VANCOUVER – Eldorado Gold Corp. (TSX:ELD) says a recent feasibility study supports a planned US$ 354-million expansion at its 100 per cent owned Kisladag gold mine in western Turkey.
Since operations began at Kisladag in 2006, continued exploration of the deposit has resulted in a doubling of the proven and probable reserve ounces to 10.2 million ounces, the company said in a release Friday.
“Kisladag, with an average expanded production rate of approximately 475,000 ounces annually, will contribute significantly to the continued growth of Eldorado’s high quality production base,” president and CEO Paul Wright said in a comment on the study results.
On the basis of the work carried out to date, Eldorado estimates the Phase 4 expansion at Kisladag will be completed in the third quarter of 2014, including the time required for permitting and preparation of the mine plan and infrastructure.
Based on expanding production by the 2014 deadline, the study estimated that 6,218,000 ounces of gold would be recovered at Kisladag in the 2012-2026 period.
A total initial capital investment of US$ 354 million is required to achieve the increased throughput, including new mining equipment, crushing, screening and an ADR plant, expanded infrastructure costs and a contingency of about US$ 35 million, Eldorado said.
Sustaining capital through the planned mine life is estimated at US$ 960 million, comprised mainly of additional mining equipment, leach pad expansions and capitalized waste mining.
Life of mine cash costs are estimated at between US$ 430 and $ 450 and ounce, with total cash cost projected at US$ 450 to $ 470 an ounce.
Local news from metronews.ca/vancouver
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