Eldorado Gold ups production by 34% in 2020

Eldorado Gold Corp. [ELD-TSX; EGO-NYSE] has reported a 34% increase in its annual gold production.

The Vancouver company said it achieved the increase by producing 528,874 ounces of gold in 2020. It also said preliminary gold production in the fourth quarter of 2020, increased 16% from the year ago quarter to 138,220 ounces.

Eldorado’s Q4 and year-end production numbers were released after the close of trading on January 7, 2020. On Friday January 8 the shares were down almost 7% or $1.19 to $16.86 on volume of 788,735, and currently trade in a 52-week range of $18.90 and $6.29. Shares came under pressure after the price of gold fell by roughly 4% on Friday to US$1,842.80/oz.

The company also announced that Steve Reid has been named Chair of the Board, replacing George Albino, who remains a director.

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 produce 395,331 ounces of gold last year, including 113,940 ounces from Lamaque.

This year, the company had been forecasting production of 125,000 to 135,000 ounces of gold at Lamaque.

Preliminary 2020 gold production at Lamaque exceeded guidance [by producing 144,141 ounces of gold in 2020] despite a three-week shutdown in early Spring related to government-mandated COVID-19 operating restrictions.

Located on the outskirts of Val d’Or 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 produced almost 10 million ounces of gold. It is also home to the Triangle deposit, a greenfield discovery by Integra Gold Corp. located about 2.5km south of the historic Sigma and Lamaque mines. The Triangle deposit is the focus of the Lamaque mine plan.

Eldorado acquired a foothold in Lamaque via an initial investment for 15% of Integra Gold back in 2015, a company it later acquired for $590 million in July 2017. Eldorado refurbished the Sigma mill and installed a state-of-the-art operating system to maximize recoveries.

Kisladag saw production of  226,475 ounces of gold in 2020, including 56,816 ounces in Q4.