ELDORADO Gold is continuing the final stages of development work on its fourth operating project in China, Eastern Dragon. The company aims to begin production at the Heilongjiang province gold and silver project in the first half of 2016.
In its September quarter report Eldorado said work was continuing on preparation of reports and information to follow from receipt of the Project Permit Approval from the National Development and Reform Commission.
“Installation work related to completion of structural steel support and access to the process circuit continued inside the plant facilities while additional infrastructure items related to completion of power and heating facilities were ongoing. Overall expenditure for the period was US$600,000.”
Eastern Dragon has proven gold reserves of 837,000 tonnes @ 11.07 grams/tonne for 297,000 ounces, probable reserves of 2.168 million tonnes @ 6.46 grams/tonne for 447,000 ounces. Average annual production is expected to be 70,000 ounces. Total measured and indicated gold resources are 3.5 million tonnes @ 7.50 grams/tonne for 852,000 ounces while inferred resources are 2.2 million tonnes @ 2.67 grams/tonne for 190,000 ounces.
It also has proven silver reserves of 837,000 tonnes @ 81 grams/tonne for 2.178 million ounces and probable reserves of 2.168 million tonnes @ 67 grams/tonne for 4.628 million ounces. Total measured and indicated silver resources are 3.5 million tonnes @ 73 grams/tonne for 8.3 million ounces, and inferred resources are 2.2 million tonnes @ 20 grams/tonne for 1.5 million ounces.
Average annual production at Eastern Dragon is expected to be 70,000 ounces of gold and 400,000 ounces of silver. CDH Investments has a 20% interest in the project.
At the Jinfeng project gold production in the September quarter was 4% lower year-on-year mainly due to completion of open pit mining earlier in the year. Gold sales were impacted by shipping delays, which pushed 5851 ounces of September production into October sales. Cash operating costs were 5% higher due to lower production.
White Mountain production was 10% lower mainly due to gold in circuit inventory movements and lower tonnes and average recoveries. Cash operating costs per ounce were 17% higher mainly due to higher stope development activities as well as lower production.
Tanjianshan production was 14% higher mainly due to a drawdown of gold-in-circuit inventory. Cash operating costs per ounce were 18% higher mainly due to higher tonnes mined at a lower head grade. There were 123,343 tonnes processed @ 2.63 grams/tonne compared to 63,343 tonnes @ 3.67 grams/tonne year-on-year.