Eldorado Gold Corporation says its Chinese gold mines are on schedule to maintain the company’s 2013 production guidance. Figures from the quarter ending March 31, include production of 163,768 ounces, up from 155,535 ounces in the corresponding 2012 quarter, and gold sales of 189,346 ounces, a 9% increase on the same period last year.
“Our gold mines continue to perform to plan and generate significant cash flows which will be used for the phase IV expansion of our Kisladag mine in Turkey and new mine development,” says Eldorado chief executive officer Paul Wright.
“The company continues to maintain its guidance for 2013, with gold sales of 705,000 to 760,000 ounces, operating cash costs of $515-530 per ounce and all-in cash costs of about $950 per ounce. With our strong balance sheet and comparatively low cost gold mining operations Eldorado is well positioned to confront the recent weakness in gold prices.”
The company continued its exploration activities at Jinfeng during the last quarter, with 3500 metres of exploration drilling completed from underground stations. Most drilling tested extensions or infill areas of the site’s three mineralized zones. One hole returned an intersection of 12 metres @ 9.07 grams/tonne gold and 9 metres @ 10.5 grams/tonne.
At White Mountain mine, an exploration drift designed to provide drill site access for the Deep North Zone is progressing as planned. Resource definition drilling of the North Zone from the exploration drift commenced late in the quarter, and no fieldwork was completed on the regional exploration licences due to snow cover.
At Tanjianshan, drilling was completed in the Jinlonggou mine area, testing targets in the south pit wall and M7-main pit bridge areas. Pyritic zones were intersected in both areas, suggesting that the mineralized zones identified in the pit walls have lateral continuity. Interpretation and geological modelling of both the Qinlongtan North project area and the Jinlonggou area are being completed.
No construction work took place at Eastern Dragon during this quarter due to the winter season and permitting delays.