Eldorado Gold Lowers 2017 Production Guidance for Kisladag Operations in Turkey
VANCOUVER, June 27, 2017 /CNW/ – 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. Kisladag has been in operation since 2006 and is Turkey’s largest gold mine.
Placement of estimated recoverable gold on the leach pad is proceeding as planned, however, gold solution grade and consequently gold recovery from the leach pad has recently lagged internal expectations. Recent laboratory and in situ tests where solution chemistry has been adjusted have indicated normal recovery rates are still expected. However, more time is now required to adjust the overall pad solution chemistry and allow solution to flow through the current stack height of the leach pad, which is at approximately 80 metres at the highest point.
Kisladag is now expected to produce approximately 38,400 ounces of gold in the second quarter of 2017 and approximately 90,000 ounces of gold for the first half of 2017. As such, Kisladag will not meet the Company’s original 2017 guidance of 230,000 to 245,000 ounces.
The Company now expects 2017 gold production of 180,000 to 210,000 ounces from Kisladag with cash costs in the new guidance range of $450 to 500 per ounce. The ounces that are not produced in 2017 are expected to be produced in the first half of 2018.
The Company expects 2018 full year gold production of approximately 320,000 to 335,000 ounces at cash costs of $425 to 475 per ounce, compared to previous guidance of 285,000 ounces.
Eldorado’s President and CEO, George Burns, commented, “While Kisladag’s decrease in production for the year is disappointing, our team has implemented a strategy to return our cornerstone asset to normalized production levels. We felt it prudent to inform the market of this information regarding Kisladag in view of our current agreement with Integra Gold Corporation. Under the agreement, the Company shall issue common shares as part consideration of the acquisition of all of the issued shares of Integra, that Eldorado does not already own, pursuant to a plan of arrangement, which is subject to Integra shareholder approval.”
About Eldorado Gold
Eldorado is a leading intermediate gold producer with mining, development and exploration operations in Turkey, Greece, 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).