Brumal lacks continuity

Vancouver — Drilling at the Brumal project, 5 km from the Sao Bento mine, has failed to outline sufficient near surface mineralization to support a mining operation.Eldorado Gold (ELD-T) punched 10 holes totalling 3,069 metres into the target in hopes of outlining a mineable resource. Although previous drilling over a 600 metre strike length returned encouraging gold intercept, the recent drill program failed to establish mineral continuity between the holes. Highlights form the program include:

• Hole 1 3.8 metres grading 32.2 grams gold per tonne from 129.1 metres downhole,
• Hole 2 1.7 metres grading 3.92 grams gold from 349.7 metres downhole,
• Hole 3 0.9 metre grading 3.2 grams gold from 198.2 metres downhole,
• Hole 4 5.8 metres grading 3.6 grams gold from 116.5 metres downhole,
• Hole 5 5.2 metres grading 22.82 grams gold from 151.7 metres downhole,
• Hole 7 1.6 metres grading 3.15 grams gold from 331.9 metres downhole,
• Hole 9 0.75 metre grading 21.34 grams gold from 119.5 metres downhole.

Holes 6,8 and 10 failed to return any significant mineralization.

Based on the results, Eldorado aims to test the deeper portion of the mineralization next year.

Earlier drilling located the mineralized horizon within the banded iron formation, 500 metres below the surface. The deepest hole intersected 13.3 grams gold per tonne over a true width of 3.6 metres at a vertical depth of 475 metres. Three ore horizons similar to Sao Bento exist close to the upper and lower contacts of the main iron formation.

Located in Minas Gerais state, the property was picked up by Eldorado under a deal with Companhia Vale do Rio Doce (CVRD) (RIO.PR-N), Eldorado can purchase the property by spending US$1.5 million over 2.5 years and then paying US$5 million in four instalments, with the final payment due on the second anniversary of production. CVRD retains a sliding-scale net smelter return royalty of 1-4% on any output greater than 500,000 oz.