Eldorado Gold CEO says more potential at Quebec mine

The ribbon cutting ceremony at the recently opened Lamaque gold mine near Val d’Or, Quebec, where commercial production was achieved on March 31, 2019. Source: Eldorado Gold Corp.

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Eldorado Gold Corp. [ELD-TSX; EGO-NYSE] says exploration results from its Lamaque gold mine in Quebec continue to underpin the company’s vision of building a long-term business in the eastern Abitibi region.

The announcement comes after Eldorado released results of its exploration activities completed since the fourth quarter of 2018 at the Lamaque Project. These results have successfully expanded the high-grade mineralization beyond the resource model in the lower portion of the deposit as well as an expanded bulk stockwork zone below 1,250 metres.

Highlights include multiple high-grade step-out intersections at the Triangle Deposit, which have significantly expanded the resource potential of the C7, C9, C9b and C10 shear zones. Results include intercepts of 3.85 metres of 19.33 g/t gold, 32.53 g/t gold uncapped, and 9.30 metres at 10.72 g/t gold.

(The company said all assays were capped at 40.0 g/t gold unless otherwise stated).

Large vein stockwork zones that are potentially amenable to build mining were further defined in the lower Triangle Deposit area. Results include 64.50 metres of 3.00 g/t gold, 6.38 g/t gold uncapped.

Also, Eldorado said step-out drilling in the Plug 4 Deposit expanded the depth extent of mineralization for an additional 500 vertical metres down-plunge of the previous resource. The Plug 4 and Parallel deposits offer the potential for new mining fronts and additional feed to the mill, Eldorado has said.

“Over the last 12 months, our surface exploration drilling at Lamaque has focused on better defining the resource potential in the less-explored lower portion of the Triangle Deposit with a view to expanding mineral resources in 2020,” said Eldorado President and CEO George Burns.  “At the same time our underground drilling continues to focus on conversion of existing resources to reserves in the C5 and C4 mineralized zones,” he said.

“These exciting results significantly increase the resource potential of the lower Triangle Deposit, which now shows continuity of mineralization to similar depths as the nearby historic Sigma mine.’’

On Friday, Eldorado shares eased 4.4% or 57 cents to $12.29 on volume of 1.6 million. The shares are currently trading in a 52-week range of $3.36 and $13.34.

Based in Vancouver, Eldorado is a mid-tier gold and base metals producer with an international portfolio that includes mining, development and exploration projects in Turkey, Canada, Greece, Romania, Serbia and Brazil.

Key operations include the Kisladag and Efemcukuru mines in Turkey, the Olympias Mine in Greece, and the Lamaque Mine in Quebec. Together they are expected to produce between 390,000 and 420,000 ounces this year at an all-in-sustaining cost of US $900-$1,000 an ounce.

Having reached the commercial production stage in March, 2019, Lamaque is seen as a potential springboard for Eldorado’s growth plans over the next few years. “It will be our second largest mine, and has exciting exploration potential in terms of ability to increase reserves and extend mine life,” Burns has said.

Located on the outskirts of Val d’Or (Valley of Gold) at the eastern end of the southern Abitibi Greenstone Belt, the Lamaque property is home to the Sigma Mill and former Sigma and Lamaque gold mines which operated for over 50 years, starting in the 1930s, and produced almost 10 million ounces of gold. It is also home to the Triangle Deposit, a greenfield discovery located about 2.5km south of the historic Sigma and Lamaque mines.

Eldorado refurbished the Sigma mill and installed a state-of-the-art operating system to maximize recoveries. Lamaque is expected to meet production guidance of 100,000 to 110,000 ounces (including pre-commercial gold production) in 2019. Production there is expected to increase to 125,000 to 135,000 ounces of gold in 2020 and 2021.

Eldorado started mining at the Triangle Deposit at around 1,500 tonnes/day and will eventually ramp that up to something in the order of 1,800 tonnes/day.

Ongoing resource upgrade and resource expansion drilling is intended to add to Triangle’s current reserve of 953,000 ounces of gold.

Exploration drilling at the Triangle Deposit from the fourth quarter of 2018 to date targeted the area below the C5 ore zone at depths of 1,000 to 1,800 metres from surface. Results released on September 5, 2019, are based on 35,526 metres of diamond drilling, of which 22,650 metres targeted the lower Triangle Deposit. The remainder tested other zones in the Sigma-Lamaque area.

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