Eldorado Gold announced a 15-year mine life at Kisladag open pit operation in Turkey after completing long-cycle heap leach tests and replacing the tertiary crushing circuit with a high-pressure grinding roll (HPGR) circuit. “Kisladag has been a cornerstone asset of Eldorado for over a decade, producing over three million ounces of gold and generating significant value for all stakeholders during that period,” George Burns, the company’s president and CEO said in a release.
“Following the resumption of full operations last spring, and the significant work and testing undertaken by the Eldorado team over the past 18 months, we are pleased to announce a mine life extension at Kisladag that puts this asset back in the core of our portfolio.”
Following release of year-end results and five-year guidance from Eldorado Gold, the intermediate-producer’s stock soared over 30% in one day and breached eight-year highs.
This year, the company expects to produce 520,000 ounces to 550,000 ounces at AISCs of $850 to $950 per ounce. Over the next five years, it anticipates production from its four operating mines to average over 450,000 ounces.
Last year, the Eldorado’s gold output was at 395,331 ounces at AISCs of $1,034 per ounce with $150.6 million in cash flow generated from operating activities, before changes in working capital.
Increased leach time with HPGR appears to increase heap leach recoveries at Kisladag to 56% with an updated average annual gold production expected at 160,000 ounces at AISCs of $800 to $850 per ounce.
Over the next five years, Kisladag and the underground Lamaque mine in Quebec, which declared commercial production last March, appear to be the largest gold contributors.
Eldorado also operates the underground Efemcukuru mine in western Turkey and the Olympias gold-silver-lead-zinc mine in northern Greece.
In addition to its gold-producing operations, in Greece, Eldorado holds the Skouries and Perama Hill projects which are currently on care and maintenance: Skouries was placed on care and maintenance at the end of 2018 due to ongoing permitting delays.
In January, Eldorado announced the discovery of the Ormaque zone at its Lamaque operation.