TSX: ELD NYSE:
EGO
VANCOUVER, March 28, 2017 /PRNewswire/ - Eldorado Gold
Corporation, ("Eldorado" or "the Company") today reported that it
has received multiple tenders for significantly better concentrate
sales terms at Olympias Phase II ("Phase II"), where wet
commissioning at the project is currently underway.
Improved Concentrate Sales Terms
The Company is
pleased to announce that it has received multiple tenders for
significantly better concentrate sales terms for material produced
beyond 2017. Under the new sales terms, gold payability rates have
increased from 58% up to a maximum of 71%, which is expected to
result in an increase of approximately 15,000 ounces of payable
gold production per year. Annual Phase II production is now
estimated to be approximately 85,000 ounces of gold (from 72,000
ounces per year previously) plus approximately 55,000 ounces of
gold equivalent production.
Commissioning
The construction of Phase II is
substantially complete and commissioning has commenced. Addition of
low grade ore to the crushing circuit is expected next week.
Pre-commissioning of the main flotation plant equipment is underway
and ore will be introduced in April. Deliveries of first-fill
reagents, grinding media, critical and operational spares are on
schedule to support second quarter pre-commercial production.
Underground
Mined ore has been moved to the
surface stockpile adjacent to the crusher for commissioning of the
processing facility. Underground development is well positioned to
support 2017 production guidance with fourteen stopes in ore on
nine different levels complete and ready for extraction. Ore mining
will begin shortly in both the east and west ore zones using a
drift-and-fill mining method.
Phase II Overview
Phase II involves processing ore
from the underground at a rate of approximately 400,000 tonnes per
year. The new processing facility includes new processing equipment
within the pre-existing plant building to produce three
concentrates: lead-silver, zinc and gold bearing
pyrite-arsenopyrite. In 2017, the Olympias mine is budgeted
to process 267,000 tonnes of ore at grades of 9.6 grams per tonne
gold, 3.4% lead, 3.4% zinc and 105 grams per tonne silver.
Paul Skayman, Eldorado's Chief Operating Officer, commented:
"After a lot of hard work by our team in Greece, we are all very excited to now be at
this juncture with commissioning and we expect to declare
commercial production from Olympias Phase II in the third
quarter".
About Eldorado Gold
Eldorado is a leading low cost 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 low cost strategy, a highly
skilled and dedicated workforce, safe and responsible operations,
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).
Cautionary Note about Forward-looking Statements and
Information
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, these 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", "intends", "anticipates", or
"believes" or the negatives thereof or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements or information contained in this
release include, but are not limited to the Company's Reported
Olympias Phase II Improved Concentrate Sales Terms and
Commissioning on Track, including statements or information with
respect to: our guidance and outlook, including expected
production, projected cash cost, our expectation as to our future
financial and operating performance, including estimated cash
costs, expected metallurgical recoveries, gold price outlook and
our strategy, plans and goals, including our proposed development,
construction, permitting and operating plans and priorities, and
related timelines.
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. In particular, except
where otherwise stated, we have assumed a continuation of existing
business operations on substantially the same basis as exists at
the time of this release.
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 recoveries; risks related to impact of the sale of
our Chinese assets on the Company's operations; additional funding
requirements; currency fluctuations; litigation 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 & 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, which discussion is
incorporated by reference in this release, 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.
Except as otherwise noted, scientific and technical
information contained in this press release was reviewed and
approved by Paul Skayman, FAusIMM,
Chief Operating Officer for Eldorado Gold Corporation, and a
"qualified person" as defined by Canadian Securities
Administrators' National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101").
SOURCE Eldorado Gold Corporation