.
Accordingly, information herein containing descriptions of
our mineral deposits may not be comparable to similar information
made public by US companies subject to the reporting and disclosure
requirements under US federal securities laws and the rules and
regulations thereunder.
SOURCE Eldorado Gold Corporation